Click here for Microsoft Word Version
******************************************************** 
                      NOTICE
********************************************************

This document was converted from
WordPerfect or Word to ASCII Text format.

Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.

All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.

Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.

If you need the complete document, download the
Word or WordPerfect version or Adobe Acrobat version (above).

*****************************************************************



                           Before the
               FEDERAL COMMUNICATIONS COMMISSION
                     Washington, D.C. 20554

In the Matter of                   )
                              )
21st Century Fax(es) Ltd.                                )  
File No. EB-00-TC-174
a.k.a. 20th Century Fax(es)             )
                              )
Apparent Liability for Forfeiture       )    NAL/Acct. No. 
X3217-009                          
          NOTICE OF APPARENT LIABILITY FOR FORFEITURE

Adopted: December 4, 2000                         Released: 
December 7, 2000

By the Commission:

                       I.   INTRODUCTION

     1.   In this  Notice of  Apparent Liability for  Forfeiture 
(NAL), we find  that 21st Century Fax(es) Limited  (21st Century 
Fax)1 apparently  willfully or  repeatedly violated section  227 
of the  Communications Act  of 1934, as  amended (Act), and  the 
Commission's   rules   and  orders,   by   sending   unsolicited 
advertisements to  telephone facsimile machines on  152 separate 
occasions.2  Based  on the  facts and circumstances  surrounding 
these  apparent violations,  we find  that 21st  Century Fax  is 
apparently liable for forfeiture in the amount of $1,107,500.3
                        II.  BACKGROUND

     2.   On  March 8,  2000, in  response  to several  consumer 
letters indicating  that 21st Century  Fax had sent  unsolicited 
advertisements to  consumers' telephone facsimile machines,  the 
Commission  staff  issued  a  citation  to   21st  Century  Fax, 
pursuant  to section  503(b)(5) of  the Act.4   The staff  cited 
21st  Century Fax  for  allegedly  using a  telephone  facsimile 
machine,  computer,   or  other   device  to  send   unsolicited 
advertisements  to  another  telephone   facsimile  machine,  in 
violation of section  227 of the Act and the  Commission's rules 
and orders.  The unsolicited advertisements  offer consumers the 
opportunity to vote on several opinion  polls by calling certain 
fax numbers at a cost of $2.95  per minute.  The citation, which 
the staff  served by certified  mail, return receipt  requested, 
informed  21st  Century Fax  that  subsequent  violations  could 
result  in  the imposition  of  monetary  forfeitures of  up  to 
$11,000  per  violation  and  included  copies  of  14  consumer 
letters that  formed the  basis of  the citation.  The  citation 
informed 21st  Century Fax that  within 21 days  of the date  of 
the citation,  it could either  request a personal interview  at 
the nearest Commission field office, or  could provide a written 
statement responding  to the citation.  The  Commission received 
a signed  return receipt evidencing  21st Century Fax's  receipt 
of the citation on March 17, 2000.
  
     3.   On March 20,  2000, the Commission received  a written 
response from 21st Century Fax in which  the company stated that 
its acts  did not contravene the  TCPA because all of  the faxes 
it sent allegedly originated outside of  the United States.5 The 
company submitted no  proof supporting this claim,  however.  On 
March 28, 2000,  Commission staff met with  representatives from 
21st  Century  Fax  at  the  company's   request.   During  that 
meeting, the  staff again notified 21st  Century Fax that it  is 
unlawful  to   send  unsolicited  advertisements  to   telephone 
facsimile  machines,  as  defined  by   the  Telephone  Consumer 
Protection Act (TCPA) and the Commission's  rules.6  In a letter 
dated  April 12,  2000,  21st Century  Fax  stated that  it  had 
implemented a system  that would allow fax recipients  to delete 
their  names from its  database and  that it  planned to  resume 
faxing   advertisements,  which   it   had  temporarily   ceased 
following receipt of the citation.7

     4.   Despite   the  citation's   warning  that   subsequent 
violations   could  result   in  the   imposition  of   monetary 
forfeitures,  the Commission received  several consumer  letters 
stating that  21st Century Fax had  continued to engage in  such 
conduct after receiving the citation.8  We  base our action here 
on this  information from consumers  alleging that 21st  Century 
Fax sent unsolicited advertisements on or after March 8, 2000.9  

