106TH CONGRESS

1ST SESSION S. 335

AN ACT

To amend chapter 30 of title 39, United States Code, to

provide for the nonmailability of certain deceptive matter

relating to sweepstakes, skill contests, facsimile checks,

administrative procedures, orders, and civil penalties relating to such matter, 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. SHORT TITLE.

4 This Act may be cited as the ‘‘Deceptive Mail Preven5 tion and Enforcement Act’’.
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1 SEC. 2. RESTRICTIONS ON MAILINGS USING MISLEADING

2 REFERENCES TO THE UNITED STATES GOV3 ERNMENT.

4 Section 3001 of title 39, United States Code, is

5 amended—

6 (1) in subsection (h)—

7 (A) in the first sentence by striking ‘‘con8 tains a seal, insignia, trade or brand name, or

9 any other term or symbol that reasonably could

10 be interpreted or construed as implying any

11 Federal Government connection, approval or en12 dorsement’’ and inserting the following: ‘‘which

13 reasonably could be interpreted or construed as

14 implying any Federal Government connection,

15 approval, or endorsement through the use of a

16 seal, insignia, reference to the Postmaster Gen17 eral, citation to a Federal statute, name of a

18 Federal agency, department, commission, or

19 program, trade or brand name, or any other

20 term or symbol; or contains any reference to

21 the Postmaster General or a citation to a Fed22 eral statute that misrepresents either the iden23 tity of the mailer or the protection or status af24 forded such matter by the Federal Govern25 ment’’; and

26 (B) in paragraph (2)—
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1 (i) in subparagraph (A) by striking

2 ‘‘and’’ at the end;

3 (ii) in subparagraph (B) by striking

4 ‘‘or’’ at the end and inserting ‘‘and’’; and

5 (iii) by inserting after subparagraph

6 (B) the following:

7 ‘‘(C) does not contain a false representa8 tion implying that Federal Government benefits

9 or services will be affected by any purchase or

10 nonpurchase; or’’;

11 (2) in subsection (i) in the first sentence—

12 (A) in the first sentence by striking ‘‘con13 tains a seal, insignia, trade or brand name, or

14 any other term or symbol that reasonably could

15 be interpreted or construed as implying any

16 Federal Government connection, approval or en17 dorsement’’ and inserting the following: ‘‘which

18 reasonably could be interpreted or construed as

19 implying any Federal Government connection,

20 approval, or endorsement through the use of a

21 seal, insignia, reference to the Postmaster Gen22 eral, citation to a Federal statute, name of a

23 Federal agency, department, commission, or

24 program, trade or brand name, or any other

25 term or symbol; or contains any reference to
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1 the Postmaster General or a citation to a Fed2 eral statute that misrepresents either the iden3 tity of the mailer or the protection or status af4 forded such matter by the Federal Govern5 ment’’; and

6 (B) in paragraph (2)—

7 (i) in subparagraph (A) by striking

8 ‘‘and’’ at the end;

9 (ii) in subparagraph (B) by striking

10 ‘‘or’’ at the end and inserting ‘‘and’’; and

11 (iii) by inserting after subparagraph

12 (B) the following:

13 ‘‘(C) does not contain a false representa14 tion implying that Federal Government benefits

15 or services will be affected by any purchase or

16 nonpurchase; or’’;

17 (3) by redesignating subsections (j) and (k) as

18 subsections (m) and (o), respectively; and

19 (4) by inserting after subsection (i) the fol20 lowing:

21 ‘‘(j)(1) Matter otherwise legally acceptable in the

22 mails described under paragraph (2)—

23 ‘‘(A) is nonmailable matter;

24 ‘‘(B) shall not be carried or delivered by mail;

25 and
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1 ‘‘(C) shall be disposed of as the Postal Service

2 directs.

3 ‘‘(2) Matter that is nonmailable matter referred to

4 under paragraph (1) is any matter that—

5 ‘‘(A) constitutes a solicitation for the purchase

6 of any product or service that—

7 ‘‘(i) is provided by the Federal Govern8 ment; and

9 ‘‘(ii) may be obtained without cost from

10 the Federal Government; and

11 ‘‘(B) does not contain a clear and conspicuous

12 statement giving notice of the information under

13 subparagraph (A) (i) and (ii).’’.

