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Issues Center > Index of Issues > E-Commerce & TechnologyFCC Proposed Commercial Fax Rules Update
The Senate on Friday, June 24 passed the Junk Fax Prevention Act. On Tuesday, June 28 the House also passed the bill, which now heads to President Bush for his signature. The Chamber is hailing the passage of the bill, and urging the President to sign it into law as soon as possible.
Also on Tuesday, June 28, the FCC announced that it has extended its stay of the proposed fax rule by another six months, until January 9, 2006. The extension is to allow the Congress and the President time to finish their work on the legislation.
The U.S. Chamber is urging the President to sign the Junk Fax Prevention Act into law as soon as possible.
New Rules Would Have Huge Impact on Business and Nonprofit Bottom Line
New proposed regulations from the Federal Communications Commission (FCC) would require businesses and nonprofits to obtain written consent from their customers and members before sending faxes advertising goods, services, and memberships. Background In June of 2003, the FCC revised regulations governing fax communications between associations and their members as well as businesses and preexisting customers. The new rules would outlaw any "commercial faxes" unless the recipient has provided express written authorization. Currently, associations and businesses are free to send faxes to those persons with which they have established business relationship. In August 2003, the FCC released a stay order effective until January 1, 2005. The order suggested that the purpose is to give persons time to comply with the new regulations and obtain written consent of each recipient before any commercial faxes are transmitted including those with whom the business has a "existing business relationship" (EBR). The U.S. Chamber has released a study showing that compliance with the regulation would cost small businesses thousands of dollars. The FCC in the fall of 2004 extended the stay on its written consent regulation again, this time until June 30, 2005, to give Congress more time to rewrite the law to allow an EBR exemption. The House passed the Junk Fax Prevention Act of 2004 (H.R. 4600) in July, 2004. The legislation would reinstate the EBR exemption that allows businesses, associations, and charities to send faxes to their existing customers and members without first receiving written permission. The bill would also allow the FCC to excuse trade groups from the opt-out requirement. A Senate version of the bill passed at the end of the legislative session, but there was not enough time to conference the two bills.
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