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Combating Pandemic Scams Act of 2020

Summary

Report 116-591 of the 116th Congress, 2d Session, dated November 16, 2020, in which Mr. Pallone reports for the Committee on Energy and Commerce on H.R. 6435, the Combating Pandemic Scams Act of 2020. The bill would direct the Federal Trade Commission to develop and disseminate information to the public about scams related to COVID-19. A section-by-section passage says the FTC is to do so as expeditiously as possible in consultation with relevant agencies and to establish a comprehensive national database to track all instances of scams relating to COVID-19. The report states the bill makes no changes to existing law and reports favorably without amendment.

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Crpt Crpt 116Hrpt591 Crpt 116Hrpt591
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“Combating Pandemic Scams Act of 2020.” Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/crpt-crpt-116hrpt591-crpt-116hrpt591/, SHA-256 51a8fdcc5ddf06f1e3deec6b38f70ef9075cb8c81a4ad7d4e51a7c09883c4e86.

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                                                                                116TH CONGRESS                                                                                        REPORT
                                                                                               " HOUSE OF REPRESENTATIVES                                                      !
                                                                                   2d Session                                                                                         116–591




                                                                                                 COMBATING PANDEMIC SCAMS ACT OF 2020


                                                                                      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. 6435]

                                                                                  The Committee on Energy and Commerce, to whom was referred
                                                                                the bill (H.R. 6435) to direct the Federal Trade Commission to de-
                                                                                velop and disseminate information to the public about scams re-
                                                                                lated to COVID–19, and for other purposes, having considered the
                                                                                same, reports favorably thereon without amendment and rec-
                                                                                ommends that the bill do pass.
                                                                                                                                      CONTENTS
                                                                                                                                                                                                       Page
                                                                                         I. Purpose and Summary ...............................................................................          1
                                                                                        II. Background and Need for the Legislation ................................................                     2
                                                                                      III. Committee Hearings ...................................................................................        2
                                                                                       IV. Committee Consideration ...........................................................................           3
                                                                                        V. Committee Votes .........................................................................................     3
                                                                                       VI. Oversight Findings ......................................................................................     3
                                                                                      VII. New Budget Authority, Entitlement Authority, and Tax Expenditures                                             4
                                                                                     VIII. Federal Mandates Statement .....................................................................              4
                                                                                       IX. Statement of General Performance Goals and Objectives .......................                                 4
                                                                                        X. Duplication of Federal Programs ...............................................................               4
                                                                                       XI. Committee Cost Estimate ...........................................................................           4
                                                                                      XII. Earmarks, Limited Tax Benefits, and Limited Tariff Benefits ...............                                   4
                                                                                     XIII. Advisory Committee Statement .................................................................                4
                                                                                     XIV. Applicability to Legislative Branch ...........................................................                4
                                                                                      XV. Section-by-Section Analysis of the Legislation .........................................                       5
                                                                                     XVI. Changes in Existing Law Made by the Bill, as Reported ........................                                 5

                                                                                                                         I. PURPOSE AND SUMMARY

                                                                                  H.R. 6435, the ‘‘Combating Pandemic Scams Act of 2020’’, was in-
                                                                                troduced by Representatives Earl L. ‘‘Buddy’’ Carter (R–GA), Rich-
                                                                                ard Hudson (R–NC), Ann M. Kuster (D–NH), and Lisa Blunt Roch-
                                                                                ester (D–DE). H.R. 6435 aims to protect Americans, especially sen-




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                                                                                ior citizens and people with infirmities and disabilities, from decep-
                                                                                        19–006




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                                                                                tive and fraudulent scams while the United States continues to
                                                                                face the current coronavirus disease 2019 (COVID–19) pandemic.
                                                                                Specifically, H.R. 6435 directs the Federal Trade Commission
                                                                                (FTC) to develop and disseminate information to the public about
                                                                                scams related to COVID–19. H.R. 6435 also requires the FTC, in
                                                                                consultation with the Attorney General and Secretary of Health
                                                                                and Human Services, among other relevant agencies, to establish
                                                                                a comprehensive national database to track all instances of scams
                                                                                relating to COVID–19.
                                                                                                   II. BACKGROUND AND NEED FOR LEGISLATION

