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 product
or service, and for other purposes.
NOVEMBER 1, 1999
Reported with an amendment, committed to the Com-
mittee 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. MCGOV-
ERN, 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. JOHN-
SON of Connecticut, Mrs. MORELLA, Mr. WEXLER, Mr. BATEMAN, Mr.
OXLEY, Mr. FOLEY, Mr. KOLBE, Mrs. EMERSON, Mr. WATKINS, Mr. LU-
THER, 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 Cali-
fornia, Mr. HALL of Texas, Mr. HOLDEN, Mr. DOYLE, Mr. SMITH of
New Jersey, Mr. MENENDEZ, Mr. PASCRELL, Ms. NORTON, Mr. MOAK-
LEY, Mr. BROWN of California, Mr. BLAGOJEVICH, Mr. GEJDENSON, Mr.
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 Ken-
tucky, 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.
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 ‘‘Deceptive Mail Preven-
tion and Enforcement Act’’.
SEC. 2. RESTRICTIONS ON MAILINGS USING MISLEADING
REFERENCES TO THE UNITED STATES GOV-
ERNMENT.
Section 3001 of title 39, United States Code, is
amended—
(1) in subsection (h)—
(A) in the first sentence by striking ‘‘con-
tains a seal, insignia, trade or brand name, or
any other term or symbol that reasonably could
be interpreted or construed as implying any
Federal Government connection, approval or en-
dorsement’’ and inserting the following: ‘‘which
reasonably could be interpreted or construed as
implying any Federal Government connection,
approval, or endorsement through the use of a
seal, insignia, reference to the Postmaster Gen-
eral, citation to a Federal statute, name of a
Federal agency, department, commission, or pro-
gram, trade or brand name, or any other term
or symbol; or contains any reference to the Post-
master General or a citation to a Federal statute
that misrepresents either the identity of the mail-
er or the protection or status afforded such mat-
ter by the Federal Government’’; and
(B) in paragraph (2)—
(i) in subparagraph (A) by striking
‘‘and’’ at the end;
(ii) in subparagraph (B) by striking
‘‘or’’ at the end and inserting ‘‘and’’; and
(iii) by inserting after subparagraph
(B) the following:
‘‘(C) such matter does not contain a false
representation stating or implying that Federal
Government benefits or services will be affected
by any purchase or nonpurchase; or’’;
(2) in subsection (i) in the first sentence—
(A) in the first sentence by striking ‘‘con-
tains a seal, insignia, trade or brand name, or
any other term or symbol that reasonably could
be interpreted or construed as implying any
Federal Government connection, approval or en-
dorsement’’ and inserting the following: ‘‘which
reasonably could be interpreted or construed as
implying any Federal Government connection,
approval, or endorsement through the use of a
seal, insignia, reference to the Postmaster Gen-
eral, citation to a Federal statute, name of a
Federal agency, department, commission, or pro-
gram, trade or brand name, or any other term
or symbol; or contains any reference to the Post-
master General or a citation to a Federal statute
that misrepresents either the identity of the mail-
er or the protection or status afforded such mat-
ter by the Federal Government’’; and
(B) in paragraph (2)—
(i) in subparagraph (A) by striking
‘‘and’’ at the end;
(ii) in subparagraph (B) by striking
‘‘or’’ at the end and inserting ‘‘and’’; and
(iii) by inserting after subparagraph
(B) the following:
‘‘(C) such matter does not contain a false
representation stating or implying that Federal
Government benefits or services will be affected
by any contribution or noncontribution; or’’;
(3) by redesignating subsections (j) and (k) as
subsections (m) and (n), respectively; and
(4) by inserting after subsection (i) the following:
‘‘(j)(1) Any matter otherwise legally acceptable in the
mails which is described in paragraph (2) is nonmailable
matter, shall not be carried or delivered by mail, and shall
be disposed of as the Postal Service directs.
