Rules and Regulations Implementing the Telephone Consumer Protection Act of 1991, 75102-75110 [05-24211]
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75102
Federal Register / Vol. 70, No. 242 / Monday, December 19, 2005 / Proposed Rules
(i) Idaho Code (I.C.) containing the
General Laws of Idaho Annotated, Title
39, Chapter 44, ‘‘Hazardous Waste
Management’’, published in 2002 by the
Michie Company, Law Publishers:
sections 39–4404; 39–4405 (except 39–
4405(8)); 39–4406; 39–4407; 39–4408(4);
39–4409(2) (except first sentence); 39–
4409(3); 39–4409(4) (first sentence); 39–
4410; 39–4411(1); 39–4411(3); 39–
4411(6); 39–4412 through 39–4416; 39–
4418; 39–4419; 39–4421; 39–4422; and
39–4423(3) (a)&(b).
(ii) Idaho Code (I.C.) containing the
General Laws of Idaho Annotated, Title
39, Chapter 58, ‘‘Hazardous Waste
Facility Siting Act’’, published in 2002
by the Michie Company, Law
Publishers: sections 39–5804; 39–5809;
39–5810; 39–5813(2); 39–5814; 39–
5816; 39–5817; and 39–5818(1).
(iii) Idaho Code (I.C.) containing the
General Laws of Idaho Annotated,
Volume 2, Title 9, Chapter 3, ‘‘Public
Writings’’, published in 1990 by the
Michie Company, Law Publishers,
Charlottesville, Virginia: sections 9–
337(10); 9–337(11); 9–338; 9–339; and
9–344(2).
(iv) 2002 Cumulative Pocket
Supplement to the Idaho Code (I.C.),
Volume 2, Title 9, Chapter 3, ‘‘Public
Writing’’, published in 2002 by the
Michie Company, Law Publishers,
Charlottesville, Virginia: sections 9–
340A, 9–340B, and 9–343.
(v) Idaho Department of
Environmental Quality Rules and
Regulations, Idaho Administrative Code,
IDAPA 58, Title 1, Chapter 5, ‘‘Rules
and Standards for Hazardous Waste’’, as
published July 2004: sections
58.01.05.000; 58.01.05.356.02 through
58.01.05.356.05; 58.01.05.800;
58.01.05.850; 58.01.05.996;
58.01.05.997; and 58.01.05.999.
(3) The following statutory and
regulatory provisions are broader in
scope than the Federal program, are not
part of the authorized program, are not
incorporated by reference, and are not
federally enforceable:
(i) Idaho Code containing the General
Laws of Idaho Annotated, Title 39,
Chapter 44, ‘‘Hazardous Waste
Management’’, published in 2002 by the
Michie Company, Law Publishers:
sections 39–4403(6) & (14); 39–4427;
39–4428 and 39–4429.
(ii) Idaho Code containing the General
Laws of Idaho Annotated, Title 39,
Chapter 58, ‘‘Hazardous Waste Siting
Act’’, published in 2002 by the Michie
Company, Law Publishers: section 39–
5813(3).
(iii) Idaho Department of
Environmental Quality Rules and
Regulations, Idaho Administrative Code,
IDAPA 58, Title 1, Chapter 5, ‘‘Rules
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and Standards for Hazardous Waste’’, as
published July 2004: sections
58.01.05.355; and 58.01.05.500.
(4) Memorandum of Agreement. The
Memorandum of Agreement between
EPA Region 10 and the State of Idaho
(IDEQ), signed by the EPA Regional
Administrator on August 1, 2001,
although not incorporated by reference,
is referenced as part of the authorized
hazardous waste management program
under subtitle C of RCRA, 42 U.S.C.
6921, et seq.
(5) Statement of Legal Authority. The
‘‘Attorney General’s Statement for Final
Authorization,’’ signed by the Attorney
General of Idaho on July 5, 1988 and
revisions, supplements and addenda to
that Statement, dated July 3, 1989,
February 13, 1992, December 29, 1994,
September 16, 1996, October 3, 1997,
April 6, 2001, September 11, 2002, and
September 22, 2004, although not
incorporated by reference, are
referenced as part of the authorized
hazardous waste management program
under subtitle C of RCRA, 42 U.S.C.
6921, et seq.
(6) Program Description. The Program
Description, and any other materials
submitted as part of the original
application or as supplements thereto,
although not incorporated by reference,
are referenced as part of the authorized
hazardous waste management program
under subtitle C of RCRA, 42 U.S.C.
6921 et seq.
3. Appendix A to part 272, State
Requirements, is amended by revising
the listing for ‘‘Idaho’’ to read as
follows:
Appendix A to Part 272—State
Requirements
*
*
*
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*
Idaho
(a) The statutory provisions include:
Idaho Code containing the General Laws of
Idaho Annotated, Title 39, Chapter 44,
‘‘Hazardous Waste Management’’, 2002:
sections 39–4402; 39–4403 (except 39–
4403(6) & (14)); 39–4408(1)–(3); 39–4409(1)
(except fourth and fifth sentences); 39–
4409(2) (first sentence); 39–4409(4) (except
first sentence); 39–4409(5); 39–4409(6); 39–
4409(7); 39–4409(8); 39–4411(2); 39–4411(4);
39–4411(5); 39–4423 (except 39–4423(3)(a) &
(b)); and 39–4424.
Idaho Code containing the General Laws of
Idaho Annotated, Title 39, Chapter 58,
‘‘Hazardous Waste Facility Siting Act’’,
published in 2002 by the Michie Company,
Law Publishers: sections 39–5802; 39–5803;
39–5808; 39–5811; 39–5813(1); and 39–
5818(2).
Copies of the Idaho statutes that are
incorporated by reference are available from
Michie Company, Law Publishers, 1 Town
Hall Square, Charlottesville, VA 22906–7587.
(b) The regulatory provisions include:
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Idaho Department of Environmental
Quality Rules and Regulations, Idaho
Administrative Code, IDAPA 58, Title 1,
Chapter 5, ‘‘Rules and Standards for
Hazardous Waste’’, as published on July
2004: sections 58.01.05.001; 58.01.05.002;
58.01.05.003; 58.01.05.004; 58.01.05.005;
58.01.05.006; 58.01.05.007; 58.01.05.008;
58.01.05.009; 58.01.05.010; 58.01.05.011;
58.01.05.012; 58.01.05.013; 58.01.05.014;
58.01.05.015; 58.01.05.016; 58.01.05.356.01;
and 58.01.05.998.
*
*
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[FR Doc. 05–24202 Filed 12–16–05; 8:45 am]
BILLING CODE 6560–50–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 64
[CG Docket No. 02–278; CG Docket No. 05–
338; FCC 05–206]
Rules and Regulations Implementing
the Telephone Consumer Protection
Act of 1991
Federal Communications
Commission.
ACTION: Proposed rule.
AGENCY:
SUMMARY: The Junk Fax Prevention Act
of 2005 amends section 227 of the
Communications Act of 1934 relating to
unsolicited facsimile advertisements.
The Junk Fax Prevention Act requires
the Commission to issue regulations to
implement the amendments made by
the statute no later than 270 days after
the date of enactment of the Act. In this
document, the Commission proposes
amendments to its unsolicited facsimile
advertising rules and seeks comment on
related aspects of those rules.
Specifically, the Commission seeks
comment on the established business
relationship (EBR) exception to the
rules, the requirement to include an optout notice and contact information on
facsimile advertisements, and other
rules implementing the Junk Fax
Prevention Act. The Commission also
opens a new docket for all filings in
response to this document and those
addressing the facsimile advertising
rules generally.
DATES: Comments due January 18, 2006.
Reply comments due February 2, 2006.
Written comments on the Paperwork
Reduction Act (PRA) proposed
information collection requirements
must be submitted by the general
public, Office of Management and
Budget (OMB), and other interested
parties on or before February 17, 2006.
ADDRESSES: You may submit comments,
identified by CG Docket No. 05–338, by
any of the following methods:
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Federal Register / Vol. 70, No. 242 / Monday, December 19, 2005 / Proposed Rules
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Federal Communications
Commission’s Web site: https://
www.fcc.gov/cgb/ecfs/. Follow the
instructions for submitting comments.
• People with Disabilities: Contact
the FCC to request reasonable
accommodations (accessible format
documents, sign language interpreters,
CART, etc.) by e-mail: FCC504@fcc.gov
or phone (2020 418–0539 or TTY: (202)
418–0432.
For detailed instructions for
submitting comments and additional
information on the rulemaking process,
see the SUPPLEMENTARY INFORMATION
section of this document. In addition, a
copy of any comments on the
Paperwork Reduction Act (PRA)
information collection requirements
contained herein should be submitted to
Leslie Smith, Federal Communications
Commission, Room 1–A804, 445 12th
Street, SW., Washington, DC 20554, or
via the Internet to Leslie.Smith@fcc.gov,
and to Kristy L. LaLonde, OMB Desk
Officer, Room 10234 NEOB, 725 17th
Street, NW., Washington, DC 20503, via
the Internet to
Kristy_L._LaLonde@omb.eop.gov, or via
fax at (202) 395–5167.
FOR FURTHER INFORMATION CONTACT:
Erica McMahon or Richard Smith,
Consumer & Governmental Affairs
Bureau, (202) 418–2512. For additional
information concerning the Paperwork
Reduction Act information collection
requirements contained in this
document, contact Les Smith at (202)
418–0217, or via the Internet at
Leslie.Smith@fcc.gov.
SUPPLEMENTARY INFORMATION: This
Notice of Proposed Rulemaking (NPRM),
CG Docket No. 02–278, FCC 05–206,
contains proposed information
collection requirements subject to the
PRA, Public Law 104–13. It will be
submitted to the Office of Management
and Budget (OMB) for review under
section 3507 of the PRA. OMB, the
general public, and other Federal
agencies are invited to comment on the
proposed information collection
requirements contained in this
proceeding. This is a summary of the
Commission’s NPRM, FCC 05–206,
adopted December 9, 2005, and released
December 9, 2005 in CG Docket No. 02–
278 and CG Docket No.05–338. The
Commission also opens a new docket—
CG Docket No. 05–338—for all filings in
response to this document and those
addressing the facsimile advertising
rules generally. In addition, this NPRM
is associated with an Order, FCC 05–
206, adopted December 9, 2005,
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released December 9, 2005, addressing
the delayed effective date of the written
consent requirement for sending
facsimile advertisements. The Final rule
is published elsewhere in this issue of
the Federal Register.
Pursuant to §§ 1.415 and 1.419 of the
Commission’s rules, 47 CFR 1.415 and
1.419, interested parties may file
comments on January 18, 2006 and
reply comments on February 2, 2006.
Comments may be filed using: (1) The
Commission’s Electronic Comment
Filing System (ECFS); (2) the Federal
Government’s eRulemaking Portal; or (3)
or by filing paper copies. See Electronic
Filing of Documents in Rulemaking
Proceedings, 63 FR 24121, May 1, 1998.
• Electronic Filers: Comments may be
filed electronically using the Internet by
accessing the ECFS: https://www.fcc.gov/
cgb/ecfs/ or the Federal eRulemaking
Portal: https://www.regulations.gov.
Filers should follow the instructions
provided on the Web site for submitting
comments.
• For ECFS filers, although multiple
docket numbers appear in the caption of
this proceeding, filers should transmit
one electronic copy of the comments for
CG Docket No. 05–338 only. In
completing the transmittal screen, filers
should include their full name, U.S.
Postal Service mailing address, and the
applicable docket or rulemaking
number, which in this instance is CG
Docket No. 05–338. Parties may also
submit an electronic comment by
Internet e-mail. To get filing
instructions, filers should send an email to ecfs@fcc.gov, and include the
following words in the body of the
message, ‘‘get form.’’ A sample form and
directions will be sent in response.
• Paper Filers: Parties who choose to
file by paper must file an original and
four copies of each filing in CG Docket
No. 05–338. Filings can be sent by hand
or messenger delivery, by commercial
overnight courier, or by first-class or
overnight U.S. Postal Service mail
(although the Commission continues to
experience delays in receiving U.S.
Postal Service mail). All filings must be
addressed to the Commission’s
Secretary, Office of the Secretary,
Federal Communications Commission.
• The Commission’s contractor will
receive hand-delivered or messengerdelivered paper filings for the
Commission’s Secretary at 236
Massachusetts Avenue, NE., Suite 110,
Washington, DC 20002. The filing hours
at this location are 8 a.m. to 7 p.m. All
hand deliveries must be held together
with rubber bands or fasteners. Any
envelopes must be disposed of before
entering the building.
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75103
• Commercial overnight mail (other
than U.S. Postal Service Express Mail
and Priority Mail) must be sent to 9300
East Hampton Drive, Capitol Heights,
MD 20743.
• U.S. Postal Service first-class,
Express, and Priority mail should be
addressed to 445 12th Street, SW.,
Washington, DC 20554.
Comments and reply comments must
include a short and concise summary of
the substantive discussion and
questions raised in the NPRM. The
Commission further directs all
interested parties to include the name of
the filing party and the date of the filing
on each page of their comments and
reply comments. The Commission
strongly encourages that parties track
the organization set forth in the NPRM
in order to facilitate the Commission’s
internal review process. Comments and
reply comments must otherwise comply
with § 1.48 of the Commission’s rules
and all other applicable sections of the
Commission’s rules. (See 47 CFR 1.48).
