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Federal Communications Commission
Washington, D.C. 20554
) File No. EB-07-TC-2005
In the Matter of
) NAL/Acct. No. 200732170067
Extreme Leads, Inc.
) FRN: 0016769630
Adopted: June 10, 2008 Released: June 12, 2008
By the Commission:
1. In this Forfeiture Order ("Order"), we issue a monetary forfeiture in
the amount of $1,377,000 against Extreme Leads, Inc. ("Extreme Leads") for
willful or repeated violations of section 227 of the Communications Act of
1934, as amended, ("Act") and the Commission's related rules and orders,
by delivering at least 218 unsolicited advertisements to the telephone
facsimile machines of at least 132 consumers.
2. The facts and circumstances surrounding this case are set forth in the
Commission's Notice of Apparent Liability for Forfeiture and need not be
reiterated at length.
3. Section 227(b)(1)(C) of the Act makes it "unlawful for any person
within the United States, or any person outside the United States if the
recipient is within the United States . . . to use any telephone facsimile
machine, computer, or other device to send, to a telephone facsimile
machine, an unsolicited advertisement." The term "unsolicited
advertisement" is defined in the Act and the Commission's rules as "any
material advertising the commercial availability or quality of any
property, goods, or services which is transmitted to any person without
that person's prior express invitation or permission in writing or
otherwise." Under the Commission's rules, an "established business
relationship" exception permits a party to deliver a message to a consumer
if the sender has an established business relationship with the recipient
and the sender obtained the number of the facsimile machine through the
voluntary communication by the recipient, directly to the sender, within
the context of the established business relationship, or through a
directory, advertisement, or a site on the Internet to which the recipient
voluntarily agreed to make available its facsimile number for public
4. On June 14, 2006, in response to one or more consumer complaints
alleging that Extreme Leads had faxed unsolicited advertisements, the
Enforcement Bureau ("Bureau") issued a citation to Extreme Leads, pursuant
to section 503(b)(5) of the Act. The Bureau cited Extreme Leads for using
a telephone facsimile machine, computer, or other device, to send
unsolicited advertisements, in violation of section 227 of the Act and the
Commission's related rules and orders. The citation, which was served by
certified mail, return receipt requested, warned Extreme Leads that
subsequent violations could result in the imposition of monetary
forfeitures of up to $11,000 per violation, and included a copy of the
consumer complaints that formed the basis of the citation. The citation
informed Extreme Leads that within 30 days of the date of the citation, it
could either request an interview with Commission staff, or could provide
a written statement responding to the citation. Extreme Leads did not
request an interview or otherwise respond to the citation.
5. Following the issuance of the citation, the Commission received
complaints from at least 132 consumers alleging that Extreme Leads faxed
at least 218 unsolicited advertisements to them. These violations, which
occurred after the Bureau's citation, resulted in the issuance of a Notice
of Apparent Liability for Forfeiture against Extreme Leads on July 31,
2007 in the amount of $1,377,000. The NAL ordered Extreme Leads to either
pay the proposed forfeiture amount within thirty (30) days or submit
evidence or arguments in response to the NAL to show that no forfeiture
should be imposed or that some lesser amount should be assessed. Extreme
Leads did not respond to the NAL or pay the proposed forfeiture amount.
6. Section 503(b) of the Act authorizes the Commission to assess a
forfeiture of up to $11,000 for each violation of the Act or of any rule,
regulation, or order issued by the Commission under the Act by a
non-common carrier or other entity not specifically designated in section
503 of the Act. In exercising such authority, we are to take into account
"the nature, circumstances, extent, and gravity of the violation and, with
respect to the violator, the degree of culpability, any history of prior
offenses, ability to pay, and such other matters as justice may require."
