Honesty in Sweepstakes Act of 1999

SECTION 1. HONESTY IN SWEEPSTAKES ACT OF 1999.

    (a) Short Title.--This Act may be cited as the ``Honesty in 
Sweepstakes Act of 1999''.
    (b) Unmailable Matter.--Section 3001 of title 39, United States 
Code, is amended by--
            (1) redesignating subsections (j) and (k) as subsections 
        (l) and (m), respectively; and
            (2) inserting after subsection (i) the following:
    ``(j)(1) Matter otherwise legally acceptable in the mails that--
            ``(A) constitutes a solicitation or offer in connection 
        with the sales promotion for a product or service (including 
        any sweepstakes) that includes the chance or opportunity to win 
        anything of value; and
            ``(B) contains words or symbols that suggest that--
                    ``(i) the recipient has or will receive anything of 
                value if that recipient has in fact not won that thing 
                of value; or
                    ``(ii) the recipient is likely to receive anything 
                of value if statistically the recipient is not likely 
                to receive anything of value,
shall not be carried or delivered by mail, and may be disposed of as 
the Postal Service directs, unless such matter bears the notice 
described in paragraph (2).
    ``(2)(A) The notice referred to in paragraph (1) is the following 
notice:
            ``(i) `This is a game of chance (or sweepstakes, if 
        applicable). You have not automatically won. Your chances of 
        winning are (inserting corresponding mathematical probability 
        for each prize shown). No purchase is required either to win a 
        prize or enhance your chances of winning a prize.', or a notice 
        to the same effect in words which the Postal Service may 
        prescribe; or
            ``(ii) a standardized Postal Service designed warning label 
        to the same effect as the Postal Service may prescribe.
    ``(B) The notice described in subparagraph (A) shall be in 
conspicuous and legible type in contrast by typography, layout, or 
color with other printing on its face, in accordance with regulations 
that the Postal Service shall prescribe and be prominently displayed on 
the first page of the enclosed printed material and on any other pages 
enclosed.
    ``(C) If the matter described in paragraph (1) is an envelope, the 
face of the envelope shall bear the notice described in subparagraph 
(A).
    ``(D) If the matter described in paragraph (1) is an order entry 
device, the face of the order entry device shall bear the following 
notice:
            `` `This is a game of chance (or sweepstakes, if 
        applicable). No purchase is required either to win a prize or 
        enhance your chances of winning a prize.', or a notice to the 
        same effect in words which the Postal Service may prescribe.
    ``(k) Matter otherwise legally acceptable in the mails that 
constitutes a solicitation or offer in connection with the sales 
promotion for a product or service that uses any matter resembling a 
negotiable instrument shall not be carried or delivered by mail, and 
may be disposed of as the Postal Service directs, unless such matter 
bears on the face of the negotiable instrument in conspicuous and 
legible type in contrast by typography, layout, or color with other 
printing on its face, in accordance with regulations which the Postal 
Service shall prescribe the following notice: `This is not a check (or 
negotiable instrument). This has no cash value.', or a notice to the 
same effect in words which the Postal Service may prescribe.''.
    (c) Technical Amendment.--Section 3005(a) of title 39, United 
States Code, is amended by--
            (1) striking ``or'' after ``(h),'' both places it appears; 
        and
            (2) inserting ``, (j), or (k)'' after ``(i)''.
    (d) Penalties.--
            (1) In general.--Section 3012 of title 39, United States 
        Code, is amended--
            (A) by redesignating subsections (b), (c), and (d), as 
        subsections (c), (d), and (e), respectively;
            (B) by inserting after subsection (a) the following:
    ``(b) Any person who, through use of the mail, sends any matter 
which is nonmailable under sections 3001 (a) through (k), 3014, or 3015 
of this title, shall be liable to the United States for a civil penalty 
in accordance with regulations the Postal Service shall prescribe. The 
civil penalty shall not exceed $50,000 for each mailing of less than 
50,000 pieces; $100,000 for each mailing of 50,000 to 100,000 pieces; 
with an additional $10,000 for each additional 10,000 pieces above 
100,000, not to exceed $2,000,000.'';
            (C) in subsection (c)(1) and (2), as redesignated, by 
        inserting after ``of subsection (a)'' the following: ``or 
        subsection (b),''; and
            (D) in subsection (d), as redesignated, by striking 
        ``Treasury of the United States'' and inserting ``Postal 
        Service Fund established by section 2003 of this title''.
    (2) Allocation of Funds.--It is the sense of Congress that civil 
penalties collected through the enforcement of the amendment made by 
paragraph (1) should be allocated by the Postal Service to increase 
consumer awareness of misleading solicitations received through the 
mail, including releasing an annual listing of the top 10 offenders of 
the Honesty in Sweepstakes Act of 1999.
    (e) No Preemption.--Nothing in this Act shall preempt any State law 
that regulates advertising or sales promotions or goods and services 
that includes the chance or opportunity to win anything of value.

Summary: Honesty in Sweepstakes Act of 1999 - Amends Federal postal law to prohibit, unless specified notices in a specified font are printed on the envelope, enclosed material, or face of the order entry device, delivery of any mail constituting a solicitation, offer, or sweepstakes in connection with a sales promotion for a product or service: (1) that includes the chance or opportunity to win anything of value if such mail contains words or symbols that suggest that the recipient has received or will receive anything of value if the recipient has in fact not won that thing of value; (2) that states that the recipient is likely to receive anything of value if statistically the recipient is not likely to receive anything of value; or (3) resembling a negotiable instrument. 
Prescribes civil penalties for any person who, through the use of the mail, sends any matter which is nonmailable under Federal postal law.  Deposits such penalties into the Postal Service Fund (currently, the Treasury). 
Expresses the sense of the Congress that civil penalties collected through the enforcement of this Act should be allocated by the Postal Service to increase consumer awareness of misleading solicitations received through the mail, including releasing an annual listing of the top ten offenders of this Act. 
States that nothing in this Act shall preempt any State law that regulates advertising or sales of goods and services associated with any game of chance.