FEDERAL LEGISLATION
ISSUE/BACKGROUND
What the legislation will do. This bipartisan bill will retain the status quo for faxes being sent by businesses to established customers. This system has been in place for more than ten years with virtually no complaints from established customers. The legislation will maintain the ability of businesses to use faxes to keep in touch with their customers.
What the legislation will NOT do. The legislation does not change the law on junk faxes. They are currently illegal, and will continue to be illegal and the bill gives consumers a new ability to opt-out of faxes, even where they have an EBR.
Businesses rely on faxed messages to send and receive time-sensitive information. Despite the proliferation of emails today, faxes remain an important part of business communications, especially for small businesses. Currently, businesses send faxes to customers using the EBR exception, which permits businesses to send faxes when there is an established business relationship. These faxes are not 'junk faxes,' but provide vital commercial information to existing customers. Though the FCC's current rules recognize this, the revised rules scheduled to go into effect remove the EBR exception.
The FCC recently adopted rules prohibiting the sending of requested information. The FCC agreed to postpone the effective date of its new rules until June 30, 2005 but has not shown any willingness to otherwise change the rule. Thus, without Congressional action, the rules are likely to go into effect by the end of the year.
STATUS/OUTLOOK
S.714 was introduced on April 6, 2005, the co-sponsors are: Senators Stevens, Inouye, Smith, Sununu, Snowe, Burns, Lautenberg, and Dorgan. The legislation would create a legislative exemption for established business relationships. A similar House version will be introduced soon.
We are a part of the 'Fax Ban Coalition' that requested and received a six-month extension of the effective date of the FCC rules until June 30, 2005. The group has requested an additional six-month stay.
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