II

106TH CONGRESS

2D SESSION S. 3042

To protect citizens against becoming victims of Internet fraud, to provide

stiff penalties against those who target senior citizens, and to educate

senior citizens on how to avoid being victimized by Internet or telemarketing fraud.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 13, 2000

Mr. ASHCROFT introduced the following bill; which was read twice and

referred to the Committee on the Judiciary

A BILL

To protect citizens against becoming victims of Internet

fraud, to provide stiff penalties against those who target

senior citizens, and to educate senior citizens on how

to avoid being victimized by Internet or telemarketing

fraud.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
2

S 3042 IS

1 TITLE I—AN ACT TO PREVENT

2 INTERNET FRAUD AND

3 FRAUD AGAINST THE ELDER4 LY

5 SEC. 101. SHORT TITLE.

6 This title may be cited as ‘‘An Act to Prevent Inter7 net Fraud and Fraud Against the Elderly’’.

8 SEC. 102. PURPOSE.

9 It is the purpose of this title to protect citizens

10 against becoming victims of Internet fraud, to provide stiff

11 penalties against those who target senior citizens, and to

12 educate senior citizens on how to avoid being victimized

13 by Internet or telemarketing fraud.

14 SEC. 103. EDUCATION.

15 (a) IN GENERAL.—The Federal Trade Commission

16 shall publicly disseminate in each State information de17 signed to educate senior citizens and raise awareness

18 about the dangers of telemarketing fraud and fraud over

19 the Internet.

20 (b) EDUCATION.—Carrying out subsection (a), the

21 Commission shall—

22 (1) inform senior citizens of the prevalence of

23 Internet and telemarketing fraud targeted against

24 them;
3

S 3042 IS

1 (2) inform senior citizens how to identify Inter2 net and telemarketing fraud;

3 (3) educate senior citizens how to protect them4 selves against Internet and telemarketing fraud, in5 cluding an explanation of the dangers of providing

6 bank account, credit card, or other financial or per7 sonal information over the telephone to unsolicited

8 callers;

9 (4) educate senior citizens how to report sus10 pected attempts at Internet or telemarketing fraud

11 to a law enforcement agency;

12 (5) educate senior citizens of their consumer

13 protection rights under Federal law; and

14 (6) provide any other information as the Com15 mission considers necessary to protect senior citizens

16 against Internet or telemarketing fraud.

17 SEC. 104. DEFINITION.

18 For purposes of this title, the term ‘‘State’’ includes

19 the District of Columbia, the Commonwealth of Puerto

20 Rico, Guam, the Virgin Islands, American Samoa, and the

21 Commonwealth of the Northern Mariana Islands.
4

S 3042 IS

1 TITLE II—TELEMARKETING

2 FRAUD OVER THE INTERNET

3 SEC. 201. EXTENSION OF CRIMINAL FRAUD STATUTE TO

4 INTERNET.

5 (a) EXTENSION.—Section 1343 of title 18, United

6 States Code, is amended by—

7 (1) by inserting ‘‘(a)’’ before ‘‘Whoever’’;

8 (2) in subsection (a), as so designated, by strik9 ing ‘‘or television communication’’ and inserting

10 ‘‘television, or Internet communication’’; and

11 (3) by adding at the end thereof the following:

12 ‘‘(b) For purposes of this section, the term ‘Internet’

13 means collectively the myriad of computer and tele14 communications facilities, including equipment and oper15 ating software, which comprise the interconnected world16 wide network of networks that employ the Transmission

17 Control Protocol/Internet Protocol, or any predecessor or

18 successor protocols to such protocol, to communicate in19 formation of all kinds by wire or radio.’’.

20 (b) CONFORMING AND CLERICAL AMENDMENTS.—

21 (1) The section heading of such section is

22 amended to read as follows:

23 ‘‘§ 1343. Fraud by wire, radio, television, or Internet’’.

24 (2) The table of sections at the beginning of

25 chapter 63 of that title is amended by striking the
5

S 3042 IS

1 item relating to section 1343 and inserting the fol2 lowing new item:

‘‘1343. Fraud by wire, radio, television, or Internet.’’.

3 SEC. 202. FEDERAL TRADE COMMISSION SANCTIONS.

4 (a) RULEMAKING TO APPLY SANCTIONS.—The Fed5 eral Trade Commission shall initiate a rulemaking pro6 ceeding to set forth the application of section 5 of the Fed7 eral Trade Commission Act (15 U.S.C. 45), and other

8 statutory provisions within its jurisdiction, to deceptive

9 acts or practices in or affecting the commerce of the

10 United States in connection with the promotion, advertise11 ment, offering for sale, or sale of goods or services through

12 use of the Internet.

13 (b) INTERNET DEFINED.—In this section, the term

14 ‘‘Internet’’ means collectively the myriad of computer and

15 telecommunications facilities, including equipment and op16 erating software, which comprise the interconnected

17 world-wide network of networks that employ the Trans18 mission Control Protocol/Internet Protocol, or any prede19 cessor or successor protocols to such protocol, to commu20 nicate information of all kinds by wire or radio.

Æ