Junk Fax Prevention Act of 2004

JUNK FAX PREVENTION ACT OF 2004 -- (Extensions of Remarks - September 08, 2004)

SPEECH OF HON. ARTUR DAVIS
OF ALABAMA
IN THE HOUSE OF REPRESENTATIVES
TUESDAY, JULY 20, 2004

Mr. DAVIS of Alabama. Mr. Speaker, I rise in support of H.R. 4600, the Junk Fax Prevention Act of 2004. This Bill codifies the reinstatement of an established business relationship exception permitting businesses, associations and charities to send commercial faxes without receiving written permission from the recipient. Additionally, H.R. 4600 crafts reporting requirements granting Congress the authority to regulate the FCC's enforcement activities, and includes an "opt-out provision" that gives the recipient the opportunity to avoid further faxes.

In 1991, Congress passed the Telecommunications Consumer Protection Act (TCPA), which protected consumers from unsolicited commercial faxes and permitted legitimate businesses and organizations to fax fundraising requests, advertisements, dues renewal notices, and other pertinent information to individuals with an established business relationship. For the past ten years the Commission has continued to follow its 1991 interpretation deeming such publications invited or permitted devoid of any discernable measure of complaints from the general public.

In 2003, the FCC revisited the issue of unsolicited commercial faxes and determined that an "express invitation or permission" must be in writing and include the recipient's signature. Compliance with the FCC's 2003 decision requires every business, association, and charity to obtain written permission from anyone receiving commercial faxes.

Starting on January 1, 2005 the FCC's ruling goes into effect. A majority of the businesses and organizations would be forced to shoulder considerable financial and logistical burdens. Consequently, the Commission's 2003 decision would require everyday customers, requesting specific information such as vacation packages from travel agents or menus from local restaurants, to submit a written, signed statement consenting to the receipt of such publications. Obviously, many small businesses, charities, and associations are concerned with the FCC's recent interpretation and its impact on their lives.

In practice the FCC's 2003 decision would be devastating to a myriad of small businesses that rely heavily on fax publications and advertisements. It has been estimated that two-thirds of small business owners will be required to obtain consent forms from greater than 100 separate fax numbers in the first year alone. Research indicates that if enacted, the "FCC's new rules would cost small business owners at least $5,000 in the first year and $3,000 per year in compliance. In addition, the FCC's decision would require greater than 27 staff hours in order to obtain customers' initial consent and 20 hours each year thereafter.

Mr. Speaker, H.R. 4600 seeks to reverse the FCC's overly burdensome, expensive and unnecessary interpretation. The current measure is necessary to strike a proper balance between an individual's right to protection and privacy from unsolicited and invasive faxes with a business's need for communication and right to free enterprise. I encourage all my colleagues to support this bill.