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   September 20, 2010 Eric Bash

   (202) 418-2057


                           PURPLE COMMUNICATIONS, INC.

   Settlement Requires Payments in Excess of $22 Million for Alleged Abuse of

         That Supports Vital Service for Persons with Hearing or Speech

   Today, the FCC's Enforcement Bureau released a consent decree with Purple
   Communications, Inc. that requires the company to pay approximately $22
   million to the Telecommunications Relay Service (TRS) Fund, resolving
   Bureau investigations into whether Purple overbilled the TRS Fund by
   artificially inflating TRS usage.  TRS is a vital service that allows
   people with hearing or speech disabilities to communicate over the
   telephone -- through an interpreter -- with people who do not have such
   disabilities.  The Americans with Disabilities Act established the TRS
   Fund, under the FCC's oversight, to ensure that individuals with hearing
   or speech disabilities who use TRS can do so at the same rates hearing
   people pay for regular telephone service.  TRS providers like Purple are
   paid for their services through the TRS Fund.  Further information about
   TRS is available at the FCC's website at 

   The issues under investigation by the Enforcement Bureau included whether
   the company unlawfully offered financial incentives or rewards simply to
   inflate TRS usage and billables, and double-recovered for certain
   business-related calls.  The $22 million settlement resolves the Bureau's
   investigation, establishes the terms of Purple's repayment of the TRS
   Fund, and creates a robust compliance framework for Purple's continued
   provision of TRS. 

   Under the terms of the settlement, Purple must:

     * repay $18.5 million to the TRS Fund over a period of five years, plus
       an additional $3.1 million in interest and penalties;

     * make a $550,000 payment to the U.S. Treasury; and

     * adopt a detailed compliance plan designed to ensure that the company
       strictly adheres to the Commission's TRS rules.  

         The Compliance Plan required by the settlement obligates Purple to
   appoint a compliance director, establish an FCC Regulatory Committee of
   its Board of Directors to ensure high-level management oversight of its
   compliance efforts, provide comprehensive training to all employees
   regarding FCC regulations, conduct detailed compliance reviews of all
   programs involving the generation of new TRS business, certify to the
   accuracy of its requests for reimbursement from the TRS Fund, review those
   submissions for anomalous calling patterns that could indicate misuse of
   TRS, and immediately take steps to correct any incorrect reimbursement

   FCC Enforcement Bureau Chief Michele Ellison stated:  "We simply will not
   tolerate abuse of the TRS Fund.  Every dollar misappropriated from this
   Fund is ultimately a dollar taken from consumers.  Today's settlement
   strikes the right balance:  it requires full repayment of the TRS Fund and
   compels an overhaul of Purple's business practices; at the same time, it
   enables Purple to continue providing vital relay services to individuals
   with hearing or speech disabilities.  We will remain vigilant in
   protecting the public trust -- the millions of Americans with hearing or
   speech disabilities deserve no less."

   Ms. Ellison also said:  "I want to express my appreciation for the
   cooperative efforts of our FCC colleagues who worked with the Enforcement
   Bureau to resolve this matter, particularly those in the Office of General
   Counsel, Office of the Managing Director, and Consumer and Governmental
   Affairs Bureau."

                                   -- FCC --



   Federal Communications Commission

   445 12th Street, S.W.

   Washington, D. C. 20554

   This is an unofficial announcement of Commission action. Release of the
   full text of a Commission order constitutes official action.

   See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).

                                        News Media Information 202 / 418-0500


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