[Congressional Record Volume 145, Number 65 (Thursday, May 6, 1999)]
[Senate]
[Pages S4891-S4892]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. EDWARDS:
  S. 975. A bill to amend chapter 30 of title 39, United States Code, 
to provide for a uniform notification system under which individuals 
may elect not to receive mailings relating to skill contests or 
sweepstakes, and for other purposes; to the Committee on Governmental 
Affairs.


          sweepstakes toll-free option protection act of 1999

  Mr. EDWARDS. Mr. President, I rise today to introduce the Sweepstakes 
Toll-Free Option Protection Act of 1999, the ``STOP Act.'' I hope this 
measure will help put a stop to a practice I find extremely 
troublesome: the flooding of consumers' mailboxes with unwanted and 
misleading sweepstakes mailings.
  The Permanent Subcommittee on Investigations recently held hearings 
on deceptive mailings and sweepstakes promotions. I'd like to thank 
Senators Collins and Levin for bringing this important issue to light.
  Mr. President, during the course of these hearings, it became clear 
to me that strong measures must be taken to curb the use of misleading 
sweepstakes promotions. Too many people are getting swamped with 
solicitations. And too many people are spending their life savings 
trying to win prizes. The primary victims are our nation's elderly who 
are led to believe that if they purchase magazine subscriptions or 
other products, they will increase their chances of winning.
  Well, purchases do not increase the chances of winning. But often 
times, what purchases actually do is increase the number of 
solicitations sweepstakes companies send out to people, encouraging 
them to buy even more products. With each new purchase, consumers are 
led to believe that they are coming closer and closer to winning a 
prize. The sad truth is they are not getting closer, but the cycle of 
deception keeps going.
  The legislation I am introducing today would require sweepstakes 
companies to set up a uniform toll-free telephone number that consumers 
can call to have their names and addresses removed from all sweepstakes 
mailing lists. People will no longer have to contact each and every 
sweepstakes promoter to stop these misleading mailings.
  My legislation is a sensible approach to helping regular people who 
want to stop the flood of sweepstakes mailings and protect themselves 
from misleading solicitations. Let me tell you the story of Bobby 
Bagwell to help illustrate the need for this measure.
  One day, Pamela Bagwell went to visit her elderly father-in-law, 
Bobby. When she arrived at Bobby's home, Pamela found stacks and stacks 
of solicitations from sweepstakes companies. She asked Bobby about them 
and found out that he had made numerous purchases thinking that buying 
products would increase his chances of winning a prize. He was so 
convinced he would win a prize that he even invited his neighbors to 
his house on the day that the Publishers Clearing House prize patrol 
was supposed to deliver the grand prize check.
  Pamela estimates that Bobby spent more than $20,000 in 10 months on 
products he thought would help his chance of winning. Now as I 
mentioned before, Bobby is an elderly man.
  But this is not the worst part of this story. Bobby also has 
dementia. Pamela, who has power of attorney for Bobby, contacted 
Publishers Clearing House at least 6 times in October last year to 
demand that the company stop sending Bobby solicitations. She even went 
so far as to send the company a doctor's certification that Bobby has 
dementia. And yet, the sweepstakes mailings continued to flood Bobby's 
mailbox. Pamela said that sometimes Bobby was receiving up to twenty 
per day, from many different companies.
  During the hearings, I asked representatives from the four major 
sweepstakes companies, Publishers Clearing House, Time, American Family 
Enterprises and Reader's Digest, to check their records and remove 
Bobby's name and address from their mailing lists. All of the companies 
agreed to do so. However, I find it unacceptable that the only recourse 
someone like Pamela has is to hope that a United States Senator makes 
such a request for her.
  Pamela and Bobby Bagwell's situation is not unique. Since the 
hearings, my office has received numerous calls and letters, not just 
from North Carolinians, but from people all over the country who tell 
similar, disturbing stories about their experiences with sweepstakes 
companies. Mr. President, my proposal is a reasonable way to help them.
  I believe that people should have the right to easily put a stop to 
these mailings. And sweepstakes promoters should be legally required to 
honor such a request.
  Now let me tell you how my legislation would work.
  First, as I have already mentioned, it requires that sweepstakes 
companies set up a uniform toll-free number that individuals or people 
with power of attorney for such individuals, can call to get their name 
and address removed from all sweepstakes mailing lists. After a person 
places that one phone call, they will receive a removal request form to 
fill out and send in to the notification system. After the system 
receives that form, the person's name will be removed from all 
sweepstakes mailing lists. The form will serve as written evidence that 
the person made a request to have their name removed.
  Second, the sweepstakes companies must include a statement in their 
mailings that people have the option of having their names removed from 
sweepstakes mailing lists and that they can initiate this process by 
calling the specific toll-free number that has been established. The 
statement must be clear and conspicuous, which is important in order to 
effectively alert people about their right to stop the mailings.
  Finally, my bill requires that if an individual makes a request to 
have their name removed from sweepstakes mailings lists, the 
sweepstakes companies must comply with this request. If the companies 
continue to send mailings against the wishes of the caller, each 
mailing will subject the company to a $10,000 civil penalty.
  Mr. President, in closing, I should mention that the American 
Association of Retired Persons participated in the sweepstakes hearings 
and testified as to ``the severe effects'' deceptive sweepstakes 
mailings have on AARP members. AARP supports my idea of a toll-free 
uniform notification system.
  My legislation is a common sense solution to a growing problem, and I 
am confident that it will indeed go a long way toward stopping 
harrassing, deceptive sweepstakes mailings.
  I ask unanimous consent that the text of the legislation be printed 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 975

