Rep. Robert Weygand (D-RI) has introduced a bill to make telemarketing fraud over the Internet a federal crime. The measure (HR-612) would also establish the nation’s first continuing education program about both conventional telemarketing and telemarketing over the Internet for senior citizens.
There was no immediate comment on the proposed legislation from the Direct Marketing Association, which was still reviewing the bill. The DMA has in the past endorsed measures to combat telemarketing and Internet fraud.
The Protection Against Scams on Seniors Act (PASS) “would make it a federal crime [for anyone] to solicit money for fraudulent purposes over the Internet” and initially appropriate $10 million to the Department of Health and Human Services (HHS) to finance the education program.
Anyone convicted of telemarketing fraud involving senior citizens would face up to five years in jail and a $1,000 fine on each count, and if the fraud involved a financial institution the violator could face up to 30 years in jail and a $1 million fine. Violators also face possible civil lawsuits.
According to Weygand’s materials, the HHS’ Administration on Aging would use public service announcements, printed materials, an Internet Web site, and other outreach programs to explain to senior citizens how they may best protect themselves from such scams.
The measure also permits the HHS to accept and use any gifts to help finance the educational program. HHS officials would not comment on the bill.
Telemarketing fraud costs the American public nearly $40 billion a year. Con artists often target senior citizens.