CITE
18 USC Sec. 709 01/05/2009
EXPCITE
TITLE 18 - CRIMES AND CRIMINAL PROCEDURE
PART I - CRIMES
CHAPTER 33 - EMBLEMS, INSIGNIA, AND NAMES
HEAD
Sec. 709. False advertising or misuse of names to indicate Federal
agency
STATUTE
Whoever, except as permitted by the laws of the United States,
uses the words "national", "Federal", "United States", "reserve",
or "Deposit Insurance" as part of the business or firm name of a
person, corporation, partnership, business trust, association or
other business entity engaged in the banking, loan, building and
loan, brokerage, factorage, insurance, indemnity, savings or trust
business; or
Whoever falsely advertises or represents, or publishes or
displays any sign, symbol or advertisement reasonably calculated to
convey the impression that a nonmember bank, banking association,
firm or partnership is a member of the Federal reserve system; or
Whoever, except as expressly authorized by Federal law, uses the
words "Federal Deposit", "Federal Deposit Insurance", or "Federal
Deposit Insurance Corporation" or a combination of any three of
these words, as the name or a part thereof under which he or it
does business, or advertises or otherwise represents falsely by any
device whatsoever that his or its deposit liabilities, obligations,
certificates, or shares are insured or guaranteed by the Federal
Deposit Insurance Corporation, or by the United States or by any
instrumentality thereof, or whoever advertises that his or its
deposits, shares, or accounts are federally insured, or falsely
advertises or otherwise represents by any device whatsoever the
extent to which or the manner in which the deposit liabilities of
an insured bank or banks are insured by the Federal Deposit
Insurance Corporation; or
Whoever, other than a bona fide organization or association of
Federal or State credit unions or except as permitted by the laws
of the United States, uses as a firm or business name or transacts
business using the words "National Credit Union", "National Credit
Union Administration", "National Credit Union Board", "National
Credit Union Share Insurance Fund", "Share Insurance", or "Central
Liquidity Facility", or the letters "NCUA", "NCUSIF", or "CLF", or
any other combination or variation of those words or letters alone
or with other words or letters, or any device or symbol or other
means, reasonably calculated to convey the false impression that
such name or business has some connection with, or authorization
from, the National Credit Union Administration, the Government of
the United States, or any agency thereof, which does not in fact
exist, or falsely advertises or otherwise represents by any device
whatsoever that his or its business, product, or service has been
in any way endorsed, authorized, or approved by the National Credit
Union Administration, the Government of the United States, or any
agency thereof, or falsely advertises or otherwise represents by
any device whatsoever that his or its deposit liabilities,
obligations, certificates, shares, or accounts are insured under
the Federal Credit Union Act or by the United States or any
instrumentality thereof, or being an insured credit union as
defined in that Act falsely advertises or otherwise represents by
any device whatsoever the extent to which or the manner in which
share holdings in such credit union are insured under such Act; or
Whoever, not being organized under chapter 7 of Title 12,
advertises or represents that it makes Federal Farm loans or
advertises or offers for sale as Federal Farm loan bonds any bond
not issued under chapter 7 of Title 12, or uses the word "Federal"
or the words "United States" or any other words implying Government
ownership, obligation or supervision in advertising or offering for
sale any bond, note, mortgage or other security not issued by the
Government of the United States under the provisions of said
chapter 7 or some other Act of Congress; or
Whoever uses the words "Federal Home Loan Bank" or any
combination or variation of these words alone or with other words
as a business name or part of a business name, or falsely
publishes, advertises or represents by any device or symbol or
other means reasonably calculated to convey the impression that he
or it is a Federal Home Loan Bank or member of or subscriber for
the stock of a Federal Home Loan Bank; or
Whoever uses the words "Federal intermediate credit bank" as part
of the business or firm name for any person, corporation,
partnership, business trust, association or other business entity
not organized as an intermediate credit bank under the laws of the
United States; or
Whoever uses as a firm or business name the words "Department of
Housing and Urban Development", "Housing and Home Finance Agency",
"Federal Housing Administration", "Government National Mortgage
Association", "United States Housing Authority", or "Public Housing
Administration" or the letters "HUD", "FHA", "PHA", or "USHA", or
any combination or variation of those words or the letters "HUD",
"FHA", "PHA", or "USHA" alone or with other words or letters
reasonably calculated to convey the false impression that such name
or business has some connection with, or authorization from, the
Department of Housing and Urban Development, the Housing and Home
Finance Agency, the Federal Housing Administration, the Government
National Mortgage Association, the United States Housing Authority,
the Public Housing Administration, the Government of the United
