Do-not-call rules to include unsolicited faxes

A federal rule that takes effect Aug. 25 will make it illegal to fax unsolicited advertisements to homes and businesses. But several trade groups and associations have asked for a delay, arguing it will have unintended consequences.

Part of the do-not-call regulations the government introduced this summer to stifle telemarketers, the rule repeals an exception to a 1991 law that bans unsolicited faxes.

The 1991 rules allow recipients to sue senders for $500 for each unwanted fax received and allow the Federal Communications Commission to fine violators as much as $11,000 per unwanted fax.

An exception applied if the sender had an “existing business relationship” with the recipient. That exception is being eliminated.

“This is an amazing issue in that virtually no one in the country is aware of it. It was sort of buried in the do-not-call regulations, and it didn’t really get the attention it deserved,” said Jeffrey S. Tenenbaum, a lawyer in the District who advises trade associations.

If the rule takes effect as planned, it will be illegal to fax virtually any kind of promotional material without obtaining written permission of the recipient. Written permission would need to be obtained just once, according to the rule.

The rule could have unintended consequences for nonprofits, says Ellen Dunham Bryant, labor and employment counsel for the U.S. Chamber of Commerce, one of several trade groups that asked the FCC last week to delay and reconsider implementation of the rule.

“It’s quite broad. It will affect a lot of small businesses and associations who have everyday fax contact with their customers and members,” Ms. Bryant said.

For example, the chamber would be prevented from sending faxes to its members promoting seminars, meetings and any other materials that may be deemed promotional unless it had the written permission of each recipient, she said.

Purely informational documents, such as press releases, would be permitted, the FCC says.

It would be “very onerous” to obtain written permission from each chamber member before sending it a fax, Ms. Bryant said. The chamber represents about 3 million businesses.

Dan Rumelt, an FCC spokesman, said he did not know if or when the agency will respond to the request for the delay.

The new rule will make it easier for recipients to file lawsuits against fax senders, Mr. Tenenbaum and others predicted.

An FCC spokesman was unable to say how many companies the agency has cited or fined since the 1991 rule went into effect. According to the agency’s Web site, it has cited 17 companies this year and fined three businesses since 2001.

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