‘‘(2) Matter described in this paragraph is any matter
that—
‘‘(A) constitutes a solicitation for the purchase of
or payment for any product or service that—
‘‘(i) is provided by the Federal Government;
and
‘‘(ii) may be obtained without cost from the
Federal Government; and
‘‘(B) does not contain a clear and conspicuous
statement giving notice of the information set forth in
clauses (i) and (ii) of subparagraph (A).’’.
SEC. 3. RESTRICTIONS ON SWEEPSTAKES AND DECEPTIVE
MAILINGS.
Section 3001 of title 39, United States Code, is amend-
ed by inserting after subsection (j) (as added by section 2(4)
of this Act) the following:
‘‘(k)(1) In this subsection—
‘‘(A) the term ‘clearly and conspicuously dis-
played’ means presented in a manner that is readily
noticeable, readable, and understandable to the group
to whom the applicable matter is disseminated;
‘‘(B) the term ‘facsimile check’ means any matter
that—
‘‘(i) is designed to resemble a check or other
negotiable instrument; but
‘‘(ii) is not negotiable;
‘‘(C) the term ‘skill contest’ means a puzzle,
game, competition, or other contest in which—
‘‘(i) a prize is awarded or offered;
‘‘(ii) the outcome depends predominately on
the skill of the contestant; and
‘‘(iii) a purchase, payment, or donation is
required or implied to be required to enter the
contest; and
‘‘(D) the term ‘sweepstakes’ means a game of
chance for which no consideration is required to
enter.
‘‘(2) Except as provided in paragraph (4), any matter
otherwise legally acceptable in the mails which is described
in paragraph (3) is nonmailable matter, shall not be car-
ried or delivered by mail, and shall be disposed of as the
Postal Service directs.
‘‘(3) Matter described in this paragraph is any matter
that—
‘‘(A)(i) includes entry materials for a sweep-
stakes or a promotion that purports to be a sweep-
stakes; and
‘‘(ii)(I) does not contain a statement that dis-
closes in the mailing, in the rules, and on the order
or entry form, that no purchase is necessary to enter
such sweepstakes;
‘‘(II) does not contain a statement that discloses
in the mailing, in the rules, and on the order or entry
form, that a purchase will not improve an individ-
ual’s chances of winning with such entry;
‘‘(III) does not state all terms and conditions of
the sweepstakes promotion, including the rules and
entry procedures for the sweepstakes;
‘‘(IV) does not disclose the sponsor or mailer of
such matter and the principal place of business or an
address at which the sponsor or mailer may be con-
tacted;
‘‘(V) does not contain sweepstakes rules that
state—
‘‘(aa) the estimated odds of winning each
prize;
‘‘(bb) the quantity, estimated retail value,
and nature of each prize; and
‘‘(cc) the schedule of any payments made
over time;
‘‘(VI) represents that individuals not purchasing
products or services may be disqualified from receiv-
ing future sweepstakes mailings;
‘‘(VII) requires that a sweepstakes entry be ac-
companied by an order or payment for a product or
service previously ordered;
‘‘(VIII) represents that an individual is a win-
ner of a prize unless that individual has won such
prize; or
‘‘(IX) contains a representation that contradicts,
or is inconsistent with sweepstakes rules or any other
disclosure required to be made under this subsection,
including any statement qualifying, limiting, or ex-
plaining the rules or disclosures in a manner incon-
sistent with such rules or disclosures;
‘‘(B)(i) includes entry materials for a skill con-
test or a promotion that purports to be a skill contest;
and
‘‘(ii)(I) does not state all terms and conditions
of the skill contest, including the rules and entry pro-
cedures for the skill contest;
‘‘(II) does not disclose the sponsor or mailer of
the skill contest and the principal place of business or
an address at which the sponsor or mailer may be
contacted; or
‘‘(III) does not contain skill contest rules that
state, as applicable—
‘‘(aa) the number of rounds or levels of the
contest and the cost to enter each round or level;
‘‘(bb) that subsequent rounds or levels will
be more difficult to solve;
‘‘(cc) the maximum cost to enter all rounds
or levels;
‘‘(dd) the estimated number or percentage of
entrants who may correctly solve the skill contest
or the approximate number or percentage of en-
trants correctly solving the past 3 skill contests
conducted by the sponsor;
‘‘(ee) the identity or description of the
qualifications of the judges if the contest is
judged by other than the sponsor;
‘‘(ff) the method used in judging;
‘‘(gg) the date by which the winner or win-
ners will be determined and the date or process
by which prizes will be awarded;
‘‘(hh) the quantity, estimated retail value,
and nature of each prize; and
‘‘(ii) the schedule of any payments made
over time; or
‘‘(C) includes any facsimile check that does not
contain a statement on the check itself that such check
is not a negotiable instrument and has no cash value.
