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Docket ID: [CG Docket No. 02-278, FCC 07-203]
SUBJECT CATEGORY: Rules and Regulations Implementing the Telephone Consumer Protection Act of 1991
DOCUMENT SUMMARY: In this document, the Commission tentatively concludes that it should amend the Commission's rules under the Telephone Consumer Protection Act (TCPA) to require telemarketers to honor registrations with the National DoNotCall Registry so that registrations will not automatically expire based on the five year registration period. The Commission proposes extending this requirement indefinitely to minimize the inconvenience to consumers of having to reregister their preferences not to receive telemarketing calls and to further the underlying goal of the National Registry to protect consumer privacy rights. Also in this document, the Commission seeks comment on this tentative conclusion and on how best to coordinate this rule change with the Federal Trade Commission (FTC).
SUMMARY: Telephone Consumer Protection Act; implementation—; Do-Not-Call Implementation Act; telemarketers requirement to honor registrations,
Pursuant to Sec. Sec. 1.415 and 1.419 of the Commission's rules, 47 CFR 1.415 and 1.419, interested parties may file comments and reply comments on or before the dates indicated on the first page of this document. Comments may be filed using: (1) The Commission's Electronic Comment Filing System (ECFS), (2) the Federal Government's eRulemaking Portal, or (3) by filing paper copies. See Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121, May 1, 1998.
Filings can be sent by hand or messenger delivery, by commercial
overnight courier, or by firstclass or overnight U.S. Postal Service
mail (although the Commission continues to experience delays in
receiving U.S. Postal Service mail). All filings must be addressed to
the Commission's Secretary, Marlene H. Dortch, Office of the Secretary,
Federal Communications Commission, 445 12th Street, SW., Washington, DC 20554.
Pursuant to Sec. 1.1200 of the Commission's rules, 47 CFR 1.1200, this matter shall be treated as a ``permitbutdisclose'' proceeding in accordance with the Commission's ex parte rules. Persons making oral ex parte presentations are reminded that memoranda summarizing the presentations must contain summaries of the substances of the presentations and not merely a listing of the subjects discussed. More than a one or two sentence description of the views and arguments presented is generally required. See 47 CFR 1.1206(b). Other rules pertaining to oral and written ex parte presentations in permitbut disclose proceedings are set forth in Sec. 1.1206(b) of the Commission's rules, 47 CFR 1.1206(b).
A copy of document FCC 07203 and any subsequently filed documents
in this matter will be available during regular business hours at the
FCC Reference Center, Portals II, 445 12th Street, SW., Room CYA257,
Washington, DC 20554, (202) 4180270. Document FCC 07203 and any
subsequently filed documents in this matter may also be purchased from
the Commission's duplicating contractor at their Web site, http://www.bcpiweb.com , or call (800) 3783160. A copy of document FCC 07203
and any subsequently filed documents in this matter may also be found
by searching the Commission's Electronic Comment Filing System (ECFS)
at http://www.fcc.gov.cgb/ecfs (insert CG Docket No. 02278 into the Proceeding block).
To request materials in accessible formats for people with disabilities (Braille, large print, electronic files, audio format), send an email to fcc504@fcc.gov or call the Consumer & Governmental Affairs Bureau at (202) 4180530 (voice), (202) 4180432 (TTY). Document FCC 07203 can also be downloaded in Word or Portable Document Format (PDF) at: http://www.fcc.gov/cgb/policy. Synopsis
The Commission tentatively concludes that it should amend its rules so that telemarketers will be required to honor registrations with the National DoNotCall Registry until the registration is cancelled by the consumer or the telephone number is removed by the database administrator because it was disconnected or reassigned. Under this tentative conclusion, consumer registrations will not expire after five years. The Commission seeks comment on this tentative conclusion and how to implement this rule change in coordination with the FTC.
The National DoNotCall Registry was adopted in large part to make it easier and more efficient for consumers to prevent unwanted telemarketing calls. As explained in Reports to Congress, the Commission believes the number of telephone numbers added to the Registry and the FCC's experience in both helping to ensure compliance with the Registry and in enforcing the donotcall rules are strong indicators that the Registry has been successful in curbing the number of unwanted telemarketing calls. Therefore, the Commission is concerned that, starting June 28, 2008, five years after the opening of the registry, as many as 10 million registered numbers will expire and be automatically removed from the database, unless consumers take steps to reregister the numbers. By August 2008, as many as 20 million additional numbers will potentially expire and be purged from the registry. Such expirations will leave millions of consumers without protection against unwanted telemarketing callsprotections they have come to rely on since registering their numbers in 2003. Removing the current 5year registration period will alleviate any burdens on consumers associated with reregistering numbers, including the time and effort necessary to register and the need to remember when to re register. The Commission believes requiring telemarketers to continue honoring donotcall registrations will also minimize any consumer confusion resulting from a sudden increase in telemarketing calls received when registrations begin to expire next year. In addition, eliminating the need to reregister numbers every five years should lower the cost of operating the National Registry.
