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Week Ending October 28, 2005

H.R.3675 To amend the Federal Trade Commission Act to increase civil penalties for violations involving unfair or deceptive acts or practices that exploit popular reaction to an emergency or major disaster, and to authorize the Federal Trade Commission to seek civil penalties for such violations in actions brought under section 13 of that Act.

BRIEF

   The bill would double from $11,000 to $22,000 the maximum fines that could be levied against anyone or any business found guilty of an unfair or deceptive act or practice in either a national emergency period or disaster period if the act exploits popular reaction to the disaster or emergency. The bill would also apply to similar acts regarding an international disaster. It would be the Federal Trade Commission that would seek relief in such a matter.

Sponsor: Representative Charles F. Bass (R-NH-21^st)

Vote: Passed House 399 to 3 (RC 536) October 25, 2005

Cost to the taxpayers: Not scored by CBO by press time. Congressional Research Service concludes that the bill would not affect direct spending and would bring in minimal revenue from fines.

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MORE INFORMATION

(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 a national emergency period or disaster period, or relating to an international disaster, 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 or major disaster that is the basis for such period, or to the international disaster.

`(E) In this paragraph--

`(i) the term `national emergency period' means the period that--

`(I) begins on the date the President declares 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;

`(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.); and

`(iii) the term `international disaster' means any natural or man-made disaster in response to which the President furnishes assistance to any foreign country, international organization, or private voluntary organization pursuant to section 491 of the Foreign Assistance Act (22 U.S.C. 2292(b)).'.

(b) Violations of Other Laws Enforced by the Federal Trade Commission- Section 13 of the Federal 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 committed a violation involving an unfair or deceptive act or practice in a national emergency period or a disaster period, or relating to an international disaster, and if the act or practice exploits popular reaction to the national emergency or major disaster that is the basis for such period, or to the international disaster, 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 violation.

`(2) In this subsection--

`(A) the term `national emergency period' means the period that--

`(i) begins on the date the President declares 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;

`(B) 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.); and

`(C) the term `international disaster' means any natural or man-made disaster in response to which the President furnishes assistance to any foreign country, international organization, or private voluntary organization pursuant to section 491 of the Foreign Assistance Act (22 U.S.C. 2292(b)).'.

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No reproduction or distribution without written permission from TheWeekInCongress.com.