Fraud and Scam Reduction Act
Summary
House Report 116–590 is the report of the Committee on Energy and Commerce, submitted by Mr. Pallone and ordered to be printed November 16, 2020, on H.R. 2610, the Fraud and Scam Reduction Act. The Committee reports favorably with amendments the bill to establish a Senior Scams Prevention Advisory Council to collect and disseminate model educational materials useful in identifying and preventing scams that affect seniors, and recommends that the bill as amended do pass. The contents list the purpose and summary at page 6, hearings, votes, a section-by-section analysis and changes in existing law. The amendment text begins with Title I on preventing consumer scams directed at seniors.
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“Fraud and Scam Reduction Act.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/crpt-crpt-116hrpt590-crpt-116hrpt590/
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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 Advi-
sory Council to collect and disseminate model educational materials
useful in identifying and preventing scams that affect seniors, hav-
ing considered the same, reports favorably thereon with amend-
ments 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:
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Sec. 1. Short title; table of contents.
Sec. 2. Commission defined.
19–006
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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 associa-
tions, 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 cur-
rency.
(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 Finan-
cial 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, con-
sumer 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
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(ii) include—
(I) useful information for retailers, financial services, and wire
transfer companies for the purpose described in clause (i);
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3
(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 edu-
cational materials and programs for the categories listed in subpara-
graph (A) and their execution in reaching employees to protect older
adults; and
(ii) create model materials, best practices guidance, or recommenda-
tions 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 Com-
mission 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 rec-
ommendation 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 ad-
vising 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, tele-
vision, internet, telemarketing, and recorded message telephone call (herein-
after 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
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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—
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(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 informa-
tion on reporting complaints of fraud targeting seniors either to the na-
tional toll-free telephone number established by the Commission for report-
ing 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 In-
vestigation and the attorneys general of the States;
(C) in response to a specific request about a particular entity or indi-
vidual, 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 con-
sultation with the Attorney General, establish procedures to—
(A) log and acknowledge the receipt of complaints by individuals who be-
lieve 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 en-
forcement authorities; and
(B) provide to individuals described in subparagraph (A), and to any other
persons, specific and general information on mail, television, internet, tele-
marketing, and robocall fraud, including descriptions of the most common
schemes using such methods of communication.
(b) COMMENCEMENT.—The Commission shall commence carrying out the require-
ments 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 Commis-
sion 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 con-
tacts for relevant law enforcement and adult protective service agencies.
(b) COORDINATION WITH MEDIA OUTLETS AND LAW ENFORCEMENT.—The Commis-
sion shall work with media outlets and law enforcement to distribute the informa-
tion included in the web portal of the Commission pursuant to subsection (a) to sen-
ior citizens and their families and caregivers.
TITLE IV—PREVENTING SCAMS TARGETING
INDIAN TRIBES
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SEC. 401. SHORT TITLE.
This title may be cited as the ‘‘Protecting Indian Tribes from Scams Act’’.
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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 TAR-
GETING 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 identi-
fying 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 pro-
mote 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 Com-
mission 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 Com-
mittee on Energy and Commerce of the House of Representatives and the Com-
mittee 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.
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(2) Recommended best practices to enhance collaboration efforts between the
Commission and State Attorneys General with respect to preventing, publi-
cizing, and penalizing fraud and scams.
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(3) Quantifiable metrics by which enhanced collaboration can be measured.
(4) Legislative recommendations, if any, to enhance collaboration efforts be-
tween 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 Con-
gress 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 dis-
seminate model educational materials for retailers, financial insti-
tutions, 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. Luján
(D–NM) and Gianforte (R–MT)); and H.R. 8152, the ‘‘FTC Collabo-
ration 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 sen-
iors 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 emer-
gencies. 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, in-
cluding imposter scams and telephone and mobile service scams.1
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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).
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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.
The FTC has made addressing fraud targeting specific popu-
lations a consumer protection priority.3 Consumer fraud affects vic-
tims 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
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 un-
employment benefits intended to provide critical relief to Ameri-
cans suffering from the economic repercussions of the coronavirus
disease 2019 (COVID–19) pandemic.7 These scams exploit Ameri-
cans 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
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 docu-
mented, 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 to-
gether 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 en-
hance 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 Con-
gress, the following hearings were used to develop or consider H.R.
2610:
2 Id.
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).
7 Scammers are Using Fake Coronavirus Stimulus Payment Sites to Steal Your Money, CNBC
(Apr. 23, 2020).
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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).
