[House Report 116-590]
[From the U.S. Government Publishing Office]


116th Congress }                                             { Report
                        HOUSE OF REPRESENTATIVES
 2d Session    }                                             { 116-590

======================================================================



 
                      FRAUD AND SCAM REDUCTION ACT

                                _______
                                

 November 16, 2020.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Pallone, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2610]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 2610) to establish a Senior Scams Prevention 
Advisory Council to collect and disseminate model educational 
materials useful in identifying and preventing scams that 
affect seniors, having considered the same, reports favorably 
thereon with amendments and recommends that the bill as amended 
do pass.

                                CONTENTS

                                                                    Page
  I. Purpose and Summary.............................................. 6
 II. Background and Need for the Legislation.......................... 6
III. Committee Hearings............................................... 7
 IV. Committee Consideration.......................................... 9
  V. Committee Votes.................................................. 9
 VI. Oversight Findings............................................... 9
VII. New Budget Authority, Entitlement Authority, and Tax Expenditures 9
VIII.Federal Mandates Statement...................................... 10

 IX. Statement of General Performance Goals and Objectives........... 10
  X. Duplication of Federal Programs................................. 10
 XI. Committee Cost Estimate......................................... 10
XII. Earmarks, Limited Tax Benefits, and Limited Tariff Benefits..... 10
XIII.Advisory Committee Statement.................................... 10

XIV. Applicability to Legislative Branch............................. 10
 XV. Section-by-Section Analysis of the Legislation.................. 10
XVI. Changes in Existing Law Made by the Bill, as Reported........... 13

    The amendments are as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Fraud and Scam 
Reduction Act''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Commission defined.

         TITLE I--PREVENTING CONSUMER SCAMS DIRECTED AT SENIORS

Sec. 101. Short title.
Sec. 102. Senior Scams Prevention Advisory Group.

                 TITLE II--SENIOR FRAUD ADVISORY OFFICE

Sec. 201. Short title.
Sec. 202. Senior Fraud Advisory Office.

   TITLE III--PREVENTING THE TARGETING OF SENIORS DURING EMERGENCIES

Sec. 301. Short title.
Sec. 302. FTC report on scams targeting seniors during emergencies.
Sec. 303. Increasing awareness of scams targeting seniors.

           TITLE IV--PREVENTING SCAMS TARGETING INDIAN TRIBES

Sec. 401. Short title.
Sec. 402. FTC report on unfair or deceptive acts or practices targeting 
Indian Tribes.

           TITLE V--ENHANCING CONSUMER PROTECTION ENFORCEMENT

Sec. 501. Short title.
Sec. 502. Unfair and deceptive practices cooperation study.

SEC. 2. COMMISSION DEFINED.

  In this Act, the term ``Commission'' means the Federal Trade 
Commission.

         TITLE I--PREVENTING CONSUMER SCAMS DIRECTED AT SENIORS

SEC. 101. SHORT TITLE.

  This title may be cited as the ``Stop Senior Scams Act''.

SEC. 102. SENIOR SCAMS PREVENTION ADVISORY GROUP.