Pursuant to § 1.1200 of the
Commission’s rules, 47 CFR 1.1200, this
matter shall be treated as a ‘‘permit-butdisclose’’ proceeding in accordance
with the Commission’s ex parte rules.
Persons making oral ex parte
presentations are reminded that
memoranda summarizing the
presentations must contain summaries
of the substances of the presentations
and not merely a listing of the subjects
discussed. More than a one or two
sentence description of the views and
arguments presented is generally
required. See 47 CFR 1.1206(b). Other
rules pertaining to oral and written ex
parte presentations in permit-butdisclose proceedings are set forth in
§ 1.1206(b) of the Commission’s rules,
47 CFR 1.1206(b).
To request materials in accessible
formats for people with disabilities
(Braille, large print, electronic files,
audio format), send an e-mail to
fcc504@fcc.gov or call the Consumer &
Governmental Affairs Bureau at (202)
418–0530 (voice), (202) 418–0432
(TTY).
Initial Paperwork Reduction Act of
1995 Analysis
This NPRM contains proposed
information collection requirements.
The Commission, as part of its
continuing effort to reduce paperwork
burdens, invites the general public and
the Office of Management and Budget
(OMB) to comment on the information
collection requirements contained in
this NPRM, as required by the
Paperwork Reduction Act of 1995,
Public Law 104–13. Public and agency
comments are due February 17, 2006.
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Comments should address: (a) Whether
the proposed collection of information
is necessary for the proper performance
of the functions of the Commission,
including whether the information shall
have practical utility; (b) the accuracy of
the Commission’s burden estimates; (c)
ways to enhance the quality, utility, and
clarity of the information collected; and
(d) ways to minimize the burden of the
collection of information on the
respondents, including the use of
automated collection techniques or
other forms of information technology.
In addition, pursuant to the Small
Business Paperwork Relief Act of 2002,
Public Law 107–198, see 44 U.S.C.
3506(c)(4), the Commission seeks
specific comment on how the
Commission might ‘‘further reduce the
information collection burden for small
business concerns with fewer than 25
employees.’’
OMB Control Number: 3060–XXXX.
Title: Rules and Regulations
Implementing the Junk Fax Prevention
Act of 2005.
Form Number: N/A.
Type of Review: New Collection.
Respondents: Individuals or
households; Business and other forprofit entities; and Not-for-profit
institutions.
Number of Respondents: 5,000,000—
(4 million facsimile advertisement
senders and 1,000,000 complainants).
Number of Responses: 5,150,000
responses.
Estimated Time per Response: 15
seconds to 1 hour.
Frequency of Responses: On occasion
reporting requirement; monthly
recordkeeping; third party.
Total Annual Burden: 13,170,000
hours.
Total Annual Cost: $60,000,000.
Privacy Impact Assessment: Yes.
Needs and Uses: On December 9,
2005, the Commission released a Notice
of Proposed Rulemaking, Rules and
Regulations Implementing the
Telephone Consumer Protection Act of
1991 (NPRM), which proposes
modifications to the Commission’s rules
on unsolicited facsimile advertisements
and seeks comment on related aspects of
those rules, pursuant to the Junk Fax
Prevention Act. The Commission is
considering the adoption of rules
governing the transmission of facsimile
advertisements. Because the facsimile
advertising rules involve different issues
and different entities than do the
telemarketing rules under the
Telephone Consumer Protection Act
(TCPA), the Commission believes that it
will be easier for the public if the
burden hours associated with the
facsimile advertising rules are identified
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in a separate information collection.
Therefore, the Commission is initiating
a new collection for the proposed
facsimile advertising rules described
below:
(1) The Junk Fax Prevention Act
requires senders of unsolicited facsimile
advertisements to include a notice on
the first page of the facsimile that
informs the recipient of the ability and
means to request that they not receive
future unsolicited facsimile
advertisements from the sender. The
NPRM must include a domestic contact
telephone and facsimile machine
number for the recipient to transmit
such a request to the sender, as well as
a cost-free mechanism for a recipient to
transmit a request pursuant to such
notice to the sender of the unsolicited
advertisement. The telephone and
facsimile numbers and cost-free
mechanism must permit an individual
or business to make such a request at
any time on any day of the week. The
Commission proposes amending the
Commission’s rules to require entities to
comply with the specific notice
requirements in the Junk Fax Prevention
Act. The Commission also asks whether
a 30-day limitation is the shortest
reasonable period in which a sender
should comply with a request not to
receive future facsimile advertisements.
(2) In addition, the Junk Fax
Prevention Act provides that, if a sender
relies on an EBR for permission to fax
an advertisement, the sender must have
obtained the number of the telephone
facsimile machine through the
voluntary communication of such
number, within the context of such EBR
or through a directory, advertisement, or
site on the Internet to which the
recipient voluntarily agreed to make
available its facsimile number. This
provision does not apply in the case of
an advertisement sent based on an
established business relationship with
the recipient that was in existence
before the date of enactment of the Junk
Fax Prevention Act (July 9, 2005). The
Commission seeks comment on whether
to require the sender to make reasonable
efforts to confirm with the entity that
compiled the numbers that the
recipients have voluntarily agreed to
allow them to be made publicly
available. The Commission also
proposes amending the rules, consistent
with the Junk Fax Prevention Act, to
permit senders to send facsimile
advertisements to persons with whom
an EBR was formed prior to July 9, 2005,
provided the facsimile number was in
the sender’s possession before July 9,
2005, as well. While there is no ongoing
reporting requirement associated with
this proposed rule, if a complaint is
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filed involving the existence of an EBR
or the duration of the EBR, the facsimile
sender may need to obtain and provide
records kept in the usual course of
business evidencing the duration of the
EBR.
(3) Finally the Commission seeks
comment on situations in which a
consumer that has made a do-not-fax
request of a sender subsequently
provides express invitation or
permission to receive facsimile
advertisements from that entity.
Specifically, the Commission asks
whether the facsimile sender should
bear the burden of proof to demonstrate
that it had the consumer’s express
invitation or permission to send the
advertisement. Again, while there is no
ongoing recordkeeping or reporting
requirement associated with this
proposed rule, if a complaint is filed,
the facsimile sender may need to obtain
and provide records demonstrating that
express invitation or permission was
subsequently provided by the recipient.
Synopsis
The Junk Fax Prevention Act of 2005
(the Junk Fax Prevention Act) amends
the provisions of section 227 of the
Communications Act of 1934 (the Act)
relating to unsolicited facsimile
advertisements. As required by the Junk
Fax Prevention Act, the Commission
proposes modifications to the
Commission’s rules on unsolicited
facsimile advertisements and seeks
comment on related aspects of those
rules. The Junk Fax Prevention Act was
signed into law on July 9, 2005. Section
2(h) of the Junk Fax Prevention Act
provides that ‘‘not later than 270 days
after the date of enactment of this Act,
the Federal Communications
Commission shall issue regulations to
implement the amendments made by
this section.’’ Therefore, the
Commission must issue regulations to
implement these amendments no later
than April 5, 2006.
Recognition of an Established Business
Relationship Exemption
Background
Section 2(a) of the Junk Fax
Prevention Act amends section
227(b)(1)(C) of the Act by adding an
established business relationship (EBR)
exemption to the prohibition on sending
unsolicited facsimile advertisements.
Specifically, section 2(a) provides that it
shall be unlawful for any person within
the United States or any person outside
the United States if the recipient is
within the United States:
(C) To use any telephone facsimile
machine, computer, or other device to
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send, to a telephone facsimile machine,
an unsolicited advertisement, unless—
(i) The unsolicited advertisement is
from a sender with an established
business relationship with the recipient;
(ii) The sender obtained the number
of the telephone facsimile machine
through—
(I) The voluntary communication of
such number, within the context of such
established business relationship, from
the recipient of the unsolicited
advertisement, or
(II) A directory, advertisement, or site
on the Internet to which the recipient
voluntarily agreed to make available its
facsimile number for public
distribution, except that this clause
shall not apply in the case of an
unsolicited advertisement that is sent
based on an established business
relationship with the recipient that was
in existence before the date of
enactment of the Junk Fax Prevention
Act of 2005 if the sender possessed the
facsimile machine number of the
recipient before such date of enactment;
and
(iii) The unsolicited advertisement
contains a notice meeting the
requirements under paragraph (2)(D),
except that the exception under clause
(i) and (ii) shall not apply with respect
to an unsolicited advertisement sent to
a telephone facsimile machine by a
sender to whom a request has been
made not to send future unsolicited
advertisements to such telephone
facsimile machine that complies with
the requirements under paragraph
(2)(E).
Discussion
The Commission proposes amending
§ 64.1200(a)(3) of the Commission’s
rules in accordance with the specific
requirements in section 2(a) of the Junk
Fax Prevention Act regarding the
express recognition of an EBR
exemption. Specifically, the
Commission proposes removing
§ 64.1200(a)(3)(i) of the Commission’s
rules which provides that a facsimile
advertisement is unsolicited unless ‘‘the
recipient has granted the sender prior
express invitation or permission to
deliver the advertisement, as evidenced
by a signed, written statement that
* * * clearly indicates the recipient’s
consent to receive such facsimile
advertisements from the sender.’’
Congress has concluded that an
unsolicited advertisement from a sender
with an EBR to the recipient will not be
governed by the general prohibition
found in section 227(b)(1)(C) of the Act.
As discussed further below, in the
context of an EBR, such prior express
permission may be formed by means
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other than a signed, written statement
that indicates the recipient’s consent to
receive facsimile advertisements. The
Commission seeks comment on these
and any other issues that commenters
may consider pertinent to this topic.
In addition, the Commission seeks
specific comment on whether the
Commission should establish
parameters defining what it means for a
person to provide a facsimile number
‘‘within the context of [an] established
business relationship.’’ Under what
circumstances should the Commission
recognize that a person has voluntarily
agreed to make a facsimile number
available for public distribution? Should
the burden rest with the sender to
establish that the recipient has agreed to
make the number publicly available?
When the sender obtains the facsimile
number from a directory, advertisement,
or site on the Internet, should the sender
be required to make reasonable efforts to
confirm with the entity that compiled
the numbers that the recipients have
‘‘voluntarily’’ agreed to allow them to be
made publicly available?
Finally, the Junk Fax Prevention Act
provides an exception from the
requirement that any sender
transmitting a facsimile advertisement
on the basis of an EBR must have
obtained the facsimile number through
the ‘‘voluntary communication of such
number, within the context of such
established business relationship’’ or
through ‘‘a directory, advertisement, or
site on the Internet to which the
recipient voluntarily agreed to make
available its facsimile number for public
distribution.’’ Under the statute, if the
EBR was in existence prior to the date
of enactment of the statute and the
sender also possessed the facsimile
number before the date of enactment of
the statute, the sender is not required to
demonstrate how it obtained the
facsimile number. The Commission
proposes amending the Commission’s
rules consistent with this exception,
which would permit senders to send
facsimile advertisements to persons
with whom an EBR was formed prior to
July 9, 2005, provided the facsimile
number was in the sender’s possession
before July 9, 2005, as well. If the
Commission adopts this proposal, how
should the Commission verify that a
sender had an EBR and the recipient’s
facsimile number prior to July 9, 2005?
The Commission seeks comment on this
proposal and any other issues that relate
to the sender’s ability to send facsimile
advertisements to persons with whom
an EBR was formed prior to enactment
of the Junk Fax Prevention Act.
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75105
Definition of Established Business
Relationship
Background
Section 2(b) of the Junk Fax
Prevention Act—Definition of
Established Business Relationship—
amends section 227(a) of the Act by
providing a definition of an EBR to be
used in the context of unsolicited
facsimile advertisements. Specifically,
section 2(b) adds the following
language:
(2) The term ‘established business
relationship’, for purposes only of
subsection (b)(1)(C)(i) [creating an EBR
exemption for unsolicited facsimile
advertisements] shall have the meaning
given the term in section 64.1200 of title
47, Code of Federal Regulations, as in
effect on January 1, 2003, except that—
(A) Such term shall include a
relationship between a person or entity
and a business subscriber subject to the
same terms applicable under such
section to a relationship between a
person or entity and a residential
subscriber; and
(B) An established business
relationship shall be subject to any time
limitation established pursuant to
paragraph (2)(G).
Paragraph 2(G)’’ refers to Section 2(f)
of the Junk Fax Prevention Act. That
provision authorizes the Commission to
limit the duration of the EBR in the
context of unsolicited facsimile
advertisements. Specifically, Section
2(f) provides that the Commission:
(G)(i) May, consistent with clause (ii), limit
the duration of the existence of an
established business relationship, however,
before establishing any such limits, the
Commission shall—
(I) Determine whether the existence of the
exception under paragraph
(1)(C) Relating to an established business
relationship has resulted in a significant
number of complaints to the Commission
regarding the sending of unsolicited
advertisements to telephone facsimile
machines;
(II) Determine whether a significant
number of any such complaints involve
unsolicited advertisements that were sent on
the basis of an established business
relationship that was longer in duration than
the Commission believes is consistent with
the reasonable expectations of consumers;
(III) Evaluate the costs to senders of
demonstrating the existence of an established
business relationship within a specified
period of time and the benefits to recipients
of establishing a limitation on such
established business relationship; and
(IV) Determine whether with respect to
small businesses, the costs would not be
unduly burdensome; and
(ii) May not commence a proceeding to
determine whether to limit the duration of
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the existence of an established business
relationship before the expiration of the 3month period that begins on the date of the
enactment of the Junk Fax Prevention Act of
2005.
