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FCC Proposes Tougher Restrictions on “Robocalls”



Presented By: Manatt Phelps and Phillips


The Federal Communications Commission has proposed rule revisions to the Telephone Consumer Protection Act (TCPA) that would place tougher restrictions on “robocalls.”

Under the proposed rules, which were issued January 20, prerecorded telemarketing calls, or “robocalls,” would require prior written consent from recipients – even if the caller has an established business relationship with the call recipient. (Electronic methods of consent, such as an e-mail, would be acceptable.)

In addition, robocalls would also be required to have an automated, interactive mechanism that would allow a recipient to opt-out of receiving any future robocalls.

The proposed rule changes would not affect categories of prerecorded message calls that are not covered under the TCPA, such as calls by or on behalf of tax-exempt, nonprofit organizations, or calls that deliver purely “informational” messages.

The FCC proposed that if the rules were to take effect, it would defer the effective date of the opt-out requirement for three months, and the proposed written agreement requirement for 12 months to give callers time to comply.

The revisions are an attempt to bring the FCC’s rules in line with the Federal Trade Commission’s Telemarketing Sales Rule.

Although most companies that use robocalls are subject to regulation by both agencies, the FCC’s changes would bring those companies outside of FTC rule coverage (and currently subject to less restrictive standards) under similar rules.

To read the notice of proposed rulemaking in its entirety or for more information on how to comment on the proposed rules, click here.Why it matters: The changes proposed by the FCC could be costly to implement and significantly cut down on a telemarketer’s ability to utilize prerecorded message calls due to the combination of required prior written consent and an opt-out option for consumers. However, the majority of companies that the new rules would affect are already covered by similar FTC regulations.

 



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