CEASE Act

To increase the penalties applicable under the Federal Trade Commission Act during the COVID–19 emergency, and for other purposes. 1. Short title This Act may be cited as the Combating Egregious Advertising through Sentencing Enhancement Act CEASE Act 2. Definitions In this Act: (1) Commission The term Commission (2) COVID–19 emergency period The term COVID–19 emergency period (A) begins on the date of enactment of this Act; and (B) ends on the last day of the public health emergency described in section 1135(g)(1)(B) of the Social Security Act ( 42 U.S.C. 1320b–5(g)(1)(B) 3. Increasing the penalty for false advertising during the COVID–19 emergency period Notwithstanding section 14(a) of the Federal Trade Commission Act ( 15 U.S.C. 54(a) 15 U.S.C. 52(a) (1) for a first offense, be guilty of a misdemeanor and upon conviction shall be punished by a fine of not more than $50,000 or by imprisonment for not more than 1 year, or both such fine and imprisonment; and (2) for a second or subsequent offense, be guilty of a felony and upon conviction shall be punished by a fine of not more than $250,000 or by imprisonment for not less than 1 year and not more than 5 years, or both such fine and imprisonment. 4. Increasing the penalty for unfair methods of competition and unfair or deceptive acts or practices during the COVID–19 emergency period Notwithstanding subsections (l), (m)(1)(A), and (m)(1)(B) of section 5 of the Federal Trade Commission Act ( 42 U.S.C. 45 (1) for a first offense, to $50,000; and (2) for a second or subsequent offense, to $250,000. 5. Prohibiting unfair or deceptive acts or practices relating to COVID–19 during the COVID–19 emergency period (a) In general During the COVID–19 emergency period, it shall be unlawful for any person, partnership, or corporation to engage in an unfair or deceptive act or practice in or affecting commerce that— (1) violates section 5(a) of the Federal Trade Commission Act ( 15 U.S.C. 45(a) (2) relates to the COVID–19 pandemic. (b) Enforcement (1) Unfair or deceptive acts or practices A violation of this section shall be treated as a violation of a rule defining an unfair or deceptive act or practice prescribed under section 18(a)(1)(B) of the Federal Trade Commission Act ( 15 U.S.C. 57a(a)(1)(B) (2) Powers of the commission (A) In general The Commission shall enforce this section in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act ( 15 U.S.C. 41 (B) Privileges and immunities Any person who violates this section shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act. (C) Effect on other laws Nothing in this Act shall be construed to limit the authority of the Commission under any other provision of law. 6. Rule of construction Nothing in this Act shall be construed to limit or enhance the authority of the Commission (other than with respect to the penalties that the Commission may seek under the Federal Trade Commission Act ( 15 U.S.C. 41

Summary: Combating Egregious Advertising through Sentencing Enhancement Act or the CEASE Act This bill prohibits and, increases the penalties for, certain commercial practices during the COVID-19 (i.e., coronavirus disease 2019) public health emergency. Specifically, during such time period, it increases the criminal penalties for false advertising (1) for a first offense from not more than six months in prison and a $5,000 fine to not more than one year in prison and a $50,000 fine and (2) for subsequent offenses from not more than one year in prison and a $10,000 fine to not less than one year or not more than five years in prison and a $250,000 fine. The bill also increases the civil penalty for unfair methods of competition (e.g., creating monopolies) and unfair or deceptive acts or practices (e.g., misleading price claims or sale of defective products) during such time period from $10,000 to $50,000 for a first offense and $250,000 for subsequent offenses. Additionally, the bill makes it unlawful to engage in unfair or deceptive commercial practices that relate to the COVID-19 pandemic during such time period.