CEASE Act

II 116TH CONGRESS 2D SESSION S. 3862 To increase the penalties applicable under the Federal Trade Commission Act during the COVID–19 emergency, and for other purposes. IN THE SENATE OF THE UNITED STATES JUNE 2, 2020 Mr. GARDNER (for himself, Ms. SINEMA, and Mrs. CAPITO) introduced the fol- lowing bill; which was read twice and referred to the Committee on Com- merce, Science, and Transportation A BILL To increase the penalties applicable under the Federal Trade Commission Act during the COVID–19 emergency, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Combating Egregious 4 Advertising through Sentencing Enhancement Act’’ or the 5 ‘‘CEASE Act’’. 6 SEC. 2. DEFINITIONS. 7 In this Act: 8 VerDate Sep 11 2014 17:41 Jun 20, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3862.IS S3862 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 3862 IS (1) COMMISSION.—The term ‘‘Commission’’ 1 means the Federal Trade Commission. 2 (2) COVID–19 EMERGENCY PERIOD.—The 3 term ‘‘COVID–19 emergency period’’ means the pe- 4 riod that— 5 (A) begins on the date of enactment of this 6 Act; and 7 (B) ends on the last day of the public 8 health emergency described in section 9 1135(g)(1)(B) of the Social Security Act (42 10 U.S.C. 1320b–5(g)(1)(B)). 11 SEC. 3. INCREASING THE PENALTY FOR FALSE ADVER- 12 TISING DURING THE COVID–19 EMERGENCY 13 PERIOD. 14 Notwithstanding section 14(a) of the Federal Trade 15 Commission Act (15 U.S.C. 54(a)), any person, partner- 16 ship, or corporation who violates any provision of section 17 12(a) of such Act (15 U.S.C. 52(a)) during the COVID– 18 19 emergency period shall— 19 (1) for a first offense, be guilty of a mis- 20 demeanor and upon conviction shall be punished by 21 a fine of not more than $50,000 or by imprisonment 22 for not more than 1 year, or both such fine and im- 23 prisonment; and 24 VerDate Sep 11 2014 17:41 Jun 20, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3862.IS S3862 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 3862 IS (2) for a second or subsequent offense, be guilty 1 of a felony and upon conviction shall be punished by 2 a fine of not more than $250,000 or by imprison- 3 ment for not less than 1 year and not more than 5 4 years, or both such fine and imprisonment. 5 SEC. 4. INCREASING THE PENALTY FOR UNFAIR METHODS 6 OF COMPETITION AND UNFAIR OR DECEP- 7 TIVE ACTS OR PRACTICES DURING THE 8 COVID–19 EMERGENCY PERIOD. 9 Notwithstanding subsections (l), (m)(1)(A), and 10 (m)(1)(B) of section 5 of the Federal Trade Commission 11 Act (42 U.S.C. 45), any penalties that are applicable 12 under such subsections with respect to conduct occurring 13 during the COVID–19 emergency period shall be in- 14 creased— 15 (1) for a first offense, to $50,000; and 16 (2) for a second or subsequent offense, to 17 $250,000. 18 SEC. 5. PROHIBITING UNFAIR OR DECEPTIVE ACTS OR 19 PRACTICES RELATING TO COVID–19 DURING 20 THE COVID–19 EMERGENCY PERIOD. 21 (a) IN GENERAL.—During the COVID–19 emergency 22 period, it shall be unlawful for any person, partnership, 23 or corporation to engage in an unfair or deceptive act or 24 practice in or affecting commerce that— 25 VerDate Sep 11 2014 17:41 Jun 20, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3862.IS S3862 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 3862 IS (1) violates section 5(a) of the Federal Trade 1 Commission Act (15 U.S.C. 45(a)); and 2 (2) relates to the COVID–19 pandemic. 3 (b) ENFORCEMENT.— 4 (1) UNFAIR OR DECEPTIVE ACTS OR PRAC- 5 TICES.—A violation of this section shall be treated 6 as a violation of a rule defining an unfair or decep- 7 tive act or practice prescribed under section 8 18(a)(1)(B) of the Federal Trade Commission Act 9 (15 U.S.C. 57a(a)(1)(B)). 10 (2) POWERS OF THE COMMISSION.— 11 (A) IN GENERAL.—The Commission shall 12 enforce this section in the same manner, by the 13 same means, and with the same jurisdiction, 14 powers, and duties as though all applicable 15 terms and provisions of the Federal Trade 16 Commission Act (15 U.S.C. 41 et seq.) were in- 17 corporated into and made a part of this section. 18 (B) PRIVILEGES AND IMMUNITIES.—Any 19 person who violates this section shall be subject 20 to the penalties and entitled to the privileges 21 and immunities provided in the Federal Trade 22 Commission Act. 23 (C) EFFECT ON OTHER LAWS.—Nothing in 24 this Act shall be construed to limit the author- 25 VerDate Sep 11 2014 17:41 Jun 20, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3862.IS S3862 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 3862 IS ity of the Commission under any other provi- 1 sion of law. 2 SEC. 6. RULE OF CONSTRUCTION. 3 Nothing in this Act shall be construed to limit or en- 4 hance the authority of the Commission (other than with 5 respect to the penalties that the Commission may seek 6 under the Federal Trade Commission Act (15 U.S.C. 41 7 et seq.) for conduct occurring during the COVID–19 8 emergency period) under any other provision of law. 9 Æ VerDate Sep 11 2014 17:41 Jun 20, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S3862.IS S3862 pamtmann on DSKBC07HB2PROD with BILLS