Senators Urge FTC To Protect Seniors From COVID-19 Scams

By Kelly Zegers
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Law360 (March 27, 2020, 8:32 PM EDT ) A bipartisan group of senators is calling on the Federal Trade Commission to better protect and inform consumers against COVID-19-related scams preying on seniors.

Although the Federal Trade Commission has added information to its website about scams, the group of 34 senators said more needs to be done to educate seniors and other consumers about how to respond if they fall victim to fraud, according to the letter addressed to FTC Chairman Joseph Simons on Thursday.

"At this time of heightened public fears, reports have highlighted that scams pertaining to the coronavirus are increasing, and that seniors — arguably the most vulnerable population to both the coronavirus and bad actors — have been targeted with calls telling them that the COVID-19 vaccination is ready when no such treatment currently exists," the senators wrote.

In other reports, scammers have shown up to elderly citizens' homes and performed fake COVID-19 tests, charging them and obtaining their Social Security numbers, the senators said.

Sen. Amy Klobuchar, D-Minn, and Sen. Jerry Moran, R-Kan., lead the cohort that signed the letter.

The senators asked the agency to address several questions, including what steps it's taking to assist seniors should they become fraud victims, how the FTC is working with other federal agencies to combat the scams and what additional resources are needed to better protect and educate seniors.

Sen. Bob Menendez, D-N.J., whose state is among the most affected by the coronavirus pandemic, said in a statement Friday that the agency has a responsibility to protect seniors from being defrauded –– and that help could start with information that will give them peace of mind.

"Unfortunately, there will always be scammers out there who try to take advantage of troubling times by preying on the most vulnerable among us — in this case our seniors," Menendez said. "Our seniors — especially those with underlying health concerns — have the highest risk of becoming infected with COVID-19. The last thing they need to worry about right now is someone trying to scam them out of money."

The FTC did not immediately respond to a request for comment about the lawmakers' letter.

The agency on Friday announced it sent letters to nine companies, including Voice over Internet Protocol service providers, warning them that "assisting and facilitating" illegal telemarketing or robocalls related to the pandemic is against the law.

The calls tend to exploit consumers' fear of the virus to carry out scams or circulate misinformation, the FTC said. 

In a news release Thursday, Simons said the agency would remain "flexible and reasonable" in enforcing consumer protection issues while stressing that it would not "tolerate companies deceiving consumers, using tactics that violate well-established consumer protections, or taking unfair advantage of these uniquely challenging times."

"The FTC is ready to assist businesses that may seek guidance about compliance obligations on consumer protection issues," Simons said.

Earlier this month, the agency sent warning letters to seven companies about unsupported claims that their goods can treat or prevent COVID-19. This included a notice to Sherrill Sellman, a self-described naturopathic doctor, who peddled silver products falsely said to kill off the coronavirus on televangelist Jim Bakker's shows.

Several state attorneys general have also doled out orders against companies and individuals marketing products as treatments or cures for COVID-19.

Following a directive from U.S. Attorney General William Barr to make COVID-19-related fraud a priority, some U.S. attorney's offices have launched victim hotlines and education campaigns in coordination with state law enforcement.

--Additional reporting by Hailey Konnath and Jody Godoy. Editing by Orlando Lorenzo.

For a reprint of this article, please contact reprints@law360.com.

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