  (a) Establishment of Senior Scams Prevention Advisory Group.--There 
is established a Senior Scams Prevention Advisory Group (referred to in 
this section as the ``Advisory Group'').
  (b) Members.--The Advisory Group shall be composed of stakeholders 
such as the following individuals or the designees of such individuals:
          (1) The Chairman of the Federal Trade Commission.
          (2) The Secretary of the Treasury.
          (3) The Attorney General.
          (4) The Director of the Bureau of Consumer Financial 
        Protection.
          (5) Representatives from each of the following sectors, 
        including trade associations, to be selected by Federal Trade 
        Commission:
                  (A) Retail.
                  (B) Gift cards.
                  (C) Telecommunications.
                  (D) Wire-transfer services.
                  (E) Senior peer advocates.
                  (F) Consumer advocacy organizations with efforts 
                focused on preventing seniors from becoming the victims 
                of scams.
                  (G) Financial services, including institutions that 
                engage in digital currency.
                  (H) Prepaid cards.
          (6) A member of the Board of Governors of the Federal Reserve 
        System.
          (7) A prudential regulator, as defined in section 1002 of the 
        Consumer Financial Protection Act of 2010 (12 U.S.C. 5481).
          (8) The Director of the Financial Crimes Enforcement Network.
          (9) Any other Federal, State, or local agency, industry 
        representative, consumer advocate, or entity, as determined by 
        the Federal Trade Commission.
  (c) No Compensation for Members.--A member of the Advisory Group 
shall serve without compensation in addition to any compensation 
received for the service of the member as an officer or employee of the 
United States, if applicable.
  (d) Duties.--
          (1) In general.--The Advisory Group shall--
                  (A) collect information on the existence, use, and 
                success of educational materials and programs for 
                retailers, financial services, and wire-transfer 
                companies, which--
                          (i) may be used as a guide to educate 
                        employees on how to identify and prevent scams 
                        that affect seniors; and
                          (ii) include--
                                  (I) useful information for retailers, 
                                financial services, and wire transfer 
                                companies for the purpose described in 
                                clause (i);
                                  (II) training for employees on ways 
                                to identify and prevent senior scams;
                                  (III) best practices for keeping 
                                employees up to date on current scams;
                                  (IV) the most effective signage and 
                                placement in retail locations to warn 
                                seniors about scammers' use of gift 
                                cards, prepaid cards, and wire transfer 
                                services;
                                  (V) suggestions on effective 
                                collaborative community education 
                                campaigns;
                                  (VI) available technology to assist 
                                in identifying possible scams at the 
                                point of sale; and
                                  (VII) other information that would be 
                                helpful to retailers, wire transfer 
                                companies, financial institutions, and 
                                their employees as they work to prevent 
                                fraud affecting seniors; and
                  (B) based on the findings in subparagraph (A)--
                          (i) identify inadequacies, omissions, or 
                        deficiencies in those educational materials and 
                        programs for the categories listed in 
                        subparagraph (A) and their execution in 
                        reaching employees to protect older adults; and
                          (ii) create model materials, best practices 
                        guidance, or recommendations to fill those 
                        inadequacies, omissions, or deficiencies that 
                        may be used by industry and others to help 
                        protect older adults from scams.
          (2) Encouraged use.--The Federal Trade Commission shall--
                  (A) make the materials or guidance created by the 
                Federal Trade Commission described in paragraph (1) 
                publicly available; and
                  (B) encourage the use and distribution of the 
                materials created under this subsection to prevent 
                scams affecting seniors by governmental agencies and 
                the private sector.
  (e) Reports.--Section 101(c)(2) of the Elder Abuse Prevention and 
Prosecution Act (34 U.S.C. 21711(c)(2)) is amended--
          (1) in subparagraph (C), by striking ``and'' at the end;
          (2) in subparagraph (D), by striking the period at the end 
        and inserting ``; and''; and
          (3) by adding at the end the following:
                  ``(E) for the Federal Trade Commission, in relevant 
                years, information on--
                          ``(i) the newly created materials, guidance, 
                        or recommendations of the Senior Scams 
                        Prevention Advisory Group established under 
                        section 2 of the Stop Senior Scams Act, and any 
                        relevant views or considerations made by 
                        members of the Advisory Group that were not 
                        included in the Advisory Group's model 
                        materials or considered an official 
                        recommendation by the Advisory Group;
                          ``(ii) the Senior Scams Prevention Advisory 
                        Group's findings about senior scams and 
                        industry educational materials and programs; 
                        and
                          ``(iii) any recommendations on ways 
                        stakeholders can continue to work together to 
                        reduce scams affecting seniors.''.
  (f) Termination.--This Act, and the amendments made by this Act, 
ceases to be effective on the date that is 5 years after the date of 
enactment of this Act.

                 TITLE II--SENIOR FRAUD ADVISORY OFFICE

SEC. 201. SHORT TITLE.

  This title may be cited as the ``Seniors Fraud Prevention Act of 
2020''.

SEC. 202. SENIOR FRAUD ADVISORY OFFICE.

  (a) Establishment of Advisory Office.--The Federal Trade Commission 
shall establish an office within the Bureau of Consumer Protection for 
the purpose of advising the Commission on the prevention of fraud 
targeting seniors and to assist the Commission with the following:
          (1) Oversight.--The advisory office shall monitor the market 
        for mail, television, internet, telemarketing, and recorded 
        message telephone call (hereinafter referred to as 
        ``robocall'') fraud targeting seniors and shall coordinate with 
        other relevant agencies regarding the requirements of this 
        section.
          (2) Consumer education.--The Commission through the advisory 
        office shall, in consultation with the Attorney General, the 
        Secretary of Health and Human Services, the Postmaster General, 
        the Chief Postal Inspector for the United States Postal 
        Inspection Service, and other relevant agencies--
                  (A) disseminate to seniors and families and 
                caregivers of seniors general information on mail, 
                television, internet, telemarketing, and robocall fraud 
                targeting seniors, including descriptions of the most 
                common fraud schemes;
                  (B) disseminate to seniors and families and 
                caregivers of seniors information on reporting 
                complaints of fraud targeting seniors either to the 
                national toll-free telephone number established by the 
                Commission for reporting such complaints, or to the 
                Consumer Sentinel Network, operated by the Commission, 
                where such complaints will become immediately available 
                to appropriate law enforcement agencies, including the 
                Federal Bureau of Investigation and the attorneys 
                general of the States;
                  (C) in response to a specific request about a 
                particular entity or individual, provide publically 
                available information of enforcement action taken by 
                the Commission for mail, television, internet, 
                telemarketing, and robocall fraud against such entity; 
                and
                  (D) maintain a website to serve as a resource for 
                information for seniors and families and caregivers of 
                seniors regarding mail, television, internet, 
                telemarketing, robocall, and other identified fraud 
                targeting seniors.
          (3) Complaints.--The Commission through the advisory office 
        shall, in consultation with the Attorney General, establish 
        procedures to--
                  (A) log and acknowledge the receipt of complaints by 
                individuals who believe they have been a victim of 
                mail, television, internet, telemarketing, and robocall 
                fraud in the Consumer Sentinel Network, and shall make 
                those complaints immediately available to Federal, 
                State, and local law enforcement authorities; and
                  (B) provide to individuals described in subparagraph 
                (A), and to any other persons, specific and general 
                information on mail, television, internet, 
                telemarketing, and robocall fraud, including 
                descriptions of the most common schemes using such 
                methods of communication.
  (b) Commencement.--The Commission shall commence carrying out the 
requirements of this section not later than one year after the date of 
enactment of this Act.