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Sweepstakes Toll-Free Option 
     Protection Act of 1999''.

     SEC. 2. REQUIREMENTS OF PROMOTERS OF SKILL CONTESTS OR 
                   SWEEPSTAKES MAILINGS.

       (a) In General.--Chapter 30 of title 39, United States 
     Code, is amended by adding after section 3015 the following:

     ``Sec. 3016. Nonmailable skill contests or sweepstakes 
       matter; notification to prohibit mailings

       ``(a) Definitions.--In this section, the term--
       ``(1) `promoter' means any person who originates and causes 
     to be mailed any skill contest or sweepstakes;
       ``(2) `removal request form' means a written form stating 
     that an individual--
       ``(A) does not consent to the name and address of such 
     individual being included on any list used by a promoter for 
     mailing skill contests or sweepstakes; and
       ``(B) elects to have such name and address excluded from 
     any such list;
       ``(3) `skill contest' means a puzzle, game, competition, or 
     other contest in which--
       ``(A) a prize is awarded or offered;
       ``(B) the outcome depends predominately on the skill of the 
     contestant; and
       ``(C) a purchase, payment, or donation is required or 
     implied to be required to enter the contest; and
       ``(4) `sweepstakes' means a game of chance for which no 
     consideration is required to enter.

[[Page S4892]]

