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FEDERAL COMMUNICATIONS COMMISSION
WASHINGTON, D.C. 20554
May 14, 2002
The Whittemore Corporation
a.k.a. Datafax Solutions
9330 LBJ Freeway, Suite 260
Dallas, Texas 75243
Attention: David Whittemore, President
RE: EB-02-TC-074
Dear Mr. Whittemore:
This is an official CITATION, issued pursuant to section
503(b)(5) of the Communications Act of 1934, as amended
(Communications Act), for possible violations of the Telephone
Consumer Protection Act of 19911 (TCPA) and the Federal
Communications Commission's rules that implement that Act.2
It has come to our attention that your company recently
transmitted to telephone facsimile machines unsolicited
advertisements for products, goods, or services offered by Stock
Communications Group, Inc. a.k.a. Operating Systems, Inc. (see
attachments).3 Pursuant to the TCPA and the Commission's Rules,
it is unlawful to use a ``telephone facsimile machine, computer,
or other device to send an unsolicited advertisement to a
telephone facsimile machine.''4
The TCPA and the Commission's rules also require any person
or entity who sends a message via a telephone facsimile machine
to clearly mark ``in a margin at the top or bottom of each
transmitted page of the message or on the first page of the
transmission, the date and time it is sent and an identification
of the business, other entity, or individual sending the message
and the telephone number of the sending machine or of such
business, other entity, or individual.''5
The term ``unsolicited advertisement'' is defined in the
TCPA 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.''6 The Commission has
specified that an established business relationship between a fax
sender and recipient constitutes prior express invitation or
permission to send a facsimile advertisement.7 Mere distribution
or publication of a fax number, however, does not establish
consent to receive advertisements by fax.8
Although entities that merely transmit facsimile messages on
behalf of others are not liable for compliance with the
prohibition on faxing unsolicited advertisements,9 the exemption
from liability does not exist when a fax transmitter has ``'a
high degree of involvement or actual notice of an illegal use and
[has] fail[ed] to take steps to prevent such transmissions.'''10
Accordingly, fax transmitters do not enjoy an absolute exemption
from liability under the TCPA and the Commission's Rules.
This citation serves as notice that the unsolicited
facsimile advertisements sent by Stock Communications Group, Inc.
a.k.a. Operating Systems, Inc. and transmitted by your company
violate the TCPA and the Commission's Rules. The Commission may
assess to your company monetary forfeitures not to exceed $11,000
for each subsequent violation if (1) your company has been highly
involved on behalf of the sender of any unsolicited facsimile
advertisements, or (2) your company continues to transmit
facsimile advertisements for Stock Communications Group, Inc.
a.k.a. Operating Systems, Inc. without taking steps to ensure
that the sender has obtained permission from recipients to fax
the advertisements.
Pursuant to section 503(b)(5) of the Communications Act, you
may request a personal interview at the Commission's Field Office
nearest to your place of business. The nearest office appears to
be the Dallas Office at 9330 LBJ Freeway, Room 1170, Dallas,
Texas 75243, which you can contact by telephone at (214) 575-
6361. You must schedule this interview to take place within 21
days of the date of this citation. Alternatively, you may submit
a written statement to the following address within 21 days of
the date of this citation:
Kurt A. Schroeder
Deputy Chief
Telecommunications Consumers Division
Enforcement Bureau
Federal Communications Commission
445 - 12th Street, S.W.
Washington, D.C. 20554
Please reference EB-02-TC-074 when corresponding with the
Commission.
If you choose to submit a written statement, you should
discuss in detail your company's involvement in faxing
advertisements on behalf of Stock Communications Group, Inc.
a.k.a. Operating Systems, Inc., including any specific
arrangements under which you transmit their advertisements.
Please provide copies of any contracts or agreements that
memorialize the terms and conditions under which you fax for
Stock Communications Group, Inc. a.k.a. Operating Systems, Inc.
You should also answer the following questions:
1. Has your company had any control over or involvement in
determining the content of advertisements transmitted by
facsimile on behalf of Stock Communications Group, Inc.
a.k.a. Operating Systems, Inc. or any other entities on
whose behalf you transmit advertisements by facsimile?
Please describe such control or involvement in detail.
