II

106TH CONGRESS

1ST SESSION S. 301

To amend title 39, United States Code, relating to mailability, false

representations, civil penalties, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JANUARY 22, 1999

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

referred to the Committee on Governmental Affairs

A BILL

To amend title 39, United States Code, relating to mailability, false representations, civil penalties, and for other

purposes.

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

3 SECTION 1. HONESTY IN SWEEPSTAKES ACT OF 1999.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Honesty in Sweepstakes Act of 1999’’.

6 (b) UNMAILABLE MATTER.—Section 3001 of title 39,

7 United States Code, is amended by—

8 (1) redesignating subsections (j) and (k) as

9 subsections (l) and (m), respectively; and

10 (2) inserting after subsection (i) the following:
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1 ‘‘(j)(1) Matter otherwise legally acceptable in the

2 mails that—

3 ‘‘(A) constitutes a solicitation or offer in con4 nection with the sales promotion for a product or

5 service (including any sweepstakes) that includes the

6 chance or opportunity to win anything of value; and

7 ‘‘(B) contains words or symbols that suggest

8 that—

9 ‘‘(i) the recipient has or will receive any10 thing of value if that recipient has in fact not

11 won that thing of value; or

12 ‘‘(ii) the recipient is likely to receive any13 thing of value if statistically the recipient is not

14 likely to receive anything of value,

15 shall not be carried or delivered by mail, and may be dis16 posed of as the Postal Service directs, unless such matter

17 bears the notice described in paragraph (2).

18 ‘‘(2)(A) The notice referred to in paragraph (1) is

19 the following notice:

20 ‘‘(i) ‘This is a game of chance (or sweepstakes,

21 if applicable). You have not automatically won. Your

22 chances of winning are (inserting corresponding

23 mathematical probability for each prize shown). No

24 purchase is required either to win a prize or enhance

25 your chances of winning a prize.’, or a notice to the
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1 same effect in words which the Postal Service may

2 prescribe; or

3 ‘‘(ii) a standardized Postal Service designed

4 warning label to the same effect as the Postal Serv5 ice may prescribe.

6 ‘‘(B) The notice described in subparagraph (A) shall

7 be in conspicuous and legible type in contrast by typog8 raphy, layout, or color with other printing on its face, in

9 accordance with regulations that the Postal Service shall

10 prescribe and be prominently displayed on the first page

11 of the enclosed printed material and on any other pages

12 enclosed.

13 ‘‘(C) If the matter described in paragraph (1) is an

14 envelope, the face of the envelope shall bear the notice de15 scribed in subparagraph (A).

16 ‘‘(D) If the matter described in paragraph (1) is an

17 order entry device, the face of the order entry device shall

18 bear the following notice:

19 ‘‘ ‘This is a game of chance (or sweepstakes, if

20 applicable). No purchase is required either to win a

21 prize or enhance your chances of winning a prize.’,

22 or a notice to the same effect in words which the

23 Postal Service may prescribe.

24 ‘‘(k) Matter otherwise legally acceptable in the mails

25 that constitutes a solicitation or offer in connection with
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1 the sales promotion for a product or service that uses any

2 matter resembling a negotiable instrument shall not be

3 carried or delivered by mail, and may be disposed of as

4 the Postal Service directs, unless such matter bears on the

5 face of the negotiable instrument in conspicuous and leg6 ible type in contrast by typography, layout, or color with

7 other printing on its face, in accordance with regulations

8 which the Postal Service shall prescribe the following no9 tice: ‘This is not a check (or negotiable instrument). This

10 has no cash value.’, or a notice to the same effect in words

11 which the Postal Service may prescribe.’’.

12 (c) TECHNICAL AMENDMENT.—Section 3005(a) of

13 title 39, United States Code, is amended by—

14 (1) striking ‘‘or’’ after ‘‘(h),’’ both places it ap15 pears; and

16 (2) inserting ‘‘, (j), or (k)’’ after ‘‘(i)’’.

17 (d) PENALTIES.—

18 (1) IN GENERAL.—Section 3012 of title 39,

19 United States Code, is amended—

20 (A) by redesignating subsections (b), (c), and

21 (d), as subsections (c), (d), and (e), respectively;

22 (B) by inserting after subsection (a) the follow23 ing:

24 ‘‘(b) Any person who, through use of the mail, sends

25 any matter which is nonmailable under sections 3001 (a)
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1 through (k), 3014, or 3015 of this title, shall be liable

2 to the United States for a civil penalty in accordance with

3 regulations the Postal Service shall prescribe. The civil

4 penalty shall not exceed $50,000 for each mailing of less

5 than 50,000 pieces; $100,000 for each mailing of 50,000

6 to 100,000 pieces; with an additional $10,000 for each

7 additional 10,000 pieces above 100,000, not to exceed

8 $2,000,000.’’;

9 (C) in subsection (c)(1) and (2), as redesig10 nated, by inserting after ‘‘of subsection (a)’’ the fol11 lowing: ‘‘or subsection (b),’’; and

12 (D) in subsection (d), as redesignated, by strik13 ing ‘‘Treasury of the United States’’ and inserting

14 ‘‘Postal Service Fund established by section 2003 of

15 this title’’.

16 (2) ALLOCATION OF FUNDS.—It is the sense of Con17 gress that civil penalties collected through the enforcement

18 of the amendment made by paragraph (1) should be allo19 cated by the Postal Service to increase consumer aware20 ness of misleading solicitations received through the mail,

21 including releasing an annual listing of the top 10 offend22 ers of the Honesty in Sweepstakes Act of 1999.

23 (e) NO PREEMPTION.—Nothing in this Act shall pre24 empt any State law that regulates advertising or sales pro-
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1 motions or goods and services that includes the chance or

2 opportunity to win anything of value.

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