Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Threat of elder financial exploitation considered by Senate Judiciary Committee, (Jun 29, 2016)

By Jeffrey May, J.D.

Expressing concern that Congress is "not getting the full picture of elder financial exploitation and the adequacy of the federal government’s response," Senate Judiciary Committee Chuck Grassley (R.-Iowa) kicked off a hearing today on the financial exploitation of seniors. "We need to make sure that government at all levels is working to spread the word on financial exploitation, that individuals on the front lines receive proper training, and that those in the position to combat these crimes have the necessary tools and authority to do so," Grassley said in his opening statement.

Representatives from the Department of Justice and the FTC were on hand to discuss the federal government’s approach to targeting fraud on seniors. U.S. Attorney John H. Horn told Senate lawmakers that the Department of Justice was "fully committed to combatting the victimization of seniors in all its forms." Horn said that his new role as the first chair of the attorney general’s advisory committee elder justice working group was evidence of that resolve. The Justice Department's work with law enforcement agencies around the world to target scams aimed at American seniors was highlighted in the testimony.

FTC testimony. Lois C. Greisman, Associate Director at the FTC Bureau of Consumer Protection Division of Marketing Practices, provided insights on the FTC's efforts to address financial exploitation of older Americans, specifically in the context of mass marketing fraud. Greisman noted that the two core elements of FTC's consumer protection mission are law enforcement and consumer education and that the agency was using both tools to address the problem.

"Since 2005, the Commission has brought 38 cases alleging that defendants’ conduct has specifically targeted or disproportionately harmed older adults," according to the prepared FTC testimony. Noting that scam artists rely on impersonation techniques to get money from consumers, the testimony pointed out that these imposter scams were one of the FTC’s top complaint categories in 2015.

The testimony also described technical support scams as "a particularly pernicious online threat." Based on complaint data collected in the Consumer Sentinel database, in 2015, and continuing through May 2016, consumers age 60 and older primarily complained about imposter scams, as well as telemarketing practices and tech support scams.

Greisman also noted the FTC's plans to host a workshop in December on consumer demographics. It is intended to examine how demographics in the United States are changing, and how these changes will affect the FTC’s consumer protection work.

In addition, the testimony described the agency’s education and outreach programs that reach tens of millions of people each year through its website, news media, and partner organizations that provide consumer information on the FTC’s behalf. The FTC has developed an outreach program specifically for active older adults, called Pass It On where consumers can find videos, articles, and blogs about scams and how to avoid becoming a victim, according to the testimony.

Proposed federal legislation. Senator Patrick Leahy (D.-Vt.), Ranking Member of the Senate Judiciary Committee, noted in a prepared statement his efforts to address senior financial fraud, including his co-sponsorship of the Robert Matava Elder Abuse Victims Act. The bill would expand the prohibition on telemarketing fraud to include fraud conducted over email. It calls for enhanced penalties for fraud committed against persons older than 55 and would provide federal assistance to support states’ efforts to detect and prevent instances of elder abuse. In addition, federal, state, and local law enforcement would collect data to create a better understanding of the problem.

"This bipartisan bill is a commonsense measure to protect seniors from exploitation," said Leahy. "I hope we can follow this hearing with meaningful action by marking up this bill in the Senate Judiciary Committee."

Grassley also pointed to his efforts to develop federal legislation to combat elder abuse and financial exploitation. He explained that he is working with Senator Bill Blumenthal (D.-Conn.) on a bill, which they hope to unveil soon.

At the hearing, Senator Al Franken (D.-Minn.) encouraged his fellow lawmakers to support the proposed "Senior$afe Act of 2015" (S. 2216). The measure is intended to encourage banks, credit unions, investment advisors and broker-dealers to report fraud perpetuated on seniors by providing those institutions and their employees with protection from lawsuits so long as employees receive training in how to spot and report suspected financial exploitation.

News: ConsumerProtection FederalTradeCommissionNews