107TH CONGRESS
1ST SESSION
H. R. 2985
AN ACT
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.
107TH CONGRESS
1ST SESSION
H. R. 2985
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.
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—
‘‘(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
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 November 13,
2001.
Attest:
Clerk.