14 SEC. 3. RESTRICTIONS ON SWEEPSTAKES AND DECEPTIVE

15 MAILINGS.

16 Section 3001 of title 39, United States Code, is

17 amended by inserting after subsection (j) (as added by sec18 tion 2(4) of this Act) the following:

19 ‘‘(k)(1) In this subsection, the term—

20 ‘‘(A) ‘clearly and conspicuously displayed’

21 means presented in a manner that is readily notice22 able, readable, and understandable to the group to

23 whom the applicable matter is disseminated;
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1 ‘‘(B) ‘facsimile check’ means any matter de2 signed to resemble a check or other negotiable in3 strument that is not negotiable;

4 ‘‘(C) ‘skill contest’ means a puzzle, game, com5 petition, or other contest in which—

6 ‘‘(i) a prize is awarded or offered;

7 ‘‘(ii) the outcome depends predominately

8 on the skill of the contestant; and

9 ‘‘(iii) a purchase, payment, or donation is

10 required or implied to be required to enter the

11 contest; and

12 ‘‘(D) ‘sweepstakes’ means a game of chance for

13 which no consideration is required to enter.

14 ‘‘(2) Matter otherwise legally acceptable in the mails

15 that is nonmailable matter described under paragraph (3)

16 shall not be carried or delivered by mail and may be dis17 posed of as the Postal Service directs.

18 ‘‘(3) Matter that is nonmailable matter referred to

19 under paragraph (2) is any matter (except matter as pro20 vided under paragraph (4)) that—

21 ‘‘(A)(i) includes entry materials for a sweep22 stakes or a promotion that purports to be a sweep23 stakes; and

24 ‘‘(ii)(I) does not contain a statement that

25 prominently discloses in the mailing, in the rules,
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1 and on the order or entry form, that no purchase is

2 necessary to enter such sweepstakes;

3 ‘‘(II) does not contain a statement that promi4 nently discloses in the mailing, in the rules, and on

5 the order or entry form, that a purchase will not im6 prove an individual’s chances of winning with such

7 entry;

8 ‘‘(III) does not state all terms and conditions of

9 the sweepstakes promotion, including the rules and

10 entry procedures for the sweepstakes;

11 ‘‘(IV) does not disclose the sponsor or mailer of

12 such matter and the principal place of business or

13 an address at which the sponsor or mailer may be

14 contacted;

15 ‘‘(V) does not contain sweepstakes rules that

16 state—

17 ‘‘(aa) the estimated odds of winning each

18 prize;

19 ‘‘(bb) the quantity, estimated retail value,

20 and nature of each prize; and

21 ‘‘(cc) the schedule of any payments made

22 over time;

23 ‘‘(VI) represents that individuals not pur24 chasing products may be disqualified from receiving

25 future sweepstakes mailings;
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1 ‘‘(VII) requires that a sweepstakes entry be ac2 companied by an order or payment for a product

3 previously ordered;

4 ‘‘(VIII) represents that an individual is a win5 ner of a prize unless that individual has won a prize;

6 or

7 ‘‘(IX) contains a representation that con8 tradicts, or is inconsistent with sweepstakes rules or

9 any other disclosure required to be made under this

10 subsection, including any statement qualifying, lim11 iting, or explaining the rules or disclosures in a

12 manner inconsistent with such rules or disclosures;

13 ‘‘(B)(i) includes entry materials for a skill con14 test or a promotion that purports to be a skill con15 test; and

16 ‘‘(ii)(I) does not state all terms and conditions

17 of the skill contest, including the rules and entry

18 procedures for the skill contest;

19 ‘‘(II) does not disclose the sponsor or mailer of

20 the skill contest and the principal place of business

21 or an address at which the sponsor or mailer may

22 be contacted; or

23 ‘‘(III) does not contain skill contest rules that

24 state, as applicable—
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1 ‘‘(aa) the number of rounds or levels of the

2 contest and the cost to enter each round or

3 level;

4 ‘‘(bb) that subsequent rounds or levels will

5 be more difficult to solve;

6 ‘‘(cc) the maximum cost to enter all rounds

7 or levels;

