July 22, 2004

Commerce Committee Passes Smith Junk Fax Bill

Legislation Protects Consumers and Businesses

Washington, DC - Today, the Senate Commerce Committee passed legislation to ensure that businesses and associations will continue to be able to send facsimiles to individuals with whom they have an existing business relationship without requiring written consent. The Junk Fax Prevention Act was sponsored by Senator Gordon Smith (R-OR).

"This bill will help businesses by allowing them to continue to send faxes to their customers in a manner that has proven successful and fair for both businesses and consumers," said Smith.

Last year, the FCC reconsidered its Telephone Consumer Protection Act (TCPA) rules and issued a rule eliminating the ability of businesses to contact their customers even where there exists an established business relationship. The effect of the FCC's rule would be to prevent a business from sending a fax solicitation to any person, whether it is a supplier or customer, without first obtaining prior written consent, imposing significant costs on businesses. The Commission stayed the implementation of the rule until January 1, 2005.

"This bipartisan legislation strikes an appropriate balance by providing protection to consumers from unwanted faxes while preserving the many benefits that can result from legitimate fax communications," said Smith.

Smith's legislation would ensure that the 1992 FCC order permitting businesses and associations to send unsolicited facsimile advertisements where there exists an established business relationship will remain law. It would also provide consumers with additional protections, including giving recipients the opportunity to opt out of faxes, even if they have an established business relationship.

Smith is working for immediate consideration of the bill by the full Senate.

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