[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 877 Reported in Senate (RS)]

                                                       Calendar No. 209
108th CONGRESS
  1st Session
                                 S. 877

                          [Report No. 108-102]

 To regulate interstate commerce by imposing limitations and penalties 
 on the transmission of unsolicited commercial electronic mail via the 
                               Internet.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 10, 2003

Mr. Burns (for himself, Mr. Wyden, Mr. Stevens, Mr. Breaux, Mr. Thomas, 
  Ms. Landrieu, Mr. Schumer, Mr. Talent, Mr. Johnson, Mr. Gregg, Mr. 
Carper, Mr. Lieberman, Mr. Nelson of Florida, Ms. Snowe, Mr. Chambliss, 
 Mr. Dodd, Mr. Lautenberg, Mr. Edwards, and Ms. Murkowski) introduced 
the following bill; which was read twice and referred to the Committee 
                on Commerce, Science, and Transportation

                             July 16, 2003

               Reported by Mr. McCain, with an amendment
 [Strike all after the enacting clause and insert the part printed in 
                                italic]

_______________________________________________________________________

                                 A BILL


 
 To regulate interstate commerce by imposing limitations and penalties 
 on the transmission of unsolicited commercial electronic mail via the 
                               Internet.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Controlling the Assault of 
Non-Solicited Pornography and Marketing Act of 2003'', or the ``CAN-
SPAM Act of 2003''.</DELETED>

<DELETED>SEC. 2. CONGRESSIONAL FINDINGS AND POLICY.</DELETED>

<DELETED>    (a) Findings.--The Congress finds the following:</DELETED>
        <DELETED>    (1) There is a right of free speech on the 
        Internet.</DELETED>
        <DELETED>    (2) The Internet has increasingly become a 
        critical mode of global communication and now presents 
        unprecedented opportunities for the development and growth of 
        global commerce and an integrated worldwide economy.</DELETED>
        <DELETED>    (3) In order for global commerce on the Internet 
        to reach its full potential, individuals and entities using the 
        Internet and other online services should be prevented from 
        engaging in activities that prevent other users and Internet 
        service providers from having a reasonably predictable, 
        efficient, and economical online experience.</DELETED>
        <DELETED>    (4) Unsolicited commercial electronic mail can be 
        a mechanism through which businesses advertise and attract 
        customers in the online environment.</DELETED>
        <DELETED>    (5) The receipt of unsolicited commercial 
        electronic mail may result in costs to recipients who cannot 
        refuse to accept such mail and who incur costs for the storage 
        of such mail, or for the time spent accessing, reviewing, and 
        discarding such mail, or for both.</DELETED>
        <DELETED>    (6) Unsolicited commercial electronic mail may 
        impose significant monetary costs on providers of Internet 
        access services, businesses, and educational and nonprofit 
        institutions that carry and receive such mail, as there is a 
        finite volume of mail that such providers, businesses, and 
        institutions can handle without further investment in 
        infrastructure.</DELETED>
        <DELETED>    (7) Some unsolicited commercial electronic mail 
        contains material that many recipients may consider vulgar or 
        pornographic in nature.</DELETED>
        <DELETED>    (8) While some senders of unsolicited commercial 
        electronic mail messages provide simple and reliable ways for 
        recipients to reject (or ``opt-out'' of) receipt of unsolicited 
        commercial electronic mail from such senders in the future, 
        other senders provide no such ``opt-out'' mechanism, or refuse 
        to honor the requests of recipients not to receive electronic 
        mail from such senders in the future, or both.</DELETED>
        <DELETED>    (9) An increasing number of senders of unsolicited 
        commercial electronic mail purposefully disguise the source of 
        such mail so as to prevent recipients from responding to such 
        mail quickly and easily.</DELETED>
        <DELETED>    (10) An increasing number of senders of 
        unsolicited commercial electronic mail purposefully include 
        misleading information in the message's subject lines in order 
        to induce the recipients to view the messages.</DELETED>
        <DELETED>    (11) In legislating against certain abuses on the 
        Internet, Congress should be very careful to avoid infringing 
        in any way upon constitutionally protected rights, including 
        the rights of assembly, free speech, and privacy.</DELETED>
<DELETED>    (b) Congressional Determination of Public Policy.--On the 
basis of the findings in subsection (a), the Congress determines that--
</DELETED>
        <DELETED>    (1) there is a substantial government interest in 
        regulation of unsolicited commercial electronic mail;</DELETED>
        <DELETED>    (2) senders of unsolicited commercial electronic 
        mail should not mislead recipients as to the source or content 
        of such mail; and</DELETED>
        <DELETED>    (3) recipients of unsolicited commercial 
        electronic mail have a right to decline to receive additional 
        unsolicited commercial electronic mail from the same 
        source.</DELETED>

<DELETED>SEC. 3. DEFINITIONS.</DELETED>

<DELETED>    In this Act:</DELETED>
        <DELETED>    (1) Affirmative consent.--The term ``affirmative 
        consent'', when used with respect to a commercial electronic 
        mail message, means that the recipient has expressly consented 
        to receive the message, either in response to a clear and 
        conspicuous request for such consent or at the recipient's own 
        initiative.</DELETED>
        <DELETED>    (2) Commercial electronic mail message.--
        </DELETED>
                <DELETED>    (A) In general.--The term ``commercial 
                electronic mail message'' means any electronic mail 
                message the primary purpose of which is the commercial 
                advertisement or promotion of a commercial product or 
                service (including content on an Internet website 
                operated for a commercial purpose).</DELETED>
                <DELETED>    (B) Reference to company or website.--The 
                inclusion of a reference to a commercial entity or a 
                link to the website of a commercial entity in an 
                electronic mail message does not, by itself, cause such 
                message to be treated as a commercial electronic mail 
                message for purposes of this Act if the contents or 
                circumstances of the message indicate a primary purpose 
                other than commercial advertisement or promotion of a 
                commercial product or service.</DELETED>
        <DELETED>    (3) Commission.--The term ``Commission'' means the 
        Federal Trade Commission.</DELETED>
        <DELETED>    (4) Domain name.--The term ``domain name'' means 
        any alphanumeric designation which is registered with or 
        assigned by any domain name registrar, domain name registry, or 
        other domain name registration authority as part of an 
        electronic address on the Internet.</DELETED>
        <DELETED>    (5) Electronic mail address.--The term 
        ``electronic mail address'' means a destination, commonly 
        expressed as a string of characters, consisting of a unique 
        user name or mailbox (commonly referred to as the ``local 
        part'') and a reference to an Internet domain (commonly 
        referred to as the ``domain part''), to which an electronic 
        mail message can be sent or delivered.</DELETED>
        <DELETED>    (6) Electronic mail message.--The term 
        ``electronic mail message'' means a message sent to an 
        electronic mail address.</DELETED>
        <DELETED>    (7) FTC act.--The term ``FTC Act'' means the 
        Federal Trade Commission Act (15 U.S.C. 41 et seq.).</DELETED>
        <DELETED>    (8) Header information.--The term ``header 
        information'' means the source, destination, and routing 
        information attached to an electronic mail message, including 
        the originating domain name and originating electronic mail 
        address.</DELETED>
        <DELETED>    (9) Implied consent.--The term ``implied 
        consent'', when used with respect to a commercial electronic 
        mail message, means that--</DELETED>
                <DELETED>    (A) within the 3-year period ending upon 
                receipt of such message, there has been a business 
                transaction between the sender and the recipient 
                (including a transaction involving the provision, free 
                of charge, of information, goods, or services requested 
                by the recipient); and</DELETED>
                <DELETED>    (B) the recipient was, at the time of such 
                transaction or thereafter in the first electronic mail 
                message received from the sender after the effective 
                date of this Act, provided a clear and conspicuous 
                notice of an opportunity not to receive unsolicited 
                commercial electronic mail messages from the sender and 
                has not exercised such opportunity.</DELETED>
        <DELETED>If a sender operates through separate lines of 
        business or divisions and holds itself out to the recipient, 
        both at the time of the transaction described in subparagraph 
        (A) and at the time the notice under subparagraph (B) was 
        provided to the recipient, as that particular line of business 
        or division rather than as the entity of which such line of 
        business or division is a part, then the line of business or 
        the division shall be treated as the sender for purposes of 
        this paragraph.</DELETED>
        <DELETED>    (10) Initiate.--The term ``initiate'', when used 
        with respect to a commercial electronic mail message, means to 
        originate such message or to procure the origination of such 
        message, but shall not include actions that constitute routine 
        conveyance of such message.</DELETED>
        <DELETED>    (11) Internet.--The term ``Internet'' has the 
        meaning given that term in the Internet Tax Freedom Act (47 
        U.S.C. 151 nt).</DELETED>
        <DELETED>    (12) Internet access service.--The term ``Internet 
        access service'' has the meaning given that term in section 
        231(e)(4) of the Communications Act of 1934 (47 U.S.C. 
        231(e)(4)).</DELETED>
        <DELETED>    (13) Protected computer.--The term ``protected 
        computer'' has the meaning given that term in section 
        1030(e)(2) of title 18, United States Code.</DELETED>
        <DELETED>    (14) Recipient.--The term ``recipient'', when used 
        with respect to a commercial electronic mail message, means an 
        authorized user of the electronic mail address to which the 
        message was sent or delivered. If a recipient of a commercial 
        electronic mail message has 1 or more electronic mail addresses 
        in addition to the address to which the message was sent or 
        delivered, the recipient shall be treated as a separate 
        recipient with respect to each such address. If an electronic 
        mail address is reassigned to a new user, the new user shall 
        not be treated as a recipient of any commercial electronic mail 
        message sent or delivered to that address before it was 
        reassigned.</DELETED>
        <DELETED>    (15) Routine conveyance.--The term ``routine 
        conveyance'' means the transmission, routing, relaying, 
        handling, or storing, through an automatic technical process, 
        of an electronic mail message for which another person has 
        provided and selected the recipient addresses.</DELETED>
        <DELETED>    (16) Sender.--The term ``sender'', when used with 
        respect to a commercial electronic mail message, means a person 
        who initiates such a message and whose product, service, or 
        Internet web site is advertised or promoted by the 
        message.</DELETED>
        <DELETED>    (17) Transactional or relationship messages.--The 
        term ``transactional or relationship message'' means an 
        electronic mail message the primary purpose of which is to 
        facilitate, complete, confirm, provide, or request information 
        concerning--</DELETED>
                <DELETED>    (A) a commercial transaction that the 
                recipient has previously agreed to enter into with the 
                sender;</DELETED>
                <DELETED>    (B) an existing commercial relationship, 
                formed with or without an exchange of consideration, 
                involving the ongoing purchase or use by the recipient 
                of products or services offered by the sender; 
                or</DELETED>
                <DELETED>    (C) an existing employment relationship or 
                related benefit plan.</DELETED>
        <DELETED>    (18) Unsolicited commercial electronic mail 
        message.--The term ``unsolicited commercial electronic mail 
        message'' means any commercial electronic mail message that--
        </DELETED>
                <DELETED>    (A) is not a transactional or relationship 
                message; and</DELETED>
                <DELETED>    (B) is sent to a recipient without the 
                recipient's prior affirmative or implied 
                consent.</DELETED>