Discussion
As contemplated by section 2(b) of the
statute, the Commission seeks comment
on whether to incorporate into the
Commission’s facsimile advertising
rules the following definition of an EBR:
For purposes of paragraph (a)(3) of this
section, the term established business
relationship means a prior or existing
relationship formed by a voluntary two-way
communication between a person or entity
and a business or residential subscriber with
or without an exchange of consideration, on
the basis of an inquiry, application, purchase
or transaction by the business or residential
subscriber regarding products or services
offered by such person or entity, which
relationship has not been previously
terminated by either party.
The Commission notes that this
proposed EBR definition differs from
the definition of an EBR in the
Commission’s rules for telephone
solicitations in that it expressly extends
the exemption to faxes sent to both
business and residential subscribers,
rather than just residential subscribers.
This is consistent with the fact that the
prohibition on sending unsolicited
facsimile advertisements, unlike
telephone solicitations, applies to both
businesses and residential subscribers.
The Junk Fax Prevention Act
authorizes the Commission, after a
period of three months from the date of
enactment of the Act, to consider limits
on the duration of an EBR. Therefore,
the Commission takes this opportunity
to seek comment on whether to limit the
EBR as applied to unsolicited facsimile
advertisements. As part of the
Commission’s review, and as required
by the statute, the Commission will
evaluate the Commission’s complaint
data to determine whether the EBR
exception has resulted in a significant
number of complaints regarding
facsimile advertisements, and whether
such complaints involve facsimile
advertisements sent based on an EBR of
a duration that is inconsistent with the
reasonable expectations of consumers.
In the context of telephone
solicitations, Congress has concluded
that the right to call consumers becomes
more tenuous over time. See House of
Representatives Report Number 102–
317, page 14. Consistent with the
conclusion of the Federal Trade
Commission, this Commission has
limited the duration of the EBR for
telephone solicitations to 18 months
following a purchase or transaction and
three months after an application or
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inquiry. The Commission concluded
that this 18/3-month limitation on the
duration of an EBR strikes an
appropriate balance between industry
practices and consumers’ privacy
interests. Accordingly, the Commission
seeks comment on whether it is
appropriate to limit the EBR duration
for unsolicited facsimile advertisements
in the same manner as telephone
solicitations. To the extent that
commenters suggest EBR durations for
facsimile advertisements that may vary
from those imposed on telephone
solicitations, including not adopting any
limitation on the duration of the
facsimile EBR, the Commission seeks
empirical evidence to distinguish the
Commission’s findings relating to the
EBR duration for telephone
solicitations.
In addition, as set forth in the Junk
Fax Prevention Act, the Commission
seeks comment on the benefits to
facsimile recipients of limits on the
EBR. Are there direct costs to consumers
associated with receiving facsimile
advertisements, such as costs for paper,
toner, and time spent collecting and
sorting faxes that weighs in favor of
limiting the facsimile EBR? Are there
direct benefits to consumers of having
an EBR that is not limited in duration?
If the Commission adopts any such
limits on the EBR, the Commission also
asks commenters to describe the costs to
senders of demonstrating the existence
of an EBR that is limited in duration.
Would these costs be overly
burdensome, particularly for small
businesses?
Notice of Opt-Out Opportunity
Background
Section 2(c) of the Junk Fax
Prevention Act—Required Notice of
Opt-Out Opportunity—amends section
227(b)(2) of the Act by adding language
that requires senders of unsolicited
facsimile advertisements to include a
notice on the first page of the facsimile
that informs the recipient of the ability
and means to request that they not
receive future unsolicited facsimile
advertisements from the sender.
Specifically, section 2(c) requires that
the Commission:
(D) Shall provide that a notice contained in
an unsolicited advertisement complies with
the requirements under this subparagraph
only if—
(i) The notice is clear and conspicuous and
on the first page of the unsolicited
advertisement;
(ii) The notice states that the recipient may
make a request to the sender of the
unsolicited advertisement not to send any
future unsolicited advertisements to a
telephone facsimile machine or machines
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and that failure to comply, within the
shortest reasonable time, as determined by
the Commission, with such a request meeting
the requirements under subparagraph (E)
[setting forth the circumstances under which
a request to opt-out complies with the Act]
is unlawful;
(iii) The notice sets forth the requirements
for a request under subparagraph (E);
(iv) The notice includes—
(I) A domestic contact telephone and
facsimile machine number for the recipient
to transmit such a request to the sender; and
(II) A cost-free mechanism for a recipient
to transmit a request pursuant to such notice
to the sender of the unsolicited
advertisement; the Commission shall by rule
require the sender to provide such a
mechanism and may, in the discretion of the
Commission and subject to such conditions
as the Commission may prescribe, exempt
certain classes of small business senders, but
only if the Commission determines that the
costs to such class are unduly burdensome
given the revenues generated by such small
businesses;
(v) The telephone and facsimile machine
numbers and cost-free mechanism set forth
pursuant to clause (iv) permit an individual
or business to make such a request at any
time on any day of the week; and
(vi) The notice complies with the
requirements of subsection (d).
Discussion
The Commission proposes amending
the Commission’s rules to comply with
the specific notice requirements on
unsolicited facsimile advertisements as
set forth by Congress in section 2 of the
Junk Fax Prevention Act. In addition,
the Commission seeks comment on
whether it is necessary to set forth in
our rules under what circumstances a
notice will be considered ‘‘clear and
conspicuous.’’ If so, the Commission
asks commenters to describe those
circumstances under which a notice
should be considered ‘‘clear and
conspicuous.’’ As directed by Congress,
the Commission also seeks comment on
the ‘‘shortest reasonable time’’ within
which a sender of unsolicited facsimile
advertisements must comply with a
request not to receive future facsimile
advertisements from the sender. The
Commission notes that the
Commission’s rules require that persons
or entities making calls for
telemarketing purposes must honor a
do-not-call request within a reasonable
time. The Commission’s rules provide
that this reasonable period ‘‘may not
exceed thirty days from the date of such
request.’’ The Commission seeks
comment on whether this 30-day
limitation is the shortest reasonable
period in which to expect senders of
unsolicited facsimile advertisements to
honor a do-not-fax request. If not, the
Commission seeks empirical evidence
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from commenters to support proposals
for longer or shorter periods.
The Commission notes that the
Commission’s rules currently require
senders of facsimile messages to identify
themselves on the message, along with
the telephone number of the sending
machine or the business, other entity, or
individual sending the message. The
Commission therefore seeks comment
on the interplay between this
identification requirement and the
notice requirement described above for
senders of unsolicited facsimile
advertisements. The Commission seeks
comment on ways to minimize the
burdens associated with complying with
these separate requirements that are
consistent with the goals of the TCPA
and its recent amendments.
As provided by the Junk Fax
Prevention Act, the Commission also
seeks comment on whether to exempt
certain classes of small business senders
from the requirement to provide a costfree mechanism for a recipient to
transmit a request not to receive future
facsimile advertisements. In particular,
the Commission seeks empirical
information as to whether the costs to
such small businesses are unduly
burdensome given the revenues
generated by such small businesses.
Should the Commission decide to
exempt certain classes of small
businesses from the requirement, the
Commission seeks specific information
on how such ‘‘classes’’ of small
businesses may be defined. Do the
Small Business Administration’s
Standard Industrial Classification
regulations provide any useful
guidance? Are there any legal
impediments to adopting a definition of
small business or class of small
businesses for use in this context that
may deviate from the SBA’s standard
definition? Does the Junk Fax
Prevention Act provide sufficient
authority to allow the Commission to
adopt a small business classification
that varies from the SBA? Would such
an exemption for small business senders
have any adverse impact on consumers
and businesses who receive facsimile
advertisements from small businesses?
Are there alternative mechanisms
available so that recipients are able to
request of any small business that it not
send future unsolicited advertisements?
In addition, the Commission seeks
comment on whether the Commission
needs to enumerate specific ‘‘cost-free’’
mechanisms for a recipient to transmit
a do-not-fax request, and, if so, the
Commission seeks comment on what
those specific mechanisms should be.
For instance, should the provision of a
toll-free telephone number, website, or
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email address for receiving do-not-fax
requests, comply with this requirement?
Should a local telephone number be
considered a ‘‘cost-free’’ mechanism if
the unsolicited facsimile advertisements
are sent only to local consumers? The
Commission seeks comment on these
issues and any other issues commenters
may consider pertinent to this topic.
Request to Opt-Out of Future
Unsolicited Advertisements
Background
Section 2(d) of the Junk Prevention
Act—Request to Opt-Out of Future
Unsolicited Advertisements—amends
section 227(b)(2) of the Act by adding
language that sets forth when a request
not to send future unsolicited facsimile
advertisements complies with the Act.
Specifically, section 2(d) states that the
Commission:
(E) Shall provide, by rule, that a request
not to send future unsolicited advertisements
to a telephone facsimile machine complies
with the requirements under this
subparagraph only if—
(i) The request identifies the telephone
number or numbers of the telephone
facsimile machine or machines to which the
request relates;
(ii) The request is made to the telephone
or facsimile number of the sender of such an
unsolicited advertisement provided pursuant
to subparagraph (D)(iv) or by any other
method of communication as determined by
the Commission; and
(iii) The person making the request has not,
subsequent to such request, provided express
invitation or permission to the sender, in
writing or otherwise, to send such
advertisements to such person at such
telephone facsimile machine.
Discussion
The Commission proposes adopting
the requirements provided in the Junk
Fax Prevention Act regarding the
making of a request not to receive future
unsolicited facsimile advertisements.
Section 2(a) of the Junk Fax Prevention
Act provides that ‘‘the exception under
clauses (i) and (ii) [creating the EBR
exemption] shall not apply with respect
to an unsolicited advertisement sent to
a telephone facsimile machine by a
sender to whom a request has been
made not to send future unsolicited
advertisements to such telephone
facsimile machine* * * .’’ The
Commission seeks comment on whether
the Commission’s rules should reflect
that a do-not-fax request terminates the
EBR exemption with the sender of the
facsimile even if the recipient continues
to do business with the sender. The
Commission seeks comment on whether
to specify that if the sender of the
facsimile advertisement is a third party
agent or fax broadcaster that any do-not-
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fax request sent to that sender will
extend to the underlying business on
whose behalf the fax is transmitted. The
Commission also seeks comment on
whether there are any other methods of
communication that the Commission
should prescribe for making a do-not-fax
request other than those required in the
notice section discussed above (i.e., a
domestic contact telephone and
facsimile number and a cost-free
mechanism). Should, for instance, a
sender be required to honor a request
made by mail or e-mail even if such
addresses are not necessarily provided
by the sender in the facsimile
communication’s ‘‘opt-out’’ notice?
Finally, the Commission seeks comment
on situations in which a consumer that
has made a do-not-fax request of a
sender subsequently provides express
invitation or permission to receive
facsimile advertisements from that
entity. Should the facsimile sender bear
the burden of proof to demonstrate that
it had the consumer’s express invitation
or permission to send the facsimile
advertisement?
Authority To Establish Nonprofit
Exception
Background
Section 2(e) of the Junk Fax
Prevention Act—Authority to Establish
Nonprofit Exemption—amends section
227(b)(2) of the Act by adding language
that authorizes the Commission to
consider exempting nonprofit
organizations from the notice
requirements discussed above.
Specifically, section 2(e) provides that
the Commission:
(F) May, in the discretion of the
Commission and subject to such conditions
as the Commission may prescribe, allow
professional or trade associations that are taxexempt nonprofit organizations to send
unsolicited advertisements to their members
in furtherance of the association’s tax-exempt
purpose that do not contain the notice
required by paragraph (1)(C)(iii), except that
the Commission may take action under this
subparagraph only—
(i) By regulation issued after public
comment; and
(ii) If the Commission determines that such
notice required by paragraph (1)(C)(iii) is not
necessary to protect the ability of the
members of such associations to stop such
associations from sending any future
unsolicited advertisements[.]
Discussion
The Commission seeks comment on
whether the Commission should allow
professional or trade associations that
are tax-exempt nonprofit organizations
to send unsolicited advertisements to
their members in furtherance of the
associations’ tax-exempt purpose that
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do not contain the ‘‘opt-out’’ notice
required by the Junk Fax Prevention
Act. In particular, the Commission seeks
comment on whether such notice is
necessary to protect the ability of
members of such associations to stop
the sending of any future unsolicited
advertisements. For example, how will
members of such associations obtain the
necessary information to opt-out if
associations are not required to provide
such information? What benefits, if any,
are there to nonprofit organizations if
the Commission exempts them from this
requirement? How should the
Commission determine whether an
unsolicited advertisement is sent ‘‘in
furtherance of the association’s taxexempt purpose?’’ The Commission
seeks comment on these issues and any
other issues commenters may consider
pertinent to this topic.