‘‘(4) Matter that appears in a magazine, newspaper,
or other periodical shall be exempt from paragraph (2) if
such matter—
‘‘(A) is not directed to a named individual; or
‘‘(B) does not include an opportunity to make a
payment or order a product or service.
‘‘(5) Any statement, notice, or disclaimer required
under paragraph (3) shall be clearly and conspicuously dis-
played. Any statement, notice, or disclaimer required under
subclause (I) or (II) of paragraph (3)(A)(ii) shall be dis-
played more conspicuously than would otherwise be re-
quired under the preceding sentence.
‘‘(6) In the enforcement of paragraph (3), the Postal
Service shall consider all of the materials included in the
mailing and the material and language on and visible
through the envelope or outside cover or wrapper in which
those materials are mailed.
‘‘(l)(1) Any person who uses the mails for any matter
to which subsection (h), (i), (j), or (k) applies shall adopt
reasonable practices and procedures to prevent the mailing
of such matter to any person who, personally or through
a conservator, guardian, or individual with power of
attorney—
‘‘(A) submits to the mailer of such matter a writ-
ten request that such matter should not be mailed to
such person; or
‘‘(B)(i) submits such a written request to the at-
torney general of the appropriate State (or any State
government officer who transmits the request to that
attorney general); and
‘‘(ii) that attorney general transmits such re-
quest to the mailer.
‘‘(2) Any person who mails matter to which subsection
(h), (i), (j), or (k) applies shall maintain or cause to be
maintained a record of all requests made under paragraph
(1). The records shall be maintained in a form to permit
the suppression of an applicable name at the applicable ad-
dress for a 5-year period beginning on the date the written
request under paragraph (1) is submitted to the mailer.’’.
SEC. 4. POSTAL SERVICE ORDERS TO PROHIBIT DECEPTIVE
MAILINGS.
Section 3005(a) of title 39, United States Code, is
amended—
(1) by striking ‘‘or’’ after ‘‘(h),’’ each place it ap-
pears; and
(2) by inserting ‘‘, (j), or (k)’’ after ‘‘(i)’’ each
place it appears.
SEC. 5. TEMPORARY RESTRAINING ORDER FOR DECEPTIVE
MAILINGS.
(a) IN GENERAL.—Section 3007 of title 39, United
States Code, is amended—
(1) by redesignating subsection (b) as subsection
(c); and
(2) by striking subsection (a) and inserting the
following:
‘‘(a)(1) In preparation for or during the pendency of
proceedings under section 3005, the Postal Service may,
under the provisions of section 409(d), apply to the district
court in any district in which mail is sent or received as
part of the alleged scheme, device, lottery, gift enterprise,
sweepstakes, skill contest, or facsimile check or in any dis-
trict in which the defendant is found, for a temporary re-
straining order and preliminary injunction under the pro-
cedural requirements of rule 65 of the Federal Rules of Civil
Procedure.
‘‘(2)(A) Upon a proper showing, the court shall enter
an order which shall—
‘‘(i) remain in effect during the pendency of the
statutory proceedings, any judicial review of such
proceedings, or any action to enforce orders issued
under the proceedings; and
‘‘(ii) direct the detention by the postmaster, in
any and all districts, of the defendant’s incoming
mail and outgoing mail, which is the subject of the
proceedings under section 3005.
‘‘(B) A proper showing under this paragraph shall re-
quire proof of a likelihood of success on the merits of the
proceedings under section 3005.
