NFIB

To Fax or Not to Fax?
09/ 29/ 2003

Trying to understand the latest federal rules on faxing and telemarketing is almost as easy as reading the U.S. tax code. The bottom line is that most of the rules passed this summer on calling and faxing consumers and businesses are already in effect. But members of a coalition of business groups, including NFIB, convinced the FCC to extend the effective date for some of the most onerous provisions.

Among the questioned rules is the restriction on faxing advertisements. What constitutes an ad? According to the FCC, itÆs "any material advertising the commercial availability or quality of any property, goods or services." A widely used example of the unintended consequences of this rule is that your local diner would not be able to fax its daily lunch specials to longtime customers, without signature forms.

In late August, the FCC extended until Jan. 1, 2005, an exemption that allows businesses to send faxes to anyone with whom they have established business relationships. You still cannot fax anyone you donÆt have a previous relationship with, unless you obtain written consent, including signatures. Beware of slipping up, as FCC fines can be as much as $11,000.

Also troublesome is that some courts have ruled that the FCC overstepped its bounds. Instead, these jurisdictions are upholding a 1991 federal law that prohibits unsolicited faxes for advertising, existing relationship or not. Trial lawyers see gold mines. To be safe, check with your attorney if you have questions.

The do-not-call rules are fairly straightforward. New rules restrict telemarketersÆ hours (They cannot call before 8 a.m. or after 9 p.m.) and also require them to provide their name and phone number to caller-ID subscribers, identify themselves early in a phone call and let the phone ring no more than four times. Violators face fines of up to $2,000 per violation.

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This article originally appeared in the October/November 2003 issue of MyBusiness magazine.

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