<DELETED>SEC. 4. CRIMINAL PENALTY FOR UNSOLICITED COMMERCIAL ELECTRONIC 
              MAIL CONTAINING FRAUDULENT ROUTING INFORMATION.</DELETED>

<DELETED>    (a) In General.--Chapter 63 of title 18, United States 
Code, is amended by adding at the end the following:</DELETED>
<DELETED>``Sec.  1351. Unsolicited commercial electronic mail 
              containing fraudulent transmission information</DELETED>
<DELETED>    ``(a) In General.--Any person who initiates the 
transmission, to a protected computer in the United States, of an 
unsolicited commercial electronic mail message, with knowledge and 
intent that the message contains or is accompanied by header 
information that is materially false or materially misleading shall be 
fined or imprisoned for not more than 1 year, or both, under this 
title. For purposes of this subsection, header information that is 
technically accurate but includes an originating electronic mail 
address the access to which for purposes of initiating the message was 
obtained by means of false or fraudulent pretenses or representations 
shall be considered materially misleading.</DELETED>
<DELETED>    ``(b) Definitions.--Any term used in subsection (a) that 
is defined in section 3 of the CAN-SPAM Act of 2003 has the meaning 
given it in that section.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--The chapter analysis for 
chapter 63 of title 18, United States Code, is amended by adding at the 
end the following:</DELETED>

<DELETED>``1351. Unsolicited commercial electronic mail containing 
                            fraudulent routing information''.

<DELETED>SEC. 5. OTHER PROTECTIONS AGAINST UNSOLICITED COMMERCIAL 
              ELECTRONIC MAIL.</DELETED>

<DELETED>    (a) Requirements for Transmission of Messages.--</DELETED>
        <DELETED>    (1) Prohibition of false or misleading 
        transmission information.--It is unlawful for any person to 
        initiate the transmission, to a protected computer, of a 
        commercial electronic mail message that contains, or is 
        accompanied by, header information that is materially or 
        intentionally false or materially or intentionally misleading. 
        For purposes of this paragraph, header information that is 
        technically accurate but includes an originating electronic 
        mail address the access to which for purposes of initiating the 
        message was obtained by means of false or fraudulent pretenses 
        or representations shall be considered materially 
        misleading.</DELETED>
        <DELETED>    (2) Prohibition of deceptive subject headings.--It 
        is unlawful for any person to initiate the transmission to a 
        protected computer of a commercial electronic mail message with 
        a subject heading that such person knows would be likely to 
        mislead a recipient, acting reasonably under the circumstances, 
        about a material fact regarding the contents or subject matter 
        of the message.</DELETED>
        <DELETED>    (3) Inclusion of return address or comparable 
        mechanism in unsolicited commercial electronic mail.--
        </DELETED>
                <DELETED>    (A) In general.--It is unlawful for any 
                person to initiate the transmission to a protected 
                computer of an unsolicited commercial electronic mail 
                message that does not contain a functioning return 
                electronic mail address or other Internet-based 
                mechanism, clearly and conspicuously displayed, that--
                </DELETED>
                        <DELETED>    (i) a recipient may use to submit, 
                        in a manner specified by the sender, a reply 
                        electronic mail message or other form of 
                        Internet-based communication requesting not to 
                        receive any future unsolicited commercial 
                        electronic mail messages from that sender at 
                        the electronic mail address where the message 
                        was received; and</DELETED>
                        <DELETED>    (ii) remains capable of receiving 
                        such messages or communications for no less 
                        than 30 days after the transmission of the 
                        original message.</DELETED>
                <DELETED>    (B) More detailed options possible.--The 
                sender of an unsolicited commercial electronic mail 
                message may comply with subparagraph (A)(i) by 
                providing the recipient a list or menu from which the 
                recipient may choose the specific types of commercial 
                electronic mail messages the recipient wants to receive 
                or does not want to receive from the sender, if the 
                list or menu includes an option under which the 
                recipient may choose not to receive any unsolicited 
                commercial electronic mail messages from the 
                sender.</DELETED>
                <DELETED>    (C) Temporary inability to receive 
                messages or process requests.--A return electronic mail 
                address or other mechanism does not fail to satisfy the 
                requirements of subparagraph (A) if it is unexpectedly 
                and temporarily unable to receive messages or process 
                requests due to technical or capacity problems, if the 
                problem with receiving messages or processing requests 
                is corrected within a reasonable time period.</DELETED>
        <DELETED>    (4) Prohibition of transmission of unsolicited 
        commercial electronic mail after objection.--If a recipient 
        makes a request to a sender, using a mechanism provided 
        pursuant to paragraph (3), not to receive some or any 
        unsolicited commercial electronic mail messages from such 
        sender, then it is unlawful--</DELETED>
                <DELETED>    (A) for the sender to initiate the 
                transmission to the recipient, more than 10 business 
                days after the receipt of such request, of an 
                unsolicited commercial electronic mail message that 
                falls within the scope of the request;</DELETED>
                <DELETED>    (B) for any person acting on behalf of the 
                sender to initiate the transmission to the recipient, 
                more than 10 business days after the receipt of such 
                request, of an unsolicited commercial electronic mail 
                message that such person knows or consciously avoids 
                knowing falls within the scope of the request; 
                or</DELETED>
                <DELETED>    (C) for any person acting on behalf of the 
                sender to assist in initiating the transmission to the 
                recipient, through the provision or selection of 
                addresses to which the message will be sent, of an 
                unsolicited commercial electronic mail message that the 
                person knows, or consciously avoids knowing, would 
                violate subparagraph (A) or (B).</DELETED>
        <DELETED>    (5) Inclusion of identifier, opt-out, and physical 
        address in unsolicited commercial electronic mail.--It is 
        unlawful for any person to initiate the transmission of any 
        unsolicited commercial electronic mail message to a protected 
        computer unless the message provides--</DELETED>
                <DELETED>    (A) clear and conspicuous identification 
                that the message is an advertisement or 
                solicitation;</DELETED>
                <DELETED>    (B) clear and conspicuous notice of the 
                opportunity under paragraph (3) to decline to receive 
                further unsolicited commercial electronic mail messages 
                from the sender; and</DELETED>
                <DELETED>    (C) a valid physical postal address of the 
                sender.</DELETED>
<DELETED>    (b) Prohibition of Transmission of Unlawful Unsolicited 
Commercial Electronic Mail to Certain Harvested Electronic Mail 
Addresses.--</DELETED>
        <DELETED>    (1) In general.--It is unlawful for any person to 
        initiate the transmission, to a protected computer, of an 
        unsolicited commercial electronic mail message that is unlawful 
        under subsection (a), or to assist in the origination of such a 
        message through the provision or selection of addresses to 
        which the message will be sent, if such person knows that, or 
        acts with reckless disregard as to whether--</DELETED>
                <DELETED>    (A) the electronic mail address of the 
                recipient was obtained, using an automated means, from 
                an Internet website or proprietary online service 
                operated by another person; or</DELETED>
                <DELETED>    (B) the website or proprietary online 
                service from which the address was obtained included, 
                at the time the address was obtained, a notice stating 
                that the operator of such a website or proprietary 
                online service will not give, sell, or otherwise 
                transfer addresses maintained by such site or service 
                to any other party for the purpose of initiating, or 
                enabling others to initiate, unsolicited electronic 
                mail messages.</DELETED>
        <DELETED>    (2) Disclaimer.--Nothing in this subsection 
        creates an ownership or proprietary interest in such electronic 
        mail addresses.</DELETED>
<DELETED>    (c) Compliance Procedures.--An action for violation of 
paragraph (2), (3), (4), or (5) of subsection (a) may not proceed if 
the person against whom the action is brought demonstrates that--
</DELETED>
        <DELETED>    (1) the person has established and implemented, 
        with due care, reasonable practices and procedures to 
        effectively prevent violations of such paragraph; and</DELETED>
        <DELETED>    (2) the violation occurred despite good faith 
        efforts to maintain compliance with such practices and 
        procedures.</DELETED>