States, or any agency thereof, which does not in fact exist, or
falsely claims that any repair, improvement, or alteration of any
existing structure is required or recommended by the Department of
Housing and Urban Development, the Housing and Home Finance Agency,
the Federal Housing Administration, the Government National
Mortgage Association, the United States Housing Authority, the
Public Housing Administration, the Government of the United States,
or any agency thereof, for the purpose of inducing any person to
enter into a contract for the making of such repairs, alterations,
or improvements, or falsely advertises or falsely represents by any
device whatsoever that any housing unit, project, business, or
product has been in any way endorsed, authorized, inspected,
appraised, or approved by the Department of Housing and Urban
Development, the Housing and Home Finance Agency, the Federal
Housing Administration, the Government National Mortgage
Association, the United States Housing Authority, the Public
Housing Administration, the Government of the United States, or any
agency thereof; or
Whoever, except with the written permission of the Director of
the Federal Bureau of Investigation, knowingly uses the words
"Federal Bureau of Investigation" or the initials "F.B.I.", or any
colorable imitation of such words or initials, in connection with
any advertisement, circular, book, pamphlet or other publication,
play, motion picture, broadcast, telecast, or other production, in
a manner reasonably calculated to convey the impression that such
advertisement, circular, book, pamphlet or other publication, play,
motion picture, broadcast, telecast, or other production, is
approved, endorsed, or authorized by the Federal Bureau of
Investigation; or
Whoever, except with written permission of the Director of the
United States Secret Service, knowingly uses the words "Secret
Service", "Secret Service Uniformed Division", the initials
"U.S.S.S.", "U.D.", or any colorable imitation of such words or
initials, in connection with, or as a part of any advertisement,
circular, book, pamphlet or other publication, play, motion
picture, broadcast, telecast, other production, product, or item,
in a manner reasonably calculated to convey the impression that
such advertisement, circular, book, pamphlet or other publication,
product, or item, is approved, endorsed, or authorized by or
associated in any manner with, the United States Secret Service, or
the United States Secret Service Uniformed Division; or
Whoever, except with the written permission of the Director of
the United States Mint, knowingly uses the words "United States
Mint" or "U.S. Mint" or any colorable imitation of such words, in
connection with any advertisement, circular, book, pamphlet, or
other publication, play, motion picture, broadcast, telecast, or
other production, in a manner reasonably calculated to convey the
impression that such advertisement, circular, book, pamphlet, or
other publication, play, motion picture, broadcast, telecast, or
other production, is approved, endorsed, or authorized by or
associated in any manner with, the United States Mint; or
Whoever uses the words "Overseas Private Investment", "Overseas
Private Investment Corporation", or "OPIC", as part of the business
or firm name of a person, corporation, partnership, business trust,
association, or business entity; or
Whoever, except with the written permission of the Administrator
of the Drug Enforcement Administration, knowingly uses the words
"Drug Enforcement Administration" or the initials "DEA" or any
colorable imitation of such words or initials, in connection with
any advertisement, circular, book, pamphlet, software or other
publication, play, motion picture, broadcast, telecast, or other
production, in a manner reasonably calculated to convey the
impression that such advertisement, circular, book, pamphlet,
software or other publication, play, motion picture, broadcast,
telecast, or other production is approved, endorsed, or authorized
by the Drug Enforcement Administration; or
Whoever, except with the written permission of the Director of
the United States Marshals Service, knowingly uses the words
"United States Marshals Service", "U.S. Marshals Service", "United
States Marshal", "U.S. Marshal", "U.S.M.S.", or any colorable
imitation of any such words, or the likeness of a United States
Marshals Service badge, logo, or insignia on any item of apparel,
in connection with any advertisement, circular, book, pamphlet,
software, or other publication, or any play, motion picture,
broadcast, telecast, or other production, in a manner that is
reasonably calculated to convey the impression that the wearer of
the item of apparel is acting pursuant to the legal authority of
the United States Marshals Service, or to convey the impression
that such advertisement, circular, book, pamphlet, software, or
other publication, or such play, motion picture, broadcast,
telecast, or other production, is approved, endorsed, or authorized
by the United States Marshals Service;
Shall be punished as follows: a corporation, partnership,
business trust, association, or other business entity, by a fine
under this title; an officer or member thereof participating or
knowingly acquiescing in such violation or any individual violating
this section, by a fine under this title or imprisonment for not
more than one year, or both.
