Two bills that would eliminate a rule set to take effect next year requiring businesses to obtain written permission before sending “advertisement” faxes to those with whom they have existing business relationships (EBRs) have been introduced in Congress. In addition to restoring the EBR language to fax laws, the legislation would require a mandatory “opt-out” for unsolicited faxes sent under the auspices of the reestablished EBR. Another provision allows the Federal Communications Commission (FCC), after receiving public comment, to waive the opt-out provision for tax-exempt organizations faxing members on issues related to their exempt purpose.
The Junk Fax Prevention Act of 2004 (H.R. 4600) was introduced in the House June 16 by Rep. Fred Upton (R-Michigan) chairman of the House Energy and Commerce Subcommittee on Telecommunications, and by the Ranking Member of the full committee, Rep. John Dingell (D-Michigan). The subcommittee approved the bill June 24. A companion bill, S. 2603, has been introduced in the Senate.
Upton’s subcommittee held a hearing the day before the legislation was introduced, at which representatives of the Federal Communications Commission (FCC), the American Society of Association Executives (ASAE), the National Association of Realtors (NAR) and the National Newspaper Association (NNA) testified.
Last summer, the FCC reinterpreted existing fax marketing rules, which allow such faxes to be sent only to consumers and businesses that have an existing relationship with the sender. The FCC decided that the rule was insufficient and that, starting Aug. 25, 2003, fax marketers would need express written permission before sending faxes. After opposition from PIA and a broad array of associations that depend on faxes to communicate with their members, the FCC delayed implementation of the written-permission rule until Jan. 1, 2005. There has been no indication since then that the FCC would do away with the rule permanently.
The Junk Fax Prevention Act of 2004 would preempt the FCC. This legislation seeks to positively impact both small businesses and the associations to which they belong. The bills state that both may send faxes to their customers and members – those with whom they have “existing business relationships”-- without having to obtain a “permission slip,” or authorization, from each individual. It also protects consumers by requiring an option to “opt out” similar to the one required for e-mails under the CAN-SPAM Act. H.R. 4600 protects consumers from receiving faxes that are truly “junk” while removing a costly and burdensome requirement on small businesses and associations.
PIA National supports H.R. 4600/S. 2603 and encourages our state/regional affiliates and their boards, as associations, to write in support of these bills, as well as ask PIA members to communicate their support of these measures to their Representatives and Senators. PIA National will assist with these grassroots efforts.
What It Means to Agents: In PIA’s view, these bills help reduce FCC’s confusion about existing business relationships (EBRs). That is particularly important for those of us in the insurance industry since it is insurance law that decides when there is an existing business relationship; when it is created and attached; how long it lasts; and what is expected and/or required of PIA agencies in those EBRs – and a federal regulation may not pre-empt any of that when it serves to better respond to and protect the insurance consumer.
June 29, 2004