[House Report 116-591]
[From the U.S. Government Publishing Office]
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
develop and disseminate information to the public about scams
related to COVID-19, and for other purposes, having considered
the same, reports favorably thereon without amendment and
recommends 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 Expenditure4
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 introduced by Representatives Earl L. ``Buddy'' Carter (R-
GA), Richard Hudson (R-NC), Ann M. Kuster (D-NH), and Lisa
Blunt Rochester (D-DE). H.R. 6435 aims to protect Americans,
especially senior citizens and people with infirmities and
disabilities, from deceptive 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 advances have also expanded the ways for
deceptive and malicious actors 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, malicious 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 arrangements during
times of social distancing.\3\
---------------------------------------------------------------------------
\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).
\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).
---------------------------------------------------------------------------
Although the FTC has communicated instances of such scams,
the COVID-19 pandemic has intensified the need to improve
efforts to disseminate information of targeted scams in a
timely manner. The FTC must proactively and adequately notify
Americans, especially vulnerable populations outlined in the
legislation, of malicious scamming efforts, how to ward against
them, and how to report 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 disseminating information and making that information
publicly available to all Americans. Through the various
hearings and meetings with stakeholders on this issue, it is
clear that a comprehensive 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 Congress, 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
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
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
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
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
Committee on Energy and Commerce. The full Committee met in
virtual open markup session on September 9, 2020, pursuant to
notice, to consider H.R. 6435 and thirty-seven other bills. No
amendments were offered during consideration of the bill. Upon
conclusion of consideration of the bill, the full Committee
agreed to a motion on final passage offered by Mr. Pallone,
Chairman of the committee, 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
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.
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 oversight findings and recommendations 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 protect
the public from scams related to COVID-19 by developing and
disseminating information.
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 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. 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 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
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. Subsection (b) requires the FTC, in consultation
with relevant agencies, to establish a comprehensive national
database to track all instances 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.