8 ‘‘(dd) the estimated number or percentage

9 of entrants who may correctly solve the skill

10 contest or the approximate number or percent11 age of entrants correctly solving the past 3 skill

12 contests conducted by the sponsor;

13 ‘‘(ee) the identity or description of the

14 qualifications of the judges if the contest is

15 judged by other than the sponsor;

16 ‘‘(ff) the method used in judging;

17 ‘‘(gg) the date by which the winner or win18 ners will be determined and the date or process

19 by which prizes will be awarded;

20 ‘‘(hh) the quantity, estimated retail value,

21 and nature of each prize; and

22 ‘‘(ii) the schedule of any payments made

23 over time; or

24 ‘‘(C) includes any facsimile check that does not

25 contain a statement on the check itself that such
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1 check is not a negotiable instrument and has no

2 cash value.

3 ‘‘(4) Matter that appears in a magazine, newspaper,

4 or other periodical and contains materials that are a fac5 simile check, skill contest, or sweepstakes is exempt from

6 paragraph (3), if the matter—

7 ‘‘(A) is not directed to a named individual; or

8 ‘‘(B) does not include an opportunity to make

9 a payment or order a product or service.

10 ‘‘(5) Any statement, notice, or disclaimer required

11 under paragraph (3) shall be clearly and conspicuously

12 displayed.

13 ‘‘(6) In the enforcement of paragraph (3), the Postal

14 Service shall consider all of the materials included in the

15 mailing and the material and language on and visible

16 through the envelope.

17 ‘‘(l)(1) Any person who uses the mails for any matter

18 to which subsection (h), (i), (j), or (k) applies shall adopt

19 reasonable practices and procedures to prevent the mailing

20 of such matter to any person who, personally or through

21 a conservator, guardian, individual with power of

22 attorney—

23 ‘‘(A) submits to the mailer of such matter a

24 written request that such matter should not be

25 mailed to such person; or
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1 ‘‘(B)(i) submits such a written request to the

2 attorney general of the appropriate State (or any

3 State government officer who transmits the request

4 to that attorney general); and

5 ‘‘(ii) that attorney general transmits such re6 quest to the mailer.

7 ‘‘(2) Any person who mails matter to which sub8 section (h), (i), (j), or (k) applies shall maintain or cause

9 to be maintained a record of all requests made under para10 graph (1). The records shall be maintained in a form to

11 permit the suppression of an applicable name at the appli12 cable address for a 5-year period beginning on the date

13 the written request under paragraph (1) is submitted to

14 the mailer.’’.

15 SEC. 4. POSTAL SERVICE ORDERS TO PROHIBIT DECEPTIVE

16 MAILINGS.

17 Section 3005(a) of title 39, United States Code, is

18 amended—

19 (1) by striking ‘‘or’’ after ‘‘(h),’’ both places it

20 appears; and

21 (2) by inserting ‘‘, (j), or (k)’’ after ‘‘(i)’’ in

22 both such places.
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1 SEC. 5. TEMPORARY RESTRAINING ORDER FOR DECEPTIVE

2 MAILINGS.

3 Section 3007 of title 39, United States Code, is

4 amended—

5 (1) by redesignating subsection (b) as sub6 section (c); and

7 (2) by striking subsection (a) and inserting the

8 following:

9 ‘‘(a)(1) In preparation for or during the pendency of

10 proceedings under sections 3005 and 3006, the Postal

11 Service, in accordance with section 409(d), may apply to

12 the district court in any district in which mail is sent or

13 received as part of the alleged scheme, device, lottery, gift

14 enterprise, sweepstakes, skill contest, or facsimile check

15 or in any district in which the defendant is found, for a

16 temporary restraining order and preliminary injunction

17 under the procedural requirements of rule 65 of the Fed18 eral Rules of Civil Procedure.

19 ‘‘(2)(A) Upon a proper showing, the court shall enter

20 an order which shall—

21 ‘‘(i) remain in effect during pendency of the

22 statutory proceedings, any judicial review of such

23 proceedings, or any action to enforce orders issued

24 under the proceedings; and

25 ‘‘(ii) direct the detention by the postmaster, in

26 any and all districts, of the defendant’s incoming
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1 mail and outgoing mail, which is the subject of the

2 proceedings under sections 3005 and 3006.