In adopting the National Registry, the Commission was mindful of concerns regarding the accuracy of the database. Initially, the Commission determined that a reregistration requirement should be included given that telephone numbers change hands, are disconnected and reassigned over time. However, the Commission believes the database administrator's use of technology to check all registered telephone numbers on a monthly basis and remove those numbers that have been disconnected or reassigned will maintain the database's highlevel of accuracy. In addition, consumers will continue to be able to verify or cancel their registration status using either the telephone or Internet. Allowing consumers to verify their registration status or cancel their registrations at any time also enhances the accuracy of the National Registry.
The Commission recognizes that absent a similar change in the FTC's policies, numbers that have been in the Registry for five years may be purged by the database administrator beginning in June 2008, and that telemarketers will no longer have access to those numbers in order to avoid calling them. The Commission notes, however, that the FTC recently committed that ``it will not drop any telephone numbers from the Registry based on the fiveyear expiration period pending final Congressional or agency action on whether to make registration permanent.'' The Commission envisions working closely with the FTC to ensure that telephone numbers are not removed at the end of the 5year registration period, and that telemarketers continue to have access to those numbers. The Commission seeks comment on how best to coordinate with the FTC to most effectively institute this rule change in a meaningful, consistent way.
In light of our tentative conclusion and the FTC's indication that
it will retain registrations after the 5year period, the Commission
believes the Registry will continue to operate as it does today. The Commission, therefore,
[[Page 71101]]
seeks comment on what impact, if any, our proposed rule change would
have on telemarketers, particularly small businesses. Because
telemarketers would be required to continue honoring donotcall
registrations as they do now, the Commission tentatively concludes that
the enhanced consumer privacy protections created by this proposed rule
amendment, taken in conjunction with the benefits to the federal
government in administering the National Registry, outweigh any potential impact.
The Commission believes making registrations permanent adequately balances the need to maintain a high level of accuracy in the national registry with the desire to have a simple and effective means to limit unwanted telemarketing calls. The proposed rule changes do not impose any new or modified information collection requirements.
As required by the Regulatory Flexibility Act of 1980, as amended (RFA), the Commission has prepared this present Initial Regulatory Flexibility Analysis (IRFA) of the possible significant economic impact on a substantial number of small entities by the policies and rules proposed in the DoNotCall Registry NPRM. Written public comments are requested on this IRFA. Comments must be identified as responses to the IRFA and must be filed on or before the dates indicated on the first page of this document. The Commission will send a copy of this DoNot Call Registry NPRM, including this IRFA, to the Chief Counsel for Advocacy of the Small Business Administration (SBA). In addition, the DoNotCall Registry NPRM and IRFA (or summaries thereof) will be published in the Federal Register.
In 2003, the Commission released the 2003 TCPA Order revising the TCPA rules to respond to changes in the marketplace for telemarketing. Specifically, the Commission established in conjunction with the FTC a National DoNotCall Registry for consumers who wish to avoid unwanted telemarketing calls. The National DoNotCall Registry supplements longstanding companyspecific rules which require companies to maintain lists of consumers who have directed the company not to contact them by phone.
The 2003 TCPA Order required telemarketers to honor donotcall registrations on the National Registry for five years. It also revised the companyspecific donotcall rules to reduce the retention period for such donotcall requests from ten to five years. This Notice tentatively concludes to amend the Commission's rules so that registrations with the National DoNotCall Registry will not expire after a period of five years. Telemarketers will instead be required to honor such registrations until consumers cancel the registrations or the numbers are removed because they were disconnected or reassigned. Legal Basis
The proposed action is authorized under sections 14, 227, and
303(r) of the Communications Act of 1934, as amended; the Telephone
Consumer Protection Act of 1991, Public Law Number 102243, 105 Statute
2394; and the DoNotCall Implementation Act, Public Law Number 10810, 117 Statute 557.
