[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 336 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 336

 To curb deceptive and misleading games of chance mailings, to provide 
  Federal agencies with additional investigative tools to police such 
mailings, to establish additional penalties for such mailings, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 3, 1999

  Mr. Levin (for himself, Mr. Durbin, and Ms. Collins) introduced the 
 following bill; which was read twice and referred to the Committee on 
                          Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
 To curb deceptive and misleading games of chance mailings, to provide 
  Federal agencies with additional investigative tools to police such 
mailings, to establish additional penalties for such mailings, 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. DECEPTIVE GAMES OF CHANCE MAILINGS ELIMINATION.

    (a) Short Title.--This Act may be cited as the ``Deceptive Games of 
Chance Mailings Elimination Act of 1999''.
    (b) Nonmailable Matter.--
            (1) In general.--Section 3001 of title 39, United States 
        Code, is amended--
                    (A) by redesignating subsections (j) and (k) as 
                subsections (k) and (l), respectively; and
                    (B) by inserting after subsection (i) the 
                following:
    ``(j)(1) Matter otherwise legally acceptable in the mails that 
constitutes a solicitation or offer in connection with the sales 
promotion for a product or service or the promotion of a game of skill 
that includes the chance or opportunity to win anything of value and 
that contains words or symbols that suggest the recipient will, or is 
likely to, receive anything of value, shall conform with requirements 
prescribed in regulations issued by the Postmaster General.
    ``(2) Matter not in conformance with the regulations prescribed 
under paragraph (1) shall not be carried or delivered by mail and shall 
be disposed of as the Postal Service directs.
    ``(3) Regulations prescribed under paragraph (1) shall require, at 
a minimum, that--
            ``(A) promotion of games of chance mailings contain 
        notification or disclosure statements, with sufficiently large 
        and noticeable type to be effective notice to recipients that--
                    ``(i) any recipient is not obligated to purchase a 
                product in order to win;
                    ``(ii) sets out the chances of winning accurately; 
                and
                    ``(iii) advises that purchases do not enhance the 
                recipient's chances of winning;
            ``(B) games of chance mailings shall be clearly labeled 
        to--
                    ``(i) identify such mailings as games of chance 
                mailings; and
                    ``(ii) prohibit misleading statements representing 
                that recipients are guaranteed winners; and
            ``(C) solicitations in games of chance mailings may not 
        represent that the recipient is a member of a selected group 
        whose chances of winning are enhanced as a member of that 
        group.''.
            (2) False representations.--Section 3005(a) of title 39, 
        United States Code, is amended--
                    (A) in the first sentence by striking ``section 
                3001 (d), (h), or (i)'' and inserting ``section 3001 
                (d), (h), (i), or (j)''; and
                    (B) in the second sentence by striking ``section 
                3001 (d), (h), or (i)'' and inserting ``section 3001 
                (d), (h), (i), or (j)''.
    (c) Administrative Subpoenas.--
            (1) In general.--Chapter 30 of title 39, United States 
        Code, is amended by adding at the end the following:
``Sec. 3016. Administrative subpoenas
    ``(a) Authorization of Use of Subpoenas by Postmaster General.--In 
any investigation conducted under this chapter, the Postmaster General 
may require by subpoena the production of any records (including books, 
papers, documents, and other tangible things which constitute or 
contain evidence) which the Postmaster General finds relevant or 
material to the investigation.
    ``(b) Service.--
            ``(1) Service within the united states.--A subpoena issued 
        under this section may be served by a person designated under 
        section 3061 of title 18 at any place within the territorial 
        jurisdiction of any court of the United States.
            ``(2) Foreign service.--Any such subpoena may be served 
        upon any person who is not to be found within the territorial 
        jurisdiction of any court of the United States, in such manner 
        as the Federal Rules of Civil Procedure prescribe for service 
in a foreign country. To the extent that the courts of the United 
States may assert jurisdiction over such person consistent with due 
process, the United States District Court for the District of Columbia 
shall have the same jurisdiction to take any action respecting 
compliance with this section by such person that such court would have 
if such person were personally within the jurisdiction of such court.
            ``(3) Service on business persons.--Service of any such 
        subpoena may be made by a Postal Inspector upon a partnership, 
        corporation, association, or other legal entity by--
                    ``(A) delivering a duly executed copy thereof to 
                any partner, executive officer, managing agent, or 
                general agent thereof, or to any agent thereof 
                authorized by appointment or by law to receive service 
                of process on behalf of such partnership, corporation, 
                association, or entity;
                    ``(B) delivering a duly executed copy thereof to 
                the principal office or place of business of the 
                partnership, corporation, association, or entity; or
                    ``(C) depositing such copy in the United States 
                mails, by registered or certified mail, return receipt 
                requested, duly addressed to such partnership, 
                corporation, association, or entity at its principal 
                office or place of business.
            ``(4) Service on natural persons.--Service of any subpoena 
        may be made upon any natural person by--
                    ``(A) delivering a duly executed copy to the person 
                to be served; or
                    ``(B) depositing such copy in the United States 
                mails by registered or certified mail, return receipt 
                requested, duly addressed to such person at his 
                residence or principal office or place of business.
            ``(5) Verified return.--A verified return by the individual 
        serving any such subpoena setting forth the matter of such 
        service shall be proof of such service. In the case of service 
        by registered or certified mail, such return shall be 
        accompanied by the return post office receipt of delivery of 
        such subpoena.
    ``(c) Enforcement.--
            ``(1) In general.--Whenever any person, partnership, 
        corporation, association, or entity fails to comply with any 
        subpoena duly served upon him, the Postmaster General may 
        request that the Attorney General seek enforcement of the 
        subpoena in the district court of the United States for any 
        judicial district in which such person resides, is found, or 
        transacts business, and serve upon such person a petition for 
        an order of such court for the enforcement of this section.
            ``(2) Jurisdiction.--Whenever any petition is filed in any 
        district court of the United States under this section, such 
        court shall have jurisdiction to hear and determine the matter 
        so presented, and to enter such order or orders as may be 
        required to carry into effect the provisions of this section. 
        Any final order entered shall be subject to appeal under 
        section 1291 of title 28. Any disobedience of any final order 
        entered under this section by any court shall be punished as 
        contempt.
    ``(d) Disclosure.--Any documentary material provided pursuant to 
any subpoena issued under this section shall be exempt from disclosure 
under section 552 of title 5.''.
            (2) Regulations.--Not later than 180 days after the date of 
        enactment of this section, the Postal Service shall promulgate 
        regulations setting out the procedures the Postal Service will 
        use to implement this subsection.
            (3) Technical and conforming amendment.--The table of 
        sections for chapter 30 of title 39, United States Code, is 
        amended by adding at the end the following:

``3016. Administrative subpoenas.''.
    (d) Administrative Civil Penalties for Nonmailable Matter 
Violations.--Section 3012 of title 39, United States Code, is amended 
by adding at the end the following:
    ``(e)(1) In any proceeding in which the Postal Service may issue an 
order under section 3005(a), the Postal Service may in lieu of that 
order or as a part of that order assess civil penalties in an amount of 
$10,000 per violation for each mailing of nonmailable matter as defined 
under any provision of this chapter.
    ``(2) The Postal Service shall prescribe regulations to carry out 
the subsection.''.
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