Union Calendar No. 251

106TH CONGRESS

1ST SESSION H. R. 170

[Report No. 106–431]

A BILL

To require certain notices in any mailing using a

game of chance for the promotion of a productor service, and for other purposes.

NOVEMBER 1, 1999

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union,

and ordered to be printed
IB

Union Calendar No. 251

106TH CONGRESS

1ST SESSION H. R. 170

[Report No. 106–431]

To require certain notices in any mailing using a game of chance for the

promotion of a product or service, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 6, 1999

Mr. LOBIONDO (for himself and Mr. CONDIT) introduced the following bill;

which was referred to the Committee on Government Reform

NOVEMBER 1, 1999

Additional sponsors: Mr. CARDIN, Mrs. MYRICK, Ms. CARSON, Ms.

MILLENDER-MCDONALD, Mr. UNDERWOOD, Mr. GILMAN, Mr. WELDON

of Pennsylvania, Mr. QUINN, Mr. COOKSEY, Mr. KASICH, Mr. BILIRAKIS,

Mr. BARRETT of Wisconsin, Ms. DANNER, Mr. HILLIARD, Mr. OLVER,

Mr. CASTLE, Mr. GILCHREST, Mrs. KELLY, Mr. FRANKS of New Jersey,

Mr. WAMP, Mr. STENHOLM, Ms. SLAUGHTER, Mr. SALMON, Mr. MORAN

of Virginia, Mr. GEORGE MILLER of California, Mr. FROST, Mr. BISHOP,

Mr. BILBRAY, Mr. GREENWOOD, Mrs. THURMAN, Ms. ROYBAL-ALLARD,

Mr. PALLONE, Mr. SAXTON, Mr. HINCHEY, Ms. PELOSI, Mr. LAFALCE,

Mr. FALEOMAVAEGA, Mr. STARK, Mr. KUCINICH, Mr. BALDACCI, Mr.

TANNER, Mr. WISE, Mr. BENTSEN, Mrs. CHRISTENSEN, Mr. BOYD, Mr.

ANDREWS, Mr. SHOWS, Mr. WYNN, Mr. TAYLOR of Mississippi, Mrs.

CAPPS, Mr. GIBBONS, Mr. FRELINGHUYSEN, Mr. INSLEE, Mr. MCGOVERN, Mr. UPTON, Mr. GANSKE, Mr. RAMSTAD, Mr. DEAL of Georgia, Mr.

COOK, Mr. FORBES, Mr. GEKAS, Mr. GILLMOR, Mr. HORN, Mr. WELLER,

Mrs. BIGGERT, Mr. BEREUTER, Mr. BORSKI, Mr. DEFAZIO, Mrs. JOHNSON of Connecticut, Mrs. MORELLA, Mr. WEXLER, Mr. BATEMAN, Mr.

OXLEY, Mr. FOLEY, Mr. KOLBE, Mrs. EMERSON, Mr. WATKINS, Mr. LUTHER, Mr. EWING, Mr. LATOURETTE, Mr. EHLERS, Mr. TRAFICANT, Mr.

SWEENEY, Mrs. ROUKEMA, Ms. PRYCE of Ohio, Mr. EDWARDS, Mr. HILL

of Indiana, Mr. YOUNG of Alaska, Mr. SHAYS, Mr. GARY MILLER of California, Mr. HALL of Texas, Mr. HOLDEN, Mr. DOYLE, Mr. SMITH of

New Jersey, Mr. MENENDEZ, Mr. PASCRELL, Ms. NORTON, Mr. MOAKLEY, Mr. BROWN of California, Mr. BLAGOJEVICH, Mr. GEJDENSON, Mr.
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BOUCHER, Mr. KING, Mr. BLILEY, Mr. EHRLICH, Ms. EDDIE BERNICE

JOHNSON of Texas, Mr. ROTHMAN, Mr. FORD, Mr. SCARBOROUGH, Mr.

BRYANT, Mr. HOLT, Ms. BERKLEY, Mr. CLYBURN, Mr. LIPINSKI, Mr.