‘‘(3) Mail detained under paragraph (2) shall—
‘‘(A) be made available at the post office of mail-
ing or delivery for examination by the defendant in
the presence of a postal employee; and
‘‘(B) be delivered as addressed if such mail is not
clearly shown to be the subject of proceedings under
section 3005.
‘‘(4) No finding of the defendant’s intent to make a
false representation or to conduct a lottery is required to
support the issuance of an order under this section.
‘‘(b) If any order is issued under subsection (a) and
the proceedings under section 3005 are concluded with the
issuance of an order under that section, any judicial review
of the matter shall be in the district in which the order
under subsection (a) was issued.’’.
(b) REPEAL.—
(1) IN
GENERAL.—Section 3006 of title 39,
United States Code, and the item relating to such sec-
tion in the table of sections for chapter 30 of such title
are repealed.
(2) CONFORMING
AMENDMENTS.—(A) Section
3005(c) of title 39, United States Code, is amended by
striking ‘‘section and section 3006 of this title,’’ and
inserting ‘‘section,’’.
mailing of less than 50,000 pieces; $50,000 for each mailing
of 50,000 to 100,000 pieces; with an additional $5,000 for
each additional 10,000 pieces above 100,000, not to exceed
$1,000,000.
‘‘(2) In any proceeding in which the Postal Service
assesses penalties under this subsection the Postal Service
shall determine the civil penalty taking into account the
nature, circumstances, extent, and gravity of the violation
or violations of section 3005(a), and with respect to the vio-
lator, the ability to pay the penalty, the effect of the penalty
on the ability of the violator to conduct lawful business,
any history of prior violations of such section, the degree
of culpability and other such matters as justice may re-
quire.
‘‘(d) Any person who violates section 3001(l) shall be
liable to the United States for a civil penalty not to exceed
$10,000 for each mailing to an individual.’’.
SEC. 7. ADMINISTRATIVE SUBPOENAS.
(a) IN GENERAL.—Chapter 30 of title 39, United
States Code, is amended by adding at the end the following:
‘‘§ 3016. Administrative subpoenas
‘‘(a) SUBPOENA AUTHORITY.—
‘‘(1) INVESTIGATIONS.—
‘‘(A) IN
GENERAL.—In any investigation
conducted under section 3005(a), the Postmaster
General may require by subpoena the production
of any records (including books, papers, docu-
ments, and other tangible things which constitute
or contain evidence) which the Postmaster Gen-
eral considers relevant or material to such inves-
tigation.
‘‘(B) CONDITION.—No subpoena shall be
issued under this paragraph except in accord-
ance with procedures, established by the Postal
Service, requiring that—
‘‘(i) a specific case, with an individual
or entity identified as the subject, be opened
before a subpoena is requested;
‘‘(ii) appropriate supervisory and legal
review of a subpoena request be performed;
and
‘‘(iii) delegation of subpoena approval
authority be limited to the Postal Service’s
General Counsel or a Deputy General Coun-
sel.
‘‘(2) STATUTORY PROCEEDINGS.—In any statu-
tory proceeding conducted under section 3005(a), the
Judicial Officer may require by subpoena the attend-
ance and testimony of witnesses and the production
of any records (including books, papers, documents,
and other tangible things which constitute or contain
evidence) which the Judicial Officer considers relevant
or material to such proceeding.
‘‘(3) RULE
OF
CONSTRUCTION.—Nothing in
paragraph (2) shall be considered to apply in any
circumstance to which paragraph (1) applies.
‘‘(b) SERVICE.—
‘‘(1) SERVICE WITHIN THE UNITED STATES.—A
subpoena issued under this section may be served by
a person designated under section 3061 of title 18 at
any place within the territorial jurisdiction of any
court of the United States.
‘‘(2) FOREIGN
SERVICE.—Any such subpoena
may be served upon any person who is not to be
found within the territorial jurisdiction of any court
of the United States, in such manner as the Federal
Rules of Civil Procedure prescribe for service in a for-
eign country. To the extent that the courts of the
United States may assert jurisdiction over such per-
son consistent with due process, the United States
District Court for the District of Columbia shall have
the same jurisdiction to take any action respecting
compliance with this section by such person that such
court would have if such person were personally with-
in the jurisdiction of such court.