Description and Estimate of the Number of Small Entities To Which the Proposed Rules Will Apply
The RFA directs agencies to provide a description of and, where feasible, an estimate of the number of small entities that may be affected by the proposed rules, if adopted. The RFA generally defines the term ``small entity'' as having the same meaning as the terms ``small business,'' ``small organization,'' and ``small governmental jurisdiction.'' In addition, the term ``small business'' has the same meaning as the term ``small business concern'' under the Small Business Act. A small business concern is one which: (1) Is independently owned and operated; (2) is not dominant in its field of operation; and (3) satisfies any additional criteria established by the SBA.
The modifications to the regulations proposed in this item on telephone solicitation apply to a wide range of entities, including all entities that use the telephone to advertise. That is, the proposed rule changes would affect the myriad of businesses throughout the nation that use telemarketing to advertise. Thus, the Commission expects that the proposals in the DoNotCall Registry NPRM, could have a significant economic impact on a substantial number of small entities, including the following:
Interexchange Carriers. Neither the Commission nor the SBA has
developed a specific size standard for small entities specifically
applicable to providers of interexchange services. The closest applicable size standard under the SBA rules is for Wired
Telecommunications Carriers. Under that standard, such a business is
small if it has 1,500 or fewer employees. According to the FCC's
Telephone Trends Report data, 281 carriers reported that their primary
telecommunications service activity was the provision of interexchange
services. Of these 281 carriers, an estimated 254 have 1,500 or fewer
employees, and 27 have more than 1,500 employees. Consequently, the
Commission estimates that a majority of interexchange carriers may be affected by the rules.
Incumbent Local Exchange Carriers. Neither the Commission nor the SBA has developed a small business size standard for providers of incumbent local exchange services. The closest applicable size standard under the SBA rules is for Wired Telecommunications Carriers. Under that standard, such a business is small if it has 1,500 or fewer employees. According to the FCC's Telephone Trends Report data, 1,310 incumbent local exchange carriers reported that they were engaged in the provision of local exchange services. Of these 1,310 carriers, an estimated 1,025 have 1,500 or fewer employees and 285 have more than 1,500 employees. Consequently, the Commission estimates that the majority of providers of local exchange service are small entities that may be affected by the rules and policies adopted herein. Wireless Service Providers. In November of 2007, the SBA developed a small business size standard for small businesses in the category ``Wireless Telecommunications Carriers (except satellite).'' Under that SBA category, a business is small if it has 1,500 or fewer employees. Thus, under this category and the associated small business size standard, the great majority of firms can be considered small. For a census category that existed for a prior version of the NAICS codes, namely ``Cellular and Other Wireless Telecommunications,'' Census Bureau data for 2002 show that there were 1,397 firms in this category that operated for the entire year. Of this total, 1,378 firms had employment of 999 or fewer employees, and 19 firms had employment of 1,000 employees or more. Thus, under this category and size standard, the great majority of firms can be considered small.
Ordinarily, the Commission does not seek comment on the entities
that must comply with proposed rules. However, the proposed rules in
this document potentially could apply to any entity, including any
telecommunications carrier that uses the telephone to advertise. Thus,
under these unusual circumstances, the Commission seeks comment on
whether the approximately 4.44 million small business firms in the United States, as identified in SBA data,
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will need to comply with these rules, or whether it is reasonable to
assume that only a subset of them will be subject to these rules given
that not all small businesses use the telephone for advertising
purposes. After evaluating the comments, the Commission will examine
further the effect any rule changes might have on small entities not
named herein, and will set forth our findings in the final Regulatory Flexibility Analysis.
Description of Projected Reporting, Recordkeeping, and Other Compliance Requirements for Small Entities
The DoNotCall Registry NPRM proposes to amend the National Do
NotCall Registry rules to require telemarketers to honor registrations
until consumers cancel their registrations. This proposed rule change
will affect reporting, recordkeeping and other compliance requirements,
as numbers currently registered will not be removed from the Registry
after five years. However, as long as the FTC similarly changes its
policies, we expect that telemarketers would continue to access the
Registry and avoid calling numbers on the Registry as they are required to do so today.
Steps Taken To Minimize the Significant Economic Impact on Small Entities, and Significant Alternatives Considered
The RFA requires an agency to describe any significant alternatives that it has considered in reaching its proposed approach, which may include the following four alternatives (among others): (1) The establishment of differing compliance or reporting requirements or timetables that take into account the resources available to small entities; (2) the clarification, consolidation, or simplification of compliance or reporting requirements under the rule for small entities; (3) the use of performance, rather than design, standards; and (4) an exemption from coverage of the rule, or any part thereof, for small entities.
