Contracts Corner: Reprieve! Postponement of FCC "Unsolicited" Fax Rules

Source: Robin Roth, Senior Contracts Editor, Conferon, Inc.
E-Specs: September 4, 2003

The effective date for implementation of the FCC "Unsolicited" Fax Rules has been moved from August 25, 2003, to January 1, 2005.* These rules require that written consent be obtained before sending faxed promotions or advertising (see complete article in the Aug.13 E-Specs). The delay gives organizations a welcome respite within which to strategize the most workable compliance. Here are some of the important questions organizations will continue to deal with:

Q - Some new rules DID take effect on August 25, 2003. What is required now regarding identification?
A - Every fax must contain identifying information that includes date and time the message was sent, identity of sender, phone number of the transmitting fax machine, and the legal name of the sender.

Q - What minor changes can be implemented now in order to help companies avoid violating the written consent rules in the future?
A - Membership applications, renewal forms, and exhibitor contracts are some of the documents that should be revised now to include consent language for faxing advertising or special offers, according to the Association Forum of Chicagoland.

Q - Will written consent be required for every single fax number?
A - Yes, the authorized representative of an organization must list every fax number for which fax permission is being given.

Q - Are business-to-business phone call solicitations still permissible?
A - Yes, these calls are not covered under the FTC ban on consumer phone contacts where consumers may sign up on a Do Not Call list.

Q - What does "unsolicited advertisement" really mean?
A - The definition is "any material advertising the commercial availability or quality of any property, goods, or services which is transmitted to any person without that person's prior express invitation or permission." There are hopes that this broad definition will be narrowed before the new rules take effect.

Q - Where can I find samples of permission language?
A - See http://www.associationforum.org/cmaextras/ModelFaxForm.doc and http://www.asaenet.org/pdf/ASAE_Do_Not_Call_Fax_or_E-Mail_Handouts_v1.pdf

Consult your attorney, since taking steps now to make relatively small changes to your documents may help protect your organization down the road, depending upon how "unsolicited advertising" is defined come January 1, 2005.

*One source for information in this article was Neal, Gerber & Eisenberg LLP. For further information, contact Jed Mandel at (312) 269-8042 or Kimberly Baim at (312) 269-5330 at Neal, Gerber & Eisenberg LLP. Also see the following link for the FCC document ordering the postponement: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-03-208A1.doc

(Note: This information is not intended to be "legal advice." A qualified attorney should be consulted to review all legal issues.)