FCC Regulations to Impact Associations, Business Community

• The FCC recently 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 written authorization. Currently, associations and businesses are free to send faxes to those persons with which they have established business relationship.
   
• The new rules would place a monumental and costly administrative burden on associations and other businesses by compelling them to obtain the signed written consent of each recipient before any commercial fax may be sent. This would severely impede the ability of associations and businesses to communicate with their customers or make them aware of events and products that would be of interest to them.
   
• The FCC has defined "commercial faxes" to include any unsolicited fax that contains "material advertising the commercial availability or quality of any property, goods, or services." What that means, however, has already been a subject of dispute among lawyers. Some analysts have said that under the revised regulations, contributions in return for political advocacy are still exempt, such as donations to political parties--others disagree. Rather than play Russian roulette, associations and businesses might be forced to make very conservative estimations over what kinds of communications are still permitted.
   
• If an association or company is found to have violated the new fax regulations, the penalties will almost certainly be astronomical. Indeed, fines can be as much as $1,500 per fax.
   
• The regulations are set to take effect 30 days after publication in the Federal Register, tentatively scheduled for mid-September.  The rule first must pass requirements of the Paperwork Reduction Act at the Office of Management and Budget.
   
• The Chamber intends to file a petition asking the FCC to reconsider the proposed rule.
   
• Chamber members should contact the FCC and their members of Congress and explain the negative impact this will have on their ability to satisfy customers and hear from the business associations they trust.