     5.   The Koch  Industries Letter.  Janet L. Heck,  Attorney 
for Koch Industries,  Inc. (Koch), states that 21st  Century Fax 
faxed 78  unsolicited advertisements to  Koch from May 15,  2000 
to July  12, 2000.10  Ms. Heck  states that after receiving  the 
unsolicited advertisement on  May 15, 2000, and before  June 22, 
2000, Koch employees called 21st Century  Fax and requested that 
21st Century Fax remove Koch's fax  numbers from their database. 
Ms. Heck further  states that Koch employees received  a message 
that Koch's  fax number would  be removed within  7 to 10  days.  
Despite 21st  Century Fax's response,  Ms. Heck states that  the 
company  continued to  fax unsolicited  advertisements to  Koch.  
Ms.  Heck further states  that employees  contacted the  website 
registrant  for  21st Century,  AT&T,  ICN  Corporation,11  Bell 
Atlantic  (now  Verizon Communications)  and  Southwestern  Bell 
(now   SBC  Telecommunications,   Inc.)  in   order  to   obtain 
information about 21st  Century Fax.  Ms. Heck states  that Koch 
then sent a letter to ICN on June  23, 2000 requesting that they 
cease transmission of the  unsolicited facsimile advertisements.  
Ms. Heck  states that  on July  5, 2000 Koch  received a  letter 
from  21st  Century  Fax indicating  that  Koch's  numbers  were 
deleted  from   its  database.   Despite  this   response,  Koch 
continued  to  receive unsolicited  facsimile  advertisements.12  
Koch subsequently contacted the Federal  Bureau of Investigation 
(FBI)  and  requested  its assistance.  The  FBI  contacted  the 
Commission  regarding Koch's  complaint.  Ms.  Heck states  that 
neither she nor  anyone else at Koch ever gave 21st  Century Fax 
permission or  an invitation to  send these advertisements,  and 
that  Koch does not  have an  established business  relationship 
with 21st Century Fax.13 

     6.   The  I.E.C.C. Letter.  John  Levine, Owner,  I.E.C.C., 
states that 21st  Century Fax sent 5  unsolicited advertisements 
to I.E.C.C.'s  fax machine on May  27, 2000, June 8,  2000, July 
17, 2000, August  2, 2000, and September 7, 2000.14   Mr. Levine 
states that  neither he nor  anyone else at I.E.C.C.  authorized 
21st Century  Fax to send  the advertisements and that  I.E.C.C. 
does  not have an  established business  relationship with  21st 
Century Fax.

     7.   The  Honorable Bob  Goodlatte Letter.   Representative 
Bob    Goodlatte,    Member   (Virginia),    U.S.    House    of 
Representatives,   states  that   21st  Century   Fax  sent   an 
unsolicited  advertisement to  his Roanoke  District Office  fax 
machine  in  October 2000.15   Representative  Goodlatte  states 
that neither he  nor anyone else at his Roanoke  District Office 
gave 21st Century Fax prior express  permission or invitation to 
send  advertisements to his  fax machine  and that  he does  not 
have  an established  business  relationship with  21st  Century 
Fax.  Representative Goodlatte  previously requested  Commission 
action  in December  1999  stating that  21st Century  Fax  sent 
unsolicited advertisements to his home fax  machine in September 
1999 and in December 1999.16  

     8.   The  other  faxes.   The  remaining  consumer  letters 
supporting this NAL are factually similar  to the allegations in 
the  consumer letters  described  above.17   In each  case,  the 
consumer  states  that   21st  Century  Fax  used   a  telephone 
facsimile machine  to send an  unsolicited advertisement to  the 
consumer's  telephone  facsimile machine.   In  each  case,  the 
consumer states that 21st Century Fax (a)  was not authorized to 
send the  unsolicited facsimile to  the consumer's fax  machine, 
and (b) does not have an  established business relationship with 
the consumer. 
                      III.      DISCUSSION