   TITLE III--PREVENTING THE TARGETING OF SENIORS DURING EMERGENCIES

SEC. 301. SHORT TITLE.

  This title may be cited as the ``Protecting Seniors from Emergency 
Scams Act''.

SEC. 302. FTC REPORT ON SCAMS TARGETING SENIORS DURING EMERGENCIES.

  Not later than 30 days after the date of enactment of this Act, the 
Federal Trade Commission (referred to in this Act as the 
``Commission'') shall submit a report to Congress including--
          (1) a description of the number and types of scams identified 
        by the Commission as being targeted at senior citizens; and
          (2) policy recommendations to prevent such scams, especially 
        as such scams relate to future national emergencies.

SEC. 303. INCREASING AWARENESS OF SCAMS TARGETING SENIORS.

  (a) In General.--As soon as practicable after the date of enactment 
of this Act, the Commission shall update its web portal to include the 
latest information, searchable by region and type of scam, on scams 
targeting seniors, including contacts for relevant law enforcement and 
adult protective service agencies.
  (b) Coordination With Media Outlets and Law Enforcement.--The 
Commission shall work with media outlets and law enforcement to 
distribute the information included in the web portal of the Commission 
pursuant to subsection (a) to senior citizens and their families and 
caregivers.

           TITLE IV--PREVENTING SCAMS TARGETING INDIAN TRIBES

SEC. 401. SHORT TITLE.

  This title may be cited as the ``Protecting Indian Tribes from Scams 
Act''.

SEC. 402. FTC REPORT ON UNFAIR OR DECEPTIVE ACTS OR PRACTICES TARGETING 
                    INDIAN TRIBES.

  (a) FTC Report.--Not later than 1 year after the date of the 
enactment of this Act, and after consultation with Indian Tribes, the 
Commission shall make publicly available on the website of the 
Commission and submit to the Committee on Energy and Commerce of the 
House of Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on unfair or deceptive acts or 
practices targeted at Indian Tribes or members of Indian Tribes, 
including--
          (1) a description of the types of unfair or deceptive acts or 
        practices identified by the Commission as being targeted at 
        Indian Tribes or members of Indian Tribes;
          (2) a description of the consumer education activities of the 
        Commission with respect to such acts or practices;
          (3) a description of the efforts of the Commission to 
        collaborate with Indian Tribes to prevent such acts or 
        practices or to pursue persons using such acts or practices;
          (4) a summary of the enforcement actions taken by the 
        Commission related to such acts or practices; and
          (5) any recommendations for legislation to prevent such acts 
        or practices.
  (b) Increasing Awareness of Unfair or Deceptive Acts or Practices 
Targeting Indian Tribes.--Not later than 6 months after the date of the 
submission of the report required by subsection (a), the Commission 
shall update the website of the Commission to include information for 
consumers and businesses on identifying and avoiding unfair or 
deceptive acts or practices targeted at Indian Tribes or members of 
Indian Tribes.

           TITLE V--ENHANCING CONSUMER PROTECTION ENFORCEMENT

SEC. 501. SHORT TITLE.

  This title may be cited as the ``FTC Collaboration Act of 2020''.

SEC. 502. UNFAIR AND DECEPTIVE PRACTICES COOPERATION STUDY.

  (a) In General.--
          (1) Study required.--Not later than 1 year after the date of 
        the enactment of this Act, the Federal Trade Commission shall 
        conduct a study on facilitating and refining existing efforts 
        with State Attorneys General to prevent, publicize, and 
        penalize frauds and scams being perpetrated on individuals in 
        the United States.
          (2) Requirements of study.--In conducting the study, the 
        Commission shall examine the following:
                  (A) The roles and responsibilities of the Commission 
                and State Attorneys General that best advance 
                collaboration and consumer protection.
                  (B) The policies, procedures, and mechanisms that 
                facilitate cooperation and communications across the 
                Commission.
                  (C) How resources should be dedicated to best advance 
                such collaboration and consumer protection.
                  (D) The accountability mechanisms that should be 
                implemented to promote collaboration and consumer 
                protection.
          (3) Consultation and public comment.--In producing the study 
        required in paragraph (1), the Commission shall--
                  (A) consult with--
                          (i) the National Association of State 
                        Attorneys General;
                          (ii) public interest organizations dedicated 
                        to consumer protection;
                          (iii) relevant private sector entities; and
                          (iv) any other Federal or State agency that 
                        the Federal Trade Commission considers 
                        necessary; and
                  (B) provide opportunity for public comment and advice 
                relevant to the production of the study.
  (b) Report to Congress.--Not later than 6 months after the completion 
of the study required pursuant to subsection (a), the Commission shall 
submit to the Committee on Energy and Commerce of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate, and make publicly available on the 
website of the Commission, a report that contains the following:
          (1) The results of the study.
          (2) Recommended best practices to enhance collaboration 
        efforts between the Commission and State Attorneys General with 
        respect to preventing, publicizing, and penalizing fraud and 
        scams.
          (3) Quantifiable metrics by which enhanced collaboration can 
        be measured.
          (4) Legislative recommendations, if any, to enhance 
        collaboration efforts between the Commission and State 
        Attorneys General to prevent, publicize, and penalize fraud and 
        scams.