Unsolicited Advertisement
Background
Section 2(g) of the Junk Fax
Prevention Act—Unsolicited
Advertisement—amends section
227(a)(5) of the Act which defines the
term ‘‘unsolicited advertisement’’ by
adding ‘‘in writing or otherwise’’ before
the period at the end of that section.
Discussion
The Commission proposes amending
the definition of unsolicited
advertisement in § 64.1200(f)(10) of the
Commission’s rules to read as follows:
The term unsolicited advertisement means
any material advertising the commercial
availability or quality of any property, goods,
or services which is transmitted to any
person without that person’s prior express
invitation or permission, in writing or
otherwise.
In addition, the Commission seeks
comment on the phrase ‘‘prior express
invitation or permission’’ in the
definition. In addition to written
permission, what other forms of
permission should be allowed by our
rules? If permission is given orally, for
instance, should the facsimile sender
bear the burden of proof to demonstrate
that it had the consumer’s prior express
invitation or permission?
Other Issues: Creation of CG Docket No.
05–338
In this NPRM, the Commission opens
a new docket—CG Docket No. 05–338.
All filings in response to this NPRM and
those addressing the Commission’s
facsimile advertising rules generally,
should be filed in CG Docket No. 05–
338. Although the Commission urges
parties that previously filed in CG
Docket No. 02–278 on the facsimile
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advertising rules to re-file in new CG
Docket No. 05–338, such filings
nevertheless will be considered in this
proceeding. Therefore, the Commission
incorporates by reference comments
filed in CG Docket No. 02–278 that are
responsive to the issues raised in this
proceeding. The existing TCPA docket,
CG Docket 02–278, will remain open for
other TCPA-related filings.
Initial Regulatory Flexibility Analysis
As required by the Regulatory
Flexibility Act of 1980, as amended
(RFA), the Commission has prepared
this present Initial Regulatory
Flexibility Analysis (IRFA) of the
possible significant economic impact on
a substantial number of small entities by
the policies and rules proposed in this
Notice of Proposed Rulemaking (NPRM).
Written public comments are requested
on this IRFA. Comments must be
identified as responses to the IRFA and
must be filed by January 18, 2006. The
Commission will send a copy of the
NPRM, including this IRFA, to the Chief
Counsel for Advocacy of the Small
Business Administration (SBA). In
addition, the NPRM and IRFA (or
summaries thereof) will be published in
the Federal Register.
A. Need for, and Objectives of, the
Proposed Rules
On July 9, 2005, the Junk Fax
Prevention Act was signed into law
amending the provisions of section 227
of the Communications Act. The Junk
Fax Prevention Act codifies an
established business relationship
exemption to the provision which
prohibits the sending of unsolicited
facsimile advertisements. It also
requires the sender of a facsimile
advertisement to provide specified
notice and contact information on the
facsimile that allows recipients to ‘‘optout’’ of any future facsimile
transmissions from the sender. It also
requires the Commission to issue
regulations to implement the
amendments within 270 days of the date
of enactment of the statute. Therefore,
the proposed rules are necessary to
comply with this congressional mandate
and to provide additional guidance to
regulated entities that must comply with
the federal statute. The proposed
modifications to the Commission’s
existing rules are necessary if they are
to be consistent with the amendments
made by the Junk Fax Prevention Act.
In this NPRM, the Commission
proposes a number of modifications to
the Commission’s rules on unsolicited
facsimile advertisements. The
Commission proposes amending
§ 64.1200(a)(3) of the Commission’s
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rules to expressly recognize an
established business relationship (EBR)
exemption. The Commission also
proposes removing § 64.1200(a)(3)(i) of
the Commission’s rules which provides
that a facsimile advertisement is
unsolicited unless the recipient has
granted the sender prior express
invitation or permission to deliver the
advertisement, as evidenced by a
signed, written statement that clearly
indicates the recipient’s consent to
receive such facsimile advertisements
from the sender. The Commission also
proposes amending the Commission’s
rules to permit senders to send facsimile
advertisements to persons with whom
an established business relationship was
formed prior to July 9, 2005, provided
the facsimile number was in the
sender’s possession before July 9, 2005.
In addition, the Commission proposes
incorporating into our rules the
definition of ‘‘established business
relationship’’ that applied to telephone
solicitations and was in effect on
January 1, 2003. The Commission also
seeks comment on whether to limit the
duration of the EBR as applied to
facsimile advertising.
The Junk Fax Prevention Act requires
senders of unsolicited facsimile
advertisements to include a notice on
the first page of the facsimile that
informs the recipient of the ability and
means to request that they not receive
future unsolicited facsimile
advertisements from the sender.
Therefore, the Commission proposes
amending the Commission’s rules
consistent with these specific notice
requirements and clarifying under what
circumstances a notice will be
considered ‘‘clear and conspicuous.’’
Additionally, the Commission proposes
defining the ‘‘shortest reasonable time’’
within which a sender of unsolicited
facsimile advertisements must comply
with a request not to receive future
facsimile advertisements from the
sender. The Commission also proposes
adopting the requirements provided in
the Junk Fax Prevention Act regarding
the making of a request not to receive
future unsolicited facsimile
advertisements. The request would need
to identify the numbers of the telephone
facsimile machine or machines and be
made to the sender of the advertisement.
As contemplated by the Junk Fax
Prevention Act, the proposed rules also
address the ability of professional or
trade associations that are tax-exempt
nonprofit organizations to send to their
members unsolicited advertisements in
furtherance of the association’s taxexempt purpose that do not contain the
‘‘opt-out’’ notice required by the statute.
In addition, the proposed rules address
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the ability of small business senders to
provide ‘‘cost-free’’ mechanisms for
recipients to transmit opt-out requests.
Finally, the Commission proposes
amending the definition of ‘‘unsolicited
advertisement’’ so that it is consistent
with the definition in the Junk Fax
Prevention Act.
B. Legal Basis
The proposed action is authorized
under sections 1–4, 227 and 303(r) of
the Communications Act of 1934, as
amended; 47 U.S.C. 151–154 and 227,
and the Junk Fax Prevention Act of
2005, Public Law Number 109–21, 119
Statute 359.
C. Description and Estimate of the
Number of Small Entities to Which the
Proposed Rules Will Apply
The RFA directs agencies to provide
a description of and, where feasible, an
estimate of the number of small entities
that may be affected by the proposed
rules, if adopted. The RFA generally
defines the term ‘‘small entity’’ as
having the same meaning as the terms
‘‘small business,’’ ‘‘small organization,’’
and ‘‘small governmental jurisdiction.’’
In addition, the term ‘‘small business’’
has the same meaning as the term
‘‘small business concern’’ under the
Small Business Act. A small business
concern is one which: (1) Is
independently owned and operated; (2)
is not dominant in its field of operation;
and (3) satisfies any additional criteria
established by the SBA.
The Commission’s rules on the
sending of unsolicited facsimile
advertisements would apply to any
entity, including any
telecommunications carrier, that uses
the telephone facsimile machine to
advertise. Thus, the Commission
expects that the proposals in this NPRM
could have a significant economic
impact on a substantial number of small
entities, including the following:
Interexchange Carriers. Neither the
Commission nor the SBA has developed
a specific size standard for small entities
specifically applicable to providers of
interexchange services. The closest
applicable size standard under the SBA
rules is for Wired Telecommunications
Carriers. Under that standard, such a
business is small if it has 1,500 or fewer
employees. According to the FCC’s
Telephone Trends Report data, 281
carriers reported that their primary
telecommunications service activity was
the provision of interexchange services.
Of these 281 carriers, an estimated 254
have 1,500 or fewer employees, and 27
have more than 1,500 employees.
Consequently, the Commission
estimates that a majority of
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interexchange carriers may be affected
by the rules.
Incumbent Local Exchange Carriers.
Neither the Commission nor the SBA
has developed a small business size
standard for providers of incumbent
local exchange services. The closest
applicable size standard under the SBA
rules is for Wired Telecommunications
Carriers. Under that standard, such a
business is small if it has 1,500 or fewer
employees. According to the FCC’s
Telephone Trends Report data, 1,310
incumbent local exchange carriers
reported that they were engaged in the
provision of local exchange services. Of
these 1,310 carriers, an estimated 1,025
have 1,500 or fewer employees and 285
have more than 1,500 employees.
Consequently, the Commission
estimates that the majority of providers
of local exchange service are small
entities that may be affected by the rules
and policies adopted herein.
Wireless Service Providers. The SBA
has developed a small business size
standard for wireless firms within the
two broad economic census categories
of ‘‘Paging’’ and ‘‘Cellular and Other
Wireless Telecommunications.’’ Under
both SBA categories, a wireless business
is small if it has 1,500 or fewer
employees. For the census category of
Paging, Census Bureau data for 1997
show that there were 1,320 firms in this
category, total, that operated for the
entire year. Of this total, 1,303 firms had
employment of 999 or fewer employees,
and an additional 17 firms had
employment of 1,000 employees or
more. Thus, under this category and
associated small business size standard,
the great majority of firms can be
considered small. For the census
category Cellular and Other Wireless
Telecommunications, Census Bureau
data for 1997 show that there were 977
firms in this category, total, that
operated for the entire year. Of this
total, 965 firms had employment of 999
or fewer employees, and an additional
12 firms had employment of 1,000
employees or more. Thus, under this
second category and size standard, the
great majority of firms can, again, be
considered small.
Ordinarily, the Commission does not
seek comment on the entities that must
comply with proposed rules. However,
the proposed rules in this document
potentially could apply to any entity,
including any telecommunications
carrier, that sends an unsolicited
advertisement to a telephone facsimile
machine. Thus, under these unusual
circumstances, the Commission seeks
comment on whether the approximately
4.44 million small business firms in the
United States, as identified in SBA data,
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will need to comply with these rules, or
whether it is reasonable to assume that
only a subset of them will be subject to
these rules given that not all small
businesses use the facsimile machine for
advertising purposes. After evaluating
the comments, the Commission will
examine further the effect any rule
changes might have on small entities
not named herein, and will set forth our
findings in the final Regulatory
Flexibility Analysis.
D. Description of Projected Reporting,
Recordkeeping, and Other Compliance
Requirements
The NPRM seeks comment on a
number of rule changes that will affect
reporting, recordkeeping and other
compliance requirements for entities
sending unsolicited facsimile
advertisements. The proposed rules will
apply to all entities using telephone
facsimile machines to send unsolicited
advertisements. If the Commission
adopts an EBR exemption to the
prohibition on sending unsolicited
facsimile advertisements, many entities
that send such messages only to their
EBR customers will not be required to
obtain separate permission from
recipients, thereby potentially
minimizing some of the compliance
requirements. However, in the event a
question arises about the existence of an
EBR or the duration of the EBR, the
sender might need to maintain records
evidencing the EBR and when the EBR
was formed. Such records might also
need to demonstrate whether or not the
facsimile number was in the sender’s
possession before date of enactment of
the Junk Fax Prevention Act. Because
the Commission determined in 1992
that an EBR could evidence permission
to send a facsimile advertisement, the
Commission believes most senders of
facsimile advertisements currently
maintain these records and will not be
required to take any new action to
comply with the proposed rules.
In addition, the NPRM proposes
adopting the specific notice
requirements on unsolicited facsimile
advertisements set forth in section 2 of
the Junk Fax Prevention Act. As
mandated by the Junk Fax Prevention
Act, senders of unsolicited
advertisements must include a notice on
the first page of the facsimile that
informs the recipient of the ability and
means to request that they not receive
future unsolicited advertisements from
the sender. Under the Junk Fax
Prevention Act, the notice must be on
the first page of the advertisement; be
clear and conspicuous; include a
domestic contact telephone and
facsimile machine number for the
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Federal Register / Vol. 70, No. 242 / Monday, December 19, 2005 / Proposed Rules
recipient to transmit an opt-out request
to the sender; and provide a cost-free
mechanism for a recipient to transmit a
request pursuant to such notice to the
sender of the advertisement. Finally, the
telephone and facsimile machine
numbers and cost-free mechanism must
permit an individual or business to
make such a request at any time on any
day of the week. Should the
Commission adopt the notice
requirements in the Junk Fax Prevention
Act, senders would need to take steps to
ensure that their facsimile
advertisements contained the notice and
that such notice meets any specific
criteria as outlined above. In addition,
senders of facsimile advertisements
must implement a cost-free mechanism,
if they do not already have one in place,
to allow recipients of such messages to
request not to receive future
advertisements.
The NPRM also seeks comment on the
‘‘shortest reasonable time’’ within
which a sender of facsimile
advertisements must comply with a
request not to receive future facsimile
advertisements from the sender. If the
Commission adopts a 30-day limitation,
or an alternative time period, within
which senders of unsolicited facsimile
advertisements must honor a do-not-fax
request, entities subject to the rules
would need to make sure to utilize some
recordkeeping system to ensure that
such requests are honored within 30
days or an alternative period of time.