ENGEL, Mr. CUMMINGS, Mr. SHERMAN, Mr. DIXON, Mrs. TAUSCHER,

Mr. DAVIS of Illinois, Mr. STUMP, Mr. WU, Mr. KUYKENDALL, Mr.

RUSH, Mr. GONZALEZ, Mr. DUNCAN, Mr. CRAMER, Ms. SCHAKOWSKY,

Mr. ABERCROMBIE, Ms. KILPATRICK, Mr. COSTELLO, Mr. SANDERS, Mr.

CAMP, Ms. WOOLSEY, Mr. CALVERT, Mr. MEEHAN, Mr. GORDON, Mr.

DAVIS of Florida, Mr. MCNULTY, Mr. SMITH of Washington, Mr. ROYCE,

Mr. UDALL of New Mexico, Mr. UDALL of Colorado, Mr. LUCAS of Kentucky, Mr. REYES, Mr. WAXMAN, and Mr. HALL of Ohio

NOVEMBER 1, 1999

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on January 6, 1999]

A BILL

To require certain notices in any mailing using a game

of chance for the promotion of a product or service,

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’’.

6 SEC. 2. RESTRICTIONS ON MAILINGS USING MISLEADING

7 REFERENCES TO THE UNITED STATES GOV8 ERNMENT.

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

10 amended—

11 (1) in subsection (h)—
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1 (A) in the first sentence by striking ‘‘con2 tains a seal, insignia, trade or brand name, or

3 any other term or symbol that reasonably could

4 be interpreted or construed as implying any

5 Federal Government connection, approval or en6 dorsement’’ and inserting the following: ‘‘which

7 reasonably could be interpreted or construed as

8 implying any Federal Government connection,

9 approval, or endorsement through the use of a

10 seal, insignia, reference to the Postmaster Gen11 eral, citation to a Federal statute, name of a

12 Federal agency, department, commission, or pro13 gram, trade or brand name, or any other term

14 or symbol; or contains any reference to the Post15 master General or a citation to a Federal statute

16 that misrepresents either the identity of the mail17 er or the protection or status afforded such mat18 ter by the Federal Government’’; and

19 (B) in paragraph (2)—

20 (i) in subparagraph (A) by striking

21 ‘‘and’’ at the end;

22 (ii) in subparagraph (B) by striking

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

24 (iii) by inserting after subparagraph

25 (B) the following:
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1 ‘‘(C) such matter does not contain a false

2 representation stating or implying that Federal

3 Government benefits or services will be affected

4 by any purchase or nonpurchase; or’’;

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

6 (A) in the first sentence by striking ‘‘con7 tains a seal, insignia, trade or brand name, or

8 any other term or symbol that reasonably could

9 be interpreted or construed as implying any

10 Federal Government connection, approval or en11 dorsement’’ and inserting the following: ‘‘which

12 reasonably could be interpreted or construed as

13 implying any Federal Government connection,

14 approval, or endorsement through the use of a

15 seal, insignia, reference to the Postmaster Gen16 eral, citation to a Federal statute, name of a

17 Federal agency, department, commission, or pro18 gram, trade or brand name, or any other term

19 or symbol; or contains any reference to the Post20 master General or a citation to a Federal statute

21 that misrepresents either the identity of the mail22 er or the protection or status afforded such mat23 ter by the Federal Government’’; and

24 (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) such matter does not contain a false

8 representation stating or implying that Federal

9 Government benefits or services will be affected

10 by any contribution or noncontribution; or’’;

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

12 subsections (m) and (n), respectively; and

13 (4) by inserting after subsection (i) the following:

14 ‘‘(j)(1) Any matter otherwise legally acceptable in the

15 mails which is described in paragraph (2) is nonmailable

16 matter, shall not be carried or delivered by mail, and shall

17 be disposed of as the Postal Service directs.

18 ‘‘(2) Matter described in this paragraph is any matter

19 that—

20 ‘‘(A) constitutes a solicitation for the purchase of

21 or payment for any product or service that—

22 ‘‘(i) is provided by the Federal Government;

23 and

24 ‘‘(ii) may be obtained without cost from the

25 Federal Government; and
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1 ‘‘(B) does not contain a clear and conspicuous

2 statement giving notice of the information set forth in

3 clauses (i) and (ii) of subparagraph (A).’’.

