[Congressional Record Volume 147, Number 158 (Thursday, November 15, 2001)]
[Extensions of Remarks]
[Pages E2088-E2089]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  AMERICAN SPIRIT FRAUD PREVENTION ACT

                                 ______
                                 

                               speech of

                           HON. CLIFF STEARNS

                               of florida

                    in the house of representatives

                       Tuesday, November 13, 2001

  Mr. STEARNS. Mr. Speaker, in the days following the terrible tragedy 
that befell America on September 11, 2001, we have experienced a 
reaffirmation of the American Spirit in the heroic acts of some 
Americans and the self-less giving of others. Americans have opened 
their hearts to the families of the victims of the September 11th 
tragedy and heeded the calls for assisting those victims. Americans 
from all walks of life have to date contributed in excess of $1 billion 
to charities and other organizations supporting the victims of the 
tragedy. While the overwhelming majority of fund-raising efforts in 
response to the September 11th terrorist acts are legitimate, 
unfortunately, there have been a few fraudulent fundraising efforts 
capitalizing on this National tragedy.
  As unacceptable as it may be, the September 11th tragedy, as other 
tragic emergencies, have spun deceit and fraud perpetrated by 
unscrupulous persons manipulating the emotions of generous citizens so 
that they may fraudulently line their pockets. Scam artists often use 
the telephone and Internet to prey on emotions--for example, by being 
rude when asked for specific information or insinuating that people who 
decline to give are unpatriotic. By taking advantage of the moment and 
acting quickly, these criminals are often able to raise thousands of 
dollars before they are caught. And when they're caught, the FTC has 
tepid legal authority to make them pay for their offense.
  H.R. 2985, the American Spirit Fraud Prevention Act, introduced by 
Reps. Deal and Bass, takes measures to prevent scam artists from 
capitalizing on national tragedies and takes additional steps to 
penalize those practices. The bill takes the needed step of 
strengthening the Federal Trade Commission Act so the Commission can 
punish those unscrupulous scam artists.
  The bill gives the Commission the power, during times of 
presidentially-declared national emergency or natural disaster, to 
crack down hard on unfair or deceptive acts or practices that take 
advantage of the emergency or disaster. If the Commission acts to stop 
the fraud administratively, this bill doubles the civil penalties from 
$11,000 to $22,000 for each violation. Alternatively, if the Commission 
opts to go to federal district court for an injunction to stop the 
fraud, the bill gives the Commission the authority to demand civil 
penalties of $22,000 for each violation, a punitive power the FTC 
currently does not have at their disposal. The increased penalties are 
available for unfair or deceptive acts or practices committed within 
one year after the President terminates the emergency period under the 
National Emergencies Act or within one year of the disaster declaration 
under the Robert T. Stafford Disaster Relief and Emergency Assistance 
Act.
  Those are needed changes to the FTC Act. It is unfortunate that such 
changes were necessitated by the horrific events of September 11th. 
Yet, we must put all those engaged in fraud or contemplating fraudulent 
acts that

[[Page E2089]]

take advantage of National tragedies on notice that they will pay and 
pay dearly for their unscrupulous acts. This bill shows that we will 
not tolerate the manipulation of Americans' goodwill at times of 
National tragedy.
  I wholeheartedly support the American Spirit Fraud Prevention Act and 
I strongly urge its passage.

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