FTC proposes rule to combat impersonation scams

The Federal Trade Commission on Thursday announced a proposed rule to fight government and business impersonation scams—scams that have cost consumers hundreds of millions of dollars over the past five years. The proposed rule would codify the well-understood principle that impersonation scams violate the FTC Act, as do those who provide impersonators with the means to harm consumers. The proposed rule would allow the Commission to recover money from, or seek civil penalties against, scammers who harm consumers in violation of the rule.

In the Notice of Proposed Rulemaking announced yesterday, the Commission is seeking comment on proposed measures that would fight government and business impersonation scams by declaring various tactics used by scammers unlawful. These include posing as a government or business by name or by implication. For example, the proposed rule would ban scammers from:

• Using government seals or business logos when communicating with consumers by mail or online.
• Spoofing government and business emails and web addresses, including spoofing “.gov” email addresses or using lookalike email addresses or websites that rely on misspellings of a company’s name.
• Falsely implying government or business affiliation by using terms that are known to be affiliated with a government agency or business (e.g., stating “I’m calling from the Clerk’s Office” to falsely imply affiliation with a court of law)

The proposed rule would also apply to those who provide “means or instrumentalities” for those committing a government or business impersonation scam, such as a supplier who manufactures a fake government credential used by scammers. In addition, the rule would include non-profit organizations in its definition of businesses, so that it would apply to scammers that impersonate charities.

Comments on the proposal will be accepted for 60 days following publication of the rule in the Federal Register.