A.   Violations Evidenced in the Letters.

     9.   Section 227(b)(1)(C)  of the Act prohibits  any person 
from using ``a  telephone facsimile machine, computer,  or other 
device  to send  an  unsolicited  advertisement to  a  telephone 
facsimile machine.''18  An unsolicited advertisement is  defined 
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.''19  The  Commission has  determined, 
however, that an established  business relationship demonstrates 
consent   to    receive   telephone   facsimile    advertisement 
transmissions.20   The mere  distribution  or publication  of  a 
telephone  facsimile  number  does  not   confer  invitation  or 
permission to transmit advertisements to  a particular telephone 
facsimile machine.21 

     10.  As discussed  above, each facsimile transmission  upon 
which this  NAL is  based offered  consumers the opportunity  to 
participate in  a poll at a cost  of $2.95 per minute.   We find 
that these facsimiles  clearly fall within the definition  of an 
``advertisement.''   Additionally, 21st Century  Fax appears  to 
have sent each facsimile transmission without  the prior express 
invitation  or   permission  of   the  recipient.   The   record 
indicates  that   none  of  the   consumers  at  issue  had   an 
established business  relationship with  21st Century Fax.   The 
record  further indicates  that 21st  Century  Fax continued  to 
send facsimiles to one consumer who  specifically requested that 
21st  Century Fax  refrain from  sending additional  unsolicited 
facsimiles.    Such   evidence,  along   with   the   consumers' 
declarations, demonstrates  that 21st Century  Fax did not  have 
any  prior  express   permission  or  invitation  to   send  the 
facsimile transmissions.
 
B.   Forfeiture Amount.

     11.  We   conclude  that   21st   Century  Fax   apparently 
willfully or  repeatedly violated the  Act and the  Commission's 
rules and orders by using a telephone  facsimile machine to send 
unsolicited   advertisements   to  other   telephone   facsimile 
machines.   21st  Century  Fax  apparently  did  not  cease  its 
unlawful  conduct  even  after the  Commission  staff  issued  a 
citation warning  that it was  engaging in unlawful conduct  and 
could  be  subject to  monetary  forfeitures.22  Accordingly,  a 
proposed forfeiture  is warranted against  21st Century Fax  for 
its apparent  willful or repeated  violations of section 227  of 
the Act and  of the Commission's rules and orders  regarding the 
faxing of unsolicited advertisements.  

     12.  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.23  
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.''24

     13.  Although the Commission's Forfeiture  Policy Statement 
does not  establish a base  forfeiture amount for violating  the 
prohibition  on using  a  telephone  facsimile machine  to  send 
unsolicited  advertisements,   we  have  previously   considered 
$4,500 per unsolicited fax advertisement as  an appropriate base 
amount.25   We apply  that base  amount  to each  of  75 of  the 
apparent  violations.   We  find  that  the  other  77  apparent 
violations  justify a  higher proposed  forfeiture because  Koch 
specifically  notified 21st Century  Fax to  cease its  unlawful 
conduct   and  refrain   from   faxing  additional   unsolicited 
advertisements, but  21st Century  Fax willfully and  repeatedly 
continued  to  do  so.   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.26   Accordingly, for 77  of its  78 apparent  violations 
involving Koch,  we find 21st  Century Fax apparently liable  in 
the amount of  $10,000 for each such violation.27   This results 
in a proposed total forfeiture of  $1,107,500.  21st Century Fax 
shall have the  opportunity to submit evidence and  arguments in 
response  to this  NAL  to show  that  no forfeiture  should  be 
imposed or that some lesser amount should be assessed.28

              IV.  CONCLUSION AND ORDERING CLAUSES

     14.  We have  determined that  21st Century Fax  apparently 
violated section 227  of the Act and the Commission's  rules and 
orders  by using  a telephone  facsimile  machine, computer,  or 
other  device   to  send  the  152   unsolicited  advertisements 
identified above.  We have further determined  that 21st Century 
Fax  is  apparently liable  for  forfeitures  in the  amount  of 
$1,107,500. 