This section shall not make unlawful the use of any name or title
which was lawful on the date of enactment of this title.
This section shall not make unlawful the use of the word
"national" as part of the name of any business or firm engaged in
the insurance or indemnity business, whether such firm was engaged
in the insurance or indemnity business prior or subsequent to the
date of enactment of this paragraph.
A violation of this section may be enjoined at the suit of the
United States Attorney, upon complaint by any duly authorized
representative of any department or agency of the United States.
SOURCE
(June 25, 1948, ch. 645, 62 Stat. 733; Sept. 21, 1950, ch. 967,
Sec. 3(a), 64 Stat. 894; Oct. 31, 1951, ch. 655, Sec. 22, 65 Stat.
719; July 3, 1952, ch. 547, 66 Stat. 321; Aug. 2, 1954, ch. 649,
title I, Sec. 131, 68 Stat. 609; Aug. 27, 1954, ch. 1008, 68 Stat.
867; Pub. L. 90-19, Sec. 24(b), May 25, 1967, 81 Stat. 27; Pub. L.
90-448, title VIII, Sec. 807(i), Aug. 1, 1968, 82 Stat. 545; Pub.
L. 91-468, Sec. 5, Oct. 19, 1970, 84 Stat. 1016; Pub. L. 95-630,
title XVIII, Sec. 1804, Nov. 10, 1978, 92 Stat. 3723; Pub. L. 99-
204, Sec. 16, Dec. 23, 1985, 99 Stat. 1676; Pub. L. 100-690, title
VII, Sec. 7079(a), Nov. 18, 1988, 102 Stat. 4406; Pub. L. 102-390,
title II, Sec. 223, Oct. 6, 1992, 106 Stat. 1629; Pub. L. 103-322,
title XXXII, Sec. 320911(a), title XXXIII, Secs. 330004(3),
330016(2)(C), Sept. 13, 1994, 108 Stat. 2127, 2141, 2148; Pub. L.
104-294, title VI, Secs. 602(a), 604(b)(19), (41), Oct. 11, 1996,
110 Stat. 3503, 3507, 3509; Pub. L. 105-184, Sec. 7, June 23, 1998,
112 Stat. 522; Pub. L. 107-273, div. B, title IV, Sec. 4002(a)(10),
Nov. 2, 2002, 116 Stat. 1807.)
HISTORICAL AND REVISION NOTES
Based on sections 264(v)(1), 583, 584, 585, 586, 587, 1128, 1318,
1441(d), 1731(d) of title 12, U.S.C., 1940 ed., Banks and Banking,
section 616(d) of title 15, U.S.C., 1940 ed., Commerce and Trade,
and section 1426 of title 42, U.S.C., 1940 ed., The Public Health
and Welfare (R.S. Sec. 5243; Dec. 23, 1913, ch. 6, Sec. 12B(v), as
added June 16, 1933, ch. 89, Sec. 8, 48 Stat. 178; July 17, 1916,
ch. 245, Sec. 211h, as added Mar. 4, 1923, ch. 252, Sec. 2, 42
Stat. 1461; Mar. 4, 1923, ch. 252, title II, Sec. 216, 42 Stat.