3 ‘‘(B) A proper showing under this paragraph shall

4 require proof of a likelihood of success on the merits of

5 the proceedings under section 3005 or 3006.

6 ‘‘(3) Mail detained under paragraph (2) shall—

7 ‘‘(A) be made available at the post office of

8 mailing or delivery for examination by the defendant

9 in the presence of a postal employee; and

10 ‘‘(B) be delivered as addressed if such mail is

11 clearly shown not to be the subject of proceedings

12 under sections 3005 and 3006.

13 ‘‘(4) No finding of the defendant’s intent to make a

14 false representation or to conduct a lottery is required to

15 support the issuance of an order under this section.

16 ‘‘(b) If any order is issued under subsection (a) and

17 the proceedings under section 3005 or 3006 are concluded

18 with the issuance of an order under that section, any judi19 cial review of the matter shall be in the district in which

20 the order under subsection (a) was issued.’’.

21 SEC. 6. CIVIL PENALTIES AND COSTS.

22 Section 3012 of title 39, United States Code, is

23 amended—

24 (1) in subsection (a) by striking ‘‘$10,000 for

25 each day that such person engages in conduct de-
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1 scribed by paragraph (1), (2), or (3) of this sub2 section.’’ and inserting ‘‘$50,000 for each mailing of

3 less than 50,000 pieces; $100,000 for each mailing

4 of 50,000 to 100,000 pieces; with an additional

5 $10,000 for each additional 10,000 pieces above

6 100,000, not to exceed $2,000,000.’’;

7 (2) in subsection (b) (1) and (2) by inserting

8 after ‘‘of subsection (a)’’ the following: ‘‘, (c), or

9 (d)’’;

10 (3) by redesignating subsections (c) and (d), as

11 subsections (e) and (f), respectively;

12 (4) by inserting after subsection (b) the fol13 lowing:

14 ‘‘(c)(1) In any proceeding in which the Postal Service

15 may issue an order under section 3005(a), the Postal

16 Service may in lieu of that order or as part of that order

17 assess civil penalties in an amount not to exceed $25,000

18 for each mailing of less than 50,000 pieces; $50,000 for

19 each mailing of 50,000 to 100,000 pieces; with an addi20 tional $5,000 for each additional 10,000 pieces above

21 100,000, not to exceed $1,000,000.

22 ‘‘(2) In any proceeding in which the Postal Service

23 assesses penalties under this subsection the Postal Service

24 shall determine the civil penalty taking into account the

25 nature, circumstances, extent, and gravity of the violation
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1 or violations of section 3005(a), and with respect to the

2 violator, the ability to pay the penalty, the effect of the

3 penalty on the ability of the violator to conduct lawful

4 business, any history of prior violations of such section,

5 the degree of culpability and other such matters as justice

6 may require.

7 ‘‘(d) Any person who violates section 3001(l) shall be

8 liable to the United States for a civil penalty not to exceed

9 $10,000 for each mailing to an individual.’’; and

10 (5) by amending subsection (e) (as redesignated

11 by paragraph (3) of this section) to read as follows:

12 ‘‘(e)(1) From all civil penalties collected in the admin13 istrative and judicial enforcement of this chapter, an

14 amount equal to the administrative and judicial costs in15 curred by the Postal Service in such enforcement, not to

16 equal or exceed $500,000 in each year, shall be—

17 ‘‘(A) deposited in the Postal Service Fund es18 tablished under section 2003; and

19 ‘‘(B) available for payment of such costs.

20 ‘‘(2) Except for amounts deposited in the Postal

21 Service Fund under paragraph (1), all civil penalties col22 lected in the administrative and judicial enforcement of

23 this chapter shall be deposited in the General Fund of the

24 Treasury.’’.
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1 SEC. 7. ADDITIONAL AUTHORITY FOR THE POSTAL INSPEC2 TION SERVICE.