    Amend the title so as to read:
    A bill to establish an office within the Federal Trade 
Commission and an outside advisory group to prevent fraud 
targeting seniors and to direct the Commission to study and 
submit a report to Congress on scams targeting seniors and 
Indian tribes, and for other purposes.

                         I. Purpose and Summary

    H.R. 2610, the ``Fraud and Scam Reduction Act'', was 
introduced by Representatives Lisa Blunt-Rochester (D-DE) and 
Tim Walberg (R-MI) and referred to the Committee on Energy and 
Commerce. The bill's original short title was ``Stop Senior 
Scams Act''. H.R. 2610, as reported, establishes a Senior Scams 
Prevention Advisory Group at the Federal Trade Commission (FTC) 
to collect and disseminate model educational materials for 
retailers, financial institutions, and wire-transfer companies 
to use in preventing scams that affect seniors.
    During full Committee markup, the committee adopted an 
amendment in the nature of a substitute incorporating 
legislative text based on four other bills referred to the 
Committee on Energy and Commerce: H.R. 2301, the ``Seniors 
Fraud Prevention Act of 2019'' (Reps. Deutch (D-FL), Buchanan 
(R-FL), and Welch (D-VT)); H.R. 7699, the ``Protecting Seniors 
from Emergency Scams Act'' (Reps. Kelly (D-IL), Marshall (R-
KS), and Caster (D-IL); H.R. 8127, the ``Protecting Indian 
Tribes from Scams Act'' (Reps. Lujan (D-NM) and Gianforte (R-
MT)); and H.R. 8152, the ``FTC Collaboration Act of 2020'' 
(Reps. O'Halleran (D-AZ) and Hudson (R-NC)).
    The legislative text of H.R. 2301 directs the FTC to 
establish an office to advise the FTC on the prevention of 
fraud targeting seniors and to help monitor marketing materials 
for fraud targeting seniors. H.R. 7699 requires the FTC to 
submit a report to Congress on scams targeting seniors, 
including policy recommendations to prevent senior scams, 
especially scams related to national emergencies. H.R. 8127 
directs the FTC to submit to Congress a report on unfair or 
deceptive acts or practices targeted at Indian Tribes or 
members of Indian Tribes. Lastly, H.R. 8152 requires the FTC to 
conduct a study on facilitating and refining existing efforts 
with State Attorneys General to prevent, publicize, and 
penalize frauds and scams perpetrated on individuals in the 
United States.

                II. Background and Need for Legislation

    Consumers in the United States face a vast and rapidly 
changing array of fraudulent activities, as well as a variety 
of other unfair, deceptive, or abusive business practices. In 
2019, the FTC received more than 3.2 million consumer 
complaints through its Consumer Sentinel Network database 
regarding identity theft and fraud, including imposter scams 
and telephone and mobile service scams.\1\ The FTC also 
reported that more than $1.9 billion was paid to scammers as a 
result of fraudulent schemes.\2\ These numbers may understate 
the true extent of fraud against American consumers.
---------------------------------------------------------------------------
    \1\Federal Trade Commission, Consumer Sentinel Network; Data Book 
2019 (Jan. 2020) (www.ftc.gov/system/files/documents/reports/consumer-
sentinel-network-data-book-2019/
consumer_sentinel_network_data_book_2019.pdf).
    \2\Id.
---------------------------------------------------------------------------
    The FTC has made addressing fraud targeting specific 
populations a consumer protection priority.\3\ Consumer fraud 
affects victims of all ages, but older Americans represent a 
rapidly growing segment of the total population. In the past 
decade, the 65-and-older population grew by more than one-
third.\4\ According to the Federal Bureau of Investigation, 
scammers may be more likely to target seniors because they are 
more trusting, usually have some accumulated wealth, and are 
less likely to report fraud because they do not know how to 
report or are embarrassed about being scammed.\5\ According to 
the FTC, older adults suffered nearly $400 million in losses 
from fraud in 2018.\6\
---------------------------------------------------------------------------
    \3\Federal Trade Commission, Fiscal Year 2021 Congressional Budget 
Justification (Feb. 10, 2020) (www.ftc.gov/system/files/documents/
reports/fy-2021-congressional-budget-justification/fy_
2021_cbj_final.pdf).
    \4\United States Census Bureau, 65 and Older Population Grows 
Rapidly as Baby Boomers Age (June 25, 2020) (www.census.gov/newsroom/
press-releases/2020/65-older-population-grows.html).
    \5\Federal Bureau of Investigation, Elder Fraud (www.fbi.gov/scams-
and-safety/common-scams-and-crimes/elder-fraud).
    \6\Federal Trade Commission, Protecting Older Consumers; 2018-2019 
(Oct. 18, 2019) (www.ftc.gov/system/files/documents/reports/protecting-
older-consumers-2018-2019-report-
federal-trade-commission/
p144401_protecting_older_consumers_2019_1.pdf).
---------------------------------------------------------------------------
    Scammers have also been known to exploit consumer fear and 
confusion during emergencies, natural disasters, or other 
crises. For example, scammers have targeted the stimulus checks 
and unemployment benefits intended to provide critical relief 
to Americans suffering from the economic repercussions of the 
coronavirus disease 2019 (COVID-19) pandemic.\7\ These scams 
exploit Americans already struggling financially and divert 
resources away from where they are needed. The FTC has also 
issued warnings about many other coronavirus-related scams, 
including contact tracing and charity scams.\8\
---------------------------------------------------------------------------
    \7\Scammers are Using Fake Coronavirus Stimulus Payment Sites to 
Steal Your Money, CNBC (Apr. 23, 2020).
    \8\Federal Trade Commission, Coronavirus Advice for Consumers 
(www.ftc.gov/coronavirus/scams-consumer-advice); Federal Trade 
Commission, COVID-19 Contact Tracing Text Message Scams (May 19, 2020) 
(www.consumer.ftc.gov/blog/2020/05/covid-19-contact-tracing-text-
message-scams).
---------------------------------------------------------------------------
    One often-overlooked area in Federal fraud prevention 
efforts are scams targeting Indian tribes or tribal members. 
The scope and scale of scams affecting Indian tribes has not 
been well documented, hindering efforts to prevent them.
    H.R. 2610 is needed to help prevent fraud and scams, 
especially those targeting seniors, Indian tribes, and tribal 
members. H.R. 2610 will ensure the government and industry 
continue to work together to implement best practices that stop 
scams before they can cause harm; streamline efforts to prevent 
fraud targeting seniors, especially during national 
emergencies; protect Indian tribes and tribal members from 
unfair or deceptive acts or practices; and enhance 
collaborative efforts between the FTC and State Attorneys 
General to reduce fraud and scams.

