FCC Postpones New Rule on ?Junk? Faxes - August 25, 2003 Vol.4 No.17

August 25, 2003 Vol.4 No.17:

Published: 08/25/2003

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FCC Postpones New Rule on ?Junk? Faxes

The Federal Communications Commission (FCC) postponed implementation of its “do not fax rule” for 16 months thanks to the many concerns voiced by nonprofit organizations and business groups.

The rule was scheduled to take effect on Aug. 25, and will now take effect on January 1, 2005, according to a FCC news release. The do-not-fax rule, which was adopted late June, requires companies and organizations to get written permission before sending unsolicited faxes that include information on financial transactions. This could include conference registration forms or membership-dues notices.

Organizations are already required to have express written permission or an established business relationship with the recipient before sending fax solicitations or advertisements. The new FCC rule, however, attempts to tighten these rules by eliminating this exception and adding a requirement that written permission must be obtained.

The new rule has been viewed by many as exceptionally burdensome. According to a Washington Post article, the American Society of Association Executives has formed a coalition of almost 1,500 organizations to protest the rule change. Trade associations are also working to overturn the new rules during the stay period, and the National Council for Nonprofit Organizations is monitoring this issue.

“Serious issues remain,” the Alliance for Justice stated. “If an organization were to send a fax that contained policy information, but also contained a notice of a meeting with a cost, the organization would be in violation.” Dirk Van Dongen, the president of the National Association of Wholesaler-Distributors, which joined the Chamber of Commerce in filing a petition to delay implementation of the rule, called the proposed measure “draconian” and “phenomenally disruptive.”

The stay in the rule does not necessarily signify a retreat, but instead gives the FCC time to respond to concerned parties. K. Dane Snowden, chief of the FCC’s bureau of consumer and governmental affairs tells the Washington Post, “We have a very open process here and we want to hear all sides of the issue.”

The North Carolina Center for Nonprofits suggests nonprofits remove anyone who does not want to receive communications by whatever means -- fax, email, phone, or regular mail -- off distribution lists. We suggest letting your voice be heard by contacting the FCC directly with your concerns and suggestions.

For more information, see OMB Watch’s previous article and the of Nonprofit Associations web site.