4 SEC. 3. RESTRICTIONS ON SWEEPSTAKES AND DECEPTIVE

5 MAILINGS.

6 Section 3001 of title 39, United States Code, is amend7 ed by inserting after subsection (j) (as added by section 2(4)

8 of this Act) the following:

9 ‘‘(k)(1) In this subsection—

10 ‘‘(A) the term ‘clearly and conspicuously dis11 played’ means presented in a manner that is readily

12 noticeable, readable, and understandable to the group

13 to whom the applicable matter is disseminated;

14 ‘‘(B) the term ‘facsimile check’ means any matter

15 that—

16 ‘‘(i) is designed to resemble a check or other

17 negotiable instrument; but

18 ‘‘(ii) is not negotiable;

19 ‘‘(C) the term ‘skill contest’ means a puzzle,

20 game, competition, or other contest in which—

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

22 ‘‘(ii) the outcome depends predominately on

23 the skill of the contestant; and
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1 ‘‘(iii) a purchase, payment, or donation is

2 required or implied to be required to enter the

3 contest; and

4 ‘‘(D) the term ‘sweepstakes’ means a game of

5 chance for which no consideration is required to

6 enter.

7 ‘‘(2) Except as provided in paragraph (4), any matter

8 otherwise legally acceptable in the mails which is described

9 in paragraph (3) is nonmailable matter, shall not be car10 ried or delivered by mail, and shall be disposed of as the

11 Postal Service directs.

12 ‘‘(3) Matter described in this paragraph is any matter

13 that—

14 ‘‘(A)(i) includes entry materials for a sweep15 stakes or a promotion that purports to be a sweep16 stakes; and

17 ‘‘(ii)(I) does not contain a statement that dis18 closes in the mailing, in the rules, and on the order

19 or entry form, that no purchase is necessary to enter

20 such sweepstakes;

21 ‘‘(II) does not contain a statement that discloses

22 in the mailing, in the rules, and on the order or entry

23 form, that a purchase will not improve an individ24 ual’s chances of winning with such entry;
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1 ‘‘(III) does not state all terms and conditions of

2 the sweepstakes promotion, including the rules and

3 entry procedures for the sweepstakes;

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

5 such matter and the principal place of business or an

6 address at which the sponsor or mailer may be con7 tacted;

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

9 state—

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

11 prize;

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

13 and nature of each prize; and

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

15 over time;

16 ‘‘(VI) represents that individuals not purchasing

17 products or services may be disqualified from receiv18 ing future sweepstakes mailings;

19 ‘‘(VII) requires that a sweepstakes entry be ac20 companied by an order or payment for a product or

21 service previously ordered;

22 ‘‘(VIII) represents that an individual is a win23 ner of a prize unless that individual has won such

24 prize; or
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1 ‘‘(IX) contains a representation that contradicts,

2 or is inconsistent with sweepstakes rules or any other

3 disclosure required to be made under this subsection,

4 including any statement qualifying, limiting, or ex5 plaining the rules or disclosures in a manner incon6 sistent with such rules or disclosures;

7 ‘‘(B)(i) includes entry materials for a skill con8 test or a promotion that purports to be a skill contest;

9 and

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

11 of the skill contest, including the rules and entry pro12 cedures for the skill contest;

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

14 the skill contest and the principal place of business or

15 an address at which the sponsor or mailer may be

16 contacted; or

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

18 state, as applicable—

19 ‘‘(aa) the number of rounds or levels of the

20 contest and the cost to enter each round or level;

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

22 be more difficult to solve;

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

24 or levels;
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1 ‘‘(dd) the estimated number or percentage of

2 entrants who may correctly solve the skill contest

3 or the approximate number or percentage of en4 trants correctly solving the past 3 skill contests

5 conducted by the sponsor;

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

7 qualifications of the judges if the contest is

8 judged by other than the sponsor;

9 ‘‘(ff) the method used in judging;

10 ‘‘(gg) the date by which the winner or win11 ners will be determined and the date or process

12 by which prizes will be awarded;

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

14 and nature of each prize; and

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

16 over time; or

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

18 contain a statement on the check itself that such check

19 is not a negotiable instrument and has no cash value.