     15.  Accordingly,  IT  IS  ORDERED,   pursuant  to  section 
503(b)(5) of  the Act,  as amended, 47  U.S.C.  503(b)(5),  and 
section 1.80 of  the Commission's rules, 47 C.F.R.   1.80, that 
21st  Century Fax(es)  Ltd. IS  HEREBY NOTIFIED  of an  Apparent 
Liability  for  Forfeiture  in  the  amount  of  $1,107,500  for 
willful or  repeated violations of  section 227(b)(1)(C) of  the 
Act,  47  U.S.C.    227(b)(1)(C),  sections  64.1200(a)(3)  and 
64.1200(f)(5)   of  the   Commission's  rules,   47  C.F.R.    
64.1200(a)(3), 64.1200(f)(5),  and the related orders  described 
in the paragraphs above.

     16.  IT  IS FURTHER ORDERED,  pursuant to  section 1.80  of 
the Commission's  rules, 47  C.F.R.   1.80, that within  thirty 
(30) days  of the release of  this Notice, 21st Century  Fax(es) 
Limited SHALL PAY  the full amount of the  proposed forfeiture29 
OR SHALL  FILE a  response showing  why the proposed  forfeiture 
should not be imposed or should be reduced.
















     17.  IT IS  FURTHER ORDERED that a  copy of this Notice  of 
Apparent  Liability for Forfeiture  SHALL BE  SENT by  certified 
mail to 21st  Century Fax(es) Limited, 532 LaGuardia  Place, PMB 
201, New York, New York 10012.


                         FEDERAL COMMUNICATIONS COMMISSION


                         Magalie Roman Salas
                                                             Se-
cretary


                          Attachment A

(1)  Janet L. Heck,  Attorney for Koch Industries,  Inc. (Koch), 
    Request for Commission Action (July 16, 2000)  (stating that 
    Koch received 78  unsolicited facsimile advertisements  from 
    21st Century Fax); 

(2)  Brian A. Twitchell, Owner of C-Prompt  Computer Service (C-
    Prompt),  Request  for  Commission  Action  (May  26,  2000) 
    (stating that C-Prompt received 2 unsolicited advertisements 
    by fax from  21st Century Fax  on May 3,  2000, and May  17, 
    2000); 

(3)  William D.  Schneider, Request for Commission  Action (July 
    12, 2000) (stating  that 21st Century  Fax used a  telephone 
    facsimile machine to send 1 unsolicited advertisement to his 
    fax machine on June 7, 2000); 

(4)  John  Levine,  Owner,  I.E.C.C.,   Request  for  Commission 
    Action (August 3, 1999) (stating that 21st Century Fax faxed 
    5 unsolicited advertisements to I.E.C.C's fax machine on May 
    27, 2000, June 8,  2000, July 17,  2000, August 2, 2000  and 
    September 7, 2000); 

(5)  Lawrence N. Finch, Request for Commission  Action (June 21, 
    2000) (stating that he received 3 unsolicited advertisements 
    by facsimile from 21st Century Fax on June 20, 2000, In July 
    2000, and on August 15, 2000); 

(6)  Janice  Singleton, Ad  Review  Specialist, Better  Business 
    Bureau of  Asheville  and  Western  North  Carolina  (Better 
    Business Bureau), Request  for Commission  Action  (May  26, 
    2000, September 12, 2000) (stating that the  Better Business 
    Bureau  received  4  unsolicited  advertisements  from  21st 
    Century Fax on May 11,  2000, May 19, 2000, August  21, 2000 
    and September 12, 2000); 

(7)  Jeffrey C. Honig,  Request for Commission Action  (July 10, 
    2000, July 31, 2000) (stating  that 21st Century Fax  used a 
    telephone  facsimile   machine   to   send   3   unsolicited 
    advertisements to his fax machine on June 19, 2000, July 26, 
    2000 and in August 2000); 

(8)  Fred  Gottfried,  President, Ashland  Scale  Company,  Inc. 
    (ASCI), Request  for  Commission  Action (August  17,  2000) 
    (stating that 21st  Century Fax  used a telephone  facsimile 
    machine to send  1 unsolicited  advertisement to ASCI's  fax 
    machine on August 15, 2000); 