Finally, should the Commission require
the fax sender to bear the burden of
proof to demonstrate that a consumer
provided express invitation or
permission to receive a facsimile
advertisement after the consumer had
previously made a do-not-fax request,
the sender would likely need to
maintain some record of that
permission.
E. Steps Taken To Minimize Significant
Economic Impact on Small Entities, and
Significant Alternatives Considered
The RFA requires an agency to
describe any significant alternatives that
it has considered in reaching its
proposed approach, which may include
the following four alternatives (among
others): (1) The establishment of
differing compliance or reporting
requirements or timetables that take into
account the resources available to small
entities; (2) the clarification,
consolidation, or simplification of
compliance or reporting requirements
under the rule for small entities; (3) the
use of performance, rather than design,
standards; and (4) an exemption from
coverage of the rule, or any part thereof,
for small entities.
VerDate Aug<31>2005
17:15 Dec 16, 2005
Jkt 208001
In proposing rules to implement the
Junk Fax Prevention Act, the
Commission also considers alternatives
that potentially could minimize the
burdens on, or simplify compliance
requirements for, small businesses.
First, the Commission considers
exempting certain classes of small
business senders from the requirement
to provide a cost-free mechanism for a
recipient to transmit a request not to
receive future facsimile advertisements.
In considering this alternative, the
Commission will evaluate the costs to
such small businesses of providing the
cost-free mechanism and whether such
costs are unduly burdensome given the
revenues generated by small businesses.
The Commission also compares and
evaluates alternative ‘‘cost-free’’
mechanisms that businesses might
utilize to minimize burdens on small
businesses, but still allow recipients to
request of any small business that it not
send future facsimile advertisements.
Finally, in determining whether to limit
the duration of the EBR, the
Commission will consider the costs to
small businesses of demonstrating the
existence of a limited EBR.
In addition, the Commission
considers exempting certain nonprofit
organizations from the notice
requirements in the Junk Fax Prevention
Act. This alternative proposal will allow
professional or trade associations that
are tax-exempt nonprofit organizations
to send unsolicited advertisements to
their members in furtherance of the
associations’ tax-exempt purpose that
do not contain the ‘‘opt-out’’ notice
required by the Junk Fax Prevention
Act. Should the Commission determine
that such notice is not necessary to
protect the ability of members of such
associations to stop the sending of any
future unsolicited advertisements, this
alternative approach could minimize
compliance burdens on those
professional and trade associations that
are small businesses.
As described above, the Junk Fax
Prevention Act requires that senders of
facsimile advertisements include
notices stating that the recipients may
request not to receive any future
unsolicited facsimile advertisements.
The Commission is considering
alternative time periods within which a
sender of unsolicited facsimile
advertisements must comply with a
request not to receive future facsimile
advertisements from the sender. The
Commission will compare and evaluate
these alternative time periods to ensure
that they are the ‘‘shortest reasonable
time periods’’ within which senders can
comply with the rules and that they are
PO 00000
Frm 00026
Fmt 4702
Sfmt 4702
not overly burdensome to small
businesses.
F. Federal Rules That May Duplicate,
Overlap, or Conflict With the Proposed
Rule
The Commission’s proposal in this
NPRM to expressly recognize an EBR
exemption to the prohibition on sending
unsolicited facsimile advertisements
appears to conflict with
§ 64.1200(a)(3)(i) of the Commission’s
existing rules. Therefore, this NPRM
proposes revising or removing
§ 64.1200(a)(3)(i) of the Commission’s
rules, which provides that a facsimile
advertisement is unsolicited unless ‘‘the
recipient has granted the sender prior
express invitation or permission to
deliver the advertisement, as evidenced
by a signed, written statement that
* * * clearly indicates the recipient’s
consent to receive such facsimile
advertisements from the sender.’’
Ordering Clauses
Pursuant to the authority contained in
sections 1–4, 227, and 303(r), of the
Communications Act of 1934, as
amended; 47 U.S.C. 151–154, 227, and
303(r); the Junk Fax Prevention Act of
2005, and § 64.1200 of the
Commission’s rules, 47 CFR 64.1200,
64.2401, this Notice of Proposed
Rulemaking in CG Docket 02–278 is
adopted.
CG Docket No. 05–338 shall be
created for this proceeding and for other
issues related to the Commission’s
facsimile advertising rules.
The Commission’s Consumer &
Governmental Affairs Bureau, Reference
Information Center, shall send a copy of
the Notice of Proposed Rulemaking,
including the Initial Regulatory
Flexibility Analysis, to the Chief
Counsel for Advocacy of the Small
Business Administration.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 05–24211 Filed 12–16–05; 8:45 am]
BILLING CODE 6712–01–P
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Agencies
[Federal Register Volume 70, Number 242 (Monday, December 19, 2005)]
[Proposed Rules]
[Pages 75102-75110]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-24211]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 64
[CG Docket No. 02-278; CG Docket No. 05-338; FCC 05-206]
Rules and Regulations Implementing the Telephone Consumer
Protection Act of 1991
AGENCY: Federal Communications Commission.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Junk Fax Prevention Act of 2005 amends section 227 of the
Communications Act of 1934 relating to unsolicited facsimile
advertisements. The Junk Fax Prevention Act requires the Commission to
issue regulations to implement the amendments made by the statute no
later than 270 days after the date of enactment of the Act. In this
document, the Commission proposes amendments to its unsolicited
facsimile advertising rules and seeks comment on related aspects of
those rules. Specifically, the Commission seeks comment on the
established business relationship (EBR) exception to the rules, the
requirement to include an opt-out notice and contact information on
facsimile advertisements, and other rules implementing the Junk Fax
Prevention Act. The Commission also opens a new docket for all filings
in response to this document and those addressing the facsimile
advertising rules generally.
DATES: Comments due January 18, 2006. Reply comments due February 2,
2006. Written comments on the Paperwork Reduction Act (PRA) proposed
information collection requirements must be submitted by the general
public, Office of Management and Budget (OMB), and other interested
parties on or before February 17, 2006.
ADDRESSES: You may submit comments, identified by CG Docket No. 05-338,
by any of the following methods:
[[Page 75103]]
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Federal Communications Commission's Web site: https://
www.fcc.gov/cgb/ecfs/. Follow the instructions for submitting comments.
People with Disabilities: Contact the FCC to request
reasonable accommodations (accessible format documents, sign language
interpreters, CART, etc.) by e-mail: FCC504@fcc.gov or phone (2020 418-
0539 or TTY: (202) 418-0432.
For detailed instructions for submitting comments and additional
information on the rulemaking process, see the SUPPLEMENTARY
INFORMATION section of this document. In addition, a copy of any
comments on the Paperwork Reduction Act (PRA) information collection
requirements contained herein should be submitted to Leslie Smith,
Federal Communications Commission, Room 1-A804, 445 12th Street, SW.,
Washington, DC 20554, or via the Internet to Leslie.Smith@fcc.gov, and
to Kristy L. LaLonde, OMB Desk Officer, Room 10234 NEOB, 725 17th
Street, NW., Washington, DC 20503, via the Internet to Kristy--L.--
LaLonde@omb.eop.gov, or via fax at (202) 395-5167.
FOR FURTHER INFORMATION CONTACT: Erica McMahon or Richard Smith,
Consumer & Governmental Affairs Bureau, (202) 418-2512. For additional
information concerning the Paperwork Reduction Act information
collection requirements contained in this document, contact Les Smith
at (202) 418-0217, or via the Internet at Leslie.Smith@fcc.gov.
SUPPLEMENTARY INFORMATION: This Notice of Proposed Rulemaking (NPRM),
CG Docket No. 02-278, FCC 05-206, contains proposed information
collection requirements subject to the PRA, Public Law 104-13. It will
be submitted to the Office of Management and Budget (OMB) for review
under section 3507 of the PRA. OMB, the general public, and other
Federal agencies are invited to comment on the proposed information
collection requirements contained in this proceeding. This is a summary
of the Commission's NPRM, FCC 05-206, adopted December 9, 2005, and
released December 9, 2005 in CG Docket No. 02-278 and CG Docket No.05-
338. The Commission also opens a new docket--CG Docket No. 05-338--for
all filings in response to this document and those addressing the
facsimile advertising rules generally. In addition, this NPRM is
associated with an Order, FCC 05-206, adopted December 9, 2005,
released December 9, 2005, addressing the delayed effective date of the
written consent requirement for sending facsimile advertisements. The
Final rule is published elsewhere in this issue of the Federal
Register.
Pursuant to Sec. Sec. 1.415 and 1.419 of the Commission's rules,
47 CFR 1.415 and 1.419, interested parties may file comments on January
18, 2006 and reply comments on February 2, 2006. Comments may be filed
using: (1) The Commission's Electronic Comment Filing System (ECFS);
(2) the Federal Government's eRulemaking Portal; or (3) or by filing
paper copies. See Electronic Filing of Documents in Rulemaking
Proceedings, 63 FR 24121, May 1, 1998.
Electronic Filers: Comments may be filed electronically
using the Internet by accessing the ECFS: https://www.fcc.gov/cgb/ecfs/ or the Federal eRulemaking Portal: https://www.regulations.gov. Filers
should follow the instructions provided on the Web site for submitting
comments.
For ECFS filers, although multiple docket numbers appear
in the caption of this proceeding, filers should transmit one
electronic copy of the comments for CG Docket No. 05-338 only. In
completing the transmittal screen, filers should include their full
name, U.S. Postal Service mailing address, and the applicable docket or
rulemaking number, which in this instance is CG Docket No. 05-338.
Parties may also submit an electronic comment by Internet e-mail. To
get filing instructions, filers should send an e-mail to ecfs@fcc.gov,
and include the following words in the body of the message, ``get
form.'' A sample form and directions will be sent in response.
Paper Filers: Parties who choose to file by paper must
file an original and four copies of each filing in CG Docket No. 05-
338. Filings can be sent by hand or messenger delivery, by commercial
overnight courier, or by first-class or overnight U.S. Postal Service
mail (although the Commission continues to experience delays in
receiving U.S. Postal Service mail). All filings must be addressed to
the Commission's Secretary, Office of the Secretary, Federal
Communications Commission.
The Commission's contractor will receive hand-delivered or
messenger-delivered paper filings for the Commission's Secretary at 236
Massachusetts Avenue, NE., Suite 110, Washington, DC 20002. The filing
hours at this location are 8 a.m. to 7 p.m. All hand deliveries must be
held together with rubber bands or fasteners. Any envelopes must be
disposed of before entering the building.
Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9300 East Hampton
Drive, Capitol Heights, MD 20743.
U.S. Postal Service first-class, Express, and Priority
mail should be addressed to 445 12th Street, SW., Washington, DC 20554.
Comments and reply comments must include a short and concise
summary of the substantive discussion and questions raised in the NPRM.
The Commission further directs all interested parties to include the
name of the filing party and the date of the filing on each page of
their comments and reply comments. The Commission strongly encourages
that parties track the organization set forth in the NPRM in order to
facilitate the Commission's internal review process. Comments and reply
comments must otherwise comply with Sec. 1.48 of the Commission's
rules and all other applicable sections of the Commission's rules. (See
47 CFR 1.48).
Pursuant to Sec. 1.1200 of the Commission's rules, 47 CFR 1.1200,
this matter shall be treated as a ``permit-but-disclose'' proceeding in
accordance with the Commission's ex parte rules. Persons making oral ex
parte presentations are reminded that memoranda summarizing the
presentations must contain summaries of the substances of the
presentations and not merely a listing of the subjects discussed. More
than a one or two sentence description of the views and arguments
presented is generally required. See 47 CFR 1.1206(b). Other rules
pertaining to oral and written ex parte presentations in permit-but-
disclose proceedings are set forth in Sec. 1.1206(b) of the
Commission's rules, 47 CFR 1.1206(b).
To request materials in accessible formats for people with
disabilities (Braille, large print, electronic files, audio format),
send an e-mail to fcc504@fcc.gov or call the Consumer & Governmental
Affairs Bureau at (202) 418-0530 (voice), (202) 418-0432 (TTY).
Initial Paperwork Reduction Act of 1995 Analysis
This NPRM contains proposed information collection requirements.
The Commission, as part of its continuing effort to reduce paperwork
burdens, invites the general public and the Office of Management and
Budget (OMB) to comment on the information collection requirements
contained in this NPRM, as required by the Paperwork Reduction Act of
1995, Public Law 104-13. Public and agency comments are due February
17, 2006.
[[Page 75104]]
Comments should address: (a) Whether the proposed collection of
information is necessary for the proper performance of the functions of
the Commission, including whether the information shall have practical
utility; (b) the accuracy of the Commission's burden estimates; (c)
ways to enhance the quality, utility, and clarity of the information
collected; and (d) ways to minimize the burden of the collection of
information on the respondents, including the use of automated
collection techniques or other forms of information technology. In
addition, pursuant to the Small Business Paperwork Relief Act of 2002,
Public Law 107-198, see 44 U.S.C. 3506(c)(4), the Commission seeks
specific comment on how the Commission might ``further reduce the
information collection burden for small business concerns with fewer
than 25 employees.''
OMB Control Number: 3060-XXXX.
Title: Rules and Regulations Implementing the Junk Fax Prevention
Act of 2005.
Form Number: N/A.
