This legislation devises a reformed regulatory enforcement structure for the prevention of deceptive sweepstakes and related mailings. The bill establishes new standards for sweepstakes and other prize promotion mailings, including clear disclosures that no purchase is necessary to enter the contest, the value and odds of winning each prize, the name of the promoter of the contest, and an understandable statement of rules.

S. 335 was introduced in the Senate by Senator Susan Collins (R-ME) on February 3, 1999 and referred to the Committee on Governmental Affairs. The bill was the product of an investigation commenced by the Permanent Subcommittee on Investigation, chaired by Senator Collins, into deceptive mail practices. The investigation was prompted by constituent complaints and by a hearing conducted in the 105th Congress by the Subcommittee on International Security, Proliferation and Federal Services on sweepstakes practices.

The Permanent Subcommittee on Investigations conducted three hearings on sweepstakes promotions and practices. The first two hearings, conducted on March 8 and 9, 1999, focused on the elderly and how sweepstakes practices affected them and their families. During the second hearing, the Subcommittee heard major sweepstakes companies describe their business practices. The third hearing in July 1999 focused on smaller sweepstakes companies and deceptive sweepstakes mailing practices.

Following referral of the legislation to the Governmental Affairs Committee, the bill was subsequently referred to the Subcommittee on International Security, Proliferation and Federal Services. S. 335 was reported favorably by the Subcommittee by polling letter to the Full Committee on April 12, 1999. On May 20, 1999, the Full Committee considered the legislation. An amendment in the nature of a substitute was adopted by voice vote and Chairman Thompson moved for adoption of S. 335, as amended. The motion was agreed to by voice vote and the legislation was ordered to be favorably reported.

Chairman Thompson filed the report (S. Rept. 106- 102) on S. 335 on July 1, 1999. The bill was placed on the Senate legislative calendar on July 1, 1999. During floor consideration, a managers’ amendment, offered by Senators Collins and Levin, was adopted by voice vote. Following debate on the legislation, the Senate approved the legislation by a record vote of 93 - 0.

In the House, Representative Frank LoBiondo (R-NJ) introduced related legislation, H.R. 170. That legislation was approved by the House on November 2, 1999. Following negotiations by the House and Senate, the House approved S. 335 with an amendment on November 9, 1999 under suspension of the rules. The Senate agreed to the House amendment and passed S. 335 on November 19, 1999 by unanimous voice vote. President Clinton signed S. 335 into law on December 12, 1999 as P.L. 106-168.