THE WHITE HOUSE

Office of the Press Secretary

                 PRESIDENT CLINTON ANNOUNCES NATIONWIDE
               INITIATIVE TO PREVENT TELEMARKETING FRAUD

Today the President will announce a new public-private partnership, called the "kNOw Fraud" initiative, to arm consumers with information so they can protect themselves from telemarketing fraud. It is estimated that illegal telemarketing operations bilk the American people of $40 billion every year. This initiative has three main parts. First, the President will announce that the U.S. Postal Service (USPS) will mail to every home in America -- approximately 120 million addresses -- an easy-to-read information card that lists key fraud prevention tips for consumers. The President also will launch a new toll-free number that consumers can call for assistance when they believe they have been the victims of telemarketing or mail fraud. The toll-free number will be staffed by representatives of the Federal Trade Commission (FTC) and by the U.S. Postal Inspection Service. Approximately 1.5 million calls are expected. The President will unveil a series of public service television ads that tell consumers about the upcoming mailing. Along with USPS, the other participants in the public-private initiative are the AARP, the Council of Better Business Bureaus (BBB), the Department of Justice (DOJ), the FTC, the National Association of Attorneys General (NAAG), and the Securities and Exchange Commission (SEC). Finally, the President will direct Justice to send him a plan to crack down on consumer fraud by strengthening enforcement, prevention, and coordination.

"kNOw Fraud"
The President will announce an unprecedented nationwide multi-media initiative to combat telemarketing and mail fraud which includes a mailing to every home in America, a new tollfree number, 16,000 fraud prevention videos, and website:

• Checklist of Key Fraud Prevention Tips. The President will announce that an oversized postcard will be mailed to every home in America during the week of November 15 listing key fraud prevention tips. The information will help consumers differentiate between legitimate telemarketers and scam artists.
• Toll-free Number to Assist Victims of Fraud. A recent Postal Inspection Service survey shows that 25 percent of respondents would not know where to go if they had been the victim of fraud. In order to address this problem, the President will announce that a new toll-free number, provided with the assistance of AT&T, will be available beginning the week of November 15 to assist people who believe that they have been the victims of fraud. Callers will reach either the FTC's Consumer Response Center or a Postal Inspection Service Operations Support Office. All callers will hear a greeting from actor Andy Griffith and an automated fraud prevention message. Approximately 1.5 million callers are expected to call this new number.
• Public Service Announcements (PSAs). The President will announce PSAs that will begin airing to alert consumers about the upcoming "kNOw Fraud" mailing.
• Fraud Prevention Website. The President also will announce that a new "kNOw fraud" webpage is available to consumers at www.consumer.gov. This webpage provides fraud prevention tips such as warning consumers if an unknown caller says there is a prize but money must be sent in order to receive it; requests the wiring of money; or identifies himself as a law enforcement official who will help for a fee. This website also will allow consumers to file a complaint online with the FTC.
• Fraud Prevention Video. A new fraud prevention video, narrated by actor Louis Gossett Jr., which is part of the BBB's Consumer Education Video Series, will be distributed to 16,000 libraries during the week of November 15, to educate consumers about ways to prevent being victimized by illegal telemarketing and mail fraud.

Directive to the DOJ to Prevent Fraud

The President also will announce a new directive to the DOJ to report back within six months with a plan (1) to prevent and enforce consumer fraud activities and (2) improve coordination among the federal government's consumer protection activities. In creating this plan, the President directed DOJ to cooperate and consult with all interested parties, including other federal agencies and offices -- including the FTC and SEC -- state and local law enforcement and consumer agencies, and consumers. This plan also should make efforts to build on efforts of the private sector, including non-profits, to protect consumers.

Consumer Protection in the Administration's Proposed Crime Bill

The President also highlighted new consumer safety measures which are included in his proposed crime legislation. Falling violent and property crime rates mean our nation's seniors are safer, but senior citizens remain threatened by telemarketing scams, retirement rip-offs, and abuse and neglect by caretakers. To help protect seniors from these crimes and punish the criminals who prey on elderly Americans, the President's bill would:

• Shut down fraudulent telemarketers by granting the Attorney General new authority to block and terminate telephone service to illegal telemarketers;
• Protect nursing home residents from abuse and neglect by giving federal prosecutors new tools to halt and punish nursing home operators who repeatedly abuse and neglect the residents in their care;
• Fight health care fraud and abuse by making it easier for the Justice Department to prosecute and punish illegal kickback schemes -- and harder for criminals to stick Medicare with the bills by declaring bankruptcy; and
• Safeguard retirement and pension plans by making it a federal crime to defraud employee pension benefit or retirement funds and increasing penalties for retirement plan managers who take bribes.

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