       ``(b) Nonmailable Matter.--
       ``(1) In general.--Matter otherwise legally acceptable in 
     the mails described under paragraph (2)--
       ``(A) is nonmailable matter;
       ``(B) shall not be carried or delivered by mail; and
       ``(C) shall be disposed of as the Postal Service directs.
       ``(2) Nonmailable matter described.--Matter that is 
     nonmailable matter referred to under paragraph (1) is any 
     matter that--
       ``(A) is a skill contest or sweepstakes; and
       ``(B) is addressed to an individual who made an election to 
     be excluded from lists under subsection (e).
       ``(c) Requirements of Promoters.--
       ``(1) Notice to individuals.--Any promoter who mails a 
     skill contest or sweepstakes shall provide with each mailing 
     a clear and conspicuous statement that--
       ``(A) includes the address and toll-free telephone number 
     of the notification system established under paragraph (2); 
     and
       ``(B) states the system can be used to prohibit the mailing 
     of any skill contest or sweepstakes to such individual.
       ``(2) Notification system.--Any promoter that mails a skill 
     contest or sweepstakes shall participate in the establishment 
     and maintenance of a uniform notification system that 
     provides for any individual (or other duly authorized person) 
     to notify the system of the individual's election to have the 
     name and address of the individual excluded from any list of 
     names and addresses used by any promoter to mail any skill 
     contest or sweepstakes; and
       ``(d) Notification System.--
       ``(1) Call to toll-free number.--If an individual contacts 
     the notification system through use of the toll-free 
     telephone number published under subsection (c)(2), the 
     system shall--
       ``(A) inform the individual of the information described 
     under subsection (c)(1)(B);
       ``(B) inform the individual that a removal request form 
     shall be mailed within such 7 business days; and
       ``(C) inform the individual that the election to prohibit 
     mailings of skill contests or sweepstakes to that individual 
     shall take effect 30 business days after receipt by the 
     system of the signed removal request form or other signed 
     written request by the individual.
       ``(2) Removal request form.--Upon request of the 
     individual, the system shall mail a removal request form to 
     the individual not later than 7 business days after the date 
     of the telephone communication. A removal request form shall 
     contain--
       ``(A) a clear, concise statement to exclude a name and 
     address from the applicable mailing lists; and
       ``(B) no matter other than the form and the address of the 
     notification system.
       ``(e) Election To Be Excluded From Lists.--
       ``(1) In general.--An individual may elect to exclude the 
     name and address of such individual from all mailing lists 
     used by promoters of skill contests or sweepstakes by mailing 
     a removal request form to the notification system established 
     under subsection (c).
       ``(2) Response after mailing form to the notification 
     system.--Not later than 30 business days after receipt of a 
     removal request form, all promoters who maintain lists 
     containing the individual's name or address for purposes of 
     mailing skill contests or sweepstakes shall exclude such 
     individual's name and address from all such lists.
       ``(3) Effectiveness of election.--An election under 
     paragraph (1) shall--
       ``(A) be effective with respect to every promoter; and
       ``(B) remain in effect, unless an individual notifies the 
     system in writing that such individual--
       ``(i) has changed the election; and
       ``(ii) elects to receive skill contest or sweepstakes 
     mailings.
       ``(f) Promoter Nonliability.--A promoter, or any other 
     person maintaining the notification system established under 
     this section, shall not have civil liability for the 
     exclusion of an individual's name or address from any mailing 
     list maintained by a promoter for mailing skill contests or 
     sweepstakes, if--
       ``(1) a signed request for removal form is received by the 
     notification system; and
       ``(2) the promoter or person maintaining the system has a 
     good faith belief that the request is from--
       ``(A) the individual whose name and address is to be 
     excluded; or
       ``(B) another duly authorized person.
       ``(g) Prohibition on Commercial Use of Lists.--
       ``(1) In general.--
       ``(A) Prohibition.--No person may provide any information 
     (including the sale or rental of any name or address) in a 
     list described under subparagraph (B) to another person for 
     commercial use.
       ``(B) Lists.--A list referred to under subparagraph (A) is 
     any list of names and addresses (or other related 
     information) used, maintained, or created by the system 
     established by this Act.
       ``(2) Civil penalty.--Any person who violates paragraph (1) 
     shall be assessed a civil penalty by the Postal Service.
       ``(h) Civil Penalties.--
       ``(1) In general.--Any promoter--
       ``(A) who recklessly mails nonmailable matter in violation 
     of subsection (b) shall be liable to the United States in an 
     amount of $10,000 per violation for each mailing of 
     nonmailable matter; or
       ``(B) who fails to substantially comply with the 
     requirements of subsection (c)(2) shall be liable to the 
     United States.
       ``(2) Enforcement.--The Postal Service shall assess civil 
     penalties under this section.''.
       (b) Technical and Conforming Amendments.--The table of 
     sections for chapter 30 of title 39, United States Code, is 
     amended by adding after the item relating to section 3015 the 
     following:

``3016. Nonmailable skill contests or sweepstakes matter; notification 
              to prohibit mailings.''.

     SEC. 3. STATE LAW NOT PREEMPTED.

       Nothing in this Act shall be construed to preempt any 
     provision of State or local law.

     SEC. 4. EFFECTIVE DATE.

       The amendments made by this Act shall take effect 1 year 
     after the date of enactment of this Act.
                                 ______