1471; May 24, 1926, ch. 377, Secs. 1-4, 44 Stat. 628; Jan. 22,
1932, ch. 8, Sec. 16(d), 47 Stat. 12; July 22, 1932, ch. 522, Sec.
21, 47 Stat. 738; June 27, 1934, ch. 847, Sec. 512, 48 Stat. 1265;
Aug. 23, 1935, ch. 614, Secs. 101, 203a, 318, 332, 49 Stat. 684,
704, 712, 719; Apr. 21, 1936, ch. 244, 49 Stat. 1237; Sept. 1,
1937, ch. 896, Sec. 26, 50 Stat. 899; Feb. 3, 1938, ch. 13, Secs.
9, 10, 52 Stat. 24, 25; June 28, 1941, ch. 261, Sec. 10, 55 Stat.
365).
Numerous sections were consolidated with changes both of
phraseology and substance necessary to effect consolidation.
The proviso of section 585 of said title 12 was omitted, since
the consolidated section obviously cannot be construed as
forbidding Federal agencies, boards, and corporations from using
their legal names. The right to continue the use of a name, lawful
on the effective date of this section, is preserved.
Last paragraph is based upon section 587 of said title 12. Words
"At the suit of" were substituted for "at the instance of". United
States Attorneys are the chief law officers of the districts.
United States v. Smith, 1895, 15 S. Ct. 846, 158 U.S. 346, 39 L.
Ed. 1011; McKay v. Rogers, C. C. A. Okl. 1936, 82 F. 2d 795.
Federal courts will not recognize suits on behalf of the United
States unless the Government is represented by a United States
Attorney. Confiscation cases, La. 1868, 7 Wall. 454, 19 L. Ed. 196.
The words "any duly authorized representative of any department
or agency of the United States" were substituted for the
enumeration of agencies which may make complaint thus making the
provision more flexible and less cumbersome.
This consolidated section reconciles the disparities and
inconsistencies of 12 sections; thus providing a harmonious scheme
for the punishment of similar offenses.
The punishment provision was drawn from section 587 of title 12,
U.S.C., 1940 ed., Banks and Banking, but is in substance and effect
the same as in sections 264v(1), 1441(d) and 1731(d) of said title
12, but the civil penalty of $50 per day which was in sections 583,
1128, and 1318 of said title 12, was omitted as inconsistent with
later acts dealing with similar offenses. Too often actions to
recover civil penalties result in judgments which cannot be
collected, and yet as long as they remain uncollected they clog the
administration of justice.
It was necessary to substitute a fine in place of a $50 per diem
penalty for business entities embraced in sections 583, 1128, and
1318 of said title 12, and fine and imprisonment for individuals
responsible for such violations. Similarly the penalty of $1,000
fine in section 1426 of title 42, The Public Health and Welfare,
was changed to permit alternative fine or imprisonment for
individuals responsible for violation.
REFERENCES IN TEXT
The Federal Credit Union Act, referred to in text, is act June
26, 1934, ch. 750, 48 Stat. 1216, as amended, which is classified
generally to chapter 14 (Sec. 1751 et seq.) of Title 12, Banks and
Banking. For complete classification of this Act to the Code, see
section 1751 of Title 12 and Tables.
Chapter 7 of Title 12, referred to in text, which contained the
Federal Farm Loan Act (act July 17, 1916, ch. 245, 39 Stat. 360) as
amended, was classified principally to section 641 et seq. of Title
12. The Federal Farm Loan Act, as amended, was repealed by section
5.26(a) of the Farm Credit Act of 1971, Pub. L. 92-181, Dec. 10,
1971, 85 Stat. 624. Section 5.26(a) of the Farm Credit Act of 1971
also provided that all references in other legislation to the Acts
repealed thereby "shall be deemed to refer to comparable provisions
of this Act". For further details, see notes under section 2001 of
Title 12. For complete classification of the Federal Farm Loan Act
to the Code prior to such repeal, see Tables.
The date of enactment of this title, referred to in fifteenth
par., means June 25, 1948.
The date of enactment of this paragraph, referred to in
penultimate par., means July 3, 1952.