7. Although the Commission's Forfeiture Policy Statement does not
establish a base forfeiture amount for violating the prohibition against
using a telephone facsimile machine to send unsolicited advertisements,
the Commission has previously considered $4,500 per unsolicited fax
advertisement to be an appropriate base amount. We apply that base amount
to each of 146 apparent violations. In addition, where the consumer
requests the company to stop sending facsimile messages, and the company
continues to send them, the Commission has previously considered $10,000
per unsolicited fax advertisement as the appropriate forfeiture for such
egregious violations. Here, 38 consumers specifically requested that
Extreme Leads cease sending facsimiles. Notwithstanding these requests, an
additional 56 facsimiles were sent to these consumers. In addition, nine
consumers were unable to request that the company refrain from sending
additional unsolicited facsimiles because the telephone number provided by
Extreme Leads specifically for removal requests was either invalid,
disconnected, or otherwise did not work. These consumers received 16
facsimiles. As proposed in the NAL, we find such behavior justifies a
forfeiture amount higher than the base amount because it circumvents
consumer attempts to request that the company stop sending facsimile
messages. We believe that assessing a higher forfeiture amount is
warranted based on the nature and gravity of the violations and the
continued need to ensure compliance with section 227 of the Act and the
Commission's rules and orders. Accordingly, we also apply the $10,000
amount to each of these 16 apparent violations where the consumer
requested or attempted to request that Extreme Leads discontinue its
8. Extreme Leads did not respond to the NAL or pay the proposed forfeiture
amount. Extreme Leads has failed to identify facts or circumstances to
persuade us that there is a basis for modifying the proposed forfeiture,
and we are not aware of any further mitigating circumstances sufficient to
warrant a reduction of the forfeiture penalty. For these reasons, and
based on the information before us, we hereby impose a total forfeiture of
$1,377,000 for Company's willful or repeated violation of section 227 of
the Act and the Commission's related rules and orders, as set forth in the
IV. ORDERING CLAUSES
9. Accordingly, IT IS ORDERED, pursuant to section 503(b) of the
Communications Act of 1934, as amended, 47 U.S.C. S: 503(b), and section
1.80(f)(4) of the Commission's rules, 47 C.F.R. S: 1.80(f)(4), that
Extreme Leads, Inc. SHALL FORFEIT to the United States Government the sum
of $1,377,000 for willfully and repeatedly violating section 227(b)(1)(c)
of the Communications Act, 47 U.S.C. S: 227(b)(1)(c), section
64.1200(a)(3) of the Commission's rules, 47 C.F.R. S: 64.1200(a)(3), and
the related orders as described in the paragraphs above.
10. Payment of the forfeiture shall be made in the manner provided for in
section 1.80 of the Commission's rules within thirty (30) days of the
release of this Order. If the forfeiture is not paid within the period
specified, the case may be referred to the Department of Justice for
collection pursuant to section 504(a) of the Act. Payment of the
forfeiture must be made by check or similar instrument, payable to the
order of the Federal Communications Commission. The payment must include
the NAL/Account Number and FRN Number referenced above. Payment by check
or money order may be mailed to Federal Communications Commission, P.O.
Box 979088, St. Louis, MO 63197-9000. Payment by overnight mail may be
sent to U.S. Bank - Government Lockbox #979088, SL-MO-C2-GL, 1005
Convention Plaza, St. Louis, MO 63101. Payment by wire transfer may be
made to ABA Number 021030004, receiving bank TREAS/NYC, and account number
27000001. For payment by credit card, an FCC Form 159 (Remittance Advice)
must be submitted. When completing the FCC Form 159, enter the
NAL/Account number in block number 23A (call sign/other ID), and enter the
letters "FORF" in block number 24A (payment type code). Extreme Leads,
Inc. will also send electronic notification on the date said payment is
made to Johnny.email@example.com. Requests for full payment under an
installment plan should be sent to: Chief Financial Officer -- Financial
Operations, 445 12th Street, S.W., Room 1-A625, Washington, D.C. 20554.
Please contact the Financial Operations Group Help Desk at 1-877-480-3201
or Email: ARINQUIRIES@fcc.gov with any questions regarding payment
11. IT IS FURTHER ORDERED that a copy of the Forfeiture Order shall be
sent by first class mail and certified mail return receipt requested to
Extreme Leads, Inc., Attn. Jeffrey Wilson, 3346 Auburn Road, P.O. Box 334,
Auburn Hills, MI 48326; Extreme Leads, Inc., Attn. Jeffrey Wilson, 6001 N
Adams Rd, Bloomfield Hills, MI 48304; and Extreme Leads, Inc., Attn.
Jeffrey Wilson, 30750 Tanglewood Drive, Novi, MI 48377.
FEDERAL COMMUNICATIONS COMMISSION
Marlene H. Dortch
See 47 U.S.C. S: 503(b)(1). The Commission has the authority under this
section of the Act to assess a forfeiture against any person who has
"willfully or repeatedly failed to comply with any of the provisions of
this Act or of any rule, regulation, or order issued by the Commission
under this Act ...." See also 47 U.S.C. S: 503(b)(5) (stating that the
Commission has the authority under this section of the Act to assess a
forfeiture penalty against any person who does not hold a license, permit,
certificate or other authorization issued by the Commission or an
applicant for any of those listed instrumentalities so long as such person
(A) is first issued a citation of the violation charged; (B) is given a
reasonable opportunity for a personal interview with an official of the
Commission, at the field office of the Commission nearest to the person's
place of residence; and (C) subsequently engages in conduct of the type
described in the citation).