<DELETED>SEC. 6. ENFORCEMENT BY FEDERAL TRADE COMMISSION.</DELETED>

<DELETED>    (a) Violation Is Unfair or Deceptive Act or Practice.--
Except as provided in subsection (b), this Act shall be enforced by the 
Commission as if the violation of this Act were an unfair or deceptive 
act or practice proscribed under section 18(a)(1)(B) of the Federal 
Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).</DELETED>
<DELETED>    (b) Enforcement by Certain Other Agencies.--Compliance 
with this Act shall be enforced--</DELETED>
        <DELETED>    (1) under section 8 of the Federal Deposit 
        Insurance Act (12 U.S.C. 1818), in the case of--</DELETED>
                <DELETED>    (A) national banks, and Federal branches 
                and Federal agencies of foreign banks, and any 
                subsidiaries of such entities (except brokers, dealers, 
                persons providing insurance, investment companies, and 
                investment advisers), by the Office of the Comptroller 
                of the Currency;</DELETED>
                <DELETED>    (B) member banks of the Federal Reserve 
                System (other than national banks), branches and 
                agencies of foreign banks (other than Federal branches, 
                Federal agencies, and insured State branches of foreign 
                banks), commercial lending companies owned or 
                controlled by foreign banks, organizations operating 
                under section 25 or 25A of the Federal Reserve Act (12 
                U.S.C. 601 and 611), and bank holding companies and 
                their nonbank subsidiaries or affiliates (except 
                brokers, dealers, persons providing insurance, 
                investment companies, and investment advisers), by the 
                Board;</DELETED>
                <DELETED>    (C) banks insured by the Federal Deposit 
                Insurance Corporation (other than members of the 
                Federal Reserve System) insured State branches of 
                foreign banks, and any subsidiaries of such entities 
                (except brokers, dealers, persons providing insurance, 
                investment companies, and investment advisers), by the 
                Board of Directors of the Federal Deposit Insurance 
                Corporation; and</DELETED>
                <DELETED>    (D) savings associations the deposits of 
                which are insured by the Federal Deposit Insurance 
                Corporation, and any subsidiaries of such savings 
                associations (except brokers, dealers, persons 
                providing insurance, investment companies, and 
                investment advisers), by the Director of the Office of 
                Thrift Supervision;</DELETED>
        <DELETED>    (2) under the Federal Credit Union Act (12 U.S.C. 
        1751 et seq.) by the Board of the National Credit Union 
        Administration with respect to any Federally insured credit 
        union, and any subsidiaries of such a credit union;</DELETED>
        <DELETED>    (3) under the Securities Exchange Act of 1934 (15 
        U.S.C. 78a et seq.) by the Securities and Exchange Commission 
        with respect to any broker or dealer;</DELETED>
        <DELETED>    (4) under the Investment Company Act of 1940 (15 
        U.S.C. 80a-1 et seq.) by the Securities and Exchange Commission 
        with respect to investment companies;</DELETED>
        <DELETED>    (5) under the Investment Advisers Act of 1940 (15 
        U.S.C. 80b-1 et seq.) by the Securities and Exchange Commission 
        with respect to investment advisers registered under that 
        Act;</DELETED>
        <DELETED>    (6) under State insurance law in the case of any 
        person engaged in providing insurance, by the applicable State 
        insurance authority of the State in which the person is 
        domiciled, subject to section 104 of the Gramm-Bliley-Leach Act 
        (15 U.S.C. 6701);</DELETED>
        <DELETED>    (7) under part A of subtitle VII of title 49, 
        United States Code, by the Secretary of Transportation with 
        respect to any air carrier or foreign air carrier subject to 
        that part;</DELETED>
        <DELETED>    (8) under the Packers and Stockyards Act, 1921 (7 
        U.S.C. 181 et seq.) (except as provided in section 406 of that 
        Act (7 U.S.C. 226, 227)), by the Secretary of Agriculture with 
        respect to any activities subject to that Act;</DELETED>
        <DELETED>    (9) under the Farm Credit Act of 1971 (12 U.S.C. 
        2001 et seq.) by the Farm Credit Administration with respect to 
        any Federal land bank, Federal land bank association, Federal 
        intermediate credit bank, or production credit association; 
        and</DELETED>
        <DELETED>    (10) under the Communications Act of 1934 (47 
        U.S.C. 151 et seq.) by the Federal Communications Commission 
        with respect to any person subject to the provisions of that 
        Act.</DELETED>
<DELETED>    (c) Exercise of Certain Powers.--For the purpose of the 
exercise by any agency referred to in subsection (b) of its powers 
under any Act referred to in that subsection, a violation of this Act 
is deemed to be a violation of a requirement imposed under that Act. In 
addition to its powers under any provision of law specifically referred 
to in subsection (b), each of the agencies referred to in that 
subsection may exercise, for the purpose of enforcing compliance with 
any requirement imposed under this Act, any other authority conferred 
on it by law.</DELETED>
<DELETED>    (d) Actions by the Commission.--The Commission shall 
prevent any person from violating this Act 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 entity that violates any provision of that 
subtitle is subject to the penalties and entitled to the privileges and 
immunities provided in the Federal Trade Commission Act in the same 
manner, by the same means, and with the same jurisdiction, power, and 
duties as though all applicable terms and provisions of the Federal 
Trade Commission Act were incorporated into and made a part of that 
subtitle.</DELETED>
<DELETED>    (e) Enforcement by States.--</DELETED>
        <DELETED>    (1) Civil action.--In any case in which the 
        attorney general of a State has reason to believe that an 
        interest of the residents of that State has been or is 
        threatened or adversely affected by any person engaging in a 
        practice that violates section 5 of this Act, the State, as 
        parens patriae, may bring a civil action on behalf of the 
        residents of the State in a district court of the United States 
        of appropriate jurisdiction or in any other court of competent 
        jurisdiction--</DELETED>
                <DELETED>    (A) to enjoin further violation of section 
                5 of this Act by the defendant; or</DELETED>
                <DELETED>    (B) to obtain damages on behalf of 
                residents of the State, in an amount equal to the 
                greater of--</DELETED>
                        <DELETED>    (i) the actual monetary loss 
                        suffered by such residents; or</DELETED>
                        <DELETED>    (ii) the amount determined under 
                        paragraph (2).</DELETED>
        <DELETED>    (2) Statutory damages.--</DELETED>
                <DELETED>    (A) In general.--For purposes of paragraph 
                (1)(B)(ii), the amount determined under this paragraph 
                is the amount calculated by multiplying the number of 
                willful, knowing, or negligent violations by an amount, 
                in the discretion of the court, of up to $10 (with each 
                separately addressed unlawful message received by such 
                residents treated as a separate violation). In 
                determining the per-violation penalty under this 
                subparagraph, the court shall take into account the 
                degree of culpability, any history of prior such 
                conduct, ability to pay, the extent of economic gain 
                resulting from the violation, and such other matters as 
                justice may require.</DELETED>
                <DELETED>    (B) Limitation.--For any violation of 
                section 5 (other than section 5(a)(1)), the amount 
                determined under subparagraph (A) may not exceed 
                $500,000, except that if the court finds that the 
                defendant committed the violation willfully and 
                knowingly, the court may increase the limitation 
                established by this paragraph from $500,000 to an 
                amount not to exceed $1,500,000.</DELETED>
        <DELETED>    (3) Attorney fees.--In the case of any successful 
        action under paragraph (1), the State shall be awarded the 
        costs of the action and reasonable attorney fees as determined 
        by the court.</DELETED>
        <DELETED>    (4) Rights of federal regulators.--The State shall 
        serve prior written notice of any action under paragraph (1) 
        upon the Federal Trade Commission or the appropriate Federal 
        regulator determined under subsection (b) and provide the 
        Commission or appropriate Federal regulator with a copy of its 
        complaint, except in any case in which such prior notice is not 
        feasible, in which case the State shall serve such notice 
        immediately upon instituting such action. The Federal Trade 
        Commission or appropriate Federal regulator shall have the 
        right--</DELETED>
                <DELETED>    (A) to intervene in the action;</DELETED>
                <DELETED>    (B) upon so intervening, to be heard on 
                all matters arising therein;</DELETED>
                <DELETED>    (C) to remove the action to the 
                appropriate United States district court; and</DELETED>
                <DELETED>    (D) to file petitions for 
                appeal.</DELETED>
        <DELETED>    (5) Construction.--For purposes of bringing any 
        civil action under paragraph (1), nothing in this Act shall be 
        construed to prevent an attorney general of a State from 
        exercising the powers conferred on the attorney general by the 
        laws of that State to--</DELETED>
                <DELETED>    (A) conduct investigations;</DELETED>
                <DELETED>    (B) administer oaths or affirmations; 
                or</DELETED>
                <DELETED>    (C) compel the attendance of witnesses or 
                the production of documentary and other 
                evidence.</DELETED>
        <DELETED>    (6) Venue; service of process.--</DELETED>
                <DELETED>    (A) Venue.--Any action brought under 
                paragraph (1) may be brought in the district court of 
                the United States that meets applicable requirements 
                relating to venue under section 1391 of title 28, 
                United States Code.</DELETED>
                <DELETED>    (B) Service of process.--In an action 
                brought under paragraph (1), process may be served in 
                any district in which the defendant--</DELETED>
                        <DELETED>    (i) is an inhabitant; or</DELETED>
                        <DELETED>    (ii) maintains a physical place of 
                        business.</DELETED>
        <DELETED>    (7) Limitation on state action while federal 
        action is pending.--If the Commission or other appropriate 
        Federal agency under subsection (b) has instituted a civil 
        action or an administrative action for violation of this Act, 
        no State attorney general may bring an action under this 
        subsection during the pendency of that action against any 
        defendant named in the complaint of the Commission or the other 
        agency for any violation of this Act alleged in the 
        complaint.</DELETED>
<DELETED>    (f) Action by Provider of Internet Access Service.--
</DELETED>
        <DELETED>    (1) Action authorized.--A provider of Internet 
        access service adversely affected by a violation of section 5 
        may bring a civil action in any district court of the United 
        States with jurisdiction over the defendant, or in any other 
        court of competent jurisdiction, to--</DELETED>
                <DELETED>    (A) enjoin further violation by the 
                defendant; or</DELETED>
                <DELETED>    (B) recover damages in an amount equal to 
                the greater of--</DELETED>
                        <DELETED>    (i) actual monetary loss incurred 
                        by the provider of Internet access service as a 
                        result of such violation; or</DELETED>
                        <DELETED>    (ii) the amount determined under 
                        paragraph (2).</DELETED>
        <DELETED>    (2) Statutory damages.--</DELETED>
                <DELETED>    (A) In general.--For purposes of paragraph 
                (1)(B)(ii), the amount determined under this paragraph 
                is the amount calculated by multiplying the number of 
                willful, knowing, or negligent violations by an amount, 
                in the discretion of the court, of up to $10 (with each 
                separately addressed unlawful message carried over the 
                facilities of the provider of Internet access service 
                or sent to an electronic mail address obtained from the 
                provider of Internet access service in violation of 
                section 5(b) treated as a separate violation). In 
                determining the per-violation penalty under this 
                subparagraph, the court shall take into account the 
                degree of culpability, any history of prior such 
                conduct, ability to pay, the extent of economic gain 
                resulting from the violation, and such other matters as 
                justice may require.</DELETED>
                <DELETED>    (B) Limitation.--For any violation of 
                section 5 (other than section 5(a)(1)), the amount 
                determined under subparagraph (A) may not exceed 
                $500,000, except that if the court finds that the 
                defendant committed the violation willfully and 
                knowingly, the court may increase the limitation 
                established by this paragraph from $500,000 to an 
                amount not to exceed $1,500,000.</DELETED>
        <DELETED>    (3) Attorney fees.--In any action brought pursuant 
        to paragraph (1), the court may, in its discretion, require an 
        undertaking for the payment of the costs of such action, and 
        assess reasonable costs, including reasonable attorneys' fees, 
        against any party.</DELETED>