Type of Review: New Collection.
Respondents: Individuals or households; Business and other for-
profit entities; and Not-for-profit institutions.
Number of Respondents: 5,000,000--(4 million facsimile
advertisement senders and 1,000,000 complainants).
Number of Responses: 5,150,000 responses.
Estimated Time per Response: 15 seconds to 1 hour.
Frequency of Responses: On occasion reporting requirement; monthly
recordkeeping; third party.
Total Annual Burden: 13,170,000 hours.
Total Annual Cost: $60,000,000.
Privacy Impact Assessment: Yes.
Needs and Uses: On December 9, 2005, the Commission released a
Notice of Proposed Rulemaking, Rules and Regulations Implementing the
Telephone Consumer Protection Act of 1991 (NPRM), which proposes
modifications to the Commission's rules on unsolicited facsimile
advertisements and seeks comment on related aspects of those rules,
pursuant to the Junk Fax Prevention Act. The Commission is considering
the adoption of rules governing the transmission of facsimile
advertisements. Because the facsimile advertising rules involve
different issues and different entities than do the telemarketing rules
under the Telephone Consumer Protection Act (TCPA), the Commission
believes that it will be easier for the public if the burden hours
associated with the facsimile advertising rules are identified in a
separate information collection. Therefore, the Commission is
initiating a new collection for the proposed facsimile advertising
rules described below:
(1) The Junk Fax Prevention Act requires senders of unsolicited
facsimile advertisements to include a notice on the first page of the
facsimile that informs the recipient of the ability and means to
request that they not receive future unsolicited facsimile
advertisements from the sender. The NPRM must include a domestic
contact telephone and facsimile machine number for the recipient to
transmit such a request to the sender, as well as a cost-free mechanism
for a recipient to transmit a request pursuant to such notice to the
sender of the unsolicited advertisement. The telephone and facsimile
numbers and cost-free mechanism must permit an individual or business
to make such a request at any time on any day of the week. The
Commission proposes amending the Commission's rules to require entities
to comply with the specific notice requirements in the Junk Fax
Prevention Act. The Commission also asks whether a 30-day limitation is
the shortest reasonable period in which a sender should comply with a
request not to receive future facsimile advertisements.
(2) In addition, the Junk Fax Prevention Act provides that, if a
sender relies on an EBR for permission to fax an advertisement, the
sender must have obtained the number of the telephone facsimile machine
through the voluntary communication of such number, within the context
of such EBR or through a directory, advertisement, or site on the
Internet to which the recipient voluntarily agreed to make available
its facsimile number. This provision does not apply in the case of an
advertisement sent based on an established business relationship with
the recipient that was in existence before the date of enactment of the
Junk Fax Prevention Act (July 9, 2005). The Commission seeks comment on
whether to require the sender to make reasonable efforts to confirm
with the entity that compiled the numbers that the recipients have
voluntarily agreed to allow them to be made publicly available. The
Commission also proposes amending the rules, consistent with the Junk
Fax Prevention Act, to permit senders to send facsimile advertisements
to persons with whom an EBR was formed prior to July 9, 2005, provided
the facsimile number was in the sender's possession before July 9,
2005, as well. While there is no ongoing reporting requirement
associated with this proposed rule, if a complaint is filed involving
the existence of an EBR or the duration of the EBR, the facsimile
sender may need to obtain and provide records kept in the usual course
of business evidencing the duration of the EBR.
(3) Finally the Commission seeks comment on situations in which a
consumer that has made a do-not-fax request of a sender subsequently
provides express invitation or permission to receive facsimile
advertisements from that entity. Specifically, the Commission asks
whether the facsimile sender should bear the burden of proof to
demonstrate that it had the consumer's express invitation or permission
to send the advertisement. Again, while there is no ongoing
recordkeeping or reporting requirement associated with this proposed
rule, if a complaint is filed, the facsimile sender may need to obtain
and provide records demonstrating that express invitation or permission
was subsequently provided by the recipient.
Synopsis
The Junk Fax Prevention Act of 2005 (the Junk Fax Prevention Act)
amends the provisions of section 227 of the Communications Act of 1934
(the Act) relating to unsolicited facsimile advertisements. As required
by the Junk Fax Prevention Act, the Commission proposes modifications
to the Commission's rules on unsolicited facsimile advertisements and
seeks comment on related aspects of those rules. The Junk Fax
Prevention Act was signed into law on July 9, 2005. Section 2(h) of the
Junk Fax Prevention Act provides that ``not later than 270 days after
the date of enactment of this Act, the Federal Communications
Commission shall issue regulations to implement the amendments made by
this section.'' Therefore, the Commission must issue regulations to
implement these amendments no later than April 5, 2006.
Recognition of an Established Business Relationship Exemption
Background
Section 2(a) of the Junk Fax Prevention Act amends section
227(b)(1)(C) of the Act by adding an established business relationship
(EBR) exemption to the prohibition on sending unsolicited facsimile
advertisements. Specifically, section 2(a) provides that it shall be
unlawful for any person within the United States or any person outside
the United States if the recipient is within the United States:
(C) To use any telephone facsimile machine, computer, or other
device to
[[Page 75105]]
send, to a telephone facsimile machine, an unsolicited advertisement,
unless--
(i) The unsolicited advertisement is from a sender with an
established business relationship with the recipient;
(ii) The sender obtained the number of the telephone facsimile
machine through--
(I) The voluntary communication of such number, within the context
of such established business relationship, from the recipient of the
unsolicited advertisement, or
(II) A directory, advertisement, or site on the Internet to which
the recipient voluntarily agreed to make available its facsimile number
for public distribution, except that this clause shall not apply in the
case of an unsolicited advertisement that is sent based on an
established business relationship with the recipient that was in
existence before the date of enactment of the Junk Fax Prevention Act
of 2005 if the sender possessed the facsimile machine number of the
recipient before such date of enactment; and
(iii) The unsolicited advertisement contains a notice meeting the
requirements under paragraph (2)(D), except that the exception under
clause (i) and (ii) shall not apply with respect to an unsolicited
advertisement sent to a telephone facsimile machine by a sender to whom
a request has been made not to send future unsolicited advertisements
to such telephone facsimile machine that complies with the requirements
under paragraph (2)(E).
Discussion
The Commission proposes amending Sec. 64.1200(a)(3) of the
Commission's rules in accordance with the specific requirements in
section 2(a) of the Junk Fax Prevention Act regarding the express
recognition of an EBR exemption. Specifically, the Commission proposes
removing Sec. 64.1200(a)(3)(i) of the Commission's rules which
provides that a facsimile advertisement is unsolicited unless ``the
recipient has granted the sender prior express invitation or permission
to deliver the advertisement, as evidenced by a signed, written
statement that * * * clearly indicates the recipient's consent to
receive such facsimile advertisements from the sender.'' Congress has
concluded that an unsolicited advertisement from a sender with an EBR
to the recipient will not be governed by the general prohibition found
in section 227(b)(1)(C) of the Act. As discussed further below, in the
context of an EBR, such prior express permission may be formed by means
other than a signed, written statement that indicates the recipient's
consent to receive facsimile advertisements. The Commission seeks
comment on these and any other issues that commenters may consider
pertinent to this topic.
In addition, the Commission seeks specific comment on whether the
Commission should establish parameters defining what it means for a
person to provide a facsimile number ``within the context of [an]
established business relationship.'' Under what circumstances should
the Commission recognize that a person has voluntarily agreed to make a
facsimile number available for public distribution? Should the burden
rest with the sender to establish that the recipient has agreed to make
the number publicly available? When the sender obtains the facsimile
number from a directory, advertisement, or site on the Internet, should
the sender be required to make reasonable efforts to confirm with the
entity that compiled the numbers that the recipients have
``voluntarily'' agreed to allow them to be made publicly available?
Finally, the Junk Fax Prevention Act provides an exception from the
requirement that any sender transmitting a facsimile advertisement on
the basis of an EBR must have obtained the facsimile number through the
``voluntary communication of such number, within the context of such
established business relationship'' or through ``a directory,
advertisement, or site on the Internet to which the recipient
voluntarily agreed to make available its facsimile number for public
distribution.'' Under the statute, if the EBR was in existence prior to
the date of enactment of the statute and the sender also possessed the
facsimile number before the date of enactment of the statute, the
sender is not required to demonstrate how it obtained the facsimile
number. The Commission proposes amending the Commission's rules
consistent with this exception, which would permit senders to send
facsimile advertisements to persons with whom an EBR was formed prior
to July 9, 2005, provided the facsimile number was in the sender's
possession before July 9, 2005, as well. If the Commission adopts this
proposal, how should the Commission verify that a sender had an EBR and
the recipient's facsimile number prior to July 9, 2005? The Commission
seeks comment on this proposal and any other issues that relate to the
sender's ability to send facsimile advertisements to persons with whom
an EBR was formed prior to enactment of the Junk Fax Prevention Act.
Definition of Established Business Relationship
Background
Section 2(b) of the Junk Fax Prevention Act--Definition of
Established Business Relationship--amends section 227(a) of the Act by
providing a definition of an EBR to be used in the context of
unsolicited facsimile advertisements. Specifically, section 2(b) adds
the following language:
(2) The term `established business relationship', for purposes only
of subsection (b)(1)(C)(i) [creating an EBR exemption for unsolicited
facsimile advertisements] shall have the meaning given the term in
section 64.1200 of title 47, Code of Federal Regulations, as in effect
on January 1, 2003, except that--
(A) Such term shall include a relationship between a person or
entity and a business subscriber subject to the same terms applicable
under such section to a relationship between a person or entity and a
residential subscriber; and
(B) An established business relationship shall be subject to any
time limitation established pursuant to paragraph (2)(G).
Paragraph 2(G)'' refers to Section 2(f) of the Junk Fax Prevention
Act. That provision authorizes the Commission to limit the duration of
the EBR in the context of unsolicited facsimile advertisements.
Specifically, Section 2(f) provides that the Commission:
(G)(i) May, consistent with clause (ii), limit the duration of
the existence of an established business relationship, however,
before establishing any such limits, the Commission shall--
(I) Determine whether the existence of the exception under
paragraph
(1)(C) Relating to an established business relationship has
resulted in a significant number of complaints to the Commission
regarding the sending of unsolicited advertisements to telephone
facsimile machines;
(II) Determine whether a significant number of any such
complaints involve unsolicited advertisements that were sent on the
basis of an established business relationship that was longer in
duration than the Commission believes is consistent with the
reasonable expectations of consumers;
(III) Evaluate the costs to senders of demonstrating the
existence of an established business relationship within a specified
period of time and the benefits to recipients of establishing a
limitation on such established business relationship; and
(IV) Determine whether with respect to small businesses, the
costs would not be unduly burdensome; and
(ii) May not commence a proceeding to determine whether to limit
the duration of
[[Page 75106]]
the existence of an established business relationship before the
expiration of the 3-month period that begins on the date of the
enactment of the Junk Fax Prevention Act of 2005.
Discussion
As contemplated by section 2(b) of the statute, the Commission
seeks comment on whether to incorporate into the Commission's facsimile
advertising rules the following definition of an EBR:
For purposes of paragraph (a)(3) of this section, the term
established business relationship means a prior or existing
relationship formed by a voluntary two-way communication between a
person or entity and a business or residential subscriber with or
without an exchange of consideration, on the basis of an inquiry,
application, purchase or transaction by the business or residential
subscriber regarding products or services offered by such person or
entity, which relationship has not been previously terminated by
either party.
The Commission notes that this proposed EBR definition differs from
the definition of an EBR in the Commission's rules for telephone
solicitations in that it expressly extends the exemption to faxes sent
to both business and residential subscribers, rather than just
residential subscribers. This is consistent with the fact that the
prohibition on sending unsolicited facsimile advertisements, unlike
telephone solicitations, applies to both businesses and residential
subscribers.
The Junk Fax Prevention Act authorizes the Commission, after a
period of three months from the date of enactment of the Act, to
consider limits on the duration of an EBR. Therefore, the Commission
takes this opportunity to seek comment on whether to limit the EBR as
applied to unsolicited facsimile advertisements. As part of the
Commission's review, and as required by the statute, the Commission
will evaluate the Commission's complaint data to determine whether the
EBR exception has resulted in a significant number of complaints
regarding facsimile advertisements, and whether such complaints involve
facsimile advertisements sent based on an EBR of a duration that is
inconsistent with the reasonable expectations of consumers.
In the context of telephone solicitations, Congress has concluded
that the right to call consumers becomes more tenuous over time. See
House of Representatives Report Number 102-317, page 14. Consistent
with the conclusion of the Federal Trade Commission, this Commission
has limited the duration of the EBR for telephone solicitations to 18
months following a purchase or transaction and three months after an
application or inquiry. The Commission concluded that this 18/3-month
limitation on the duration of an EBR strikes an appropriate balance
between industry practices and consumers' privacy interests.
Accordingly, the Commission seeks comment on whether it is appropriate
to limit the EBR duration for unsolicited facsimile advertisements in
the same manner as telephone solicitations. To the extent that
commenters suggest EBR durations for facsimile advertisements that may
vary from those imposed on telephone solicitations, including not
adopting any limitation on the duration of the facsimile EBR, the
Commission seeks empirical evidence to distinguish the Commission's
findings relating to the EBR duration for telephone solicitations.
