Record Fine Imposed By FCC On Fax.com

by Glen Shapiro, LawAndTax-News.com, New York

08 January 2004

It emerged this week that the Federal Communications Commission (FCC) has imposed a $5.4 million fine on Fax.com for what the Commission described as a "massive ongoing violation" of the Telephone Consumer Protection Act (TCPA).

Dismissing the online fax distributor's argument that the junk fax ban contained within the TCPA is unconstitutional, the FCC found that the the firm had violated the Act on 489 separate occasions. The federal body imposed a fine of $11,000 per violation, which represents the largest single fine ever imposed for a TCPA violation.

The FCC also ordered Fax.com to compile a report within 30 days detailing whether it has brought its practices in line with the consumer protection act, and the FCC's own rules.

During the course of the Commission's investigation into the marketing activities of Fax.com, which began in 1991, the FCC observed that the firm "generally conducts its fax broadcasting without any regard to whether the fax recipient has an established business relationship with either Fax.com or the advertiser, or has otherwise granted express permission for the advertisement to be sent".

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