<DELETED>SEC. 7. EFFECT ON OTHER LAWS.</DELETED>

<DELETED>    (a) Federal Law.--</DELETED>
        <DELETED>    (1) Nothing in this Act shall be construed to 
        impair the enforcement of section 223 or 231 of the 
        Communications Act of 1934 (47 U.S.C. 223 or 231, 
        respectively), chapter 71 (relating to obscenity) or 110 
        (relating to sexual exploitation of children) of title 18, 
        United States Code, or any other Federal criminal 
        statute.</DELETED>
        <DELETED>    (2) Nothing in this Act shall be construed to 
        affect in any way the Commission's authority to bring 
        enforcement actions under FTC Act for materially false or 
        deceptive representations in commercial electronic mail 
        messages.</DELETED>
<DELETED>    (b) State Law.--</DELETED>
        <DELETED>    (1) In general.--This Act supersedes any State or 
        local government statute, regulation, or rule regulating the 
        use of electronic mail to send commercial messages.</DELETED>
        <DELETED>    (2) Exceptions.--Except as provided in paragraph 
        (3), this Act does not supersede or pre-empt--</DELETED>
                <DELETED>    (A) State trespass, contract, or tort law 
                or any civil action thereunder; or</DELETED>
                <DELETED>    (B) any provision of Federal, State, or 
                local criminal law or any civil remedy available under 
                such law that relates to acts of fraud or theft 
                perpetrated by means of the unauthorized transmission 
                of commercial electronic mail messages.</DELETED>
        <DELETED>    (3) Limitation on exceptions.--Paragraph (2) does 
        not apply to a State or local government statute, regulation, 
        or rule that directly regulates unsolicited commercial 
        electronic mail and that treats the mere sending of unsolicited 
        commercial electronic mail in a manner that complies with this 
        Act as sufficient to constitute a violation of such statute, 
        regulation, or rule or to create a cause of action 
        thereunder.</DELETED>
<DELETED>    (c) No Effect on Policies of Providers of Internet Access 
Service.--Nothing in this Act shall be construed to have any effect on 
the lawfulness or unlawfulness, under any other provision of law, of 
the adoption, implementation, or enforcement by a provider of Internet 
access service of a policy of declining to transmit, route, relay, 
handle, or store certain types of electronic mail messages.</DELETED>

<DELETED>SEC. 8. STUDY OF EFFECTS OF UNSOLICITED COMMERCIAL ELECTRONIC 
              MAIL.</DELETED>

<DELETED>    (a) In General.--Not later than 24 months after the date 
of the enactment of this Act, the Commission, in consultation with the 
Department of Justice and other appropriate agencies, shall submit a 
report to the Congress that provides a detailed analysis of the 
effectiveness and enforcement of the provisions of this Act and the 
need (if any) for the Congress to modify such provisions.</DELETED>
<DELETED>    (b) Required Analysis.--The Commission shall include in 
the report required by subsection (a) an analysis of the extent to 
which technological and marketplace developments, including changes in 
the nature of the devices through which consumers access their 
electronic mail messages, may affect the practicality and effectiveness 
of the provisions of this Act.</DELETED>

<DELETED>SEC. 9. SEPARABILITY.</DELETED>

<DELETED>    If any provision of this Act or the application thereof to 
any person or circumstance is held invalid, the remainder of this Act 
and the application of such provision to other persons or circumstances 
shall not be affected.</DELETED>

<DELETED>SEC. 10. EFFECTIVE DATE.</DELETED>

<DELETED>    The provisions of this Act shall take effect 120 days 
after the date of the enactment of this Act.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Controlling the Assault of Non-
Solicited Pornography and Marketing Act of 2003'', or the ``CAN-SPAM 
Act of 2003''.

SEC. 2. CONGRESSIONAL FINDINGS AND POLICY.

