House Passes Bass’ Fraud Prevention Act
By Kim Forrest
WASHINGTON–The American Spirit Fraud Prevention Act, a bill introduced by Rep. Charles Bass (R-NH), has passed the House, 422-1. The legislation, intended to thwart scams and fraudulent activity during national emergencies, would double fines that the Federal Trade Commission (FTC) could impose on scam artists.
This bill, approved Feb. 12, would amend the Federal Trade Commission Act to state that any party found guilty of exploiting consumers during a presidentially declared national emergency could be fined up to $22,000 per violation.
“Federal officials already have some powers to prosecute those engaged in fraud and deceptive practices, but we must make it clear that we will severely punish those who aim to take advantage of Americans during an emergency,” Bass said in a statement.
Tad Furtado, the congressman’s legislative assistant, said that these elevated penalties would be in effect for both simple and more elaborate schemes, which include parties setting up websites and phone banks to con people out of money. Scams that take place during national emergencies, Furtado said, “that are really trying to get people when they have their guard down the most…, the penalties ought to be more severe.”
Furtado said that part of the inspiration for creating such a bill came from a New Hampshire-related incident that occurred a few days after Sept. 11, 2001. A telemarketer purporting to be from the “New Hampshire Firefighters Dependent Association” was calling people and asking for donations. One of those called suspected the charity was dubious and referred his suspicions to the New Hampshire Department of Justice’s division of charitable trusts. It was found that the group, while it did exist, was not based out of New Hampshire and was not a non-profit organization.
Terry Knowles, registrar at the division of charitable trusts, said that Bass’ bill is certainly a good idea for citizens. “We notice when there’s any sort of disaster, not just terrorism, there are people out there raising money for victims,” she said. “But they are not always honest. Anything that prevents [fraudulent activity] would be a good idea.”
Even now, Knowles said, with the Columbia space shuttle disaster still fresh in many minds, scam artists may be attempting to exploit those who are simply trying to help the victims’ families.
She offered some tips for those who receive over-the-phone solicitations for donations that seem suspicious. “First of all, people should never, ever give their credit card numbers or bank information over the phone to anyone,” she said. “Secondly, request something in writing from the caller. All legitimate organizations will explain their program and where the money goes in writing.”
Knowles added that people can always call their state’s attorney general’s office to find out if an organization is authentic.
An earlier version of Bass’ bill, introduced after the Sept. 11 attacks, passed the House in the last Congress but did not see Senate action. The new bill, after passing the House, was referred to the Senate Committee on Commerce, Science and Transportation.
“By enhancing civil penalties against those who would exploit the circumstances of an emergency or disaster, this bill would help ensure that individuals who are interested in selling products or raising money for charities do so in an honest fashion,” Bass said.
Published in The Keene Sentinel, in New Hampshire.
