Title: CEASE Act
Policy area: Commerce

Summary:
Combating Egregious Advertising through Sentencing Enhancement Act or the CEASE Act  This bill prohibits and, increases the penalties for, certain commercial practices during the COVID-19 (i.e., coronavirus disease 2019) public health emergency.
Specifically, during such time period, it increases the criminal penalties for false advertising (1) for a first offense from not more than six months in prison and a $5,000 fine to not more than one year in prison and a $50,000 fine and (2) for subsequent offenses from not more than one year in prison and a $10,000 fine to not less than one year or not more than five years in prison and a $250,000 fine. The bill also increases the civil penalty for unfair methods of competition (e.g., creating monopolies) and unfair or deceptive acts or practices (e.g., misleading price claims or sale of defective products) during such time period from $10,000 to $50,000 for a first offense and $250,000 for subsequent offenses.
Additionally, the bill makes it unlawful to engage in unfair or deceptive commercial practices that relate to the COVID-19 pandemic during such time period.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3862 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 3862

To increase the penalties applicable under the Federal Trade Commission 
       Act during the COVID-19 emergency, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 2, 2020

 Mr. Gardner (for himself, Ms. Sinema, and Mrs. Capito) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
To increase the penalties applicable under the Federal Trade Commission 
       Act during the COVID-19 emergency, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Combating Egregious Advertising 
through Sentencing Enhancement Act'' or the ``CEASE Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (2) COVID-19 emergency period.--The term ``COVID-19 
        emergency period'' means the period that--
                    (A) begins on the date of enactment of this Act; 
                and
                    (B) ends on the last day of the public health 
                emergency described in section 1135(g)(1)(B) of the 
                Social Security Act (42 U.S.C. 1320b-5(g)(1)(B)).

SEC. 3. INCREASING THE PENALTY FOR FALSE ADVERTISING DURING THE COVID-
              19 EMERGENCY PERIOD.

    Notwithstanding section 14(a) of the Federal Trade Commission Act 
(15 U.S.C. 54(a)), any person, partnership, or corporation who violates 
any provision of section 12(a) of such Act (15 U.S.C. 52(a)) during the 
COVID-19 emergency period shall--
            (1) for a first offense, be guilty of a misdemeanor and 
        upon conviction shall be punished by a fine of not more than 
        $50,000 or by imprisonment for not more than 1 year, or both 
        such fine and imprisonment; and
            (2) for a second or subsequent offense, be guilty of a 
        felony and upon conviction shall be punished by a fine of not 
        more than $250,000 or by imprisonment for not less than 1 year 
        and not more than 5 years, or both such fine and imprisonment.

SEC. 4. INCREASING THE PENALTY FOR UNFAIR METHODS OF COMPETITION AND 
              UNFAIR OR DECEPTIVE ACTS OR PRACTICES DURING THE COVID-19 
              EMERGENCY PERIOD.

    Notwithstanding subsections (l), (m)(1)(A), and (m)(1)(B) of 
section 5 of the Federal Trade Commission Act (42 U.S.C. 45), any 
penalties that are applicable under such subsections with respect to 
conduct occurring during the COVID-19 emergency period shall be 
increased--
            (1) for a first offense, to $50,000; and
            (2) for a second or subsequent offense, to $250,000.

SEC. 5. PROHIBITING UNFAIR OR DECEPTIVE ACTS OR PRACTICES RELATING TO 
              COVID-19 DURING THE COVID-19 EMERGENCY PERIOD.

    (a) In General.--During the COVID-19 emergency period, it shall be 
unlawful for any person, partnership, or corporation to engage in an 
unfair or deceptive act or practice in or affecting commerce that--
            (1) violates section 5(a) of the Federal Trade Commission 
        Act (15 U.S.C. 45(a)); and
            (2) relates to the COVID-19 pandemic.
    (b) Enforcement.--
            (1) Unfair or deceptive acts or practices.--A violation of 
        this section shall be treated as a violation of a rule defining 
        an unfair or deceptive act or practice prescribed under section 
        18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
        57a(a)(1)(B)).
            (2) Powers of the commission.--
                    (A) In general.--The Commission shall enforce this 
                section in the same manner, by the same means, and with 
                the same jurisdiction, powers, and duties as though all 
                applicable terms and provisions of the Federal Trade 
                Commission Act (15 U.S.C. 41 et seq.) were incorporated 
                into and made a part of this section.
                    (B) Privileges and immunities.--Any person who 
                violates this section shall be subject to the penalties 
                and entitled to the privileges and immunities provided 
                in the Federal Trade Commission Act.
                    (C) Effect on other laws.--Nothing in this Act 
                shall be construed to limit the authority of the 
                Commission under any other provision of law.

SEC. 6. RULE OF CONSTRUCTION.

    Nothing in this Act shall be construed to limit or enhance the 
authority of the Commission (other than with respect to the penalties 
that the Commission may seek under the Federal Trade Commission Act (15 
U.S.C. 41 et seq.) for conduct occurring during the COVID-19 emergency 
period) under any other provision of law.
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