IIB 
108TH CONGRESS 
1ST SESSION 
H. R. 346
IN THE SENATE OF THE UNITED STATES 
FEBRUARY 13, 2003
Received; read twice and referred to the Committee on Commerce, Science, 
and Transportation 
AN ACT 
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.
HR 346 RFS 
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—
HR 346 RFS 
‘‘(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 
‘‘(ii) the term ‘disaster period’ means the 1-year 
period beginning on the date the President declares 
an emergency or major disaster under the Robert T. 
Stafford Disaster Relief and Emergency Assistance 
Act (42 U.S.C. 5121 et seq.).’’. 
(b) VIOLATIONS OF OTHER LAWS ENFORCED BY THE 
FEDERAL TRADE COMMISSION.—Section 13 of the Fed-
eral Trade Commission Act (15 U.S.C. 53) is amended 
by adding at the end the following: 
‘‘(e)(1) If a person, partnership, or corporation is 
found, in an action under subsection (b), to have com-
mitted a violation involving an unfair or deceptive act or 
practice in an emergency period or a disaster period, and 
if the act or practice exploits popular reaction to the na-
tional emergency, major disaster, or emergency that is the 
basis for such period, the court, after awarding equitable 
relief (if any) under any other authority of the court, shall 
hold the person, partnership, or corporation liable for a
HR 346 RFS 
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.).’’.
Passed the House of Representatives February 12, 
2003. 
Attest: 
JEFF TRANDAHL, 
Clerk.