IB 
Union Calendar No. 3
108TH CONGRESS 
1ST SESSION 
H. R. 346
[Report No. 108–5] 
To amend the Federal Trade Commission Act to increase civil penalties 
for violations involving certain proscribed acts or practices that exploit 
popular reaction to an emergency or major disaster declared by the 
President, and to authorize the Federal Trade Commission to seek civil 
penalties for such violations in actions brought under section 13 of 
that Act. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 27, 2003
Mr. BASS introduced the following bill; which was referred to the Committee 
on Energy and Commerce 
FEBRUARY 4, 2003
Committed to the Committee of the Whole House on the State of the Union 
and ordered to be printed 
A BILL 
To amend the Federal Trade Commission Act to increase 
civil penalties for violations involving certain proscribed 
acts or practices that exploit popular reaction to an 
emergency or major disaster declared by the President, 
and to authorize the Federal Trade Commission to seek 
civil penalties for such violations in actions brought 
under section 13 of that Act.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘American Spirit Fraud 
Prevention Act’’. 
SEC. 2. INCREASE IN PENALTIES FOR UNFAIR OR DECEP-
TIVE ACTS OR PRACTICES EXPLOITING REAC-
TION TO CERTAIN EMERGENCIES AND MAJOR 
DISASTERS. 
(a) VIOLATIONS OF PROHIBITION AGAINST UNFAIR 
OR DECEPTIVE ACTS OR PRACTICES.—Section 5(m)(1) of 
the Federal Trade Commission Act (15 U.S.C. 45(m)(1)) 
is amended by adding at the end the following: 
‘‘(D) In the case of a violation involving an unfair 
or deceptive act or practice in an emergency period or dis-
aster period, the amount of the civil penalty under this 
paragraph shall be double the amount otherwise provided 
in this paragraph, if the act or practice exploits popular 
reaction to the national emergency, major disaster, or 
emergency that is the basis for such period. 
‘‘(E) In this paragraph—
‘‘(i) the term ‘emergency period’ means the pe-
riod that—
civil penalty of not more than $22,000 for each such viola-
tion. 
‘‘(2) In this subsection—
‘‘(A) the term ‘emergency period’ means the pe-
riod that—
‘‘(i) begins on the date the President de-
clares a national emergency under the National 
Emergencies Act (50 U.S.C. 1601 et seq.); and 
‘‘(ii) ends on the expiration of the 1-year 
period beginning on the date of the termination 
of the national emergency; and 
‘‘(B) the term ‘disaster period’ means the 1-
year period beginning on the date the President de-
clares an emergency or major disaster under the 
Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5121 et seq.).’’.
Union Calendar No. 3
108TH CONGRESS 
1ST SESSION 
H. R. 346
[Report No. 108–5] 
A BILL 
To amend the Federal Trade Commission Act to in-
crease civil penalties for violations involving cer-
tain proscribed acts or practices that exploit pop-
ular reaction to an emergency or major disaster 
declared by the President, and to authorize the 
Federal Trade Commission to seek civil penalties 
for such violations in actions brought under sec-
tion 13 of that Act. 
FEBRUARY 4, 2003
Committed to the Committee of the Whole House on the 
State of the Union and ordered to be printed