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

21 or other periodical shall be exempt from paragraph (2) if

22 such matter—

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

24 ‘‘(B) does not include an opportunity to make a

25 payment or order a product or service.
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1 ‘‘(5) Any statement, notice, or disclaimer required

2 under paragraph (3) shall be clearly and conspicuously dis3 played. Any statement, notice, or disclaimer required under

4 subclause (I) or (II) of paragraph (3)(A)(ii) shall be dis5 played more conspicuously than would otherwise be re6 quired under the preceding sentence.

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

8 Service shall consider all of the materials included in the

9 mailing and the material and language on and visible

10 through the envelope or outside cover or wrapper in which

11 those materials are mailed.

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

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

14 reasonable practices and procedures to prevent the mailing

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

16 a conservator, guardian, or individual with power of

17 attorney—

18 ‘‘(A) submits to the mailer of such matter a writ19 ten request that such matter should not be mailed to

20 such person; or

21 ‘‘(B)(i) submits such a written request to the at22 torney general of the appropriate State (or any State

23 government officer who transmits the request to that

24 attorney general); and
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1 ‘‘(ii) that attorney general transmits such re2 quest to the mailer.

3 ‘‘(2) Any person who mails matter to which subsection

4 (h), (i), (j), or (k) applies shall maintain or cause to be

5 maintained a record of all requests made under paragraph

6 (1). The records shall be maintained in a form to permit

7 the suppression of an applicable name at the applicable ad8 dress for a 5-year period beginning on the date the written

9 request under paragraph (1) is submitted to the mailer.’’.

10 SEC. 4. POSTAL SERVICE ORDERS TO PROHIBIT DECEPTIVE

11 MAILINGS.

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

13 amended—

14 (1) by striking ‘‘or’’ after ‘‘(h),’’ each place it ap15 pears; and

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

17 place it appears.

18 SEC. 5. TEMPORARY RESTRAINING ORDER FOR DECEPTIVE

19 MAILINGS.

20 (a) IN GENERAL.—Section 3007 of title 39, United

21 States Code, is amended—

22 (1) by redesignating subsection (b) as subsection

23 (c); and

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

25 following:
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1 ‘‘(a)(1) In preparation for or during the pendency of

2 proceedings under section 3005, the Postal Service may,

3 under the provisions of section 409(d), apply to the district

4 court in any district in which mail is sent or received as

5 part of the alleged scheme, device, lottery, gift enterprise,

6 sweepstakes, skill contest, or facsimile check or in any dis7 trict in which the defendant is found, for a temporary re8 straining order and preliminary injunction under the pro9 cedural requirements of rule 65 of the Federal Rules of Civil

10 Procedure.

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

12 an order which shall—

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

14 statutory proceedings, any judicial review of such

15 proceedings, or any action to enforce orders issued

16 under the proceedings; and

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

18 any and all districts, of the defendant’s incoming

19 mail and outgoing mail, which is the subject of the

20 proceedings under section 3005.

21 ‘‘(B) A proper showing under this paragraph shall re22 quire proof of a likelihood of success on the merits of the

23 proceedings under section 3005.

24 ‘‘(3) Mail detained under paragraph (2) shall—
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1 ‘‘(A) be made available at the post office of mail2 ing or delivery for examination by the defendant in

3 the presence of a postal employee; and

4 ‘‘(B) be delivered as addressed if such mail is not

5 clearly shown to be the subject of proceedings under

6 section 3005.

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

8 false representation or to conduct a lottery is required to

9 support the issuance of an order under this section.

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

11 the proceedings under section 3005 are concluded with the

12 issuance of an order under that section, any judicial review

13 of the matter shall be in the district in which the order

14 under subsection (a) was issued.’’.

15 (b) REPEAL.—

16 (1) IN GENERAL.—Section 3006 of title 39,

17 United States Code, and the item relating to such sec18 tion in the table of sections for chapter 30 of such title

19 are repealed.