                        III. Committee Hearings

    For the purposes of section 103(i) of H. Res. 6 of the 
116th Congress, the following hearings were used to develop or 
consider H.R. 2610:
    In the 114th Congress, the Subcommittee on Commerce, 
Manufacturing, and Trade held an informational hearing on 
October 23, 2015. The hearing was entitled, ``Fighting Fraud 
Against the Elderly, an Update.'' The Subcommittee received 
testimony from the following witnesses:
           Daniel Kaufman, Deputy Director, Bureau of 
        Consumer Protection, Federal Trade Commission
           Stacy Canan, Deputy Director, Office of 
        Financial Protection for Older Americans, Consumer 
        Financial Protection Bureau
           Robert F. Harris, Cook County Public 
        Guardian
           Charles Wallace, Associate Professor and 
        Undergraduate Program Director, Computer Science, 
        Michigan Technological University
           Tobie Stanger, Senior Editor, Consumer 
        Reports
    In the 115th Congress, the Subcommittee on Digital Commerce 
and Consumer Protection held an oversight hearing on July 18, 
2018. The hearing was entitled, ``Oversight of the Federal 
Trade Commission.'' The Subcommittee received testimony from 
the following witnesses:
           The Honorable Joseph J. Simons, Chairman, 
        Federal Trade Commission
           The Honorable Noah Joshua Phillips, 
        Commissioner, Federal Trade Commission
           The Honorable Rohit Chopra, Commissioner, 
        Federal Trade Commission
           The Honorable Rebecca Kelly Slaughter, 
        Commissioner, Federal Trade Commission
           The Honorable Maureen Ohlhausen, 
        Commissioner, Federal Trade Commission
    In the 116th Congress, the Subcommittee on Consumer 
Protection and Commerce held an oversight hearing on May 8, 
2019. The hearing was entitled, ``Oversight of the Federal 
Trade Commission: Strengthening Protections for Americans'' 
Privacy and Data Security.'' The Subcommittee received 
testimony from the following witnesses:
           The Honorable Joseph J. Simons, Chairman, 
        Federal Trade Commission
           The Honorable Noah Joshua Phillips, 
        Commissioner, Federal Trade Commission
           The Honorable Rohit Chopra, Commissioner, 
        Federal Trade Commission
           The Honorable Rebecca Kelly Slaughter, 
        Commissioner, Federal Trade Commission
           The Honorable Christine S. Wilson, 
        Commissioner, Federal Trade Commission
    In the 116th Congress, the Subcommittee on Consumer 
Protection and Commerce held an informational hearing on July 
9, 2020. The hearing was entitled, ``Consumers Beware: 
Increased Risks During the COVID-19 Pandemic.'' The 
Subcommittee received testimony from the following witnesses:
           Kevin Anderson, Senior Deputy Attorney 
        General, Director, Consumer Protection Division North 
        Carolina Department of Justice
           Sally Greenberg, Executive Director, 
        National Consumers League
           Thomas Quaadman, Executive Vice President, 
        Center for Capital Markets Competitiveness, Chamber 
        Technology Engagement Center, Global Innovation Policy 
        Center, U.S. Chamber of Commerce