(9)  David  Riggs, Computer  Specialist, Smithsonian  Institute-
    Office  of  Information  Technology  (SIOIT),   Request  for 
    Commission Action (May 10, 2000) (stating that  21st Century 
    Fax used a telephone facsimile machine to send 2 unsolicited 
    advertisements to SIOIT's fax machine on April 20,  2000 and 
    May 3, 2000); 

(10)      Samuel  J.  Semel,  President,   Chemung  Electronics, 
    Inc., Request for Commission Action (July 12, 2000) (stating 
    that 21st Century Fax used a telephone facsimile  machine to 
    send 2  unsolicited  advertisements to  Chemung  Electronics 
    Inc.'s fax machine in July 2000 and on September 13, 2000); 

(11)      Ronald  J.  Gadow, Owner,  Hemingway  Printers,  Inc., 
    Request for Commission Action (July 13, 2000)  (stating that 
    21st Century Fax used a telephone facsimile machine  to send 
    1 unsolicited advertisement to Hemingway Printers, Inc's fax 
    machine on July 7, 2000);

(12)      T.A.  Wells, Request  for Commission  Action (May  15, 
    2000) (stating  that  21st  Century  Fax  used  a  telephone 
    facsimile machine to send 1 unsolicited advertisement to his 
    fax machine in May 2000); 

(13)      George  J. Rocheleau,  Request  for Commission  Action 
    (May 22,  2000)  (stating  that  21st  Century  Fax  used  a 
    telephone  facsimile   machine   to   send   1   unsolicited 
    advertisement to his fax machine in May 2000); 

(14)      Robert Chartener, Request for  Commission Action (July 
    10, 2000) (stating  that 21st Century  Fax used a  telephone 
    facsimile machine to send 1 unsolicited advertisement to his 
    fax machine on June 30, 2000); 

(15)      Tony  Leonhardt, Request for  Commission Action  (July 
    24, 2000) (stating  that 21st Century  Fax used a  telephone 
    facsimile machine to send 1 unsolicited advertisement to his 
    fax machine on July 18, 2000); 

(16)      Judith L. Morgan, Owner, Morgan  & Associates, Request 
    for Commission Action (September 6, 2000) (stating that 21st 
    Century Fax used  a telephone  facsimile machine  to send  4 
    unsolicited  advertisements  to  Morgan  &  Associates'  fax 
    machine on June  30, 2000, August 7,  2000, August 10,  2000 
    and September 12, 2000); 

(17)      James  N. Falkenberg,  Request  for Commission  Action 
    (August 10,  2000) (stating  that 21st  Century  Fax used  a 
    telephone  facsimile   machine   to   send   2   unsolicited 
    advertisements to his fax machine in July 2000); 

(18)      Thomas J. Mott, Request for  Commission Action (August 
    7, 2000) (stating  that 21st  Century Fax  used a  telephone 
    facsimile machine to  send 5  unsolicited advertisements  to 
    his fax machine in July 2000 and September 2000); 

(19)      Lewis  Rosenberger,   Regional  Manager,  KSB,   Inc., 
    Request for Commission Action (July 6, 2000, August  2, 2000 
    and October 1, 2000) (stating  that 21st Century Fax  used a 
    telephone  facsimile   machine   to   send   5   unsolicited 
    advertisements to KSB's fax  machine on June 28,  2000, June 
    29, 2000, July  31, 2000, September  26, 2000 and  September 
    28, 2000); 

(20)      Carmen  M.   McGee,  Request  for  Commission   Action 
    (August 22,  2000) (stating  that 21st  Century  Fax used  a 
    telephone  facsimile   machine   to   send   4   unsolicited 
    advertisements to her fax machine on August 10, 2000, August 
    15, 2000, September 15, 2000 and September 20, 2000); 

(21)      Arthur  K.  Salomon,  Request  for  Commission  Action 
    (September 6, 2000)  (stating that 21st  Century Fax used  a 
    telephone  facsimile   machine   to   send   2   unsolicited 
    advertisements to  his fax  machine in  August  2000 and  on 
    September 12, 2000); 

(22)      Roger  Arrick,  Owner, Arrick  Robotics,  Request  for 
    Commission Action  (May 31,  2000, July  28, 2000)  (stating 
    that 21st Century Fax used a telephone facsimile  machine to 
    send 3 unsolicited  advertisements to  Arrick Robotic's  fax 
    machine in May 2000, July 2000 and September 2000); 

