American Spirit Fraud Prevention Act

Madam Speaker, I move to suspend the rules and pass the bill (H.R. 346) to amend the Federal Trade Commission Act to increase civil penalties for violations involving certain proscribed acts or practices that exploit popular reaction to an emergency or major disaster declared by the President, and to authorize the Federal Trade Commission to seek civil penalties for such violations in actions brought under section 3 of that Act.

Madam Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on this legislation and to insert extraneous material in the bill.

Madam Speaker, I yield myself such time as I may consume.

In the weeks since September 11, 2001, this Nation has mourned, has been angry, has been anxious, and has been very generous in response to the needs of those who were affected. This American spirit has reached record levels and now stands as symbolic as this Nation's greatness and ability to support a just cause, the relief of the victims and their families.

But we have also seen the darker side of humanity. Reports of people using this tragedy and the generous American spirit for their own gain have appeared. Scam artists and frauds know that in the aftermath, Americans are all too eager to help. They also appear in the wake of hurricanes, earthquakes, floods, and other such similar disasters.

The Department of Justice, the Federal Trade Commission, and the States' attorneys general already have some powers to prosecute those engaged in fraud and deceptive practices, but we must make it clear that we will severely punish those who aim to take advantage of America's charity or an organization's good name during such an emergency.

Congress must also make sure that consumers are not inundated with false and deceptive claims about goods and services that would exploit the circumstances of an emergency or of such a disaster. Whether it is selling Cipro and other drugs under false information or offering fraudulent terrorist insurance, these practices must carry a penalty commensurate with their nature. We cannot let stand the detestable actions of so few that mar the pride and patriotism we all share over the phenomenal generosity and outpouring of support from across the United States and world. And we cannot let the fear and anxiety of our citizens be preyed upon by scam artists peddling their cheats and their swindles.

Madam Speaker, I have no doubt that the victims of any tragedy, their families and their friends and all Americans are as humbled as I am with the response of this country to disasters. Now we need to ensure that those who would abuse this determined American spirit are equally staggered at our response.

The American Spirit Fraud Prevention Act would double the penalties that the Federal Trade Commission would levy during times of presidentially declared emergencies and disasters if the offending action aims to exploit the crisis.

These times, Madam Speaker, sadly occur more often than one might think, and the attempts to profit from them follow just as regularly. All hope of profit and gain must be removed from the equation for these people.

I personally would like to thank the gentleman from New Hampshire (Mr. Bass) for taking the initiative on this very important bill authoring H.R. 346, the American Spirit Fraud Prevention Act.

Madam Speaker, I reserve my time.

Madam Speaker, I have no further requests for time, and I yield back the balance of my time.

Madam Speaker, on that I demand the yeas and nays.

Madam Speaker, I yield myself as much time as I may consume.

I rise in strong support of H.R. 346, the American Spirit Fraud Prevention Act, and I also want to commend the gentleman from New Hampshire (Mr. Bass) for his leadership on this issue, as well as my colleagues on the Committee on Energy and Commerce for ensuring this measure's swift passage through the committee.

September 11 was the worst attack and loss this country has ever experienced on our own soil. Countless lives were lost, and the Nation was confronted with a new reality, a harsh sense of our vulnerabilities. It was the single darkest day this Nation has faced. The one saving grace, the one ray of hope that helped combat the pain, suffering, and sadness of the Nation was the heroism, leadership, and commitment displayed by Americans who were determined to help.

Some helped by giving their lives, and their stories will inspire us forever. Others from across the country helped by giving. Americans made generous donations to provide aid to victims of the terrorist attacks. Over $1 billion was raised for relief efforts and aid to victims' families in the wake of September 11, from donations, large and small, made by the American public.

Unfortunately, however, some in our country demonstrated the shameful side of humanity by attempting to illegally profit from the tragedy. Those individuals tried to exploit the generosity demonstrated by so many through fraudulent solicitations in which they claimed to be representing organizations benefiting the victims or providing emergency response services. While those despicable acts are already illegal, it is important for the Congress on behalf of our constituents to send a clear message that such behavior will be subjected to even more severe penalties in the future.

Under this measure the maximum civil fines for actions of fraud and attempts to profit from national emergencies in violation of the Federal Trade Commission Act will be doubled. These increased penalties will apply to all violations that occur within 1 year of the time the President declares a disaster and all violations that occurred during and up to 1 year after the expiration of a presidential emergency declared under the National Emergencies Act.

Madam Speaker, the public is caring and committed. We care about the well-being of our neighbors, and we are committed to do what we can to ensure prosperity and security for this Nation, and we will not tolerate those who undermine and abuse the American spirit.

I urge all of my colleagues to join me in supporting this measure.

Madam Speaker, I yield the balance of my time.

Mr. Speaker, unfortunately, personal business required me to return to the district this evening before the House considered votes on legislative business for which the ``yeas and neas'' were ordered. Had I been present, I would have cast my votes as follows: Rollcall No. 24 (H.R. 346), The American Spirit Fraud Prevention Act, ``yea''; rollcall No. 25 (H. Res. 62), A resolution recognizing Vietnam prisoners of war, ``yea''; and on rollcall No. 26, H.R. 395, The Do-Not-Call Implementation Act, ``yea.''

Mr. Speaker, on February 12 and 13, 2003, I was unavoidably absent for seven rollcall votes, due to the death of a family member.

Had I been present I would have voted ``yea'' on rollcall votes 24 (H.R. 346, American Spirit Fraud Prevention Act), 25 (H. Res. 62, regarding POWs), 26 (H.R. 395, Do-Not-Call Implementation Act).

Mr. Speaker, on rollcall No. 26, on final passage of H.R. 395, had I been present, I would have voted ``yea.''

personal explanation