3 (a) IN GENERAL.—Chapter 30 of title 39, United

4 States Code, is amended by adding at the end the fol5 lowing:

6 ‘‘§ 3016. Administrative subpoenas

7 ‘‘(a) AUTHORIZATION OF USE OF SUBPOENAS BY

8 POSTMASTER GENERAL.—In any investigation conducted

9 under this chapter, the Postmaster General may require

10 by subpoena the production of any records (including

11 books, papers, documents, and other tangible things which

12 constitute or contain evidence) which the Postmaster Gen13 eral finds relevant or material to the investigation.

14 ‘‘(b) SERVICE.—

15 ‘‘(1) SERVICE WITHIN THE UNITED STATES.—

16 A subpoena issued under this section may be served

17 by a person designated under section 3061 of title

18 18 at any place within the territorial jurisdiction of

19 any court of the United States.

20 ‘‘(2) FOREIGN SERVICE.—Any such subpoena

21 may be served upon any person who is not to be

22 found within the territorial jurisdiction of any court

23 of the United States, in such manner as the Federal

24 Rules of Civil Procedure prescribe for service in a

25 foreign country. To the extent that the courts of the

26 United States may assert jurisdiction over such per-
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1 son consistent with due process, the United States

2 District Court for the District of Columbia shall

3 have the same jurisdiction to take any action re4 specting compliance with this section by such person

5 that such court would have if such person were per6 sonally within the jurisdiction of such court.

7 ‘‘(3) SERVICE ON BUSINESS PERSONS.—Service

8 of any such subpoena may be made by a Postal In9 spector upon a partnership, corporation, association,

10 or other legal entity by—

11 ‘‘(A) delivering a duly executed copy there12 of to any partner, executive officer, managing

13 agent, or general agent thereof, or to any agent

14 thereof authorized by appointment or by law to

15 receive service of process on behalf of such

16 partnership, corporation, association, or entity;

17 ‘‘(B) delivering a duly executed copy there18 of to the principal office or place of business of

19 the partnership, corporation, association, or en20 tity; or

21 ‘‘(C) depositing such copy in the United

22 States mails, by registered or certified mail, re23 turn receipt requested, duly addressed to such

24 partnership, corporation, association, or entity

25 at its principal office or place of business.
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1 ‘‘(4) SERVICE ON NATURAL PERSONS.—Service

2 of any subpoena may be made upon any natural per3 son by—

4 ‘‘(A) delivering a duly executed copy to the

5 person to be served; or

6 ‘‘(B) depositing such copy in the United

7 States mails, by registered or certified mail, re8 turn receipt requested, duly addressed to such

9 person at his residence or principal office or

10 place of business.

11 ‘‘(5) VERIFIED RETURN.—A verified return by

12 the individual serving any such subpoena setting

13 forth the manner of such service shall be proof of

14 such service. In the case of service by registered or

15 certified mail, such return shall be accompanied by

16 the return post office receipt of delivery of such sub17 poena.

18 ‘‘(c) ENFORCEMENT.—

19 ‘‘(1) IN GENERAL.—Whenever any person, part20 nership, corporation, association, or entity fails to

21 comply with any subpoena duly served upon him, the

22 Postmaster General may request that the Attorney

23 General seek enforcement of the subpoena in the dis24 trict court of the United States for any judicial dis25 trict in which such person resides, is found, or
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1 transacts business, and serve upon such person a pe2 tition for an order of such court for the enforcement

3 of this section.

4 ‘‘(2) JURISDICTION.—Whenever any petition is

5 filed in any district court of the United States under

6 this section, such court shall have jurisdiction to

7 hear and determine the matter so presented, and to

8 enter such order or orders as may be required to

9 carry into effect the provisions of this section. Any

10 final order entered shall be subject to appeal under

11 section 1291 of title 28. Any disobedience of any

12 final order entered under this section by any court

13 may be punished as contempt.

14 ‘‘(d) DISCLOSURE.—Any documentary material pro15 vided pursuant to any subpoena issued under this section

16 shall be exempt from disclosure under section 552 of title

17 5.’’.

18 (b) REGULATIONS.—Not later than 120 days after

19 the date of enactment of this section, the Postal Service

20 shall promulgate regulations setting out the procedures

21 the Postal Service will use to implement this section.