(23)      Susan  Ajemian,  Property Administrator,  The  Regency 
    Group, Inc. (TRGI),  Request for  Commission Action (May  8, 
    2000, September  21, 2000)  (stating that  21st Century  Fax 
    used a  telephone facsimile  machine to  send 4  unsolicited 
    advertisements to TRGI's fax machine in May 2000,  on May 5, 
    2000, on September 20, 2000 and on October 26, 2000); 

(24)      Larry   Steiner,   General  Manager,   Spectrum   Home 
    Entertainment  (Spectrum),  Request  for  Commission  Action 
    (July 3,  2000)  (stating  that  21st  Century  Fax  used  a 
    telephone  facsimile   machine   to   send   1   unsolicited 
    advertisement to Spectrum's fax machine in June 2000); 

(25)      Tom Mulhern,  Request for  Commission Action (June  6, 
    2000) (stating  that  21st  Century  Fax  used  a  telephone 
    facsimile machine to  send 2  unsolicited advertisements  to 
    his fax machine on May 24, 2000 and June 1, 2000); 

(26)      Francis  M.  Simonds,  Jr.,   Request  for  Commission 
    Action (September 6,  2000) (stating  that 21st Century  Fax 
    used a  telephone facsimile  machine to  send 1  unsolicited 
    advertisement to his fax machine in August 2000); 

(27)      Dennis   J.  Blahofski,   President,  db   enterprise, 
    Request for Commission Action via Avonne M. Seals, Assistant 
    Attorney General, Office of  the Illinois Attorney  General, 
    (May 24,  2000)  (stating  that  21st  Century  Fax  used  a 
    telephone  facsimile   machine   to   send   1   unsolicited 
    advertisement to db enterprise's fax machine in May 2000); 

(28)      Warren  Ford, Owner,  The Mail  Center (TMC),  Request 
    for Commission Action (August  22, 2000) (stating that  21st 
    Century Fax used  a telephone  facsimile machine  to send  1 
    unsolicited advertisement  to TMC's  fax  machine in  August 
    2000); 

(29)      Jack Crobaugh,  President, Jack Crobaugh &  Associates 
    (JC&A),  Request  for  Commission  Action,  (May  26,  2000) 
    (stating that 21st  century fax  used a telephone  facsimile 
    machine to send 2  unsolicited advertisements to JC&A's  fax 
    machine on May 10, 2000 and May 23, 2000); 

(30)      Mrs.  John R.  Dixon,  Request for  Commission  Action 
    (August 16,  2000) (stating  that 21st  Century  Fax used  a 
    telephone  facsimile   machine   to   send   1   unsolicited 
    advertisement to her fax machine on July 27, 2000); 

(31)      Ygal   Giramberk,   Owner,   Corporate   International 
    Operations, Request for  Commission Action  (June 23,  2000) 
    (stating that 21st  Century Fax  used a telephone  facsimile 
    machine to  send 1  unsolicited  advertisement to  Corporate 
    International Operations' fax machine in June 2000); 

(32)      James  L.  McCormick, Request  for  Commission  Action 
    (August 1,  2000)  (stating that  21st  Century Fax  used  a 
    telephone  facsimile   machine   to   send   2   unsolicited 
    advertisement to his fax machine in July 2000); 

(33)      Dewitt  Foster,  Owner, Stockbrokers  Training  School 
    (STS),  Request  for  Commission  Action  (July   23,  2000) 
    (stating that 21st  Century Fax  used a telephone  facsimile 
    machine to  send  1 unsolicited  advertisement to  STS'  fax 
    machine in June 2000); 

(34)      Mark  A.  Kruchowsky,  Owner,  Animal  Aid  Veterinary 
    Medical Center (AAVMC), Request for Commission  Action (July 
    5, 2000) (stating  that 21st  Century Fax  used a  telephone 
    facsimile machine  to send  1  unsolicited advertisement  to 
    AAVMC's fax machine on June 20, 2000); 

