[Congressional Record Volume 150, Number 138 (Tuesday, December 7, 2004)]
[Senate]
[Page S11900]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. NELSON of Florida:
  S. 3030. A bill to establish an Office of Consumer Advocacy and 
Outreach within the Federal Trade Commission to protect consumers from 
certain unfair or deceptive acts or practices, and for other purposes; 
to the Committee on Commerce, Science, and Transportation.
  Mr. NELSON of Florida. Mr. President, today I rise to introduce a 
bill to create a new government reward hotline designed to solicit tips 
from Spanish-speaking immigrants and other groups that are more likely 
to be the silent victims of consumer fraud.
  The hotline will allow anyone with knowledge of a fraud scheme 
involving deceptive advertising to get a reward for reporting it 
directly to the experts who work at the Federal Trade Commission.
  This legislation addresses the unscrupulous businesses that target 
certain communities because they know the victims are less likely to 
report crimes. It will further the efforts of the Federal Trade 
Commission to combat this problem by creating an Office of Consumer 
Advocacy and Outreach within the Federal Trade Commission which will 
administer programs and services that make it easier for victims in 
these communities to hold wrong-doers accountable.
  A Federal Trade Commission survey from earlier this year revealed 
that nearly 25 million adults in the United States, or 11.2 percent of 
the adult population, were victims of fraud, and that certain 
communities were more likely to fall prey to fraudulent schemes. For 
example, the survey found that Hispanics are twice as likely to be 
victims of fraud as non-Hispanic whites. A study conducted by the 
National Institute of Justice concluded that immigrant victims report 
crimes less frequently than other victims. The factors cited as 
contributing to this underreporting included language barriers, 
cultural differences, and a limited understanding of the United States 
Justice system.
  During this past year the Federal Trade Commission has levied an 
increasing number of complaints against deceptive Spanish-language 
advertisements, including fraudulent driving permits and junk 
computers. Two of these complaints were filed against businesses in 
South Florida that targeted Spanish speakers with advertisements for 
``scientifically unfeasible'' weight-loss pills.
  The Office of Consumer Advocacy and Outreach created by this bill 
will provide information to targeted consumers in these communities on 
how to protect themselves against fraudulent schemes and where to seek 
redress if they become a victim. The Office will work with law 
enforcement to track and investigate fraud schemes that target 
immigrants, the elderly, minorities and other communities.
  One of the ways the Office will work to increase reporting of fraud 
by Spanish-speakers, for example, will be to publicize the reward 
program through a Spanish-language public service advertising campaign 
produced by the Federal Trade Commission that warns against consumer 
fraud and provides the number for this newly created anonymous hotline.
  Additionally, the Office will work with law enforcement to increase 
their level of participation in the Consumer Sentinel database system. 
This database, currently in existence, collects information from local, 
State and Federal agencies on consumer complaints to assist in the 
tracking and investigating of consumer fraud issues.
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