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]
[H.R. 7750 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 7750
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 HOUSE OF REPRESENTATIVES
July 23, 2020
Mr. Lujan (for himself, Mr. Butterfield, Mr. Kennedy, Mr. Loebsack, Mr.
McNerney, Mr. Cardenas, Mr. Grijalva, Mr. Case, Mr. Pascrell, Ms.
Norton, Mr. Welch, Mr. O'Halleran, and Mr. Veasey) introduced the
following bill; which was referred to the Committee on Energy and
Commerce
_______________________________________________________________________
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 AGAINST SCAMS 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) the term ``Commission'' means the Federal Trade
Commission; and
(2) 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.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Energy and Commerce.
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