22 (c) TECHNICAL AND CONFORMING AMENDMENT.—

23 The table of sections for chapter 30 of title 39, United

24 States Code, is amended by adding at the end the fol25 lowing:

‘‘3016. Administrative subpoenas.’’.
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1 SEC. 8. REQUIREMENTS OF PROMOTERS OF SKILL CON2 TESTS OR SWEEPSTAKES MAILINGS.

3 (a) IN GENERAL.—Chapter 30 of title 39, United

4 States Code (as amended by section 7 of this Act) is

5 amended by adding after section 3016 the following:

6 ‘‘§ 3017. Nonmailable skill contests or sweepstakes

7 matter; notification to prohibit mailings

8 ‘‘(a) DEFINITIONS.—In this section, the term—

9 ‘‘(1) ‘promoter’ means any person who—

10 ‘‘(A) originates and mails any skill contest

11 or sweepstakes, except for any matter described

12 under section 3001(k)(4); or

13 ‘‘(B) originates and causes to be mailed

14 any skill contest or sweepstakes, except for any

15 matter described under section 3001(k)(4);

16 ‘‘(2) ‘removal request’ means a request stating

17 that an individual elects to have the name and ad18 dress of such individual excluded from any list used

19 by a promoter for mailing skill contests or sweep20 stakes;

21 ‘‘(3) ‘skill contest’ means a puzzle, game, com22 petition, or other contest in which—

23 ‘‘(A) a prize is awarded or offered;

24 ‘‘(B) the outcome depends predominately

25 on the skill of the contestant; and
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1 ‘‘(C) a purchase, payment, or donation is

2 required or implied to be required to enter the

3 contest; and

4 ‘‘(4) ‘sweepstakes’ means a game of chance for

5 which no consideration is required to enter.

6 ‘‘(b) NONMAILABLE MATTER.—

7 ‘‘(1) IN GENERAL.—Matter otherwise legally ac8 ceptable in the mails described under paragraph

9 (2)—

10 ‘‘(A) is nonmailable matter;

11 ‘‘(B) shall not be carried or delivered by

12 mail; and

13 ‘‘(C) shall be disposed of as the Postal

14 Service directs.

15 ‘‘(2) NONMAILABLE MATTER DESCRIBED.—

16 Matter that is nonmailable matter referred to under

17 paragraph (1) is any matter that—

18 ‘‘(A) is a skill contest or sweepstakes, ex19 cept for any matter described under section

20 3001(k)(4); and

21 ‘‘(B)(i) is addressed to an individual who

22 made an election to be excluded from lists

23 under subsection (d); or

24 ‘‘(ii) does not comply with subsection

25 (c)(1).
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1 ‘‘(c) REQUIREMENTS OF PROMOTERS.—

2 ‘‘(1) NOTICE TO INDIVIDUALS.—Any promoter

3 who mails a skill contest or sweepstakes shall pro4 vide with each mailing a statement that—

5 ‘‘(A) is clearly and conspicuously displayed;

6 ‘‘(B) includes the address or toll-free tele7 phone number of the notification system estab8 lished under paragraph (2); and

9 ‘‘(C) states that the notification system

10 may be used to prohibit the mailing of all skill

11 contests or sweepstakes by that promoter to

12 such individual.

13 ‘‘(2) NOTIFICATION SYSTEM.—Any promoter

14 that mails or causes to be mailed a skill contest or

15 sweepstakes shall establish and maintain a notifica16 tion system that provides for any individual (or

17 other duly authorized person) to notify the system of

18 the individual’s election to have the name and ad19 dress of the individual excluded from all lists of

20 names and addresses used by that promoter to mail

21 any skill contest or sweepstakes.

22 ‘‘(d) ELECTION TO BE EXCLUDED FROM LISTS.—

23 ‘‘(1) IN GENERAL.—An individual (or other

24 duly authorized person) may elect to exclude the

25 name and address of that individual from all lists of
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1 names and addresses used by a promoter of skill

2 contests or sweepstakes by submitting a removal re3 quest to the notification system established under

4 subsection (c).

5 ‘‘(2) RESPONSE AFTER SUBMITTING REMOVAL

6 REQUEST TO THE NOTIFICATION SYSTEM.—Not

7 later than 35 calendar days after a promoter re8 ceives a removal request pursuant to an election

9 under paragraph (1), the promoter shall exclude the

10 individual’s name and address from all lists of

11 names and addresses used by that promoter to select

12 recipients for any skill contest or sweepstakes.