(35)      Vernon  J.  Schryver, Request  for  Commission  Action 
    (June 11, 2000,  July 24, 2000)  (stating that 21st  Century 
    Fax used a telephone facsimile machine to send 3 unsolicited 
    advertisements to his fax machine on June 5,  2000, July 24, 
    2000 and September 5, 2000); 

(36)      Kevin  Orlin Johnson,  President, Pangaeus  Companies, 
    Request for Commission Action (June 20, 2000)  (stating that 
    21st Century Fax used a telephone facsimile machine  to send 
    1  unsolicited  advertisement  to  Panageus  Companies'  fax 
    machine in June 2000); and 

(37)      The Honorable  Bob Goddlatte, Member (Virginia),  U.S. 
    House of Representatives,  Request for  Commission Action  ( 
    October 24,  2000) (stating  that 21st  Century  Fax used  a 
    telephone  facsimile   machine   to   send   1   unsolicited 
    advertisement to his Roanoke District Office fax  machine in 
    October 2000).



_________________________

1    21st Century Fax(es) Ltd. lists several addresses on its 
faxes including 532 LaGuardia Place, PMB 201, New York, New 
York 10012 and 331 West 57th Street, New York, NY 10019.  
According to Dun & Bradstreet Business Information Report, 21st 
Century Fax's address is 260 Hillsdale Ave, Santa Clara, 
California 95051.  See Dun & Bradstreet Business Information 
Report, October 4, 2000.


2    See 47 U.S.C.  227; 47 C.F.R.  64.1200(a)(3); see also 
Rules and Regulations Implementing the Telephone Consumer 
Protection Act of 1991, Report and Order, 7 FCC Rcd 8752, 8779, 
 54  (1995) (TCPA Report and Order) (stating that Section 227 
of the Act prohibits the use of telephone facsimile machines to 
send unsolicited advertisements).   

3    47 U.S.C.  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.  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 is not a 
common carrier so long as (A) such person 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 resident; and (C) subsequently engages in 
conduct of the type described in the citation).  

4    See 47 U.S.C.  503(b)(5) (authorizing the Commission to 
issue citations to non-common carriers for violations of the 
Act or of the Commission's rules and orders).     

5    Section 227(b)(1)(c) of the Act provides that ``[i]t shall 
be unlawful for any person within the United States'' to send 
unsolicited fax advertisements.  (Emphasis added.)

6    See 47 U.S.C.  227; 47 C.F.R.  64.1200(a)(3).

7    Letter from Miss Sarah Lee, Call Centre Manager, 21st 
Century Fax Ltd., dated April 12, 2000.  During the March 8, 
2000 meeting with the Commission staff, 21st Century Fax stated 
that it had temporarily stopped its transmission of faxes after 
receiving the citation.

8    See Attachment A. 

9    We note that evidence of additional instances of unlawful 
conduct by 21st Century Fax may form the basis of subsequent 
enforcement action.

10   See Declaration of Janet Heck, Attorney, Koch Industries, 
Inc.  Ms. Heck states that Koch received unsolicited 
advertisements via facsimile from 21st Century Fax on the 
following dates: (1) one on May 15, 2000; (2) ten on June 22, 
2000 between 9:48 a.m. and 2:04 p.m.; (3) thirteen on June 23, 
2000 between 10:02 a.m. and 4:15 p.m.; (4) nineteen on June 26, 
2000 between 10:00 am and 6:19 p.m.; (5) eight on June 27, 2000 
between 8:00 am and 1:17 p.m.; (6) three on June 28, 2000 
between 9:17 a.m. and 12:20 p.m.; (7) one on June 29, 2000 at 
approximately 10:52 a.m.; (8) two on July 6, 2000 between 5:00 
p.m. and 6:21 p.m.; (9) seven on July 7, 2000 between 8:54 a.m. 
and 5:50 p.m.; (10) six on July 10, 2000 between 10:54 a.m. and 
4:10 p.m.; (11) six on July 11, 2000 between 12:21 p.m. and 
6:52 p.m.; and (12) two on July 12, 2000 between 8:24 a.m. and 
9:19 a.m.

