[Congressional Record (Bound Edition), Volume 145 (1999), Part 20]
[Extensions of Remarks]
[Pages 29067-29068]
[From the U.S. Government Publishing Office, www.gpo.gov]



             DECEPTIVE MAIL PREVENTION AND ENFORCEMENT ACT

                                 ______
                                 

                               speech of

                          HON. DANNY K. DAVIS

                              of illinois

                    in the house of representatives

                       Tuesday, November 2, 1999

  Mr. DAVIS of Illinois. Mr. Speaker, I am proud to have played a part 
in the House consideration and markup of the Honesty in Sweepstakes Act 
of 1999. Last month, the Subcommittee on the Postal Service marked up 
H.R. 170, and unanimously approved an amendment in the nature of a 
substitute offered by the ranking minority member congressman Fattah 
and chairman McHugh. Our bill which closely mirrors sweepstakes 
legislation passed by the Senate in August would:
  Impose disclosure requirements relating to sweepstakes mailings and 
skills contests (contests in which a prize is awarded based on skill, 
and a purchase, payment, or donation is required) concerning rules, 
terms, conditions, sponsor, place of business of sponsor, odds of 
winning, and other information to help ensure the consumer has complete 
information about the contest;

[[Page 29068]]

  Prohibit mailings that suggest a connection to the federal 
government, or that contain false representations implying that federal 
government benefits or services will be affected by participation or 
nonparticipation in the contest;
  Require that copies of checks sent in any mailing must include a 
statement on the check itself stating that it is nonnegotiable and has 
no cash value;
  Require certain disclosures to be clearly and conspicuously displayed 
in certain parts of the sweepstakes and skill contest promotions;
  Require sweepstakes companies to maintain individual do-not-mail 
lists;
  Give the Postal Service additional environment tools to investigate 
and stop deceptive mailings, including the authority to impose civil 
penalties and subpoena authority;
  Require that companies adopt reasonable practices and procedures to 
prevent the mailing of materials on sweepstakes or skills contests to 
individuals who have written to the companies requesting not to receive 
such mailings;
  Establish a private right of action in state court for consumers who 
receive follow-up mailings despite having requested removal from a 
mailer's list; and
  Establish a federal floor above which states could enact more 
restrictive requirements.
  H.R. 170 adds two very important and critical provisions consumer 
protection provisions. First, we provided the Postal Service with 
subpoena authority to combat sweepstakes fraud. In addition, we have 
limited the scope of subpoena authority to only those provisions of law 
addressing deceptive mailings, and required the Postal Service to 
develop procedures for the issuance of subpoenas.
  The second provision contains language authored by the ranking 
minority member, Congressman Fattah which added a private right of 
action to sweepstakes legislation. This provision now a part of H.R. 
170, would allow consumers to file suit in state court if a sweepstakes 
promoter continues to send mailings despite having requested removal 
from a mailer's list. This important enforcement tool, contained in 
section 8 of H.R. 170, is supported by the National Consumers League, 
the American Association of Retired Persons and the Direct Marketing 
Association.
  The issue of consumer protection, whether it relates to telemarketing 
fraud or sweepstakes deception is finally receiving the attention it 
deserves and I am pleased we have provided additional consumer 
protection along this line.
  I would be remiss if I did not thank my colleagues who have sponsored 
honesty in sweepstakes legislation in the House. Special recognition 
deserves to go to the authors of H.R. 170, Congressmen LoBiondo and 
Condit. Their diligence has ensured a bipartisan bill. I would also 
like to acknowledge the support of Congressman Blagojevich, himself the 
sponsor of sweepstakes legislation, H.R. 2731, the Consumer Choice and 
Sweepstakes Control Act.
  Special recognition goes to the State of New York, Office of the 
Attorney General, the National Association of Attorneys General, the 
Federal Trade Commission, National Consumers League, the American 
Association of Retired Persons, Direct Marketing Association, the 
Postal Service Inspector General, and Courtney Cook, of the minority 
staff. Your hard work, input and support have been appreciated.
  Mr. Speaker, I thank you for being gracious and working with us to 
achieve a bipartisan bill.

                          ____________________