AMENDMENTS
2002 - Pub. L. 107-273, in thirteenth par., substituted "Whoever"
for "A person who" and inserted "or" at end.
1998 - Pub. L. 105-184 inserted fourteenth par. that extended
prohibitions of section to unauthorized use of term "United States
Marshals Service" or any colorable imitation, or likeness of a
United States Marshals Service badge, logo, or insignia on any item
of apparel.
1996 - Pub. L. 104-294, Sec. 604(b)(41), amended directory
language of Pub. L. 103-322, Sec. 330004(3). See 1994 Amendment
note below.
Pub. L. 104-294, Sec. 604(b)(19), amended directory language of
Pub. L. 103-322, Sec. 320911(a). See 1994 Amendment notes below.
Pub. L. 104-294, Sec. 602(a), which directed amendment of this
section by striking out "Whoever uses as a firm or business name
the words 'Reconstruction Finance Corporation' or any combination
or variation of these words - ", could not be executed because that
language did not appear in text subsequent to amendment by Pub. L.
103-322, Sec. 330004(3), as amended. See 1994 Amendment note below.
1994 - Pub. L. 103-322, Sec. 330016(2)(C), substituted "fine
under this title" for "fine of not more than $1,000" in two places
in par. relating to punishment.
Pub. L. 103-322, Sec. 330004(3), struck out seventh par. which
read as follows: "Whoever uses the words 'National Agricultural
Credit Corporation' as part of the business or firm name of a
person, corporation, partnership, business trust, association or
other business entity not organized under the laws of the United
States as a National Agricultural Credit Corporation; or".
Pub. L. 103-322, Sec. 330004(3), as amended by Pub. L. 104-294,
Sec. 604(b)(41), struck out fourteenth par. which read as follows:
"Whoever uses as a firm or business name the words 'Reconstruction
Finance Corporation' or any combination or variation of these words
- ".
Pub. L. 103-322, Sec. 320911(a)(2), as amended by Pub. L. 104-
294, Sec. 604(b)(19), which directed the insertion of a new par.
relating to use of the words "Drug Enforcement Administration" or
the initials "DEA" after the fourteenth unnumbered par. was
executed by inserting such par. after the twelfth par. relating to
the Overseas Private Investment Corporation, to reflect the
probable intent of Congress and amendments by Pub. L. 103-322, Sec.
330004(3). See above.
Pub. L. 103-322, Sec. 320911(a)(1), as amended by Pub. L. 104-
294, Sec. 604(b)(19), which directed the substitution of "words;
or" for "words - " in the fourteenth unnumbered par., could not be
executed because that par. was struck out by Pub. L. 103-322, Sec.
330004(3). See above.
1992 - Pub. L. 102-390 inserted par. prohibiting unauthorized use
of the terms "United States Mint" or "U.S. Mint".
1988 - Pub. L. 100-690 inserted provision prohibiting
unauthorized use of words "Secret Service" or "Secret Service
Uniformed Division", the initials "U.S.S.S." or "U.D.", or other
colorable imitation of such words or initials.
1985 - Pub. L. 99-204 extended prohibitions of this section to
use of "Overseas Private Investment", "Overseas Private Investment
Corporation" and "OPIC".
1978 - Pub. L. 95-630 in fourth par., inserted provisions
expanding the scope of the prohibition to include anyone, other
than a bona fide organization or association of Federal or State
credit unions or except as permitted by the laws of the United
States, who misuses a firm or business name or transacts business
using "National Credit Union", "National Credit Union
Administration", "National Credit Union Board", "National Credit
Union Share Insurance Fund", "Share Insurance", or "Central
Liquidity Facility", or "NCUA", "NCUSIF", or "CLF", or any other
combination or variation of those words or letters reasonably
calculated to convey the false impression that such name or
business has some connection with or authorization from the
National Credit Union Administration, the Government of the United
States, or any agency thereof or represents by any device
whatsoever that his business, product, or service is in any way
endorsed, authorized, or approved or that he is in any way insured
by the National Credit Union Administration, the Government of the
United States, or any agency thereof.