                      IV. Committee Consideration

    H.R. 2610 was introduced by Reps. Blunt Rochester and 
Walberg and was referred to the Committee on Energy and 
Commerce on May 9, 2019. The bill was subsequently referred to 
the Subcommittee on Consumer Protection and Commerce on May 10, 
2019. A number of hearings related to this legislation were 
held in the last two Congresses as well the 116th Congress.
    H.R. 2610 was discharged from the Subcommittee on Consumer 
Protection and Commerce on September 9, 2020, as the bill was 
called up for consideration by the full Committee on Energy and 
Commerce. The full Committee met in virtual open markup session 
on September 9, 2020, on the H.R. 2610. An amendment in the 
nature of a substitute (AINS) offered by Ms. Blunt Rochester, 
on behalf of herself and Messrs. Walberg, Hudson, and Lujan, 
was agreed to by a voice vote. The AINS incorporated as titles 
to the bill the legislative language of H.R. 2301, H.R. 7699, 
H.R. 8127, and H.R. 8152. The full Committee then agreed to a 
motion offered by Mr. Pallone, Chairman of the committee, to 
order H.R. 2610 reported favorably to the House, amended, by a 
voice vote, a quorum being present.

                           V. Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list each record vote 
on the motion to report legislation and amendments thereto. The 
Committee advises that there were no record votes taken on H.R. 
2610, including the motion by Mr. Pallone on final passage.

                         VI. Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII and clause 2(b)(1) 
of rule X of the Rules of the House of Representatives, the 
oversight findings and recommendations of the Committee are 
reflected in the descriptive portion of the report.

           VII. New Budget Authority, Entitlement Authority, 
                          and Tax Expenditures

    Pursuant to 3(c)(2) of rule XIII of the Rules of the House 
of Representatives, the Committee adopts as its own the 
estimate of new budget authority, entitlement authority, or tax 
expenditures or revenues contained in the cost estimate 
prepared by the Director of the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974.
    The Committee has requested but not received from the 
Director of the Congressional Budget Office a statement as to 
whether this bill contains any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.

                    VIII. Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

       IX. Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to reduce 
fraud and scams targeting seniors, Indian Tribes, and Tribal 
members, and to facilitate and refine the existing efforts of 
the FTC with State Attorneys General to prevent fraud and 
scams.

                   X. Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 2610 is known to be duplicative of another Federal 
program, including any program that was included in a report to 
Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance.

                      XI. Committee Cost Estimate

    Pursuant to clause 3(d)(1) of rule XIII, the Committee 
adopts as its own the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974.

           XII. Earmarks, Limited Tax Benefits, and Limited 
                            Tariff Benefits

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 2610 contains no earmarks, limited 
tax benefits, or limited tariff benefits.

                   XIII. Advisory Committee Statement

    No advisory committee within the meaning of section 5(b) of 
the Federal Advisory Committee Act was created by this 
legislation.

                XIV. Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

           XV. Section-by-Section Analysis of the Legislation


Section 1. Short title; Table of contents

    Section 1(a) designates that the short title may be cited 
as the ``Fraud and Scam Reduction Act''. Section 1(b) provides 
the table of contents.

Sec. 2. Definitions

    Section 2 defines the term ``Commission'' to mean the 
Federal Trade Commission.

         TITLE I--PREVENTING CONSUMER SCAMS DIRECTED AT SENIORS


Sec. 101. Short title

    Section 101 designates that this title may be cited as the 
``Stop Senior Scams Act''.

Sec. 102. Senior Scams Prevention Advisory Group

    Subsection (a) establishes a Senior Scams Prevention 
Advisory Group (``Advisory Group''). Subsection (b) specifies 
that the Advisory Group shall be composed of certain 
stakeholders. Subsection (c) specifies that officers or 
employees of the United States who are members of the Advisory 
Group shall serve without additional compensation. Subsection 
(d) require the Advisory Group to collect educational materials 
and programs that educate employees on identifying and 
preventing senior scams, identify deficiencies in those 
materials and programs, and create improved model materials. 
This subsection also directs the FTC to make the improved 
materials public and encourage their use and distribution. 
Subsection (e) amends the Elder Abuse Prevention and 
Prosecution Act, 34 U.S.C. 21711, to include information, 
findings, and recommendations from the Advisory Group in the 
annual report to Congress. Subsection (f) specifies that the 
Act and the amendments made by the Act shall sunset five years 
after the date of enactment.

                 TITLE II--SENIOR FRAUD ADVISORY OFFICE

    [This title incorporates text based on H.R. 2301, sponsored 
by Reps. Deutch, Buchanan, and Welch.]

Sec. 201. Short title

    Section 201 designates that this title may be cited as the 
``Seniors Fraud Prevention Act of 2020''.

Sec. 202. Senior fraud advisory office

    Subsection (a) establishes an office within the FTC's 
Bureau of Consumer Protection for the purpose of advising the 
Commission on the prevention of fraud targeting seniors. 
Paragraph (1) of this subsection requires the advisory office 
to monitor the market for mail, television, internet, and 
robocall fraud targeting seniors.
    Paragraph (2) of this subsection requires the advisory 
office to educate consumers, including seniors, their families, 
and their caregivers, about fraud targeting older Americans. 
This consumer outreach program would provide information about 
the most common senior fraud schemes, as well as information on 
how to report senior fraud through the national toll-free 
number or through the FTC's Consumer Sentinel Network. This 
subsection also requires the FTC, in response to a specific 
request, to provide publicly available information about any 
enforcement actions it has taken against any particular 
individual or entity. The advisory office would also be 
required to maintain a website providing information regarding 
the various types of fraud targeting seniors.
    Paragraph (3) of this subsection requires the FTC, through 
the advisory office, to establish procedures to log and 
acknowledge complaints from individuals who believe they have 
been victims of mail, television, internet, telemarketing, or 
robocall fraud in the Consumer Sentinel Network. These 
complaints would be made immediately available to Federal, 
State, and local law enforcement authorities. This paragraph 
also specifies the FTC would have one year after the date of 
enactment to begin carrying out the bill's requirements.