‘‘(3) SERVICE ON BUSINESS PERSONS.—Service
of any such subpoena may be made upon a partner-
ship, corporation, association, or other legal entity
by—
‘‘(A) delivering a duly executed copy thereof
to any partner, executive officer, managing
agent, or general agent thereof, or to any agent
thereof authorized by appointment or by law to
receive service of process on behalf of such part-
nership, corporation, association, or entity;
‘‘(B) delivering a duly executed copy thereof
to the principal office or place of business of the
partnership, corporation, association, or entity;
or
‘‘(C) depositing such copy in the United
States mails, by registered or certified mail, re-
turn receipt requested, duly addressed to such
partnership, corporation, association, or entity
at its principal office or place of business.
‘‘(4) SERVICE ON NATURAL PERSONS.—Service of
any subpoena may be made upon any natural person
by—
‘‘(A) delivering a duly executed copy to the
person to be served; or
‘‘(B) depositing such copy in the United
States mails, by registered or certified mail, re-
turn receipt requested, duly addressed to such
person at his residence or principal office or
place of business.
‘‘(5) VERIFIED RETURN.—A verified return by
the individual serving any such subpoena setting
forth the manner of such service shall be proof of such
service. In the case of service by registered or certified
mail, such return shall be accompanied by the return
post office receipt of delivery of such subpoena.
‘‘(c) ENFORCEMENT.—
‘‘(1) IN GENERAL.—Whenever any person, part-
nership, corporation, association, or entity fails to
comply with any subpoena duly served upon him, the
Postmaster General may request that the Attorney
General seek enforcement of the subpoena in the dis-
trict court of the United States for any judicial dis-
trict in which such person resides, is found, or trans-
acts business, and serve upon such person a petition
for an order of such court for the enforcement of this
section.
‘‘(2) JURISDICTION.—Whenever any petition is
filed in any district court of the United States under
this section, such court shall have jurisdiction to hear
and determine the matter so presented, and to enter
such order or orders as may be required to carry into
effect the provisions of this section. Any final order
entered shall be subject to appeal under section 1291
of title 28. Any disobedience of any final order en-
tered under this section by any court may be pun-
ished as contempt.
‘‘(d) DISCLOSURE.—Any documentary material pro-
vided pursuant to any subpoena issued under this section
shall be exempt from disclosure under section 552 of title
5.’’.
(b) REGULATIONS.—Not later than 120 days after the
date of enactment of this section, the Postal Service shall
promulgate regulations setting out the procedures the Postal
Service will use to implement the amendment made by sub-
section (a).
(c) SEMIANNUAL REPORTS.—Section 3013 of title 39,
United States Code, is amended by striking ‘‘and’’ at the
end of paragraph (4), by redesignating paragraph (5) as
paragraph (6), and by inserting after paragraph (4) the
following:
‘‘(5) the number of cases in which the authority
described in section 3016 was used, and a comprehen-
sive statement describing how that authority was used
in each of those cases; and’’.
‘‘(3) the terms ‘skill contest’, ‘sweepstakes’, and
‘clearly and conspicuously displayed’ have the same
meanings as given them in section 3001(k); and
‘‘(4) the term ‘duly authorized person’, as used
in connection with an individual, means a conser-
vator or guardian of, or person granted power of at-
torney by, such individual.
‘‘(b) NONMAILABLE MATTER.—
‘‘(1) IN GENERAL.—Matter otherwise legally ac-
ceptable in the mails described in paragraph (2)—
‘‘(A) is nonmailable matter;
‘‘(B) shall not be carried or delivered by
mail; and
‘‘(C) shall be disposed of as the Postal Serv-
ice directs.
‘‘(2) NONMAILABLE MATTER DESCRIBED.—Mat-
ter described in this paragraph is any matter that—
‘‘(A) is a skill contest or sweepstakes, except
for any matter described in section 3001(k)(4);
and
‘‘(B)(i) is addressed to an individual who
made an election to be excluded from lists under
subsection (d); or
‘‘(ii) does not comply with subsection (c)(1).