    (a) Findings.--The Congress finds the following:
            (1) Electronic mail has become an extremely important and 
        popular means of communication, relied on by millions of 
        Americans on a daily basis for personal and commercial 
        purposes. Its low cost and global reach make it extremely 
        convenient and efficient, and offer unique opportunities for 
        the development and growth of frictionless commerce.
            (2) The convenience and efficiency of electronic mail are 
        threatened by the extremely rapid growth in the volume of 
        unsolicited commercial electronic mail. Unsolicited commercial 
        electronic mail is currently estimated to account for over 45 
        percent of all electronic mail traffic, up from an estimated 7 
        percent in 2001, and the volume continues to rise. Most of 
        these unsolicited commercial electronic mail messages are 
        fraudulent or deceptive in one or more respects.
            (3) The receipt of unsolicited commercial electronic mail 
        may result in costs to recipients who cannot refuse to accept 
        such mail and who incur costs for the storage of such mail, or 
        for the time spent accessing, reviewing, and discarding such 
        mail, or for both.
            (4) The receipt of a large number of unsolicited messages 
        also decreases the convenience of electronic mail and creates a 
        risk that wanted electronic mail messages, both commercial and 
        noncommercial, will be lost, overlooked, or discarded amidst 
        the larger volume of unwanted messages, thus reducing the 
        reliability and usefulness of electronic mail to the recipient.
            (5) Some unsolicited commercial electronic mail contains 
        material that many recipients may consider vulgar or 
        pornographic in nature.
            (6) The growth in unsolicited commercial electronic mail 
        imposes significant monetary costs on providers of Internet 
        access services, businesses, and educational and nonprofit 
        institutions that carry and receive such mail, as there is a 
        finite volume of mail that such providers, businesses, and 
        institutions can handle without further investment in 
        infrastructure.
            (7) Many senders of unsolicited commercial electronic mail 
        purposefully disguise the source of such mail.
            (8) Many senders of unsolicited commercial electronic mail 
        purposefully include misleading information in the message's 
        subject lines in order to induce the recipients to view the 
        messages.
            (9) While some senders of unsolicited commercial electronic 
        mail messages provide simple and reliable ways for recipients 
        to reject (or ``opt-out'' of) receipt of unsolicited commercial 
        electronic mail from such senders in the future, other senders 
        provide no such ``opt-out'' mechanism, or refuse to honor the 
        requests of recipients not to receive electronic mail from such 
        senders in the future, or both.
            (10) Many senders of bulk unsolicited commercial electronic 
        mail use computer programs to gather large numbers of 
        electronic mail addresses on an automated basis from Internet 
        websites or online services where users must post their 
        addresses in order to make full use of the website or service.
            (11) Many States have enacted legislation intended to 
        regulate or reduce unsolicited commercial electronic mail, but 
        these statutes impose different standards and requirements. As 
        a result, they do not appear to have been successful in 
        addressing the problems associated with unsolicited commercial 
        electronic mail, in part because, since an electronic mail 
        address does not specify a geographic location, it can be 
        extremely difficult for law-abiding businesses to know with 
        which of these disparate statutes they are required to comply.
            (12) The problems associated with the rapid growth and 
        abuse of unsolicited commercial electronic mail cannot be 
        solved by Federal legislation alone. The development and 
        adoption of technological approaches and the pursuit of 
        cooperative efforts with other countries will be necessary as 
        well.
    (b) Congressional Determination of Public Policy.--On the basis of 
the findings in subsection (a), the Congress determines that--
            (1) there is a substantial government interest in 
        regulation of unsolicited commercial electronic mail on a 
        nationwide basis;
            (2) senders of unsolicited commercial electronic mail 
        should not mislead recipients as to the source or content of 
        such mail; and
            (3) recipients of unsolicited commercial electronic mail 
        have a right to decline to receive additional unsolicited 
        commercial electronic mail from the same source.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Affirmative consent.--The term ``affirmative consent'', 
        when used with respect to a commercial electronic mail message, 
        means that--
                    (A) the recipient expressly consented to receive 
                the message, either in response to a clear and 
                conspicuous request for such consent or at the 
                recipient's own initiative; and
                    (B) if the message is from a party other than the 
                party to which the recipient communicated such consent, 
                the recipient was given clear and conspicuous notice at 
the time the consent was communicated that the recipient's electronic 
mail address could be transferred to such other party for the purpose 
of initiating commercial electronic mail messages.
            (2) Commercial electronic mail message.--
                    (A) In general.--The term ``commercial electronic 
                mail message'' means any electronic mail message the 
                primary purpose of which is the commercial 
                advertisement or promotion of a commercial product or 
                service (including content on an Internet website 
                operated for a commercial purpose).
                    (B) Reference to company or website.--The inclusion 
                of a reference to a commercial entity or a link to the 
                website of a commercial entity in an electronic mail 
                message does not, by itself, cause such message to be 
                treated as a commercial electronic mail message for 
                purposes of this Act if the contents or circumstances 
                of the message indicate a primary purpose other than 
                commercial advertisement or promotion of a commercial 
                product or service.
            (3) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (4) Domain name.--The term ``domain name'' means any 
        alphanumeric designation which is registered with or assigned 
        by any domain name registrar, domain name registry, or other 
        domain name registration authority as part of an electronic 
        address on the Internet.
            (5) Electronic mail address.--The term ``electronic mail 
        address'' means a destination, commonly expressed as a string 
        of characters, consisting of a unique user name or mailbox 
        (commonly referred to as the ``local part'') and a reference to 
        an Internet domain (commonly referred to as the ``domain 
        part''), to which an electronic mail message can be sent or 
        delivered.
            (6) Electronic mail message.--The term ``electronic mail 
        message'' means a message sent to a unique electronic mail 
        address.
            (7) FTC act.--The term ``FTC Act'' means the Federal Trade 
        Commission Act (15 U.S.C. 41 et seq.).
            (8) Header information.--The term ``header information'' 
        means the source, destination, and routing information attached 
        to an electronic mail message, including the originating domain 
        name and originating electronic mail address, and any other 
        information that appears in the line identifying, or purporting 
        to identify, a person initiating the message.
            (9) Implied consent.--
                    (A) In general.--The term ``implied consent'', when 
                used with respect to a commercial electronic mail 
                message, means that--
                            (i) within the 3-year period ending upon 
                        receipt of such message, there has been a 
                        business transaction between the sender and the 
                        recipient (including a transaction involving 
                        the provision, free of charge, of information, 
                        goods, or services requested by the recipient); 
                        and
                            (ii) the recipient was, at the time of such 
                        transaction or thereafter in the first 
                        electronic mail message received from the 
                        sender after the effective date of this Act, 
                        provided a clear and conspicuous notice of an 
                        opportunity not to receive unsolicited 
                        commercial electronic mail messages from the 
                        sender and has not exercised such opportunity.
                    (B) Mere visitation.--A visit by a recipient to a 
                publicly available website shall not be treated as a 
                transaction for purposes of subparagraph (A)(i) if the 
                recipient did not knowingly submit the recipient's 
                electronic mail address to the operator of the website.
                    (C) Separate lines of business or divisions.--If a 
                sender operates through separate lines of business or 
                divisions and holds itself out to the recipient, both 
                at the time of the transaction described in 
                subparagraph (A)(i) and at the time the notice under 
                subparagraph (A)(ii) was provided to the recipient, as 
                that particular line of business or division rather 
                than as the entity of which such line of business or 
                division is a part, then the line of business or the 
                division shall be treated as the sender for purposes of 
                this paragraph.
            (10) Initiate.--The term ``initiate'', when used with 
        respect to a commercial electronic mail message, means to 
        originate or transmit such message or to procure the 
        origination or transmission of such message, but shall not 
        include actions that constitute routine conveyance of such 
        message. For purposes of this paragraph, more than 1 person may 
        be considered to have initiated a message.
            (11) Internet.--The term ``Internet'' has the meaning given 
        that term in the Internet Tax Freedom Act (47 U.S.C. 151 nt).
            (12) Internet access service.--The term ``Internet access 
        service'' has the meaning given that term in section 231(e)(4) 
        of the Communications Act of 1934 (47 U.S.C. 231(e)(4)).
            (13) Procure.--The term ``procure'', when used with respect 
        to the initiation of a commercial electronic mail message, 
        means intentionally to pay or provide other consideration to, 
        or induce, another person to initiate such a message on one's 
        behalf, knowing, or consciously avoiding knowing, the extent to 
        which that person intends to comply with the requirements of 
        this Act.
            (14) Protected computer.--The term ``protected computer'' 
        has the meaning given that term in section 1030(e)(2)(B) of 
        title 18, United States Code.
            (15) Recipient.--The term ``recipient'', when used with 
        respect to a commercial electronic mail message, means an 
        authorized user of the electronic mail address to which the 
        message was sent or delivered. If a recipient of a commercial 
        electronic mail message has 1 or more electronic mail addresses 
        in addition to the address to which the message was sent or 
delivered, the recipient shall be treated as a separate recipient with 
respect to each such address. If an electronic mail address is 
reassigned to a new user, the new user shall not be treated as a 
recipient of any commercial electronic mail message sent or delivered 
to that address before it was reassigned.
            (16) Routine conveyance.--The term ``routine conveyance'' 
        means the transmission, routing, relaying, handling, or 
        storing, through an automatic technical process, of an 
        electronic mail message for which another person has identified 
        the recipients or provided the recipient addresses.
            (17) Sender.--The term ``sender'', when used with respect 
        to a commercial electronic mail message, means a person who 
        initiates such a message and whose product, service, or 
        Internet web site is advertised or promoted by the message.
            (18) Transactional or relationship message.--The term 
        ``transactional or relationship message'' means an electronic 
        mail message the primary purpose of which is--
                    (A) to facilitate, complete, or confirm a 
                commercial transaction that the recipient has 
                previously agreed to enter into with the sender;
                    (B) to provide warranty information, product recall 
                information, or safety or security information with 
                respect to a commercial product or service used or 
                purchased by the recipient;
                    (C) to provide--
                            (i) notification concerning a change in the 
                        terms or features of;
                            (ii) notification of a change in the 
                        recipient's standing or status with respect to; 
                        or
                            (iii) at regular periodic intervals, 
                        account balance information or other type of 
                        account statement with respect to,
                a subscription, membership, account, loan, or 
                comparable ongoing commercial relationship involving 
                the ongoing purchase or use by the recipient of 
                products or services offered by the sender;
                    (D) to provide information directly related to an 
                employment relationship or related benefit plan in 
                which the recipient is currently involved, 
                participating, or enrolled; or
                    (E) to deliver goods or services, including product 
                updates or upgrades, that the recipient is entitled to 
                receive under the terms of a transaction that the 
                recipient has previously agreed to enter into with the 
                sender.
            (19) Unsolicited commercial electronic mail message.--The 
        term ``unsolicited commercial electronic mail message'' means 
        any commercial electronic mail message that--
                    (A) is not a transactional or relationship message; 
                and
                    (B) is sent to a recipient without the recipient's 
                prior affirmative or implied consent.

