Chamber Applauds Court for Overturning California Advertising Fax Ban

WASHINGTON, D.C. — The United States Chamber of Commerce applauded today's U.S. District Court for the Eastern District of California decision overturning an advertising fax ban that would have undermined the uniform application of federal law and interfered with interstate commerce.

"Because of this victory, businesses nationwide will be spared the unnecessary cost and bureaucracy of navigating what would have been grossly conflicting federal and state laws," said Stephen A. Bokat, Executive Vice President of the National Chamber Litigation Center, the Chamber's public policy law firm, which served as co-counsel in the case.

The legal challenge arose after California enacted its own advertising fax ban last year, which directly conflicted with the federal Junk Fax Prevention Act. California's law does not provide an exemption for the sending of faxes to recipients which have an established business relationship with the sender. The lack of such an exception would have imposed significant costs on businesses, especially smaller ones, attempting to do business with California residents or entities.

The U.S. Chamber fought the case on the grounds that the California legislature, in passing the fax ban, had disregarded the U.S. Constitution and its instruction requiring federal law supremacy when there are conflicting state laws.

"The federal law was enacted for good reason after careful consideration of the competing values at stake," said Bokat. "Today's decision restores the appropriate balance of sensible regulation."

The U.S. Chamber of Commerce is the world's largest business federation, representing more than three million businesses and organizations of every size, sector, and region. The National Chamber Litigation Center is a membership organization that advocates fair treatment of business in the courts and before regulatory agencies.

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06-29