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 Businesses Beware: Sending Unsolicited Fax Advertisements Could Be Costly
Jeffrey L. Rehmeyer II
Beginning on January 9, 2006, the Federal Communications Commission (FCC) will begin enforcing regulations, which make it unlawful to send an unsolicited advertisement to a facsimile machine without the prior written permission of the recipient. The current FCC standard permits businesses to send unsolicited faxes to clients or customers with whom the advertiser has an existing business relationship. However, the new regulations require advertisers to obtain prior written permission from both new and existing customers/clients. The sender of the fax must be clearly identified in either the top or bottom margin of each page or on the first page of the fax. Also, the sender's telephone number and the date and time the fax is sent must be included. The penalties for sending unsolicited fax advertisements are severe. Through a private suit in state court, recipients of unlawful faxes can recover the actual monetary loss that resulted from the violation or up to $500 in damages for each violation, whichever is greater. State Courts also reserve the right to triple the damages for offenders who willingly or knowingly committed the violation. Additional remedies for disgruntled recipients include filing a complaint with the FCC, which has the authority to issue citations and fines against businesses for violations and suspected violations of the prohibition against unsolicited faxes. Individuals, however, will need to provide documentation of the unsolicited fax such as copies of the fax received. Complaints regarding unsolicited faxes can also be filed with a local consumer protection office or the Pennsylvania Attorney General's Office.Although the FCC has delayed implementing the new regulations until January of 2006, it is imperative that businesses act now to avoid future violations. Simple steps such as faxing existing and prospective customers/clients consent forms now and modifying data collection procedures to obtain written consent at the time fax numbers are acquired will reduce the burden of implementing the changes once the new FCC regulations are in effect.CGA has an extensive business and corporate law department and is committed to ensuring that our business and corporate clients remain well informed of and in compliance with regulations.
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