11   In the Citation issued to 21st Century Fax, the Commission 
notes that it obtained information indicating that ICN 
Corporation (ICN) is the subscriber for 1-800-606-5720, an opt-
out number that appears on 21st Century Fax's advertisements.  
The Commission further notes that ICN is listed as the customer 
of the 800 number account in the underlying carrier's business 
customer database.

12   Id.

13   Id.

14   See Declaration of John Levine, Owner, I.E.C.C.

15   See Declaration of The Honorable Bob Goodlatte, Member, 
U.S. House of Representatives, State of Virginia.

16   For purposes of this NAL, a forfeiture amount is only 
proposed for the unsolicited facsimile advertisement received 
by Representative Bob Goodlatte after Match 8, 2000, the date 
the Commission issued a citation to 21st Century Fax.

17   See Attachment A (listing the consumer letters that form 
the basis for this NAL).  We have obtained declarations from 
all consumers listed in Attachment A.

18   47 U.S.C.  227(b)(1)(C).  Section 227 defines a telephone 
facsimile machine as ``equipment which has the capacity (A) to 
transcribe text or images, or both, from paper into an 
electronic signal and to transmit that signal over a regular 
telephone line, or (B) to transcribe text or images (or both) 
from an electronic signal received over a regular telephone 
line onto paper.''  Id.  227(a)(2).  This blanket prohibition 
applies to all unsolicited advertisements transmitted by 
telephone facsimile machines.  The Act does not permit the 
sending of unsolicited advertisements by facsimile to either 
business or residential telephone facsimile machines.

19   47 C.F.R.  64.1200(f)(5).

20   See Rules and Regulations Implementing the Telephone 
Consumer Protection Act of 1991, Memorandum Opinion and Order, 
10 FCC Rcd 12391, 12408,  37 (1995) (TCPA Memorandum Opinion 
and Order).

21   Id.

22   Although 21st Century Fax asserted in its response to the 
citation that its conduct did not violate section 227 because 
none of its faxes originate within the United States, it has 
yet to submit any proof in support of this claim.  In the 
absence of any record on this issue, we are not in a position 
to evaluate any hypothetical legal and factual issues that may 
be raised by facsimiles originating outside the United States.
23   Section 503(b)(2)(C) provides for forfeitures up to 
$10,000 for each violation by cases not covered by 
subparagraphs (A) or (B), which address forfeitures for 
violations by licensees and common carriers, among others.  See 
47 U.S.C.  503(b).  The Commission amended its rules by adding 
a new subsection to its monetary forfeiture provisions that 
incorporates by reference the inflation adjustment requirements 
contained in the Debt Collection Improvement Act of 1996, Pub. 
L. 104-134, Sec. 31001, 110 Stat. 1321, enacted on April 26, 
1996.  Thus, the maximum statutory forfeiture pursuant to 
section 503(b)(2)(C) increased from $10,000 to $11,000.  See 
Amendment of Section 1.80 of the Commission's Rules, 12 FCC Rcd 
1038 (1997). 

24   47 U.S.C.  503(b)(2)(D); 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, 17152-17101,  27 (1997), recon. denied, 15 FCC Rcd 
303 (1999) (Forfeiture Policy Statement).

25   See Get-Aways, Inc., Notice of Apparent Liability For 
Forfeiture, 15 FCC Rcd. 1805 (1999); Get-Aways, Inc, Forfeiture 
Order, FCC 00-67 (released March 2, 2000); see also Tri-Star 
Marketing, Inc., Notice of Apparent Liability For Forfeiture, 
FCC 00- 219 (released June 22, 2000).

26   See Tri-Star Marketing, Inc., Notice of Apparent Liability 
For Forfeiture, FCC 00- 219 (released June 22, 2000).

27   Id.

28   See 47 U.S.C.  503(b)(4)(C); 47 C.F.R.  1.80(f)(3).

29   The forfeiture amount should be paid by check or money 
order drawn to the order of the Federal Communications 
Commission.  Reference should be made on 21st Century Fax, 
Inc.'s check or money order to ``NAL/Acct/ No. X3217-009.''  
Such remittances must be mailed to Forfeiture Collection 
Section, Finance Branch, Federal Communications Commission, 
P.O. Box 73482, Chicago, Illinois 60673-7482.