13 ‘‘(3) EFFECTIVENESS OF ELECTION.—An elec14 tion under paragraph (1) shall remain in effect, un15 less an individual (or other duly authorized person)

16 notifies the promoter in writing that such

17 individual—

18 ‘‘(A) has changed the election; and

19 ‘‘(B) elects to receive skill contest or

20 sweepstakes mailings from that promoter.

21 ‘‘(e) PROMOTER NONLIABILITY.—A promoter shall

22 not be subject to civil liability for the exclusion of an indi23 vidual’s name or address from any list maintained by that

24 promoter for mailing skill contests or sweepstakes, if—
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1 ‘‘(1) a removal request is received by the pro2 moter’s notification system; and

3 ‘‘(2) the promoter has a good faith belief that

4 the request is from—

5 ‘‘(A) the individual whose name and ad6 dress is to be excluded; or

7 ‘‘(B) another duly authorized person.

8 ‘‘(f) PROHIBITION ON COMMERCIAL USE OF LISTS.—

9 ‘‘(1) IN GENERAL.—

10 ‘‘(A) PROHIBITION.—No person may pro11 vide any information (including the sale or rent12 al of any name or address) derived from a list

13 described under subparagraph (B) to another

14 person for commercial use.

15 ‘‘(B) LISTS.—A list referred to under sub16 paragraph (A) is any list of names and address17 es (or other related information) compiled from

18 individuals who exercise an election under sub19 section (d).

20 ‘‘(2) CIVIL PENALTY.—Any person who violates

21 paragraph (1) shall be assessed a civil penalty by the

22 Postal Service not to exceed $2,000,000 per viola23 tion.

24 ‘‘(g) CIVIL PENALTIES.—

25 ‘‘(1) IN GENERAL.—Any promoter—
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1 ‘‘(A) who recklessly mails nonmailable

2 matter in violation of subsection (b) shall be lia3 ble to the United States in an amount of

4 $10,000 per violation for each mailing to an in5 dividual of nonmailable matter; or

6 ‘‘(B) who fails to comply with the require7 ments of subsection (c)(2) shall be liable to the

8 United States.

9 ‘‘(2) ENFORCEMENT.—The Postal Service shall

10 assess civil penalties under this section.’’.

11 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

12 The table of sections for chapter 30 of title 39, United

13 States Code, is amended by adding after the item relating

14 to section 3016 the following:

‘‘3017. Nonmailable skill contests or sweepstakes matter; notification to prohibit

mailings.’’.

15 (c) EFFECTIVE DATE.—This section shall take effect

16 1 year after the date of enactment of this Act.

17 SEC. 9. STATE LAW NOT PREEMPTED.

18 (a) IN GENERAL.—Nothing in the provisions of this

19 Act (including the amendments made by this Act) or in

20 the regulations promulgated under such provisions shall

21 be construed to preempt any provision of State or local

22 law that imposes more restrictive requirements, regula23 tions, damages, costs, or penalties. No determination by

24 the Postal Service that any particular piece of mail or
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1 class of mail is in compliance with such provisions of this

2 Act shall be construed to preempt any provision of State

3 or local law.

4 (b) EFFECT ON STATE COURT PROCEEDINGS.—

5 Nothing contained in this section shall be construed to

6 prohibit an authorized State official from proceeding in

7 State court on the basis of an alleged violation of any gen8 eral civil or criminal statute of such State or any specific

9 civil or criminal statute of such State.

10 SEC. 10. EFFECTIVE DATE.

11 Except as provided in section 8, this Act shall take

12 effect 120 days after the date of enactment of this Act.

Passed the Senate August 2, 1999.

Attest:

Secretary.
106TH CONGRESS

1ST SESSION S. 335

AN ACT

To amend chapter 30 of title 39, United States

matter, and for other purposes.dures, orders, and civil penalties relating to suchcontests, facsimile checks, administrative procedeceptive matter relating to sweepstakes, skillCode, to provide for the nonmailability of certain
S 335 ES——5

S 335 ES——4S 335 ES——3S 335 ES——2