2. Who provided, compiled, or generated the distribution
list(s) of telephone facsimile numbers that your company
has used to transmit advertisements on behalf of Stock
Communications Group, Inc. a.k.a. Operating Systems, Inc.
or any other entities on whose behalf you transmit
advertisements by facsimile?
3. If your company has been involved in any way in
providing, compiling, generating, or editing the
distribution list(s) of telephone facsimile numbers that
your company has used to transmit advertisements on
behalf of Stock Communications Group, Inc. a.k.a.
Operating Systems, Inc. or any other entities on whose
behalf you transmit advertisements by facsimile, describe
in detail the process by which your company produces or
participates in the generation of such list(s). Does
your company employ or compensate any individuals or
entities outside the company, including any tax-exempt
nonprofit organizations, for any service, activity,
assistance, or facilities used in connection with your
company's providing, compiling, generating, or editing of
such list(s)? Please describe such arrangements in
detail.
4. If your company has been involved in any way in
providing, compiling, generating, or editing the
distribution list(s) of telephone facsimile numbers that
your company has used to transmit advertisements on
behalf of Stock Communications Group, Inc. a.k.a.
Operating Systems, Inc. or any other entities on whose
behalf you transmit advertisements by facsimile, what
steps has your company taken to ensure that the telephone
facsimile numbers belong to individuals or entities who
have agreed, by explicit consent or by virtue of an
established business relationship with the advertiser, to
receive the advertisement? Please describe in detail the
manner in which you record consumers' consent or the
existence of an established business relationship and
provide copies of any written record-keeping policies
with respect to maintaining evidence of such consent or
business relationship.
5. Does your company advertise its fax transmittal
services, and, if so, by what means? Please provide
copies of all print, audio, and video materials that have
been used within the past year to advertise your
company's fax transmittal services. For each
advertisement, list the media in which the advertisement
appeared and the date(s) of such appearance(s).
Under the Privacy Act of 1974, 5 U.S.C. § 552(a)(e)(3), we
are informing you that the Commission's staff will use all
relevant material information before it to determine what, if
any, enforcement action is required to ensure your compliance
with the TCPA and the Commission's rules. This will include any
information that you disclose in your interview or written
statement. Please be advised that if you choose not to respond
to this citation and a forfeiture is issued, your
unresponsiveness will be considered in our assessment of a
forfeiture amount.
You should also be aware that the knowing and willful making
of any false statement, or the concealment of any material fact,
in reply to this citation is punishable by fine or imprisonment
under 18 U.S.C. § 1001.
Thank you in advance for your anticipated cooperation.
Sincerely,
Kurt A. Schroeder
Deputy Chief
Telecommunications Consumers
Division
Enforcement Bureau
Federal Communications Commission
Enclosures
_________________________
1 Pub.L. No. 102-243, 105 Stat. 2394-2402 (1991) (codified at
47 U.S.C. § 227).
2
47 C.F.R. § 64.1200.
3 In addition to the advertisement(s) referenced by and
attached to this citation, the complaining party may also have
included with the complaint one or more facsimile advertisements
transmitted by other senders. This citation concerns only the
facsimile advertisement(s) referenced by and attached to the
citation, and your response only needs to address such
advertisement(s).
4 47 U.S.C. § 227(b)(1)(C); 47 C.F.R. § 64.1200(a)(3).
5 47 U.S.C. § 227(d)(1)(B); 47 C.F.R. § 68-318(d).
6 47 U.S.C. § 227(a)(4); 47 C.F.R. § 64.1200(f)(5).
7 Rules and Regulations Implementing the Telephone Consumer
Protection Act of 1991, Report and Order, 7 FCC Rcd 8752, 8779 n.
87 (1992) (TCPA Report and Order); Rules and Regulations
Implementing the Telephone Consumer Protection Act of 1991,
Memorandum Opinion and Order, 10 FCC Rcd 12391, 12408 (1995)
(TCPA Memorandum Opinion and Order).
8
TCPA Memorandum Opinion and Order, 10 FCC Rcd 12391, 12408.
9 Id. at 12407.
10 TCPA Report and Order, 7 FCC Rcd 8752, 8780 (1992) (quoting
Use of Common Carriers, 2 FCC Rcd 2819, 2820 (1987).)