Walden, McMorris Rodgers urge tougher FTC enforcement against CARES Act scams

U.S. Reps. Greg Walden (R-OR) and Cathy McMorris Rodgers (R-WA) joined their bipartisan colleagues on the U.S. House Energy and Commerce Committee to request that the Federal Trade Commission (FTC) bolster its enforcement of scams spurred by recovery funds Americans will receive as relief from the economic impacts of the COVID-19 pandemic.

“As the United States faces the novel coronavirus (COVID-19) pandemic, reports of scams and frauds are rampant,” the lawmakers wrote in an April 3 letter sent to FTC Chairman Joseph Simons. “Hoax text message campaigns and scam robocalls are offering free home testing kits, promoting bogus cures, and selling health insurance. Price gouging is happening all over the country, and some scammers are selling in-demand products that they do not have to sell.”

The lawmakers seek increased FTC enforcement actions against such scams as the recently signed Coronavirus Aid, Relief, and Economic Security (CARES) Act is implemented.

“As you know, recovery packages spur fraud and scams targeting consumers. The CARES Act is no different,” according to their letter. “Even before checks have been issued to eligible Americans, reports of attempts to steal that money are piling up. Government imposters are calling Americans supposedly to verify the personal information necessary to qualify for COVID-19 funds. Other scammers suggest people can get more money or get it faster by sharing their personal information and paying a processing fee.”

Joining Rep. Walden, ranking member of the House Energy and Commerce (E&C) Committee, and Rep. McMorris Rodgers, Republican leader of the Consumer Protection and Commerce Subcommittee, in signing the letter were E&C Committee Chairman Frank Pallone, Jr. (D-NJ) and U.S. Rep. Jan Schakowsky (D-IL), chair of the Consumer Protection and Commerce Subcommittee.

“Right now, Americans are fearful of both the spread of the deadly virus and the financial instability that has come with the pandemic. We passed the CARES Act to help Americans in these hard times,” the four committee members wrote. “We urge you to ensure that the FTC uses all its tools, including its law enforcement tools and coordination with state attorneys general, to take action against scammers and fraudsters that are trying to steal from vulnerable Americans.”

The lawmakers also requested biweekly briefings from the FTC for the next six months on the enforcement actions it takes against coronavirus-related scams.