The Federal Communications Commission (FCC) has granted a six-month stay, to July 1, 2005, in a proposed regulation that would require businesses to obtain written permission before sending faxes to those with whom they have existing business relationships (EBRs).

The FCC’s existing regulations, adopted in 1982, allowed the EBR exception -- people sending information to already established customers, like PIA to its members, and PIA agencies to their insurance clients. Then in 2003, the FCC proposed removing the exception for EBR’s, stating that if any person wanted to fax an “ad” to another person, the sender must get the receiver’s authorization to do so first and have evidence of it. The FCC compounded this move further by also redefining what constitutes an “ad,” to mean any communiqué about something from which the sender can make money.

Under the 2003 version of the FCC’s Do-Not-Fax rule that has now been stayed for six months, PIA National and PIA affiliates technically could not fax information to members about CE classes, conventions, products and services, etc. without first obtaining written permission to do so from the recipient. Required communications from PIA members to their clients could have been similarly affected.

PIA together with the American Society of Association Executives is advocating for passage in Congress of legislation to “fix” the FCC’s error in judgment. S. 2603, the Junk Fax Protection Act, pending in the Senate, will restore the EBR provision. The Senate Commerce, Science and Transportation Committee passed S. 2603, July 22, and the bill is now ready to move to the Senate floor for a full vote. The full House passed the companion bill, H.R. 4600, on July 20.

What It Means to Agents:  The FCC’s delay gives us more time to secure passage of S. 2603. PIA members, as association members and insurance agencies, have a very serious stake in the outcome of this vote. We are not opposed to reasonable regulation of junk faxes that are truly junk. That’s what regulatory prohibitions should address -- without the unintended consequence of restricting the legitimate business activities of PIA members and their PIA associations.

Why PIA Supports the Junk Fax Protection Act (Article by Pat Borowski 8/04)

October 5, 2004