[Congressional Record Volume 152, Number 34 (Thursday, March 16, 2006)]
[Senate]
[Page S2327]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. NELSON of Florida (for himself and Mr. Menendez):
  S. 2436. 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, I rise today on behalf of 
myself, and Senator Robert Menendez of New Jersey, to introduce a bill 
to create an Office of Consumer Advocacy and Outreach within the 
Federal Trade Commission.
  Pyramid schemes, too-good-to-be-true business opportunities, miracle 
weight loss products--these are all examples of how average Americans 
are taken advantage of on a daily basis. These schemes have the 
potential to deplete an innocent person's bank accounts and ruin their 
finances and credit record for years to come. Some even damage people's 
health permanently--all for sake a making a few bucks.
  Unfortunately, Hispanics are twice as likely as other Americans to 
become victims of consumer fraud. In fact, 14.3 percent of Hispanics 
will fall prey to this type of crime. It's hard to know exactly why 
this is affecting Hispanics disproportionately. Some believe that 
disreputable businesses target certain communities because they believe 
victims are less likely to report crimes. In fact, data has shown that 
Hispanics are less likely to report incidents of fraud than other 
segments of the population.
  The Federal Trade Commission has levied an increasing number of 
complaints against deceptive Spanish-language advertisements, including 
fraudulent driving permits and junk computers in recent years. 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.
  This legislation will create, develop, and manage an anonymous tip 
program that will allow individuals to report fraud schemes that 
specifically target their community. The tip program 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.
  To help publicize the reward program, the number for this newly 
created hotline would be included in 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.
  Finally, 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.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2436

       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 ``Federal Trade Commission 
     Consumer Advocacy Act''.

     SEC. 2. ESTABLISHMENT OF THE OFFICE OF CONSUMER ADVOCACY AND 
                   OUTREACH.

       There is established within the Federal Trade Commission an 
     Office of Consumer Advocacy and Outreach.

     SEC. 3. PURPOSE OF THE OFFICE OF CONSUMER ADVOCACY AND 
                   OUTREACH.

       The purpose of the Office of Consumer Advocacy and Outreach 
     is to protect minority consumers, disabled consumers, and 
     other targeted consumers from unfair or deceptive acts or 
     practices that violate section 5 of the Federal Trade 
     Commission Act (15 U.S.C. 45).

     SEC. 4. RESPONSIBILITIES OF THE OFFICE OF CONSUMER ADVOCACY 
                   AND OUTREACH.

       The head of the Office of Consumer Advocacy and Outreach 
     shall--
       (1) assist law enforcement personnel in--
       (A) investigating unfair or deceptive acts or practices 
     that violate section 5 of the Federal Trade Commission Act 
     (15 U.S.C. 45) and that affect minority, disabled, or other 
     targeted consumers; and
       (B) increasing the amount of information available about 
     such acts or practices through the Consumer Sentinel database 
     system or an equivalent database system;
       (2) provide consumers, including minority, disabled, or 
     other targeted consumers, information regarding detecting 
     unfair or deceptive acts or practices;
       (3) administer a program that permits individuals to 
     anonymously report information regarding an unfair or 
     deceptive act or practice that affects minority, disabled, or 
     other targeted consumers;
       (4) carry out a program to provide a monetary reward to an 
     individual who reports an unfair or deceptive act or practice 
     that affects minority, disabled, or other targeted consumers 
     if such report results in the Federal Trade Commission 
     obtaining a civil penalty from a person liable for such act 
     or practice; and
       (5) carry out a public awareness campaign in Spanish to 
     inform Spanish-speaking consumers about the services provided 
     by the Office and the award program described in paragraph 
     (4).
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