   TITLE III--PREVENTING THE TARGETING OF SENIORS DURING EMERGENCIES

    [This title incorporates text based on H.R. 7699, sponsored 
by Reps. Kelly (D-IL), Marshall, and Caster (D-IL).]

Sec. 301. Short title

    Section 301 designates that this title may be cited as the 
``Protecting Seniors from Emergency Scams Act''.

Sec. 302. FTC report on scams targeting seniors during emergencies

    This section requires the FTC to submit a report to 
Congress, no later than 30 days after the date of enactment, 
including a description of the number and types of scams 
identified by the FTC as being targeted at seniors, and policy 
recommendations to prevent such scams, especially as such scams 
relate to future national emergencies.

Sec. 302. Increasing awareness of scams targeting seniors

    This section requires the FTC to update its website to 
include the latest information, searchable by region and type 
of scam, on scams targeting seniors, and to work with media 
outlets and law enforcement to distribute this information.

           TITLE IV--PREVENTING SCAMS TARGETING INDIAN TRIBES

    [This title incorporates text based on H.R. 8127, sponsored 
by Reps. Lujan and Gianforte.]

Sec. 401. Short title

    Section 401 designates that this title may be cited as the 
``Protecting Indian Tribes from Scams Act''.

Sec. 402. FTC report on unfair or deceptive acts or practices targeting 
        Indian Tribes

    Subsection (a) of this section requires the FTC to issue a 
report on unfair or deceptive acts or practices targeted at 
Indian Tribes or members of Indian Tribes, including: (1) the 
types of unfair or deceptive acts or practices identified by 
the Commission as being targeted at Indian Tribes or members of 
Indian Tribes; (2) FTC's consumer education activities with 
respect to such acts or practices; (3) the efforts of the FTC 
to collaborate with Indian Tribes to prevent such acts or 
practices; (4) a summary of related enforcement actions taken 
by the FTC; and (5) any recommendations for legislation to 
prevent such acts or practices.
    Subsection (b) requires the FTC, no later than six months 
after the report is issued, to update its website to include 
information for consumers and businesses on identifying and 
avoiding unfair or deceptive acts or practices targeted at 
Indian Tribes or members of Indian Tribes.

           TITLE V--ENHANCING CONSUMER PROTECTION ENFORCEMENT

    [This title incorporates text based on H.R. 8152, sponsored 
by Reps. O'Halleran and Hudson.]

Sec. 501. Short title

    Section 301 designates that this title may be cited as the 
``FTC Collaboration Act of 2020''.

Sec. 502. Unfair and deceptive practices cooperation study

    Subsection (a) requires the FTC to conduct a study on 
facilitating and refining existing efforts with State Attorneys 
General to prevent, publicize, and penalize frauds and scams 
being perpetrated on individuals in the United States no later 
than one year after the date of enactment. This subsection 
specifies that for the study, the FTC shall examine: (A) the 
roles and responsibilities of the FTC and States Attorneys 
General that best advance collaboration and consumer 
protection; (B) the policies, procedures, and mechanisms that 
facilitate cooperation and communications; (C) how resources 
should be dedicated to best advance such collaboration and 
consumer protection; and (D) the accountability mechanisms that 
should be implemented to promote collaboration and consumer 
protection. This subsection further directs the FTC to consult 
with certain stakeholders and to provide an opportunity for 
public comment.
    Subsection (b) requires the FTC to issue a report no later 
than six months after the completion of the study that 
contains: (1) the results of the study; (2) recommended best 
practices to enhance collaboration efforts; (3) quantifiable 
metrics by which enhanced collaboration can be measured; and 
(4) legislative recommendations, if any, to enhance 
collaboration efforts.

       XVI. Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

               ELDER ABUSE PREVENTION AND PROSECUTION ACT



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       TITLE I--SUPPORTING FEDERAL CASES INVOLVING ELDER JUSTICE

SEC. 101. SUPPORTING FEDERAL CASES INVOLVING ELDER JUSTICE.