20 (2) CONFORMING AMENDMENTS.—(A) Section

21 3005(c) of title 39, United States Code, is amended by

22 striking ‘‘section and section 3006 of this title,’’ and

23 inserting ‘‘section,’’.
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1 (B) Section 3011(e) of title 39, United States

2 Code, is amended by striking ‘‘3006, 3007,’’ and in3 serting ‘‘3007’’.

4 SEC. 6. CIVIL PENALTIES AND COSTS.

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

6 amended—

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

8 each day that such person engages in conduct de9 scribed by paragraph (1), (2), or (3) of this sub10 section.’’ and inserting ‘‘$50,000 for each mailing of

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

12 50,000 to 100,000 pieces; with an additional $10,000

13 for each additional 10,000 pieces above 100,000, not

14 to exceed $2,000,000.’’;

15 (2) in paragraphs (1) and (2) of subsection (b)

16 by inserting after ‘‘of subsection (a)’’ the following: ‘‘,

17 (c), or (d)’’;

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

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

20 (4) by inserting after subsection (b) the fol21 lowing:

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

23 may issue an order under section 3005(a), the Postal Serv24 ice may in lieu of that order or as part of that order assess

25 civil penalties in an amount not to exceed $25,000 for each
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1 mailing of less than 50,000 pieces; $50,000 for each mailing

2 of 50,000 to 100,000 pieces; with an additional $5,000 for

3 each additional 10,000 pieces above 100,000, not to exceed

4 $1,000,000.

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

6 assesses penalties under this subsection the Postal Service

7 shall determine the civil penalty taking into account the

8 nature, circumstances, extent, and gravity of the violation

9 or violations of section 3005(a), and with respect to the vio10 lator, the ability to pay the penalty, the effect of the penalty

11 on the ability of the violator to conduct lawful business,

12 any history of prior violations of such section, the degree

13 of culpability and other such matters as justice may re14 quire.

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

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

17 $10,000 for each mailing to an individual.’’.

18 SEC. 7. ADMINISTRATIVE SUBPOENAS.

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

20 States Code, is amended by adding at the end the following:

21 ‘‘§ 3016. Administrative subpoenas

22 ‘‘(a) SUBPOENA AUTHORITY.—

23 ‘‘(1) INVESTIGATIONS.—

24 ‘‘(A) IN GENERAL.—In any investigation

25 conducted under section 3005(a), the Postmaster
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1 General may require by subpoena the production

2 of any records (including books, papers, docu3 ments, and other tangible things which constitute

4 or contain evidence) which the Postmaster Gen5 eral considers relevant or material to such inves6 tigation.

7 ‘‘(B) CONDITION.—No subpoena shall be

8 issued under this paragraph except in accord9 ance with procedures, established by the Postal

10 Service, requiring that—

11 ‘‘(i) a specific case, with an individual

12 or entity identified as the subject, be opened

13 before a subpoena is requested;

14 ‘‘(ii) appropriate supervisory and legal

15 review of a subpoena request be performed;

16 and

17 ‘‘(iii) delegation of subpoena approval

18 authority be limited to the Postal Service’s

19 General Counsel or a Deputy General Coun20 sel.

21 ‘‘(2) STATUTORY PROCEEDINGS.—In any statu22 tory proceeding conducted under section 3005(a), the

23 Judicial Officer may require by subpoena the attend24 ance and testimony of witnesses and the production

25 of any records (including books, papers, documents,
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1 and other tangible things which constitute or contain

2 evidence) which the Judicial Officer considers relevant

3 or material to such proceeding.

4 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in

5 paragraph (2) shall be considered to apply in any

6 circumstance to which paragraph (1) applies.

7 ‘‘(b) SERVICE.—

8 ‘‘(1) SERVICE WITHIN THE UNITED STATES.—A

9 subpoena issued under this section may be served by

10 a person designated under section 3061 of title 18 at

11 any place within the territorial jurisdiction of any

12 court of the United States.