SEC. 4. CRIMINAL PENALTY FOR COMMERCIAL ELECTRONIC MAIL CONTAINING 
              FRAUDULENT ROUTING INFORMATION.

    (a) In General.--Chapter 63 of title 18, United States Code, is 
amended by adding at the end the following:
``Sec.  1351. Commercial electronic mail containing fraudulent 
              transmission information.
    ``(a) In General.--Any person who initiates the transmission, to a 
protected computer in the United States, of a commercial electronic 
mail message, with knowledge and intent that the message contains or is 
accompanied by header information that is materially false or 
materially misleading shall be fined or imprisoned for not more than 1 
year, or both, under this title. For purposes of this subsection, 
header information that is technically accurate but includes an 
originating electronic mail address the access to which for purposes of 
initiating the message was obtained by means of false or fraudulent 
pretenses or representations shall be considered materially misleading.
    ``(b) Definitions.--Any term used in subsection (a) that is defined 
in section 3 of the CAN-SPAM Act of 2003 has the meaning given it in 
that section.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 63 of 
title 18, United States Code, is amended by adding at the end the 
following:

``1351. Commercial electronic mail containing fraudulent routing 
                            information.''.

SEC. 5. OTHER PROTECTIONS FOR USERS OF COMMERCIAL ELECTRONIC MAIL.

    (a) Requirements for Transmission of Messages.--
            (1) Prohibition of false or misleading transmission 
        information.--It is unlawful for any person to initiate the 
        transmission, to a protected computer, of a commercial 
        electronic mail message that contains, or is accompanied by, 
        header information that is false or misleading. For purposes of 
        this paragraph--
                    (A) header information that is technically accurate 
                but includes an originating electronic mail address the 
                access to which for purposes of initiating the message 
                was obtained by means of false or fraudulent pretenses 
                or representations shall be considered misleading; and
                    (B) a ``from'' line that accurately identifies any 
                person who initiated the message shall not be 
                considered false or misleading.
            (2) Prohibition of deceptive subject headings.--It is 
        unlawful for any person to initiate the transmission to a 
        protected computer of a commercial electronic mail message with 
        a subject heading that such person knows would be likely to 
        mislead a recipient, acting reasonably under the circumstances, 
        about a material fact regarding the contents or subject matter 
        of the message.
            (3) Inclusion of return address or comparable mechanism in 
        commercial electronic mail.--
                    (A) In general.--It is unlawful for any person to 
                initiate the transmission to a protected computer of a 
                commercial electronic mail message that does not 
                contain a functioning return electronic mail address or 
                other Internet-based mechanism, clearly and 
                conspicuously displayed, that--
                            (i) a recipient may use to submit, in a 
                        manner specified in the message, a 
reply electronic mail message or other form of Internet-based 
communication requesting not to receive future commercial electronic 
mail messages from that sender at the electronic mail address where the 
message was received; and
                            (ii) remains capable of receiving such 
                        messages or communications for no less than 30 
                        days after the transmission of the original 
                        message.
                    (B) More detailed options possible.--The person 
                initiating a commercial electronic mail message may 
                comply with subparagraph (A)(i) by providing the 
                recipient a list or menu from which the recipient may 
                choose the specific types of commercial electronic mail 
                messages the recipient wants to receive or does not 
                want to receive from the sender, if the list or menu 
                includes an option under which the recipient may choose 
                not to receive any unsolicited commercial electronic 
                mail messages from the sender.
                    (C) Temporary inability to receive messages or 
                process requests.--A return electronic mail address or 
                other mechanism does not fail to satisfy the 
                requirements of subparagraph (A) if it is unexpectedly 
                and temporarily unable to receive messages or process 
                requests due to technical or capacity problems, if the 
                technical or capacity problems were not reasonably 
                foreseeable in light of the potential volume of 
                response messages or requests, and if the problem with 
                receiving messages or processing requests is corrected 
                within a reasonable time period.
                    (D) Exception.--The requirements of this paragraph 
                shall not apply to a message that is a transactional or 
                relationship message.
            (4) Prohibition of transmission of unsolicited commercial 
        electronic mail after objection.--If a recipient makes a 
        request using a mechanism provided pursuant to paragraph (3) 
        not to receive some or any unsolicited commercial electronic 
        mail messages from such sender, then it is unlawful--
                    (A) for the sender to initiate the transmission to 
                the recipient, more than 10 business days after the 
                receipt of such request, of an unsolicited commercial 
                electronic mail message that falls within the scope of 
                the request;
                    (B) for any person acting on behalf of the sender 
                to initiate the transmission to the recipient, more 
                than 10 business days after the receipt of such 
                request, of an unsolicited commercial electronic mail 
                message that such person knows or consciously avoids 
                knowing falls within the scope of the request;
                    (C) for any person acting on behalf of the sender 
                to assist in initiating the transmission to the 
                recipient, through the provision or selection of 
                addresses to which the message will be sent, of an 
                unsolicited commercial electronic mail message that the 
                person knows, or consciously avoids knowing, would 
                violate subparagraph (A) or (B); or
                    (D) for the sender, or any other person who knows 
                that the recipient has made such a request, to sell, 
                lease, exchange, or otherwise transfer or release the 
                electronic mail address of the recipient (including 
                through any transaction or other transfer involving 
                mailing lists bearing the electronic mail address of 
                the recipient) for any purpose other than compliance 
                with this Act or other provision of law.
            (5) Inclusion of identifier, opt-out, and physical address 
        in unsolicited commercial electronic mail.--It is unlawful for 
        any person to initiate the transmission of any unsolicited 
        commercial electronic mail message to a protected computer 
        unless the message provides--
                    (A) clear and conspicuous identification that the 
                message is an advertisement or solicitation;
                    (B) clear and conspicuous notice of the opportunity 
                under paragraph (3) to decline to receive further 
                unsolicited commercial electronic mail messages from 
                the sender; and
                    (C) a valid physical postal address of the sender.
    (b) Aggravated Violations Relating to Unsolicited Commercial 
Electronic Mail.--
            (1) Address harvesting and dictionary attacks.--
                    (A) In general.--It is unlawful for any person to 
                initiate the transmission, to a protected computer, of 
                an unsolicited commercial electronic mail message that 
                is unlawful under subsection (a), or to assist in the 
                origination of such message through the provision or 
                selection of addresses to which the message will be 
                transmitted, if such person knows, should have known, 
                or consciously avoids knowing that--
                            (i) the electronic mail address of the 
                        recipient was obtained using an automated means 
                        from an Internet website or proprietary online 
                        service operated by another person, and such 
                        website or online service included, at the time 
                        the address was obtained, a notice stating that 
                        the operator of such website or online service 
                        will not give, sell, or otherwise transfer 
                        addresses maintained by such website or online 
                        service to any other party for the purposes of 
                        initiating, or enabling others to initiate, 
                        unsolicited electronic mail messages; or
                            (ii) the electronic mail address of the 
                        recipient was obtained using an automated means 
                        that generates possible electronic mail 
                        addresses by combining names, letters, or 
                        numbers into numerous permutations.
                    (B) Disclaimer.--Nothing in this paragraph creates 
                an ownership or proprietary interest in such electronic 
                mail addresses.
            (2) Automated creation of multiple electronic mail 
        accounts.--It is unlawful for any person to use scripts or 
        other automated means to establish multiple electronic mail 
        accounts or online user accounts from which to transmit to a 
protected computer, or enable another person to transmit to a protected 
computer, an unsolicited commercial electronic mail message that is 
unlawful under subsection (a).
            (3) Relay or retransmission through unauthorized access.--
        It is unlawful for any person knowingly to relay or retransmit 
        an unsolicited commercial electronic mail message that is 
        unlawful under subsection (a) from a protected computer or 
        computer network that such person has accessed without 
        authorization.
    (c) Compliance Procedures.--An action for violation of paragraph 
(2), (3), (4), or (5) of subsection (a) may not proceed if the person 
against whom the action is brought demonstrates that --
                    (1) the person has established and implemented, 
                with due care, reasonable practices and procedures to 
                effectively prevent violations of such paragraph; and
                    (2) the violation occurred despite good faith 
                efforts to maintain compliance with such practices and 
                procedures.