‘‘(c) REQUIREMENTS OF PROMOTERS.—
‘‘(1) NOTICE
TO
INDIVIDUALS.—Any promoter
who mails a skill contest or sweepstakes shall provide
with each mailing a statement that—
‘‘(A) is clearly and conspicuously displayed;
‘‘(B) includes the address or toll-free tele-
phone number of the notification system estab-
lished under paragraph (2); and
‘‘(C) states that the notification system may
be used to prohibit the mailing of all skill con-
tests or sweepstakes by that promoter to such in-
dividual.
‘‘(2) NOTIFICATION SYSTEM.—Any promoter that
mails or causes to be mailed a skill contest or sweep-
stakes shall establish and maintain a notification sys-
tem that provides for any individual (or other duly
authorized person) to notify the system of the individ-
ual’s election to have the name and address of the in-
dividual excluded from all lists of names and address-
es used by that promoter to mail any skill contest or
sweepstakes.
‘‘(d) ELECTION TO BE EXCLUDED FROM LISTS.—
‘‘(1) IN GENERAL.—An individual (or other duly
authorized person) may elect to exclude the name and
address of that individual from all lists of names and
addresses used by a promoter of skill contests or
sweepstakes by submitting a removal request to the
notification system established under subsection (c).
‘‘(2) RESPONSE
AFTER
SUBMITTING
REMOVAL
REQUEST TO THE NOTIFICATION SYSTEM.—Not later
than 60 calendar days after a promoter receives a re-
moval request pursuant to an election under para-
graph (1), the promoter shall exclude the individual’s
name and address from all lists of names and ad-
dresses used by that promoter to select recipients for
any skill contest or sweepstakes.
‘‘(3) EFFECTIVENESS OF ELECTION.—An election
under paragraph (1) shall remain in effect, unless an
individual (or other duly authorized person) notifies
the promoter in writing that such individual—
‘‘(A) has changed the election; and
‘‘(B) elects to receive skill contest or sweep-
stakes mailings from that promoter.
‘‘(e) PRIVATE RIGHT OF ACTION.—
‘‘(1) IN GENERAL.—An individual who receives
one or more mailings in violation of subsection (d)
may, if otherwise permitted by the laws or rules of
court of a State, bring in an appropriate court of
that State—
‘‘(A) an action to enjoin such violation,
‘‘(B) an action to recover for actual mone-
tary loss from such a violation, or to receive
$500 in damages for each such violation, which-
ever is greater, or
‘‘(C) both such actions.
It shall be an affirmative defense in any action
brought under this subsection that the defendant has
established and implemented, with due care, reason-
able practices and procedures to effectively prevent
mailings in violation of subsection (d). If the court
finds that the defendant willfully or knowingly vio-
lated subsection (d), the court may, in its discretion,
increase the amount of the award to an amount equal
to not more than 3 times the amount available under
subparagraph (B).
‘‘(2) ACTION ALLOWABLE BASED ON OTHER SUF-
FICIENT NOTICE.—A mailing sent in violation of sec-
tion 3001(l) shall be actionable under this subsection,
but only if such an action would not also be available
under paragraph (1) (as a violation of subsection (d))
based on the same mailing.
‘‘(f) PROMOTER NONLIABILITY.—A promoter shall not
be subject to civil liability for the exclusion of an individ-
ual’s name or address from any list maintained by that
promoter for mailing skill contests or sweepstakes, if—
‘‘(1) a removal request is received by the pro-
moter’s notification system; and
‘‘(2) the promoter has a good faith belief that the
request is from—
‘‘(A) the individual whose name and ad-
dress is to be excluded; or
‘‘(B) another duly authorized person.
‘‘(g) PROHIBITION ON COMMERCIAL USE OF LISTS.—
‘‘(1) IN GENERAL.—
‘‘(A) PROHIBITION.—No person may pro-
vide any information (including the sale or rent-
al of any name or address) derived from a list
described in subparagraph (B) to another person
for commercial use.
