Title: Stopping COVID Scams Act of 2020
Policy area: Commerce

Summary:
Stopping COVID Scams Act of 2020  This bill provides the Federal Trade Commission (FTC) authority to prohibit unfair or deceptive commercial practices associated with the COVID-19 (i.e., coronavirus disease 2019) public health emergency. In prohibiting such practices, the FTC must consider whether the practice (1) involves goods or services explicitly advertised as related to the COVID-19 emergency, (2) involves goods or services for which consumer demand significantly increased shortly before or during the emergency, or (3) relates to the federal or state response to the emergency.   The bill further specifies procedures for the FTC and the states to enforce such prohibitions.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4385 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 4385

 To prohibit unfair or deceptive acts or practices in connection with 
  the public health emergency resulting from COVID-19, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 30, 2020

Mr. Udall (for himself, Mr. Tester, Mr. Blumenthal, Ms. Klobuchar, Mr. 
  Casey, Mrs. Feinstein, Mr. Brown, and Mr. Menendez) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
 To prohibit unfair or deceptive acts or practices in connection with 
  the public health emergency resulting from COVID-19, 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 ``Stopping COVID Scams Act of 2020''.

SEC. 2. ENFORCEMENT OF THE FEDERAL TRADE COMMISSION ACT RELATED TO 
              COVID-19.

    (a) Authority of the FTC.--
            (1) Authority.--Notwithstanding any other provision of law, 
        any conduct described in paragraph (2) that the Commission 
        finds to be an unfair or deceptive act or practice, shall be 
        treated as a violation of a regulation under section 
        18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
        57a(a)(1)(B)) regarding unfair or deceptive acts or practices.
            (2) Conduct described.--The conduct described in this 
        paragraph is any conduct, act, or practice that occurs during 
        the public health emergency declared on January 31, 2020, 
        pursuant to section 319 of the Public Health Service Act (42 
        U.S.C. 247d) as a result of confirmed cases of COVID-19, or any 
        renewal thereof.
    (b) Considerations.--In determining whether unfair or deceptive 
acts or practices are associated with the public health emergency in 
subsection (a), the Commission shall consider--
            (1) whether the acts or practices involve goods or services 
        explicitly advertised as related to the public health 
        emergency;
            (2) whether the acts or practices involve goods or services 
        for which consumer demand significantly increased in the time 
        period beginning 30 days before the declaration of the public 
        health emergency until the public health emergency ends; or
            (3) whether the acts or practices relate to Federal or 
        State Government responses to the COVID-19 pandemic, including 
        public health response, such as testing and treatment of the 
        disease, and economic response, such as unemployment insurance 
        or stimulus checks.
    (c) Enforcement.--
            (1) Enforcement by federal trade commission.--
                    (A) Powers of commission.--The Commission shall 
                enforce a violation described in subsection (a) 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 Act. Any person who 
                violates such subsection shall be subject to the 
                penalties and entitled to the privileges and immunities 
                provided in the Federal Trade Commission Act.
                    (B) Effect on other laws.--Nothing in this Act 
                shall be construed in any way to limit the authority of 
                the Commission under any other provision of law.
            (2) Enforcement by state attorneys general.--
                    (A) In general.--If the chief law enforcement 
                officer of a State, or an official or agency designated 
                by a State, has reason to believe that any person has 
                violated or is violating subsection (a), the attorney 
                general, official, or agency of the State, in addition 
                to any authority it may have to bring an action in 
                State court under its consumer protection law, may 
                bring a civil action in any appropriate United States 
                district court or in any other court of competent 
                jurisdiction, including a State court, to--
                            (i) enjoin further such violation by such 
                        person;
                            (ii) enforce compliance with such 
                        subsection;
                            (iii) obtain civil penalties; and
                            (iv) obtain damages, restitution, or other 
                        compensation on behalf of residents of the 
                        State.
                    (B) Notice and intervention by the ftc.--The 
                attorney general of a State shall provide prior written 
                notice of any action under subparagraph (A) to the 
                Commission and provide the Commission with a copy of 
                the complaint in the action, except in any case in 
                which such prior notice is not feasible, in which case 
                the attorney general shall serve such notice 
                immediately upon instituting such action. The 
                Commission shall have the right--
                            (i) to intervene in the action;
                            (ii) upon so intervening, to be heard on 
                        all matters arising therein; and
                            (iii) to file petitions for appeal.
                    (C) Limitation on state action while federal action 
                is pending.--If the Commission has instituted a civil 
                action for violation of this Act, no State attorney 
                general, or official or agency of a State, may bring an 
                action under this paragraph during the pendency of that 
                action against any defendant named in the complaint of 
                the Commission for any violation of this Act alleged in 
                the complaint.
                    (D) Relationship with state-law claims.--If the 
                attorney general of a State has authority to bring an 
                action under State law directed at acts or practices 
                that also violate this Act, the attorney general may 
                assert the State-law claim and a claim under this Act 
                in the same civil action.
            (3) Savings clause.--Nothing in this Act shall preempt or 
        otherwise affect any State or local law.
    (d) Definitions.--In this section:
            (1) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (2) State.--The term ``State'' means each of the several 
        States, the District of Columbia, each commonwealth, territory, 
        or possession of the United States, and each federally 
        recognized Indian Tribe.
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