SEC. 6. BUSINESSES KNOWINGLY PROMOTED BY ELECTRONIC MAIL WITH FALSE OR 
              MISLEADING TRANSMISSION INFORMATION.

    (a) In General.--It is unlawful for a person to promote, or allow 
the promotion of, that person's trade or business, or goods, products, 
property, or services sold, offered for sale, leased or offered for 
lease, or otherwise made available through that trade or business, in a 
commercial electronic mail message the transmission of which is in 
violation of section 5(a)(1) if that person--
            (1) knows, or should have known in ordinary course of that 
        person's trade or business, that the goods, products, property, 
        or services sold, offered for sale, leased or offered for 
        lease, or otherwise made available through that trade or 
        business were being promoted in such a message;
            (2) received or expected to receive an economic benefit 
        from such promotion; and
            (3) took no reasonable action--
                    (A) to prevent the transmission; or
                    (B) to detect the transmission and report it to the 
                Commission.
    (b) Limited Enforcement Against Third Parties.--
            (1) In general.--Except as provided in paragraph (2), a 
        person (hereinafter referred to as the ``third party'') that 
        provides goods, products, property, or services to another 
        person that violates subsection (a) shall not be held liable 
        for such violation.
            (2) Exception.--Liability for a violation of subsection (a) 
        shall be imputed to a third party that provides goods, 
        products, property, or services to another person that violates 
        subsection (a) if that third party--
                    (A) owns, or has a greater than 50 percent 
                ownership or economic interest in, the trade or 
                business of the person that violated subsection (a); or
                    (B)(i) has actual knowledge that goods, products, 
                property, or services are promoted in a commercial 
                electronic mail message the transmission of which is in 
                violation of section 5(a)(1); and
                    (ii) receives, or expects to receive, an economic 
                benefit from such promotion.
    (c) Exclusive Enforcement by FTC.--Subsections (e) and (f) of 
section 7 do not apply to violations of this section.

SEC. 7. ENFORCEMENT BY FEDERAL TRADE COMMISSION.

    (a) Violation Is Unfair or Deceptive Act or Practice.--Except as 
provided in subsection (b), this Act shall be enforced by the 
Commission as if the violation of this Act were an unfair or deceptive 
act or practice proscribed under section 18(a)(1)(B) of the Federal 
Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
    (b) Enforcement by Certain Other Agencies.--Compliance with this 
Act shall be enforced--
            (1) under section 8 of the Federal Deposit Insurance Act 
        (12 U.S.C. 1818), in the case of--
                    (A) national banks, and Federal branches and 
                Federal agencies of foreign banks, and any subsidiaries 
                of such entities (except brokers, dealers, persons 
                providing insurance, investment companies, and 
                investment advisers), by the Office of the Comptroller 
                of the Currency;
                    (B) member banks of the Federal Reserve System 
                (other than national banks), branches and agencies of 
                foreign banks (other than Federal branches, Federal 
                agencies, and insured State branches of foreign banks), 
                commercial lending companies owned or controlled by 
                foreign banks, organizations operating under section 25 
                or 25A of the Federal Reserve Act (12 U.S.C. 601 and 
                611), and bank holding companies and their nonbank 
                subsidiaries or affiliates (except brokers, dealers, 
                persons providing insurance, investment companies, and 
                investment advisers), by the Board;
                    (C) banks insured by the Federal Deposit Insurance 
                Corporation (other than members of the Federal Reserve 
                System) insured State branches of foreign banks, and 
                any subsidiaries of such entities (except brokers, 
                dealers, persons providing insurance, investment 
                companies, and investment advisers), by the Board of 
                Directors of the Federal Deposit Insurance Corporation; 
                and
                    (D) savings associations the deposits of which are 
                insured by the Federal Deposit Insurance Corporation, 
                and any subsidiaries of such savings associations 
                (except brokers, dealers, persons providing insurance, 
                investment companies, and investment advisers), by the 
                Director of the Office of Thrift Supervision;
            (2) under the Federal Credit Union Act (12 U.S.C. 1751 et 
        seq.) by the Board of the National Credit Union Administration 
        with respect to any Federally insured credit union, and any 
        subsidiaries of such a credit union;
            (3) under the Securities Exchange Act of 1934 (15 U.S.C. 
        78a et seq.) by the Securities and Exchange Commission with 
        respect to any broker or dealer;
            (4) under the Investment Company Act of 1940 (15 U.S.C. 
        80a-1 et seq.) by the Securities and Exchange Commission with 
        respect to investment companies;
            (5) under the Investment Advisers Act of 1940 (15 U.S.C. 
        80b-1 et seq.) by the Securities and Exchange Commission with 
        respect to investment advisers registered under that Act;
            (6) under State insurance law in the case of any person 
        engaged in providing insurance, by the applicable State 
        insurance authority of the State in which the person is 
        domiciled, subject to section 104 of the Gramm-Bliley-Leach Act 
        (15 U.S.C. 6701);
            (7) under part A of subtitle VII of title 49, United States 
        Code, by the Secretary of Transportation with respect to any 
        air carrier or foreign air carrier subject to that part;
            (8) under the Packers and Stockyards Act, 1921 (7 U.S.C. 
        181 et seq.) (except as provided in section 406 of that Act (7 
        U.S.C. 226, 227)), by the Secretary of Agriculture with respect 
        to any activities subject to that Act;
            (9) under the Farm Credit Act of 1971 (12 U.S.C. 2001 et 
        seq.) by the Farm Credit Administration with respect to any 
        Federal land bank, Federal land bank association, Federal 
        intermediate credit bank, or production credit association; and
            (10) under the Communications Act of 1934 (47 U.S.C. 151 et 
        seq.) by the Federal Communications Commission with respect to 
        any person subject to the provisions of that Act.
    (c) Exercise of Certain Powers.--For the purpose of the exercise by 
any agency referred to in subsection (b) of its powers under any Act 
referred to in that subsection, a violation of this Act is deemed to be 
a violation of a Federal Trade Commission trade regulation rule. In 
addition to its powers under any provision of law specifically referred 
to in subsection (b), each of the agencies referred to in that 
subsection may exercise, for the purpose of enforcing compliance with 
any requirement imposed under this Act, any other authority conferred 
on it by law.
    (d) Actions by the Commission.--The Commission shall prevent any 
person from violating this Act 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 entity that violates any provision of that subtitle is subject to 
the penalties and entitled to the privileges and immunities provided in 
the Federal Trade Commission Act in the same manner, by the same means, 
and with the same jurisdiction, power, and duties as though all 
applicable terms and provisions of the Federal Trade Commission Act 
were incorporated into and made a part of that subtitle.
    (e) Enforcement by States.--
            (1) Civil action.--In any case in which the attorney 
        general of a State has reason to believe that an interest of 
        the residents of that State has been or is threatened or 
        adversely affected by any person engaging in a practice that 
        violates section 5 of this Act, the State, as parens patriae, 
        may bring a civil action on behalf of the residents of the 
        State in a district court of the United States of appropriate 
        jurisdiction or in any other court of competent jurisdiction--
                    (A) to enjoin further violation of section 5 of 
                this Act by the defendant; or
                    (B) to obtain damages on behalf of residents of the 
                State, in an amount equal to the greater of--
                            (i) the actual monetary loss suffered by 
                        such residents; or
                            (ii) the amount determined under paragraph 
                        (2).
            (2) Statutory damages.--
                    (A) In general.--For purposes of paragraph 
                (1)(B)(ii), the amount determined under this paragraph 
                is the amount calculated by multiplying the number of 
                violations (with each separately addressed unlawful 
                message received by or addressed to such residents 
                treated as a separate violation) by--
                            (i) up to $100, in the case of a violation 
                        of section 5(a)(1); or
                            (ii) $25, in the case of any other 
                        violation of section 5.
                    (B) Limitation.--For any violation of section 5 
                (other than section 5(a)(1)), the amount determined 
                under subparagraph (A) may not exceed $1,000,000.
                    (C) Aggravated damages.--The court may increase a 
                damage award to an amount equal to not more than three 
                times the amount otherwise available under this 
                paragraph if--
                            (i) the court determines that the defendant 
                        committed the violation willfully and 
                        knowingly; or
                            (ii) the defendant's unlawful activity 
                        included one or more of the aggravating 
                        violations set forth in section 5(b).
            (3) Attorney fees.--In the case of any successful action 
        under paragraph (1), the State shall be awarded the costs of 
        the action and reasonable attorney fees as determined by the 
        court.
            (4) Rights of federal regulators.--The State shall serve 
        prior written notice of any action under paragraph (1) upon the 
        Federal Trade Commission or the appropriate Federal regulator 
        determined under subsection (b) and provide the Commission or 
        appropriate Federal regulator with a copy of its complaint, 
        except in any case in which such prior notice is not feasible, 
        in which case the State shall serve such notice immediately 
        upon instituting such action. The Federal Trade Commission or 
        appropriate Federal regulator shall have the right--
                    (A) to intervene in the action;
                    (B) upon so intervening, to be heard on all matters 
                arising therein;
                    (C) to remove the action to the appropriate United 
                States district court; and
                    (D) to file petitions for appeal.
            (5) Construction.--For purposes of bringing any civil 
        action under paragraph (1), nothing in this Act shall be 
        construed to prevent an attorney general of a State from 
        exercising the powers conferred on the attorney general by the 
        laws of that State to--
                    (A) conduct investigations;
                    (B) administer oaths or affirmations; or
                    (C) compel the attendance of witnesses or the 
                production of documentary and other evidence.
            (6) Venue; service of process.--
                    (A) Venue.--Any action brought under paragraph (1) 
                may be brought in the district court of the United 
                States that meets applicable requirements relating to 
                venue under section 1391 of title 28, United States 
                Code.
                    (B) Service of process.--In an action brought under 
                paragraph (1), process may be served in any district in 
                which the defendant--
                            (i) is an inhabitant; or
                            (ii) maintains a physical place of 
                        business.
            (7) Limitation on state action while federal action is 
        pending.--If the Commission or other appropriate Federal agency 
        under subsection (b) has instituted a civil action or an 
administrative action for violation of this Act, no State attorney 
general may bring an action under this subsection during the pendency 
of that action against any defendant named in the complaint of the 
Commission or the other agency for any violation of this Act alleged in 
the complaint.
    (f) Action by Provider of Internet Access Service.--
            (1) Action authorized.--A provider of Internet access 
        service adversely affected by a violation of section 5 may 
        bring a civil action in any district court of the United States 
        with jurisdiction over the defendant, or in any other court of 
        competent jurisdiction, to--
                    (A) enjoin further violation by the defendant; or
                    (B) recover damages in an amount equal to the 
                greater of--
                            (i) actual monetary loss incurred by the 
                        provider of Internet access service as a result 
                        of such violation; or
                            (ii) the amount determined under paragraph 
                        (2).
            (2) Statutory damages.--
                    (A) In general.--For purposes of paragraph 
                (1)(B)(ii), the amount determined under this paragraph 
                is the amount calculated by multiplying the number of 
                violations (with each separately addressed unlawful 
                message that is transmitted or attempted to be 
                transmitted over the facilities of the provider of 
                Internet access service, or that is transmitted or 
                attempted to be transmitted to an electronic mail 
                address obtained from the provider of Internet access 
                service in violation of section 5(b)(1)(A)(i), treated 
                as a separate violation) by--
                            (i) up to $100, in the case of a violation 
                        of section 5(a)(1); or
                            (ii) $25, in the case of any other 
                        violation of section 5.
                    (B) Limitation.--For any violation of section 5 
                (other than section 5(a)(1)), the amount determined 
                under subparagraph (A) may not exceed $1,000,000.
                    (C) Aggravated damages.--The court may increase a 
                damage award to an amount equal to not more than three 
                times the amount otherwise available under this 
                paragraph if--
                            (i) the court determines that the defendant 
                        committed the violation willfully and 
                        knowingly; or
                            (ii) the defendant's unlawful activity 
                        included one or more of the aggravated 
                        violations set forth in section 5(b).
            (3) Attorney fees.--In any action brought pursuant to 
        paragraph (1), the court may, in its discretion, require an 
        undertaking for the payment of the costs of such action, and 
        assess reasonable costs, including reasonable attorneys' fees, 
        against any party.