The Commission is considering amending its rules to require
telemarketers to honor national donotcall registrations indefinitely
and is seeking comment on this option. The alternative would be to not
modify the rules and leave the registration period at 5 years. This
would result is millions of national donotcall registrations being
removed from the registry in 2008 and leaving consumers without
protection from unwanted telemarketing calls unless they take action to
reregister. Small businesses, which believe the elimination of any
date of expiration for registrations would impact their business in a
negative way, are requested to file comments and advise the Commission about such an impact.
Federal Rules That May Duplicate, Overlap, or Conflict With the Proposed Rule
The FCC's TCPA rules and the FTC's Telemarketing Sales Rule are duplicative in part. Should the Commission determine to amend its rules and there is no similar amendment made to the FTC's policies, the two sets of rules may be inconsistent.
Pursuant to sections 14, 227, and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C. 151154, 227 and 303(r); and Sec. 64.1200 of the Commission's rules, 47 CFR 64.1200, the DoNotCall NPRM in CG Docket No. 02278 is adopted.
The Commission's Consumer & Governmental Affairs Bureau, Reference Information Center, SHALL SEND a copy of this Notice of Proposed Rulemaking, including the Initial Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of the Small Business Administration.
Pursuant to applicable procedures set forth in Sec. Sec. 1.415 and
1.419 of the Commission's rules, 47 CFR 1.415, 1.419, interested
parties may file comments on the DoNotCall Registry NPRM on or before
January 14, 2008, and reply comments on or before January 28, 2008. List of Subjects in 47 CFR Part 64
Telecommunications, Telephone.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
For the reasons discussed in the preamble, the Federal Communications Commission proposes to amend 47 CFR part 64 as follows: PART 64MISCELLANEOUS RULES RELATING TO COMMON CARRIERS
1. The authority citation for part 64 continues to read as follows:
Authority: 47 U.S.C. 154, 254(k); secs. 403(b)(2)(B),(c), Pub. L. 104104, 110 Stat. 56. Interpret or apply 47 U.S.C. 201, 218, 222, 225, 226, 228, and 254(k) unless otherwise noted.
2. Section 64.1200 is amended by revising paragraphs (c)(2) introductory text and (c)(2)(i)(D) to read as follows:
Sec. 64.1200 Delivery restrictions.
* * * * *
(c) * * *
(2) A residential telephone subscriber who has registered his or
her telephone number on the national donotcall registry of persons
who do not wish to receive telephone solicitations that is maintained
by the federal government. Any person or entity making telephone
solicitations (or on whose behalf telephone solicitations are made) will not be liable for violating this requirement if:
(i) * * *
(D) Accessing the national donotcall database. It uses a process
to prevent telephone solicitations to any telephone number on any list
established pursuant to the donotcall rules, employing a version of
the national donotcall registry obtained from the administrator of
the registry no more than 31 days prior to the date any call is made, and maintains records documenting this process; and
Note to paragraph(c)(2)(i)(D): The requirement in paragraph
64.1200(c)(2)(i)(D) for persons or entities to employ a version of the
national donotcall registry obtained from the administrator no more
than 31 days prior to the date any call is made is effective January 1,
2005. Until January 1, 2005, persons or entities must continue to
employ a version of the registry obtained from the administrator of the
registry no more than three months prior to the date any call is made. * * * * *
[FR Doc. E724280 Filed 121307; 8:45 am]
BILLING CODE 671201P
FOR FURTHER INFORMATION CONTACT Lynne Montgomery, Consumer & Governmental Affairs Bureau, Policy Division, at (202) 4182229 (voice), or email Lynne.Montgomery@fcc.gov.
14 CFR Part 39 40 CFR Part 52 14 CFR Part 71 33 CFR Part 165 50 CFR Part 679 26 CFR Part 1 40 CFR Part 180 47 CFR Part 73 50 CFR Part 17 33 CFR Part 117 44 CFR Part 67 50 CFR Part 648 14 CFR Part 97 33 CFR Part 100 40 CFR Part 63 50 CFR Part 622 26 CFR Part 301 39 CFR Part 111 40 CFR Part 300 50 CFR Part 660 44 CFR Part 65 40 CFR Parts 52 and 81 40 CFR Part 271 47 CFR Part 64 50 CFR Part 665 47 CFR Part 76 50 CFR Part 229 14 CFR Part 23 14 CFR Part 25 21 CFR Part 522