Stopping COVID Scams Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 7750 To prohibit unfair or deceptive acts or practices in connection with the public health emergency resulting from COVID–19, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JULY 23, 2020 Mr. LUJA´N (for himself, Mr. BUTTERFIELD, Mr. KENNEDY, Mr. LOEBSACK, Mr. MCNERNEY, Mr. CA´RDENAS, Mr. GRIJALVA, Mr. CASE, Mr. PAS- CRELL, Ms. NORTON, Mr. WELCH, Mr. O’HALLERAN, and Mr. VEASEY) introduced the following bill; which was referred to the Committee on En- ergy and Commerce A BILL To prohibit unfair or deceptive acts or practices in connection with the public health emergency resulting from COVID– 19, 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 ‘‘Stopping COVID 4 Scams Act of 2020’’. 5 SEC. 2. ENFORCEMENT AGAINST SCAMS RELATED TO 6 COVID–19. 7 (a) AUTHORITY OF THE FTC.— 8 VerDate Sep 11 2014 19:36 Aug 14, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7750.IH H7750 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 7750 IH (1) AUTHORITY.—Notwithstanding any other 1 provision of law, any conduct described in paragraph 2 (2) that the Commission finds to be an unfair or de- 3 ceptive act or practice, shall be treated as a violation 4 of a regulation under section 18(a)(1)(B) of the 5 Federal Trade Commission Act (15 U.S.C. 6 57a(a)(1)(B)) regarding unfair or deceptive acts or 7 practices. 8 (2) CONDUCT DESCRIBED.—The conduct de- 9 scribed in this paragraph is any conduct, act, or 10 practice that occurs during the public health emer- 11 gency declared on January 31, 2020, pursuant to 12 section 319 of the Public Health Service Act (42 13 U.S.C. 247d) as a result of confirmed cases of 14 COVID–19, or any renewal thereof. 15 (b) CONSIDERATIONS.—In determining whether un- 16 fair or deceptive acts or practices are associated with the 17 public health emergency in subsection (a), the Commission 18 shall consider— 19 (1) whether the acts or practices involve goods 20 or services explicitly advertised as related to the 21 public health emergency; 22 (2) whether the acts or practices involve goods 23 or services for which consumer demand significantly 24 increased in the time period beginning 30 days be- 25 VerDate Sep 11 2014 19:36 Aug 14, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7750.IH H7750 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 7750 IH fore the declaration of the public health emergency 1 until the public health emergency ends; or 2 (3) whether the acts or practices relate to Fed- 3 eral or State Government responses to the COVID– 4 19 pandemic, including public health response, such 5 as testing and treatment of the disease, and eco- 6 nomic response, such as unemployment insurance or 7 stimulus checks. 8 (c) ENFORCEMENT.— 9 (1) ENFORCEMENT BY FEDERAL TRADE COM- 10 MISSION.— 11 (A) POWERS OF COMMISSION.—The Com- 12 mission shall enforce a violation described in 13 subsection (a) in the same manner, by the same 14 means, and with the same jurisdiction, powers, 15 and duties as though all applicable terms and 16 provisions of the Federal Trade Commission 17 Act (15 U.S.C. 41 et seq.) were incorporated 18 into and made a part of this Act. Any person 19 who violates such subsection shall be subject to 20 the penalties and entitled to the privileges and 21 immunities provided in the Federal Trade Com- 22 mission Act. 23 (B) EFFECT ON OTHER LAWS.—Nothing 24 in this Act shall be construed in any way to 25 VerDate Sep 11 2014 02:27 Aug 15, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7750.IH H7750 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 7750 IH limit the authority of the Commission under 1 any other provision of law. 2 (2) ENFORCEMENT BY STATE ATTORNEYS GEN- 3 ERAL.— 4 (A) IN GENERAL.—If the chief law en- 5 forcement officer of a State, or an official or 6 agency designated by a State, has reason to be- 7 lieve that any person has violated or is violating 8 subsection (a), the attorney general, official, or 9 agency of the State, in addition to any author- 10 ity it may have to bring an action in State 11 court under its consumer protection law, may 12 bring a civil action in any appropriate United 13 States district court or in any other court of 14 competent jurisdiction, including a State court, 15 to— 16 (i) enjoin further such violation by 17 such person; 18 (ii) enforce compliance with such sub- 19 section; 20 (iii) obtain civil penalties; and 21 (iv) obtain damages, restitution, or 22 other compensation on behalf of residents 23 of the State. 24 VerDate Sep 11 2014 19:36 Aug 14, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7750.IH H7750 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 7750 IH (B) NOTICE AND INTERVENTION BY THE 1 FTC.—The attorney general of a State shall 2 provide prior written notice of any action under 3 subparagraph (A) to the Commission and pro- 4 vide the Commission with a copy of the com- 5 plaint in the action, except in any case in which 6 such prior notice is not feasible, in which case 7 the attorney general shall serve such notice im- 8 mediately upon instituting such action. The 9 Commission shall have the right— 10 (i) to intervene in the action; 11 (ii) upon so intervening, to be heard 12 on all matters arising therein; and 13 (iii) to file petitions for appeal. 14 (C) LIMITATION ON STATE ACTION WHILE 15 FEDERAL ACTION IS PENDING.—If the Commis- 16 sion has instituted a civil action for violation of 17 this Act, no State attorney general, or official 18 or agency of a State, may bring an action under 19 this paragraph during the pendency of that ac- 20 tion against any defendant named in the com- 21 plaint of the Commission for any violation of 22 this Act alleged in the complaint. 23 (D) RELATIONSHIP WITH STATE-LAW 24 CLAIMS.—If the attorney general of a State has 25 VerDate Sep 11 2014 19:36 Aug 14, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7750.IH H7750 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 7750 IH authority to bring an action under State law di- 1 rected at acts or practices that also violate this 2 Act, the attorney general may assert the State- 3 law claim and a claim under this Act in the 4 same civil action. 5 (3) SAVINGS CLAUSE.—Nothing in this Act 6 shall preempt or otherwise affect any State or local 7 law. 8 (d) DEFINITIONS.—In this section— 9 (1) the term ‘‘Commission’’ means the Federal 10 Trade Commission; and 11 (2) the term ‘‘State’’ means each of the several 12 States, the District of Columbia, each common- 13 wealth, territory, or possession of the United States, 14 and each federally recognized Indian Tribe. 15 Æ VerDate Sep 11 2014 19:36 Aug 14, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H7750.IH H7750 pamtmann on DSKBC07HB2PROD with BILLS