1970 - Pub. L. 91-468 extended prohibition of this section to
include practices which would falsely represent that assets are
insured by the Federal Credit Union Act.
1968 - Pub. L. 90-448, in ninth par., substituted "Government
National Mortgage Association" for "Federal National Mortgage
Association" wherever appearing.
1967 - Pub. L. 90-19 extended prohibition of ninth par. to misuse
of names "Department of Housing and Urban Development" and "United
States Housing Authority" and symbols "HUD", "PHA", and "USHA".
1954 - Act Aug. 27, 1954, brought the use of the name or initials
of the Federal Bureau of Investigation within the ban of the
section.
Act Aug. 2, 1954, in ninth par., inserted references to the
Housing and Home Finance Agency, the Federal National Mortgage
Association, and FHA, and inserted provisions relating to false
claims made with respect to repairs, alterations, or improvements.
1952 - Act July 3, 1952, permitted use of "national" as a part of
the name of an insurance or indemnity company in penultimate par.
1951 - Act Oct. 31, 1951, in ninth par., inserted "Public Housing
Administration" in lieu of "United States Housing Authority", and
inserted "Public Housing Administration," after "Federal Housing
Administration".
1950 - Act Sept. 21, 1950, in third par., made subject to
provisions of this section whoever advertises that his or its
deposit liabilities, obligations, certificates, or shares are
federally insured.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by section 604(b)(19), (41) of Pub. L. 104-294
effective Sept. 13, 1994, see section 604(d) of Pub. L. 104-294,
set out as a note under section 13 of this title.
EFFECTIVE DATE OF 1994 AMENDMENT
Section 320911(b) of Pub. L. 103-322 provided that: "The
amendment made by subsection (a) [amending this section] shall
become effective on the date that is 90 days after the date of
enactment of this Act [Sept. 13, 1994]."
EFFECTIVE DATE OF 1988 AMENDMENT
Section 7079(b) of Pub. L. 100-690 provided that: "This section
[amending this section] shall take effect 90 days after the date of
enactment of this Act [Nov. 18, 1988]."
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-630 effective Oct. 1, 1979, see section
1806 of Pub. L. 95-630, set out as an Effective Date note under
section 1795 of Title 12, Banks and Banking.
EFFECTIVE DATE OF 1968 AMENDMENT
Amendment by Pub. L. 90-448 effective from and after a date, no
more than 120 days following Aug. 1, 1968, as established by the
Secretary of Housing and Urban Development, see section 808 of Pub.
L. 90-448, set out as an Effective Date note under section 1716b of
Title 12, Banks and Banking.
EFFECTIVE DATE OF 1950 AMENDMENT
Section 3(b) of act Sept. 21, 1950, provided that: "The amendment
made by subsection (a) of this section [amending this section]
shall become effective on January 1, 1951."
TRANSFER OF FUNCTIONS
For transfer of the functions, personnel, assets, and obligations
of the United States Secret Service, including the functions of the
Secretary of the Treasury relating thereto, to the Secretary of
Homeland Security, and for treatment of related references, see
sections 381, 551(d), 552(d), and 557 of Title 6, Domestic
Security, and the Department of Homeland Security Reorganization
Plan of November 25, 2002, as modified, set out as a note under
section 542 of Title 6.
Functions, powers, and duties of Housing and Home Finance Agency,
Federal Housing Administration, and Public Housing Authority
transferred to Secretary of Housing and Urban Development who was
authorized to delegate such functions, powers, and duties to such
officers and employees of Department of Housing and Urban
Development as the Secretary may designate, see sections 3534 and
3535 of Title 42, The Public Health and Welfare.
United States Housing Authority consolidated with other agencies
into Housing and Home Finance Agency and name of Authority changed
to Public Housing Administration by Reorg. Plan No. 3 of 1947, eff.
July 27, 1947, 12 F.R. 4981, 61 Stat. 954, set out in the Appendix
to Title 5, Government Organization and Employees.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
For creation, succession, and principal office, see section 1717
of Title 12, Banks and Banking.