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

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

15 found within the territorial jurisdiction of any court

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

17 Rules of Civil Procedure prescribe for service in a for18 eign country. To the extent that the courts of the

19 United States may assert jurisdiction over such per20 son consistent with due process, the United States

21 District Court for the District of Columbia shall have

22 the same jurisdiction to take any action respecting

23 compliance with this section by such person that such

24 court would have if such person were personally with25 in the jurisdiction of such court.
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1 ‘‘(3) SERVICE ON BUSINESS PERSONS.—Service

2 of any such subpoena may be made upon a partner3 ship, corporation, association, or other legal entity

4 by—

5 ‘‘(A) delivering a duly executed copy thereof

6 to any partner, executive officer, managing

7 agent, or general agent thereof, or to any agent

8 thereof authorized by appointment or by law to

9 receive service of process on behalf of such part10 nership, corporation, association, or entity;

11 ‘‘(B) delivering a duly executed copy thereof

12 to the principal office or place of business of the

13 partnership, corporation, association, or entity;

14 or

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

16 States mails, by registered or certified mail, re17 turn receipt requested, duly addressed to such

18 partnership, corporation, association, or entity

19 at its principal office or place of business.

20 ‘‘(4) SERVICE ON NATURAL PERSONS.—Service of

21 any subpoena may be made upon any natural person

22 by—

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

24 person to be served; or
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1 ‘‘(B) depositing such copy in the United

2 States mails, by registered or certified mail, re3 turn receipt requested, duly addressed to such

4 person at his residence or principal office or

5 place of business.

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

7 the individual serving any such subpoena setting

8 forth the manner of such service shall be proof of such

9 service. In the case of service by registered or certified

10 mail, such return shall be accompanied by the return

11 post office receipt of delivery of such subpoena.

12 ‘‘(c) ENFORCEMENT.—

13 ‘‘(1) IN GENERAL.—Whenever any person, part14 nership, corporation, association, or entity fails to

15 comply with any subpoena duly served upon him, the

16 Postmaster General may request that the Attorney

17 General seek enforcement of the subpoena in the dis18 trict court of the United States for any judicial dis19 trict in which such person resides, is found, or trans20 acts business, and serve upon such person a petition

21 for an order of such court for the enforcement of this

22 section.

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

24 filed in any district court of the United States under

25 this section, such court shall have jurisdiction to hear
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1 and determine the matter so presented, and to enter

2 such order or orders as may be required to carry into

3 effect the provisions of this section. Any final order

4 entered shall be subject to appeal under section 1291

5 of title 28. Any disobedience of any final order en6 tered under this section by any court may be pun7 ished as contempt.

8 ‘‘(d) DISCLOSURE.—Any documentary material pro9 vided pursuant to any subpoena issued under this section

10 shall be exempt from disclosure under section 552 of title

11 5.’’.

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

13 date of enactment of this section, the Postal Service shall

14 promulgate regulations setting out the procedures the Postal

15 Service will use to implement the amendment made by sub16 section (a).

17 (c) SEMIANNUAL REPORTS.—Section 3013 of title 39,

18 United States Code, is amended by striking ‘‘and’’ at the

19 end of paragraph (4), by redesignating paragraph (5) as

20 paragraph (6), and by inserting after paragraph (4) the

21 following:

22 ‘‘(5) the number of cases in which the authority

23 described in section 3016 was used, and a comprehen24 sive statement describing how that authority was used

25 in each of those cases; and’’.
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1 (d) TECHNICAL AND CONFORMING AMENDMENT.—The

2 table of sections for chapter 30 of title 39, United States

3 Code, is amended by adding at the end the following:

‘‘3016. Administrative subpoenas.’’.

4 SEC. 8. REQUIREMENTS OF PROMOTERS OF SKILL CON5 TESTS OR SWEEPSTAKES MAILINGS.

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

7 States Code (as amended by section 7 of this Act) is amend8 ed by adding after section 3016 the following:

9 ‘‘§ 3017. Nonmailable skill contests or sweepstakes

10 matter; notification to prohibit mailings

11 ‘‘(a) DEFINITIONS.—In this section—

12 ‘‘(1) the term ‘promoter’ means any person

13 who—

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

15 or sweepstakes, except for any matter described

16 in section 3001(k)(4); or

17 ‘‘(B) originates and causes to be mailed any

18 skill contest or sweepstakes, except for any mat19 ter described in section 3001(k)(4);

20 ‘‘(2) the term ‘removal request’ means a request

21 stating that an individual elects to have the name

22 and address of such individual excluded from any list

23 used by a promoter for mailing skill contests or

24 sweepstakes;
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1 ‘‘(3) the terms ‘skill contest’, ‘sweepstakes’, and

2 ‘clearly and conspicuously displayed’ have the same

3 meanings as given them in section 3001(k); and

4 ‘‘(4) the term ‘duly authorized person’, as used

5 in connection with an individual, means a conser6 vator or guardian of, or person granted power of at7 torney by, such individual.