SEC. 8. EFFECT ON OTHER LAWS.

    (a) Federal Law.--
            (1) Nothing in this Act shall be construed to impair the 
        enforcement of section 223 or 231 of the Communications Act of 
        1934 (47 U.S.C. 223 or 231, respectively), chapter 71 (relating 
        to obscenity) or 110 (relating to sexual exploitation of 
        children) of title 18, United States Code, or any other Federal 
        criminal statute.
            (2) Nothing in this Act shall be construed to affect in any 
        way the Commission's authority to bring enforcement actions 
        under FTC Act for materially false or deceptive representations 
        or unfair practices in commercial electronic mail messages.
    (b) State Law.--
            (1) In general.--This Act supersedes any statute, 
        regulation, or rule of a State or political subdivision of a 
        State that expressly regulates the use of electronic mail to 
        send commercial messages, except for any such statute, 
        regulation, or rule that prohibits falsity or deception in any 
        portion of a commercial electronic mail message or information 
        attached thereto.
            (2) State law not specific to electronic mail.--This Act 
        shall not be construed to preempt the applicability of State 
        laws that are not specific to electronic mail, including State 
        trespass, contract, or tort law, and State laws relating to 
        acts of fraud or computer crime.
    (c) No Effect on Policies of Providers of Internet Access 
Service.--Nothing in this Act shall be construed to have any effect on 
the lawfulness or unlawfulness, under any other provision of law, of 
the adoption, implementation, or enforcement by a provider of Internet 
access service of a policy of declining to transmit, route, relay, 
handle, or store certain types of electronic mail messages.

SEC. 9. RECOMMENDATIONS CONCERNING DO-NOT-EMAIL REGISTRY.

    Not later than 6 months after the Federal Trade Commission has 
completed implementation of its national telemarketing Do-Not-Call 
list, the Commission shall transmit to the Congress recommendations for 
a workable plan and timetable for creating a nationwide marketing Do-
Not-Email list modeled on the Do-Not-Call list, or an explanation of 
any practical, technical, security, or privacy-related issues that 
cause the Commission to recommend against creating such a list.

SEC. 10. STUDY OF EFFECTS OF UNSOLICITED COMMERCIAL ELECTRONIC MAIL.

    (a) In General.--Not later than 24 months after the date of the 
enactment of this Act, the Commission, in consultation with the 
Department of Justice and other appropriate agencies, shall submit a 
report to the Congress that provides a detailed analysis of the 
effectiveness and enforcement of the provisions of this Act and the 
need (if any) for the Congress to modify such provisions.
    (b) Required Analysis.--The Commission shall include in the report 
required by subsection (a)--
            (1) an analysis of the extent to which technological and 
        marketplace developments, including changes in the nature of 
        the devices through which consumers access their electronic 
        mail messages, may affect the practicality and effectiveness of 
        the provisions of this Act;
            (2) analysis and recommendations concerning how to address 
        unsolicited commercial electronic mail that originates in or is 
        transmitted through or to facilities or computers in other 
        nations, including initiatives or policy positions that the 
        Federal government could pursue through international 
        negotiations, fora, organizations, or institutions; and
            (3) analysis and recommendations concerning options for 
        protecting consumers, including children, from the receipt and 
        viewing of unsolicited commercial electronic mail that is 
        obscene or pornographic.

SEC. 11 SEPARABILITY.

    If any provision of this Act or the application thereof to any 
person or circumstance is held invalid, the remainder of this Act and 
the application of such provision to other persons or circumstances 
shall not be affected.

SEC. 12. EFFECTIVE DATE.

    The provisions of this Act shall take effect 120 days after the 
date of the enactment of this Act.




                                                       Calendar No. 209

108th CONGRESS

  1st Session

                                 S. 877

                          [Report No. 108-102]

_______________________________________________________________________

                                 A BILL

 To regulate interstate commerce by imposing limitations and penalties 
 on the transmission of unsolicited commercial electronic mail via the 
                               Internet.

_______________________________________________________________________

                             July 16, 2003

                       Reported with an amendment