In addition, as set forth in the Junk Fax Prevention Act, the
Commission seeks comment on the benefits to facsimile recipients of
limits on the EBR. Are there direct costs to consumers associated with
receiving facsimile advertisements, such as costs for paper, toner, and
time spent collecting and sorting faxes that weighs in favor of
limiting the facsimile EBR? Are there direct benefits to consumers of
having an EBR that is not limited in duration? If the Commission adopts
any such limits on the EBR, the Commission also asks commenters to
describe the costs to senders of demonstrating the existence of an EBR
that is limited in duration. Would these costs be overly burdensome,
particularly for small businesses?
Notice of Opt-Out Opportunity
Background
Section 2(c) of the Junk Fax Prevention Act--Required Notice of
Opt-Out Opportunity--amends section 227(b)(2) of the Act by adding
language that requires senders of unsolicited facsimile advertisements
to include a notice on the first page of the facsimile that informs the
recipient of the ability and means to request that they not receive
future unsolicited facsimile advertisements from the sender.
Specifically, section 2(c) requires that the Commission:
(D) Shall provide that a notice contained in an unsolicited
advertisement complies with the requirements under this subparagraph
only if--
(i) The notice is clear and conspicuous and on the first page of
the unsolicited advertisement;
(ii) The notice states that the recipient may make a request to
the sender of the unsolicited advertisement not to send any future
unsolicited advertisements to a telephone facsimile machine or
machines and that failure to comply, within the shortest reasonable
time, as determined by the Commission, with such a request meeting
the requirements under subparagraph (E) [setting forth the
circumstances under which a request to opt-out complies with the
Act] is unlawful;
(iii) The notice sets forth the requirements for a request under
subparagraph (E);
(iv) The notice includes--
(I) A domestic contact telephone and facsimile machine number
for the recipient to transmit such a request to the sender; and
(II) A cost-free mechanism for a recipient to transmit a request
pursuant to such notice to the sender of the unsolicited
advertisement; the Commission shall by rule require the sender to
provide such a mechanism and may, in the discretion of the
Commission and subject to such conditions as the Commission may
prescribe, exempt certain classes of small business senders, but
only if the Commission determines that the costs to such class are
unduly burdensome given the revenues generated by such small
businesses;
(v) The telephone and facsimile machine numbers and cost-free
mechanism set forth pursuant to clause (iv) permit an individual or
business to make such a request at any time on any day of the week;
and
(vi) The notice complies with the requirements of subsection
(d).
Discussion
The Commission proposes amending the Commission's rules to comply
with the specific notice requirements on unsolicited facsimile
advertisements as set forth by Congress in section 2 of the Junk Fax
Prevention Act. In addition, the Commission seeks comment on whether it
is necessary to set forth in our rules under what circumstances a
notice will be considered ``clear and conspicuous.'' If so, the
Commission asks commenters to describe those circumstances under which
a notice should be considered ``clear and conspicuous.'' As directed by
Congress, the Commission also seeks comment on the ``shortest
reasonable time'' within which a sender of unsolicited facsimile
advertisements must comply with a request not to receive future
facsimile advertisements from the sender. The Commission notes that the
Commission's rules require that persons or entities making calls for
telemarketing purposes must honor a do-not-call request within a
reasonable time. The Commission's rules provide that this reasonable
period ``may not exceed thirty days from the date of such request.''
The Commission seeks comment on whether this 30-day limitation is the
shortest reasonable period in which to expect senders of unsolicited
facsimile advertisements to honor a do-not-fax request. If not, the
Commission seeks empirical evidence
[[Page 75107]]
from commenters to support proposals for longer or shorter periods.
The Commission notes that the Commission's rules currently require
senders of facsimile messages to identify themselves on the message,
along with the telephone number of the sending machine or the business,
other entity, or individual sending the message. The Commission
therefore seeks comment on the interplay between this identification
requirement and the notice requirement described above for senders of
unsolicited facsimile advertisements. The Commission seeks comment on
ways to minimize the burdens associated with complying with these
separate requirements that are consistent with the goals of the TCPA
and its recent amendments.
As provided by the Junk Fax Prevention Act, the Commission also
seeks comment on whether to exempt certain classes of small business
senders from the requirement to provide a cost-free mechanism for a
recipient to transmit a request not to receive future facsimile
advertisements. In particular, the Commission seeks empirical
information as to whether the costs to such small businesses are unduly
burdensome given the revenues generated by such small businesses.
Should the Commission decide to exempt certain classes of small
businesses from the requirement, the Commission seeks specific
information on how such ``classes'' of small businesses may be defined.
Do the Small Business Administration's Standard Industrial
Classification regulations provide any useful guidance? Are there any
legal impediments to adopting a definition of small business or class
of small businesses for use in this context that may deviate from the
SBA's standard definition? Does the Junk Fax Prevention Act provide
sufficient authority to allow the Commission to adopt a small business
classification that varies from the SBA? Would such an exemption for
small business senders have any adverse impact on consumers and
businesses who receive facsimile advertisements from small businesses?
Are there alternative mechanisms available so that recipients are able
to request of any small business that it not send future unsolicited
advertisements?
In addition, the Commission seeks comment on whether the Commission
needs to enumerate specific ``cost-free'' mechanisms for a recipient to
transmit a do-not-fax request, and, if so, the Commission seeks comment
on what those specific mechanisms should be. For instance, should the
provision of a toll-free telephone number, website, or email address
for receiving do-not-fax requests, comply with this requirement? Should
a local telephone number be considered a ``cost-free'' mechanism if the
unsolicited facsimile advertisements are sent only to local consumers?
The Commission seeks comment on these issues and any other issues
commenters may consider pertinent to this topic.
Request to Opt-Out of Future Unsolicited Advertisements
Background
Section 2(d) of the Junk Prevention Act--Request to Opt-Out of
Future Unsolicited Advertisements--amends section 227(b)(2) of the Act
by adding language that sets forth when a request not to send future
unsolicited facsimile advertisements complies with the Act.
Specifically, section 2(d) states that the Commission:
(E) Shall provide, by rule, that a request not to send future
unsolicited advertisements to a telephone facsimile machine complies
with the requirements under this subparagraph only if--
(i) The request identifies the telephone number or numbers of
the telephone facsimile machine or machines to which the request
relates;
(ii) The request is made to the telephone or facsimile number of
the sender of such an unsolicited advertisement provided pursuant to
subparagraph (D)(iv) or by any other method of communication as
determined by the Commission; and
(iii) The person making the request has not, subsequent to such
request, provided express invitation or permission to the sender, in
writing or otherwise, to send such advertisements to such person at
such telephone facsimile machine.
Discussion
The Commission proposes adopting the requirements provided in the
Junk Fax Prevention Act regarding the making of a request not to
receive future unsolicited facsimile advertisements. Section 2(a) of
the Junk Fax Prevention Act provides that ``the exception under clauses
(i) and (ii) [creating the EBR exemption] shall not apply with respect
to an unsolicited advertisement sent to a telephone facsimile machine
by a sender to whom a request has been made not to send future
unsolicited advertisements to such telephone facsimile machine* * * .''
The Commission seeks comment on whether the Commission's rules should
reflect that a do-not-fax request terminates the EBR exemption with the
sender of the facsimile even if the recipient continues to do business
with the sender. The Commission seeks comment on whether to specify
that if the sender of the facsimile advertisement is a third party
agent or fax broadcaster that any do-not-fax request sent to that
sender will extend to the underlying business on whose behalf the fax
is transmitted. The Commission also seeks comment on whether there are
any other methods of communication that the Commission should prescribe
for making a do-not-fax request other than those required in the notice
section discussed above (i.e., a domestic contact telephone and
facsimile number and a cost-free mechanism). Should, for instance, a
sender be required to honor a request made by mail or e-mail even if
such addresses are not necessarily provided by the sender in the
facsimile communication's ``opt-out'' notice? Finally, the Commission
seeks comment on situations in which a consumer that has made a do-not-
fax request of a sender subsequently provides express invitation or
permission to receive facsimile advertisements from that entity. Should
the facsimile sender bear the burden of proof to demonstrate that it
had the consumer's express invitation or permission to send the
facsimile advertisement?
Authority To Establish Nonprofit Exception
Background
Section 2(e) of the Junk Fax Prevention Act--Authority to Establish
Nonprofit Exemption--amends section 227(b)(2) of the Act by adding
language that authorizes the Commission to consider exempting nonprofit
organizations from the notice requirements discussed above.
Specifically, section 2(e) provides that the Commission:
(F) May, in the discretion of the Commission and subject to such
conditions as the Commission may prescribe, allow professional or
trade associations that are tax-exempt nonprofit organizations to
send unsolicited advertisements to their members in furtherance of
the association's tax-exempt purpose that do not contain the notice
required by paragraph (1)(C)(iii), except that the Commission may
take action under this subparagraph only--
(i) By regulation issued after public comment; and
(ii) If the Commission determines that such notice required by
paragraph (1)(C)(iii) is not necessary to protect the ability of the
members of such associations to stop such associations from sending
any future unsolicited advertisements[.]
Discussion
The Commission seeks comment on whether the Commission should allow
professional or trade associations that are tax-exempt nonprofit
organizations to send unsolicited advertisements to their members in
furtherance of the associations' tax-exempt purpose that
[[Page 75108]]
do not contain the ``opt-out'' notice required by the Junk Fax
Prevention Act. In particular, the Commission seeks comment on whether
such notice is necessary to protect the ability of members of such
associations to stop the sending of any future unsolicited
advertisements. For example, how will members of such associations
obtain the necessary information to opt-out if associations are not
required to provide such information? What benefits, if any, are there
to nonprofit organizations if the Commission exempts them from this
requirement? How should the Commission determine whether an unsolicited
advertisement is sent ``in furtherance of the association's tax-exempt
purpose?'' The Commission seeks comment on these issues and any other
issues commenters may consider pertinent to this topic.
Unsolicited Advertisement
Background
Section 2(g) of the Junk Fax Prevention Act--Unsolicited
Advertisement--amends section 227(a)(5) of the Act which defines the
term ``unsolicited advertisement'' by adding ``in writing or
otherwise'' before the period at the end of that section.
Discussion
The Commission proposes amending the definition of unsolicited
advertisement in Sec. 64.1200(f)(10) of the Commission's rules to read
as follows:
The term unsolicited advertisement means any material
advertising the commercial availability or quality of any property,
goods, or services which is transmitted to any person without that
person's prior express invitation or permission, in writing or
otherwise.
In addition, the Commission seeks comment on the phrase ``prior
express invitation or permission'' in the definition. In addition to
written permission, what other forms of permission should be allowed by
our rules? If permission is given orally, for instance, should the
facsimile sender bear the burden of proof to demonstrate that it had
the consumer's prior express invitation or permission?
Other Issues: Creation of CG Docket No. 05-338
In this NPRM, the Commission opens a new docket--CG Docket No. 05-
338. All filings in response to this NPRM and those addressing the
Commission's facsimile advertising rules generally, should be filed in
CG Docket No. 05-338. Although the Commission urges parties that
previously filed in CG Docket No. 02-278 on the facsimile advertising
rules to re-file in new CG Docket No. 05-338, such filings nevertheless
will be considered in this proceeding. Therefore, the Commission
incorporates by reference comments filed in CG Docket No. 02-278 that
are responsive to the issues raised in this proceeding. The existing
TCPA docket, CG Docket 02-278, will remain open for other TCPA-related
filings.
Initial Regulatory Flexibility Analysis
As required by the Regulatory Flexibility Act of 1980, as amended
(RFA), the Commission has prepared this present Initial Regulatory
Flexibility Analysis (IRFA) of the possible significant economic impact
on a substantial number of small entities by the policies and rules
proposed in this Notice of Proposed Rulemaking (NPRM). Written public
comments are requested on this IRFA. Comments must be identified as
responses to the IRFA and must be filed by January 18, 2006. The
Commission will send a copy of the NPRM, including this IRFA, to the
Chief Counsel for Advocacy of the Small Business Administration (SBA).
In addition, the NPRM and IRFA (or summaries thereof) will be published
in the Federal Register.
A. Need for, and Objectives of, the Proposed Rules
On July 9, 2005, the Junk Fax Prevention Act was signed into law
amending the provisions of section 227 of the Communications Act. The
Junk Fax Prevention Act codifies an established business relationship
exemption to the provision which prohibits the sending of unsolicited
facsimile advertisements. It also requires the sender of a facsimile
advertisement to provide specified notice and contact information on
the facsimile that allows recipients to ``opt-out'' of any future
facsimile transmissions from the sender. It also requires the
Commission to issue regulations to implement the amendments within 270
days of the date of enactment of the statute. Therefore, the proposed
rules are necessary to comply with this congressional mandate and to
provide additional guidance to regulated entities that must comply with
the federal statute. The proposed modifications to the Commission's
existing rules are necessary if they are to be consistent with the
amendments made by the Junk Fax Prevention Act.