8 ‘‘(b) NONMAILABLE MATTER.—

9 ‘‘(1) IN GENERAL.—Matter otherwise legally ac10 ceptable in the mails described in paragraph (2)—

11 ‘‘(A) is nonmailable matter;

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

13 mail; and

14 ‘‘(C) shall be disposed of as the Postal Serv15 ice directs.

16 ‘‘(2) NONMAILABLE MATTER DESCRIBED.—Mat17 ter described in this paragraph is any matter that—

18 ‘‘(A) is a skill contest or sweepstakes, except

19 for any matter described in section 3001(k)(4);

20 and

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

22 made an election to be excluded from lists under

23 subsection (d); or

24 ‘‘(ii) does not comply with subsection (c)(1).

25 ‘‘(c) REQUIREMENTS OF PROMOTERS.—
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1 ‘‘(1) NOTICE TO INDIVIDUALS.—Any promoter

2 who mails a skill contest or sweepstakes shall provide

3 with each mailing a statement that—

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

5 ‘‘(B) includes the address or toll-free tele6 phone number of the notification system estab7 lished under paragraph (2); and

8 ‘‘(C) states that the notification system may

9 be used to prohibit the mailing of all skill con10 tests or sweepstakes by that promoter to such in11 dividual.

12 ‘‘(2) NOTIFICATION SYSTEM.—Any promoter that

13 mails or causes to be mailed a skill contest or sweep14 stakes shall establish and maintain a notification sys15 tem that provides for any individual (or other duly

16 authorized person) to notify the system of the individ17 ual’s election to have the name and address of the in18 dividual excluded from all lists of names and address19 es used by that promoter to mail any skill contest or

20 sweepstakes.

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

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

23 authorized person) may elect to exclude the name and

24 address of that individual from all lists of names and

25 addresses used by a promoter of skill contests or
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1 sweepstakes by submitting a removal request to the

2 notification system established under subsection (c).

3 ‘‘(2) RESPONSE AFTER SUBMITTING REMOVAL

4 REQUEST TO THE NOTIFICATION SYSTEM.—Not later

5 than 60 calendar days after a promoter receives a re6 moval request pursuant to an election under para7 graph (1), the promoter shall exclude the individual’s

8 name and address from all lists of names and ad9 dresses used by that promoter to select recipients for

10 any skill contest or sweepstakes.

11 ‘‘(3) EFFECTIVENESS OF ELECTION.—An election

12 under paragraph (1) shall remain in effect, unless an

13 individual (or other duly authorized person) notifies

14 the promoter in writing that such individual—

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

16 ‘‘(B) elects to receive skill contest or sweep17 stakes mailings from that promoter.

18 ‘‘(e) PRIVATE RIGHT OF ACTION.—

19 ‘‘(1) IN GENERAL.—An individual who receives

20 one or more mailings in violation of subsection (d)

21 may, if otherwise permitted by the laws or rules of

22 court of a State, bring in an appropriate court of

23 that State—

24 ‘‘(A) an action to enjoin such violation,
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1 ‘‘(B) an action to recover for actual mone2 tary loss from such a violation, or to receive

3 $500 in damages for each such violation, which4 ever is greater, or

5 ‘‘(C) both such actions.

6 It shall be an affirmative defense in any action

7 brought under this subsection that the defendant has

8 established and implemented, with due care, reason9 able practices and procedures to effectively prevent

10 mailings in violation of subsection (d). If the court

11 finds that the defendant willfully or knowingly vio12 lated subsection (d), the court may, in its discretion,

13 increase the amount of the award to an amount equal

14 to not more than 3 times the amount available under

15 subparagraph (B).