Extreme Leads, Inc. Notice of Apparent Liability for Forfeiture, 22 FCC
Rcd 14186 (2007)("NAL") .
47 U.S.C. S: 227(b)(1)(C); 47 C.F.R. S: 64.1200(a)(3).
See 47 U.S.C. S: 227(a)(4); 47 C.F.R. S: 64.1200(f)(13).
An "established business relationship" is defined as a prior or existing
relationship formed by a voluntary two-way communication "with or without
an exchange of consideration, on the basis of an inquiry, application,
purchase or transaction by the business or residential subscriber
regarding products or services offered by such person or entity, which
relationship has not been previously terminated by either party." 47
C.F.R. S: 64.1200(f)(5).
See 47 U.S.C. S: 227(b)(1)(C); 47 C.F.R. S: 64.1200(a)(3)(i), (ii).
Citation from Kurt A. Schroeder, Deputy Chief, Telecommunications
Consumers Division, Enforcement Bureau, File No. EB-06-TC-117 issued to
Extreme Leads on June 14, 2006.
See 47 U.S.C. S: 503(b)(5) (authorizing the Commission to issue citations
to persons who do not hold a license, permit, certificate or other
authorization issued by the Commission or an applicant for any of those
listed instrumentalities for violations of the Act or of the Commission's
rules and orders).
Bureau staff mailed the citation to the following addresses: ELI, Inc.,
a.k.a. Extreme Leads, Inc., Attn. Jeffrey Wilson, 3346 Auburn Road, P.O.
Box 334, Auburn Hills, MI 48326; Extreme Leads, Inc., Attn. Jeffrey
Wilson, 6001 N Adams Rd, Bloomfield Hills, MI 48304; and Extreme Leads,
Inc., Attn. Jeffrey Wilson, 30750 Tanglewood Drive, Novi, MI 48377.
See n.2 supra; see also 47 U.S.C. S: 503(b)(1).
Section 503(b)(2)(C) provides for forfeitures of up to $10,000 for each
violation in cases not covered by subparagraph (A) or (B), which address
forfeitures for violations by licensees and common carriers, among others.
See 47 U.S.C. S: 503(b). In accordance with the inflation adjustment
requirements contained in the Debt Collection Improvement Act of 1996,
Pub. L. 104-134, Sec. 31001, 110 Stat. 1321, the Commission implemented an
increase of the maximum statutory forfeiture under section 503(b)(2)(C) to
$11,000. See 47 C.F.R. S:1.80(b)(3); Amendment of Section 1.80 of the
Commission's Rules and Adjustment of Forfeiture Maxima to Reflect
Inflation, 15 FCC Rcd 18221 (2000); see also Amendment of Section 1.80(b)
of the Commission's Rules and Adjustment of Forfeiture Maxima to Reflect
Inflation, 19 FCC Rcd 10945 (2004) (this most recent amendment of section
1.80(b) maintained the forfeiture maximum for this type of violator at
See 47 U.S.C. S: 503(b)(2)(D); see also The Commission's Forfeiture Policy
Statement and Amendment of Section 1.80 of the Rules to Incorporate the
Forfeiture Guidelines, Report and Order, 12 FCC Rcd 17087, 17100-01 para.
27 (1997) (Forfeiture Policy Statement), recon. denied, 15 FCC Rcd 303
See Get-Aways, Inc., Notice of Apparent Liability For Forfeiture, 15 FCC
Rcd 1805 (1999); Get-Aways, Inc., Forfeiture Order, 15 FCC Rcd 4843
(2000); see also US Notary, Inc., Notice of Apparent Liability for
Forfeiture, 15 Rcd 16999 (2000); US Notary, Inc., Forfeiture Order, 16 FCC
Rcd 18398 (2001); Tri-Star Marketing, Inc., Notice of Apparent Liability
For Forfeiture, 15 FCC Rcd 11295 (2000); Tri-Star Marketing, Inc.,
Forfeiture Order, 15 FCC Rcd 23198 (2000).
See Carolina Liquidators, Inc., Notice of Apparent Liability for
Forfeiture, 15 FCC 16,837, 16,842 (2000); 21st Century Fax(es) Ltd., AKA
20th Century Fax(es), Notice of Apparent Liability for Forfeiture, 15 FCC
Rcd 24,406, 24,411 (2000).
NAL at 4.
47 U.S.C. S: 504(a).
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Federal Communications Commission FCC 08-146
Federal Communications Commission FCC 08-146