                                                                                   While the 21st century has provided countless Americans with
                                                                                opportunities for economic and personal growth, technological ad-
                                                                                vances have also expanded the ways for deceptive and malicious ac-
                                                                                tors to target and scam U.S. citizens. Scammers have also been
                                                                                known to exploit consumer fear and confusion during national
                                                                                emergencies or other crises. During the COVID–19 pandemic, mali-
                                                                                cious actors have repeatedly tried to steal stimulus checks,1 trick
                                                                                senior citizens into buying fraudulent COVID–19 treatments and
                                                                                vaccines,2 and dupe small businesses into fraudulent financial ar-
                                                                                rangements during times of social distancing.3
                                                                                   Although the FTC has communicated instances of such scams,
                                                                                the COVID–19 pandemic has intensified the need to improve ef-
                                                                                forts to disseminate information of targeted scams in a timely man-
                                                                                ner. The FTC must proactively and adequately notify Americans,
                                                                                especially vulnerable populations outlined in the legislation, of ma-
                                                                                licious scamming efforts, how to ward against them, and how to re-
                                                                                port them to the appropriate agency.
                                                                                   H.R. 6435 aims to provide Americans with such information on
                                                                                these efforts, including tools to pick up on warning signs, by dis-
                                                                                seminating information and making that information publicly
                                                                                available to all Americans. Through the various hearings and meet-
                                                                                ings with stakeholders on this issue, it is clear that a comprehen-
                                                                                sive database of information created by H.R. 6435 will protect
                                                                                Americans from malicious scammers.
                                                                                                                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.
                                                                                6435:
                                                                                   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 Pro-
                                                                                tections for Americans’’ Privacy and Data Security.’’ The Sub-
                                                                                committee received testimony from the following witnesses:
                                                                                       • The Honorable Joseph J. Simons, Chairman, Federal
                                                                                     Trade Commission
                                                                                       • The Honorable Noah Joshua Phillips, Commissioner, Fed-
                                                                                     eral Trade Commission
                                                                                  1 Federal Trade Commission, Coronavirus Stimulus Payment Scams: What You Need to Know
                                                                                (Apr. 20, 2020) (www.consumer.ftc.gov/blog/2020/04/coronavirus-stimulus-payment-scams-what-
                                                                                you-need-know).




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                                                                                  2 Federal Trade Commission, Cracking Down on Fake COVID–19 Cures (July 31, 2020)
                                                                                (www.consumer.ftc.gov/blog/2020/07/cracking-down-fake-covid-19-cures).
                                                                                  3 Federal Trade Commission, Fraudulent Funders = Big Woes for Small Businesses (June 10,
                                                                                2020) (www.consumer.ftc.gov/blog/2020/06/fraudulent-funders-big-woes-small-businesses).




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                                                                                       • 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
                                                                                   The Subcommittee on Consumer Protection and Commerce held
                                                                                an oversight hearing on July 9, 2020. The hearing was entitled,
                                                                                ‘‘Consumers Beware: Increased Risks During the COVID–19 Pan-
                                                                                demic.’’ 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 En-
                                                                                     gagement Center Global Innovation Policy Center, U.S. Cham-
                                                                                     ber of Commerce
                                                                                                             IV. COMMITTEE CONSIDERATION

                                                                                   Representatives Carter (R–GA), Hudson, Kuster, and Blunt
                                                                                Rochester introduced H.R. 6435 on April 3, 2020, and the bill was
                                                                                referred to the Committee on Energy and Commerce. H.R. 6435
                                                                                was then referred to the Subcommittee on Consumer Protection
                                                                                and Commerce on April 4, 2020. The Subcommittee held oversight
                                                                                hearings related to this bill prior and after the bill was introduced.
                                                                                   On September 9, 2020, H.R. 6435 was discharged from further
                                                                                consideration by the Subcommittee on Consumer Protection and
                                                                                Commerce as it was called up for consideration by the full Com-
                                                                                mittee on Energy and Commerce. The full Committee met in vir-
                                                                                tual open markup session on September 9, 2020, pursuant to no-
                                                                                tice, to consider H.R. 6435 and thirty-seven other bills. No amend-
                                                                                ments were offered during consideration of the bill. Upon conclu-
                                                                                sion of consideration of the bill, the full Committee agreed to a mo-
                                                                                tion on final passage offered by Mr. Pallone, Chairman of the com-
                                                                                mittee, to order H.R. 6435 reported favorably to the House, without
                                                                                amendment, 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. 6435, including
                                                                                the motion for final passage of the bill.
                                                                                                                 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 Committee’s




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                                                                                oversight findings and recommendations are reflected in the de-
                                                                                scriptive portion of the report.




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                                                                                     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.
                                                                                  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 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 protect the public from
                                                                                scams related to COVID–19 by developing and disseminating infor-
                                                                                mation.
                                                                                                      X. DUPLICATION OF FEDERAL PROGRAMS

                                                                                  Pursuant to clause 3(c)(5) of rule XIII, no provision of H.R. 6435
                                                                                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. 6435 contains no earmarks, limited tax benefits, or
                                                                                limited tariff benefits.
                                                                                                       XIII. ADVISORY COMMITTEE STATEMENT

                                                                                  No advisory committees within the meaning of section 5(b) of the
                                                                                Federal Advisory Committee Act were created by this legislation.
                                                                                                   XIV. APPLICABILITY TO LEGISLATIVE BRANCH

                                                                                  The Committee finds that the legislation does not relate to the




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                                                                                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.




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                                                                                          XV. SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

                                                                                Section 1. Short title
                                                                                   Section 1 designates that the short title may be cited as the
                                                                                ‘‘Combating Pandemic Scams Act of 2020’’.
                                                                                Sec. 2. Information about scams related to COVID–19
                                                                                  Subsection (a) requires the FTC, as expeditiously as possible and
                                                                                in consultation with relevant agencies, to develop and disseminate
                                                                                information to the public about scams related to COVID–19. Sub-
                                                                                section (b) requires the FTC, in consultation with relevant agen-
                                                                                cies, to establish a comprehensive national database to track all in-
                                                                                stances of scams relating to COVID–19.
                                                                                     XVI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

                                                                                     There are no changes to existing law made by the bill H.R. 6435.

                                                                                                                                    Æ




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