16 ‘‘(2) ACTION ALLOWABLE BASED ON OTHER SUF17 FICIENT NOTICE.—A mailing sent in violation of sec18 tion 3001(l) shall be actionable under this subsection,

19 but only if such an action would not also be available

20 under paragraph (1) (as a violation of subsection (d))

21 based on the same mailing.

22 ‘‘(f) PROMOTER NONLIABILITY.—A promoter shall not

23 be subject to civil liability for the exclusion of an individ24 ual’s name or address from any list maintained by that

25 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 the

4 request is from—

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

7 ‘‘(B) another duly authorized person.

8 ‘‘(g) 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 in subparagraph (B) to another person

14 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 violation.

23 ‘‘(h) CIVIL PENALTIES.—

24 ‘‘(1) IN GENERAL.—Any promoter—
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1 ‘‘(A) who recklessly mails nonmailable mat2 ter in violation of subsection (b) shall be liable

3 to the United States in an amount of $10,000

4 per violation for each mailing to an individual

5 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 in accordance with the same procedures as set forth

11 in section 3012(b), provide for the assessment of civil

12 penalties under this section.’’.

13 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

14 The table of sections for chapter 30 of title 39, United States

15 Code, is amended by adding after the item relating to sec16 tion 3016 the following:

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

mailings.’’.

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

18 1 year after the date of enactment of this Act.

19 SEC. 9. STATE LAW NOT PREEMPTED.

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

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

22 the regulations promulgated under such provisions shall be

23 construed to preempt any provision of State or local law

24 that imposes more restrictive requirements, regulations,
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1 damages, costs, or penalties. No determination by the Postal

2 Service that any particular piece of mail or class of mail

3 is in compliance with such provisions of this Act shall be

4 construed to preempt any provision of State or local law.

5 (b) EFFECT ON STATE COURT PROCEEDINGS.—Noth6 ing contained in this section shall be construed to prohibit

7 an authorized State official from proceeding in State court

8 on the basis of an alleged violation of any general civil or

9 criminal statute of such State or any specific civil or crimi10 nal statute of such State.

11 SEC. 10. TECHNICAL AND CONFORMING AMENDMENTS.

12 (a) REFERENCES TO REPEALED PROVISIONS.—Sec13 tion 3001(a) of title 39, United States Code, is amended

14 by striking ‘‘1714,’’ and ‘‘1718,’’.

15 (b) CONFORMANCE WITH INSPECTOR GENERAL ACT

16 OF 1978.—

17 (1) IN GENERAL.—Section 3013 of title 39,

18 United States Code, is amended—

19 (A) by striking ‘‘Board’’ each place it ap20 pears and inserting ‘‘Inspector General’’;

21 (B) in the third sentence by striking ‘‘Each

22 such report shall be submitted within sixty days

23 after the close of the reporting period involved’’

24 and inserting ‘‘Each such report shall be sub25 mitted within 1 month (or such shorter length of
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1 time as the Inspector General may specify) after

2 the close of the reporting period involved’’; and

3 (C) by striking the last sentence and insert4 ing the following:

5 ‘‘The information in a report submitted under this section

6 to the Inspector General with respect to a reporting period

7 shall be included as part of the semiannual report prepared

8 by the Inspector General under section 5 of the Inspector

9 General Act of 1978 for the same reporting period. Nothing

10 in this section shall be considered to permit or require that

11 any report by the Postmaster General under this section

12 include any information relating to activities of the Inspec13 tor General.’’.

14 (2) EFFECTIVE DATE.—This subsection shall take

15 effect on the date of enactment of this Act, and the

16 amendments made by this subsection shall apply with

17 respect to semiannual reporting periods beginning on

18 or after such date of enactment.

19 (3) SAVINGS PROVISION.—For purposes of any

20 semiannual reporting period preceding the first semi21 annual reporting period referred to in paragraph (2),

22 the provisions of title 39, United States Code, shall

23 continue to apply as if the amendments made by this

24 subsection had not been enacted.
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1 SEC. 11. EFFECTIVE DATE.

2 Except as provided in section 8 or 10(b), this Act shall

3 take effect 120 days after the date of enactment of this Act.