  (a) Support and Assistance.--
          (1) Elder justice coordinators.--The Attorney General 
        shall designate in each Federal judicial district not 
        less than one Assistant United States Attorney to serve 
        as the Elder Justice Coordinator for the district, who, 
        in addition to any other responsibilities, shall be 
        responsible for--
                  (A) serving as the legal counsel for the 
                Federal judicial district on matters relating 
                to elder abuse;
                  (B) prosecuting, or assisting in the 
                prosecution of, elder abuse cases;
                  (C) conducting public outreach and awareness 
                activities relating to elder abuse; and
                  (D) ensuring the collection of data required 
                to be collected under section 202.
          (2) Investigative support.--The Attorney General, in 
        consultation with the Director of the Federal Bureau of 
        Investigation, shall, with respect to crimes relating 
        to elder abuse, ensure the implementation of a regular 
        and comprehensive training program to train agents of 
        the Federal Bureau of Investigation in the 
        investigation and prosecution of such crimes and the 
        enforcement of laws related to elder abuse, which shall 
        include--
                  (A) specialized strategies for communicating 
                with and assisting elder abuse victims; and
                  (B) relevant forensic training relating to 
                elder abuse.
          (3) Resource group.--The Attorney General, through 
        the Executive Office for United States Attorneys, shall 
        ensure the operation of a resource group to facilitate 
        the sharing of knowledge, experience, sample pleadings 
        and other case documents, training materials, and any 
        other resources to assist prosecutors throughout the 
        United States in pursuing cases relating to elder 
        abuse.
          (4) Designated elder justice working group or 
        subcommittee to the attorney general's advisory 
        committee of united states attorneys.--Not later than 
        60 days after the date of enactment of this Act, the 
        Attorney General, in consultation with the Director of 
        the Executive Office for United States Attorneys, shall 
        establish a subcommittee or working group to the 
        Attorney General's Advisory Committee of United States 
        Attorneys, as established under section 0.10 of title 
        28, Code of Federal Regulations, or any successor 
        thereto, for the purposes of advising the Attorney 
        General on policies of the Department of Justice 
        relating to elder abuse.
  (b) Department of Justice Elder Justice Coordinator.--Not 
later than 60 days after the date of enactment of this Act, the 
Attorney General shall designate an Elder Justice Coordinator 
within the Department of Justice who, in addition to any other 
responsibilities, shall be responsible for--
          (1) coordinating and supporting the law enforcement 
        efforts and policy activities for the Department of 
        Justice on elder justice issues;
          (2) evaluating training models to determine best 
        practices and creating or compiling and making publicly 
        available replication guides and training materials for 
        law enforcement officers, prosecutors, judges, 
        emergency responders, individuals working in victim 
        services, adult protective services, social services, 
        and public safety, medical personnel, mental health 
        personnel, financial services personnel, and any other 
        individuals whose work may bring them in contact with 
        elder abuse regarding how to--
                  (A) conduct investigations in elder abuse 
                cases;
                  (B) address evidentiary issues and other 
                legal issues; and
                  (C) appropriately assess, respond to, and 
                interact with victims and witnesses in elder 
                abuse cases, including in administrative, 
                civil, and criminal judicial proceedings; and
          (3) carrying out such other duties as the Attorney 
        General determines necessary in connection with 
        enhancing the understanding, prevention, and detection 
        of, and response to, elder abuse.
  (c) Federal Trade Commission.--
          (1) Federal trade commission elder justice 
        coordinator.--Not later than 60 days after the date of 
        enactment of this Act, the Chairman of the Federal 
        Trade Commission shall designate within the Bureau of 
        Consumer Protection of the Federal Trade Commission an 
        Elder Justice Coordinator who, in addition to any other 
        responsibilities, shall be responsible for--
                  (A) coordinating and supporting the 
                enforcement and consumer education efforts and 
                policy activities of the Federal Trade 
                Commission on elder justice issues; and
                  (B) serving as, or ensuring the availability 
                of, a central point of contact for individuals, 
                units of local government, States, and other 
                Federal agencies on matters relating to the 
                enforcement and consumer education efforts and 
                policy activities of the Federal Trade 
                Commission on elder justice issues.
          (2) Reports to congress.--Not later than 1 year after 
        the date of enactment of this Act, and once every year 
        thereafter, the Chairman of the Federal Trade 
        Commission and the Attorney General shall each submit 
        to the Committee on the Judiciary of the Senate and the 
        Committee on the Judiciary of the House of 
        Representatives a report detailing the enforcement 
        actions taken by the Federal Trade Commission and the 
        Department of Justice, respectively, over the preceding 
        year in each case in which not less than one victim was 
        an elder or that involved a financial scheme or scam 
        that was either targeted directly toward or largely 
        affected elders, including--
                  (A) the name of the district where the case 
                originated;
                  (B) the style of the case, including the case 
                name and number;
                  (C) a description of the scheme or scam; 
                [and]
                  (D) the outcome of the case[.]; and
                  (E) for the Federal Trade Commission, in 
                relevant years, information on--
                          (i) the newly created materials, 
                        guidance, or recommendations of the 
                        Senior Scams Prevention Advisory Group 
                        established under section 2 of the Stop 
                        Senior Scams Act, and any relevant 
                        views or considerations made by members 
                        of the Advisory Group that were not 
                        included in the Advisory Group's model 
                        materials or considered an official 
                        recommendation by the Advisory Group;
                          (ii) the Senior Scams Prevention 
                        Advisory Group's findings about senior 
                        scams and industry educational 
                        materials and programs; and
                          (iii) any recommendations on ways 
                        stakeholders can continue to work 
                        together to reduce scams affecting 
                        seniors.
  (d) Use of Appropriated Funds.--No additional funds are 
authorized to be appropriated to carry out this section.

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