‘‘(B) LISTS.—A list referred to under sub-
paragraph (A) is any list of names and address-
es (or other related information) compiled from
individuals who exercise an election under sub-
section (d).
‘‘(2) CIVIL PENALTY.—Any person who violates
paragraph (1) shall be assessed a civil penalty by the
Postal Service not to exceed $2,000,000 per violation.
‘‘(h) CIVIL PENALTIES.—
‘‘(1) IN GENERAL.—Any promoter—
‘‘(A) who recklessly mails nonmailable mat-
ter in violation of subsection (b) shall be liable
to the United States in an amount of $10,000
per violation for each mailing to an individual
of nonmailable matter; or
‘‘(B) who fails to comply with the require-
ments of subsection (c)(2) shall be liable to the
United States.
‘‘(2) ENFORCEMENT.—The Postal Service shall,
in accordance with the same procedures as set forth
in section 3012(b), provide for the assessment of civil
penalties under this section.’’.
(b) TECHNICAL
AND CONFORMING AMENDMENTS.—
The table of sections for chapter 30 of title 39, United States
Code, is amended by adding after the item relating to sec-
tion 3016 the following:
‘‘3017. Nonmailable skill contests or sweepstakes matter; notification to prohibit
mailings.’’.
(c) EFFECTIVE DATE.—This section shall take effect
1 year after the date of enactment of this Act.
SEC. 9. STATE LAW NOT PREEMPTED.
(a) IN GENERAL.—Nothing in the provisions of this
Act (including the amendments made by this Act) or in
the regulations promulgated under such provisions shall be
construed to preempt any provision of State or local law
that imposes more restrictive requirements, regulations,
damages, costs, or penalties. No determination by the Postal
Service that any particular piece of mail or class of mail
is in compliance with such provisions of this Act shall be
construed to preempt any provision of State or local law.
(b) EFFECT ON STATE COURT PROCEEDINGS.—Noth-
ing contained in this section shall be construed to prohibit
an authorized State official from proceeding in State court
on the basis of an alleged violation of any general civil or
criminal statute of such State or any specific civil or crimi-
nal statute of such State.
SEC. 10. TECHNICAL AND CONFORMING AMENDMENTS.
(a) REFERENCES TO REPEALED PROVISIONS.—Sec-
tion 3001(a) of title 39, United States Code, is amended
by striking ‘‘1714,’’ and ‘‘1718,’’.
(b) CONFORMANCE WITH INSPECTOR GENERAL ACT
OF 1978.—
(1) IN
GENERAL.—Section 3013 of title 39,
United States Code, is amended—
(A) by striking ‘‘Board’’ each place it ap-
pears and inserting ‘‘Inspector General’’;
(B) in the third sentence by striking ‘‘Each
such report shall be submitted within sixty days
after the close of the reporting period involved’’
and inserting ‘‘Each such report shall be sub-
mitted within 1 month (or such shorter length of
time as the Inspector General may specify) after
the close of the reporting period involved’’; and
(C) by striking the last sentence and insert-
ing the following:
‘‘The information in a report submitted under this section
to the Inspector General with respect to a reporting period
shall be included as part of the semiannual report prepared
by the Inspector General under section 5 of the Inspector
General Act of 1978 for the same reporting period. Nothing
in this section shall be considered to permit or require that
any report by the Postmaster General under this section
include any information relating to activities of the Inspec-
tor General.’’.
(2) EFFECTIVE DATE.—This subsection shall take
effect on the date of enactment of this Act, and the
amendments made by this subsection shall apply with
respect to semiannual reporting periods beginning on
or after such date of enactment.
(3) SAVINGS PROVISION.—For purposes of any
semiannual reporting period preceding the first semi-
annual reporting period referred to in paragraph (2),
the provisions of title 39, United States Code, shall
continue to apply as if the amendments made by this
subsection had not been enacted.
SEC. 11. EFFECTIVE DATE.
Except as provided in section 8 or 10(b), this Act shall
take effect 120 days after the date of enactment of this Act.