[Congressional Record Volume 145, Number 19 (Wednesday, February 3, 1999)]
[Senate]
[Pages S1147-S1148]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LEVIN (for himself, Mr. Durbin and Mr. Collins):
  S. 336. A bill to curb deceptive and misleading games of chance 
mailings, to provide Federal agencies with additional investigative 
tools to police such mailings, to establish additional penalties for 
such mailings, and for other purposes; to the Committee on Governmental 
Affairs.


       deceptive games of chance mailings elimination act of 1999

  Mr. DURBIN. Mr. President, I am pleased to join my distinguished 
colleagues, Senators Levin and Collins, today in introducing the 
Deceptive Games of Chance Mailing Elimination Act of 1999.
  It's rare that any American household has escaped receipt of a flurry 
of envelopes boldly proclaiming ``You're our next million-dollar 
winner!'' or similar claim of impending good fortune. Most of us 
recognize these prominent lines as the special language of direct mail 
sweepstakes. While many companies have used sweepstakes responsibly, 
others have bilked consumers out of millions of dollars by falsely 
suggesting a purchase is necessary to qualify for the sweepstakes or to 
increase the odds of winning a prize. Some of these operators promise 
fame and fortune, but they deliver fraud and false promises.
  As Senator Levin has outlined, this bill sharpens the teeth of the 
current postal statutes by directing the Postal Service to develop and 
issue rules that restrict the use of misleading language and symbols on 
direct mail games of chance such as sweepstakes that mislead the 
recipient into believing they've already won or will win a prize. This 
rulemaking authority will allow the Postal Service to respond more 
rapidly to emerging deceptive practices. The bill also requires that 
additional disclosures be given to recipients of mailed solicitations 
involving sweepstakes giveaways about their chances of winning and that 
no purchase is necessary to enter the contest. Furthermore, the bill 
gives the Postal Service administrative subpoena power so it can react 
and respond more rapidly to deceptive and fraudulent mail schemes. 
Under our bill, civil fines can be imposed upon the issuance of an 
enforcement order, or alternatively, in lieu of an enforcement order, 
rather than awaiting a violation of that order.
  By giving the Postal Service these additional tools and authority, 
this legislation will help combat the growing problem of consumer fraud 
in the form of deceptive or misleading mailings that use games of 
chance or sweepstakes contests to solicit the purchase of a product. 
Other deceptions have included packaging sweepstakes solicitations to 
closely resemble government documents and promising recipients that 
they have already won, even though the fine print reveals minuscule 
odds of winning.
  The elderly are particularly vulnerable to sweepstakes fraud. Some 
senior citizen sweepstakes recipients have traveled thousands of miles 
to claim prizes they thought they had been assured of winning. Others 
spend thousands of dollars on magazines and other merchandise because 
they are convinced it will boost their chances of winning.
  Like Senators Levin and Collins, I have heard from numerous 
constituents about how some crafty purveyors prey on the public, often 
persons on fixed or limited incomes, through these deceptive envelopes 
and packaging techniques. Recently, one constituent related how her 
elderly mother has become ``hooked'' on sweepstakes. She shared with me 
a bulky stack of envelopes, representing just a sample of the mailings. 
She remarked how her mother is convinced that the company will think 
better of her if she orders lots of merchandise, and that buying more 
products will accord her special consideration and improve her chances 
to win a lucrative prize. She noted that some companies, by using 
clever typefaces, sophisticated and official-looking symbols, gimmicky 
labels, and personalization, lead people to believe the company is 
writing to them personally, and that the odds of winning are high. Her 
story is but one example of what we have heard, and why it is so 
important to ensure that strong laws are enacted to address deceptive 
practices.
  I am pleased that the United States Postal Inspector, the National 
Fraud

[[Page S1148]]

Information Center, the Direct Marketing Association, the American 
Association of Retired Persons, and a special committee of the 
Association of Attorneys General are among those who are actively 
seeking ways to ensure that consumers are informed and protected from 
dishonest marketing ploys.
  I look forward to the hearings planned by Senator Collins in the 
Permanent Subcommittee on Investigations to examine the problem of 
deceptive mailings and legislative solutions. I urge my colleagues to 
join me in supporting enactment of legislation to promote more honesty 
by product marketers, clearer disclosure for consumers, tighter 
penalties for violators, and quicker and more effective enforcement 
tools for more rapid response to unscrupulous practices.
                                 ______