In this NPRM, the Commission proposes a number of modifications to
the Commission's rules on unsolicited facsimile advertisements. The
Commission proposes amending Sec. 64.1200(a)(3) of the Commission's
rules to expressly recognize an established business relationship (EBR)
exemption. The Commission also proposes removing Sec. 64.1200(a)(3)(i)
of the Commission's rules which provides that a facsimile advertisement
is unsolicited unless the recipient has granted the sender prior
express invitation or permission to deliver the advertisement, as
evidenced by a signed, written statement that clearly indicates the
recipient's consent to receive such facsimile advertisements from the
sender. The Commission also proposes amending the Commission's rules to
permit senders to send facsimile advertisements to persons with whom an
established business relationship was formed prior to July 9, 2005,
provided the facsimile number was in the sender's possession before
July 9, 2005. In addition, the Commission proposes incorporating into
our rules the definition of ``established business relationship'' that
applied to telephone solicitations and was in effect on January 1,
2003. The Commission also seeks comment on whether to limit the
duration of the EBR as applied to facsimile advertising.
The Junk Fax Prevention Act requires senders of unsolicited
facsimile advertisements to include a notice on the first page of the
facsimile that informs the recipient of the ability and means to
request that they not receive future unsolicited facsimile
advertisements from the sender. Therefore, the Commission proposes
amending the Commission's rules consistent with these specific notice
requirements and clarifying under what circumstances a notice will be
considered ``clear and conspicuous.'' Additionally, the Commission
proposes defining the ``shortest reasonable time'' within which a
sender of unsolicited facsimile advertisements must comply with a
request not to receive future facsimile advertisements from the sender.
The Commission also proposes adopting the requirements provided in the
Junk Fax Prevention Act regarding the making of a request not to
receive future unsolicited facsimile advertisements. The request would
need to identify the numbers of the telephone facsimile machine or
machines and be made to the sender of the advertisement.
As contemplated by the Junk Fax Prevention Act, the proposed rules
also address the ability of professional or trade associations that are
tax-exempt nonprofit organizations to send to their members unsolicited
advertisements in furtherance of the association's tax-exempt purpose
that do not contain the ``opt-out'' notice required by the statute. In
addition, the proposed rules address
[[Page 75109]]
the ability of small business senders to provide ``cost-free''
mechanisms for recipients to transmit opt-out requests. Finally, the
Commission proposes amending the definition of ``unsolicited
advertisement'' so that it is consistent with the definition in the
Junk Fax Prevention Act.
B. Legal Basis
The proposed action is authorized under sections 1-4, 227 and
303(r) of the Communications Act of 1934, as amended; 47 U.S.C. 151-154
and 227, and the Junk Fax Prevention Act of 2005, Public Law Number
109-21, 119 Statute 359.
C. Description and Estimate of the Number of Small Entities to Which
the Proposed Rules Will Apply
The RFA directs agencies to provide a description of and, where
feasible, an estimate of the number of small entities that may be
affected by the proposed rules, if adopted. The RFA generally defines
the term ``small entity'' as having the same meaning as the terms
``small business,'' ``small organization,'' and ``small governmental
jurisdiction.'' In addition, the term ``small business'' has the same
meaning as the term ``small business concern'' under the Small Business
Act. A small business concern is one which: (1) Is independently owned
and operated; (2) is not dominant in its field of operation; and (3)
satisfies any additional criteria established by the SBA.
The Commission's rules on the sending of unsolicited facsimile
advertisements would apply to any entity, including any
telecommunications carrier, that uses the telephone facsimile machine
to advertise. Thus, the Commission expects that the proposals in this
NPRM could have a significant economic impact on a substantial number
of small entities, including the following:
Interexchange Carriers. Neither the Commission nor the SBA has
developed a specific size standard for small entities specifically
applicable to providers of interexchange services. The closest
applicable size standard under the SBA rules is for Wired
Telecommunications Carriers. Under that standard, such a business is
small if it has 1,500 or fewer employees. According to the FCC's
Telephone Trends Report data, 281 carriers reported that their primary
telecommunications service activity was the provision of interexchange
services. Of these 281 carriers, an estimated 254 have 1,500 or fewer
employees, and 27 have more than 1,500 employees. Consequently, the
Commission estimates that a majority of interexchange carriers may be
affected by the rules.
Incumbent Local Exchange Carriers. Neither the Commission nor the
SBA has developed a small business size standard for providers of
incumbent local exchange services. The closest applicable size standard
under the SBA rules is for Wired Telecommunications Carriers. Under
that standard, such a business is small if it has 1,500 or fewer
employees. According to the FCC's Telephone Trends Report data, 1,310
incumbent local exchange carriers reported that they were engaged in
the provision of local exchange services. Of these 1,310 carriers, an
estimated 1,025 have 1,500 or fewer employees and 285 have more than
1,500 employees. Consequently, the Commission estimates that the
majority of providers of local exchange service are small entities that
may be affected by the rules and policies adopted herein.
Wireless Service Providers. The SBA has developed a small business
size standard for wireless firms within the two broad economic census
categories of ``Paging'' and ``Cellular and Other Wireless
Telecommunications.'' Under both SBA categories, a wireless business is
small if it has 1,500 or fewer employees. For the census category of
Paging, Census Bureau data for 1997 show that there were 1,320 firms in
this category, total, that operated for the entire year. Of this total,
1,303 firms had employment of 999 or fewer employees, and an additional
17 firms had employment of 1,000 employees or more. Thus, under this
category and associated small business size standard, the great
majority of firms can be considered small. For the census category
Cellular and Other Wireless Telecommunications, Census Bureau data for
1997 show that there were 977 firms in this category, total, that
operated for the entire year. Of this total, 965 firms had employment
of 999 or fewer employees, and an additional 12 firms had employment of
1,000 employees or more. Thus, under this second category and size
standard, the great majority of firms can, again, be considered small.
Ordinarily, the Commission does not seek comment on the entities
that must comply with proposed rules. However, the proposed rules in
this document potentially could apply to any entity, including any
telecommunications carrier, that sends an unsolicited advertisement to
a telephone facsimile machine. Thus, under these unusual circumstances,
the Commission seeks comment on whether the approximately 4.44 million
small business firms in the United States, as identified in SBA data,
will need to comply with these rules, or whether it is reasonable to
assume that only a subset of them will be subject to these rules given
that not all small businesses use the facsimile machine for advertising
purposes. After evaluating the comments, the Commission will examine
further the effect any rule changes might have on small entities not
named herein, and will set forth our findings in the final Regulatory
Flexibility Analysis.
D. Description of Projected Reporting, Recordkeeping, and Other
Compliance Requirements
The NPRM seeks comment on a number of rule changes that will affect
reporting, recordkeeping and other compliance requirements for entities
sending unsolicited facsimile advertisements. The proposed rules will
apply to all entities using telephone facsimile machines to send
unsolicited advertisements. If the Commission adopts an EBR exemption
to the prohibition on sending unsolicited facsimile advertisements,
many entities that send such messages only to their EBR customers will
not be required to obtain separate permission from recipients, thereby
potentially minimizing some of the compliance requirements. However, in
the event a question arises about the existence of an EBR or the
duration of the EBR, the sender might need to maintain records
evidencing the EBR and when the EBR was formed. Such records might also
need to demonstrate whether or not the facsimile number was in the
sender's possession before date of enactment of the Junk Fax Prevention
Act. Because the Commission determined in 1992 that an EBR could
evidence permission to send a facsimile advertisement, the Commission
believes most senders of facsimile advertisements currently maintain
these records and will not be required to take any new action to comply
with the proposed rules.
In addition, the NPRM proposes adopting the specific notice
requirements on unsolicited facsimile advertisements set forth in
section 2 of the Junk Fax Prevention Act. As mandated by the Junk Fax
Prevention Act, senders of unsolicited advertisements must include a
notice on the first page of the facsimile that informs the recipient of
the ability and means to request that they not receive future
unsolicited advertisements from the sender. Under the Junk Fax
Prevention Act, the notice must be on the first page of the
advertisement; be clear and conspicuous; include a domestic contact
telephone and facsimile machine number for the
[[Page 75110]]
recipient to transmit an opt-out request to the sender; and provide a
cost-free mechanism for a recipient to transmit a request pursuant to
such notice to the sender of the advertisement. Finally, the telephone
and facsimile machine numbers and cost-free mechanism must permit an
individual or business to make such a request at any time on any day of
the week. Should the Commission adopt the notice requirements in the
Junk Fax Prevention Act, senders would need to take steps to ensure
that their facsimile advertisements contained the notice and that such
notice meets any specific criteria as outlined above. In addition,
senders of facsimile advertisements must implement a cost-free
mechanism, if they do not already have one in place, to allow
recipients of such messages to request not to receive future
advertisements.
The NPRM also seeks comment on the ``shortest reasonable time''
within which a sender of facsimile advertisements must comply with a
request not to receive future facsimile advertisements from the sender.
If the Commission adopts a 30-day limitation, or an alternative time
period, within which senders of unsolicited facsimile advertisements
must honor a do-not-fax request, entities subject to the rules would
need to make sure to utilize some recordkeeping system to ensure that
such requests are honored within 30 days or an alternative period of
time. Finally, should the Commission require the fax sender to bear the
burden of proof to demonstrate that a consumer provided express
invitation or permission to receive a facsimile advertisement after the
consumer had previously made a do-not-fax request, the sender would
likely need to maintain some record of that permission.
E. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
The RFA requires an agency to describe any significant alternatives
that it has considered in reaching its proposed approach, which may
include the following four alternatives (among others): (1) The
establishment of differing compliance or reporting requirements or
timetables that take into account the resources available to small
entities; (2) the clarification, consolidation, or simplification of
compliance or reporting requirements under the rule for small entities;
(3) the use of performance, rather than design, standards; and (4) an
exemption from coverage of the rule, or any part thereof, for small
entities.
In proposing rules to implement the Junk Fax Prevention Act, the
Commission also considers alternatives that potentially could minimize
the burdens on, or simplify compliance requirements for, small
businesses. First, the Commission considers exempting certain classes
of small business senders from the requirement to provide a cost-free
mechanism for a recipient to transmit a request not to receive future
facsimile advertisements. In considering this alternative, the
Commission will evaluate the costs to such small businesses of
providing the cost-free mechanism and whether such costs are unduly
burdensome given the revenues generated by small businesses. The
Commission also compares and evaluates alternative ``cost-free''
mechanisms that businesses might utilize to minimize burdens on small
businesses, but still allow recipients to request of any small business
that it not send future facsimile advertisements. Finally, in
determining whether to limit the duration of the EBR, the Commission
will consider the costs to small businesses of demonstrating the
existence of a limited EBR.
In addition, the Commission considers exempting certain nonprofit
organizations from the notice requirements in the Junk Fax Prevention
Act. This alternative proposal will allow professional or trade
associations that are tax-exempt nonprofit organizations to send
unsolicited advertisements to their members in furtherance of the
associations' tax-exempt purpose that do not contain the ``opt-out''
notice required by the Junk Fax Prevention Act. Should the Commission
determine that such notice is not necessary to protect the ability of
members of such associations to stop the sending of any future
unsolicited advertisements, this alternative approach could minimize
compliance burdens on those professional and trade associations that
are small businesses.
As described above, the Junk Fax Prevention Act requires that
senders of facsimile advertisements include notices stating that the
recipients may request not to receive any future unsolicited facsimile
advertisements. The Commission is considering alternative time periods
within which a sender of unsolicited facsimile advertisements must
comply with a request not to receive future facsimile advertisements
from the sender. The Commission will compare and evaluate these
alternative time periods to ensure that they are the ``shortest
reasonable time periods'' within which senders can comply with the
rules and that they are not overly burdensome to small businesses.
F. Federal Rules That May Duplicate, Overlap, or Conflict With the
Proposed Rule
The Commission's proposal in this NPRM to expressly recognize an
EBR exemption to the prohibition on sending unsolicited facsimile
advertisements appears to conflict with Sec. 64.1200(a)(3)(i) of the
Commission's existing rules. Therefore, this NPRM proposes revising or
removing Sec. 64.1200(a)(3)(i) of the Commission's rules, which
provides that a facsimile advertisement is unsolicited unless ``the
recipient has granted the sender prior express invitation or permission
to deliver the advertisement, as evidenced by a signed, written
statement that * * * clearly indicates the recipient's consent to
receive such facsimile advertisements from the sender.''
Ordering Clauses
Pursuant to the authority contained in sections 1-4, 227, and
303(r), of the Communications Act of 1934, as amended; 47 U.S.C. 151-
154, 227, and 303(r); the Junk Fax Prevention Act of 2005, and Sec.
64.1200 of the Commission's rules, 47 CFR 64.1200, 64.2401, this Notice
of Proposed Rulemaking in CG Docket 02-278 is adopted.
CG Docket No. 05-338 shall be created for this proceeding and for
other issues related to the Commission's facsimile advertising rules.
The Commission's Consumer & Governmental Affairs Bureau, Reference
Information Center, shall send a copy of the Notice of Proposed
Rulemaking, including the Initial Regulatory Flexibility Analysis, to
the Chief Counsel for Advocacy of the Small Business Administration.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 05-24211 Filed 12-16-05; 8:45 am]
BILLING CODE 6712-01-P