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In the 114th Congress, the Subcommittee on Commerce, Manu-
facturing, and Trade held an informational hearing on October 23,
2015. The hearing was entitled, ‘‘Fighting Fraud Against the Elder-
ly, an Update.’’ The Subcommittee received testimony from the fol-
lowing witnesses:
• Daniel Kaufman, Deputy Director, Bureau of Consumer
Protection, Federal Trade Commission
• Stacy Canan, Deputy Director, Office of Financial Protec-
tion for Older Americans, Consumer Financial Protection Bu-
reau
• 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 fol-
lowing witnesses:
• The Honorable Joseph J. Simons, Chairman, Federal
Trade Commission
• The Honorable Noah Joshua Phillips, Commissioner, Fed-
eral Trade Commission
• The Honorable Rohit Chopra, Commissioner, Federal
Trade Commission
• The Honorable Rebecca Kelly Slaughter, Commissioner,
Federal Trade Commission
• The Honorable Maureen Ohlhausen, Commissioner, Fed-
eral Trade Commission
In the 116th Congress, the Subcommittee on Consumer Protec-
tion 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 Secu-
rity.’’ The Subcommittee received testimony from the following wit-
nesses:
• The Honorable Joseph J. Simons, Chairman, Federal
Trade Commission
• The Honorable Noah Joshua Phillips, Commissioner, Fed-
eral 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 Protec-
tion 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 tes-
timony from the following witnesses:
• Kevin Anderson, Senior Deputy Attorney General, Direc-
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tor, Consumer Protection Division North Carolina Department
of Justice
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9
• Sally Greenberg, Executive Director, National Consumers
League
• Thomas Quaadman, Executive Vice President, Center for
Capital Markets Competitiveness, Chamber Technology En-
gagement Center, Global Innovation Policy Center, U.S. Cham-
ber 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 Sub-
committee 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 na-
ture of a substitute (AINS) offered by Ms. Blunt Rochester, on be-
half of herself and Messrs. Walberg, Hudson, and Luján, 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 re-
ported 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 Representa-
tives requires the Committee to list each record vote on the motion
to report legislation and amendments thereto. The Committee ad-
vises 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 find-
ings 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 Rep-
resentatives, the Committee adopts as its own the estimate of new
budget authority, entitlement authority, or tax expenditures or rev-
enues 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.
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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
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authority, or an increase or decrease in revenues or tax expendi-
tures.
VIII. FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal man-
dates 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 facili-
tate 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 Congres-
sional 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 Con-
gressional 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
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‘‘Fraud and Scam Reduction Act’’. Section 1(b) provides the table of
contents.
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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 Advi-
sory 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 com-
pensation. Subsection (d) require the Advisory Group to collect edu-
cational materials and programs that educate employees on identi-
fying 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 mate-
rials 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 recommenda-
tions 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 ‘‘Sen-
iors 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 com-
mon 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
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the FTC, in response to a specific request, to provide publicly avail-
able information about any enforcement actions it has taken
against any particular individual or entity. The advisory office
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12
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 com-
plaints 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 im-
mediately 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 re-
quirements.
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 ‘‘Pro-
tecting 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 descrip-
tion 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. Luján and Gianforte.]
Sec. 401. Short title
Section 401 designates that this title may be cited as the ‘‘Pro-
tecting Indian Tribes from Scams Act’’.
Sec. 402. FTC report on unfair or deceptive acts or practices tar-
geting 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
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consumer education activities with respect to such acts or practices;
(3) the efforts of the FTC to collaborate with Indian Tribes to pre-
vent such acts or practices; (4) a summary of related enforcement
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13
actions taken by the FTC; and (5) any recommendations for legisla-
tion 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 de-
ceptive 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 pre-
vent, 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 con-
sumer protection; and (D) the accountability mechanisms that
should be implemented to promote collaboration and consumer pro-
tection. This subsection further directs the FTC to consult with cer-
tain stakeholders and to provide an opportunity for public com-
ment.
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 col-
laboration efforts; (3) quantifiable metrics by which enhanced col-
laboration 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 omit-
ted 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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* * * * * * *
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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 col-
lected under section 202.
(2) INVESTIGATIVE SUPPORT.—The Attorney General, in con-
sultation with the Director of the Federal Bureau of Investiga-
tion, shall, with respect to crimes relating to elder abuse, en-
sure the implementation of a regular and comprehensive train-
ing program to train agents of the Federal Bureau of Investiga-
tion in the investigation and prosecution of such crimes and
the enforcement of laws related to elder abuse, which shall in-
clude—
(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 knowl-
edge, experience, sample pleadings and other case documents,
training materials, and any other resources to assist prosecu-
tors throughout the United States in pursuing cases relating to
elder abuse.
(4) DESIGNATED ELDER JUSTICE WORKING GROUP OR SUB-
COMMITTEE 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 con-
sultation 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 At-
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torney General shall designate an Elder Justice Coordinator within
the Department of Justice who, in addition to any other respon-
sibilities, shall be responsible for—
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(1) coordinating and supporting the law enforcement efforts
and policy activities for the Department of Justice on elder jus-
tice issues;
(2) evaluating training models to determine best practices
and creating or compiling and making publicly available rep-
lication guides and training materials for law enforcement offi-
cers, 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 individ-
uals 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 under-
standing, prevention, and detection of, and response to, elder
abuse.
(c) FEDERAL TRADE COMMISSION.—
(1) FEDERAL TRADE COMMISSION ELDER JUSTICE COORDI-
NATOR.—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 Fed-
eral 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 Attor-
ney General shall each submit to the Committee on the Judici-
ary 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 De-
partment 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 tar-
geted directly toward or largely affected elders, including—
(A) the name of the district where the case originated;
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(B) the style of the case, including the case name and
number;
(C) a description of the scheme or scam; øand¿
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(D) the outcome of the caseø.¿; and
(E) for the Federal Trade Commission, in relevant years,
information on—
(i) the newly created materials, guidance, or rec-
ommendations of the Senior Scams Prevention Advi-
sory Group established under section 2 of the Stop Sen-
ior Scams Act, and any relevant views or consider-
ations made by members of the Advisory Group that
were not included in the Advisory Group’s model mate-
rials 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 sen-
iors.
(d) USE OF APPROPRIATED FUNDS.—No additional funds are au-
thorized to be appropriated to carry out this section.
* * * * * * *
Æ
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