Telephone act changes pose relief for consumers, risk for businesses

Crowe's and Dunlevy attorney Cori Loomis discusses FCC's new interpretations of the Telephone Consumer Protection Act.
by Paula Burkes Published: September 6, 2013
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Q&A with Cori Loomis

Changes to telephone act offer consumers relief, businesses risk

Q: With the proliferation of mobile devices, businesses are using cellphone calls and text messaging as a way to contact consumers for advertising and debt collection purposes. Being bombarded by texts and calls on a mobile device can be particularly frustrating for consumers. In response, the Federal Communications Commission (FCC) has tightened rules under the Telephone Consumer Protection Act (TCPA) that will be helpful to consumers, but pose a litigation risk for businesses. Can you explain the act?

A: The TCPA imposes a series of restrictions on telemarketing solicitations and other outbound communications, including voice calls and fax transmissions. Two provisions, in particular, have become problematic for businesses as more consumers rely on wireless telephones. First, the TCPA prohibits callers from using an automatic telephone dialing system (auto-dialer) or a prerecorded or artificial voice message (robocall) to call wireless telephone numbers without prior written consent.

Q: What recent development will assist consumers with annoying calls and texts, but pose a risk for businesses?

A: For more than a decade, the FCC interpreted the “prior express consent” requirement in a manner that was easy to comply with for telemarketers or debt collectors. The FCC took the position that consumers who knowingly gave their phone numbers to a business had, in effect, given their invitation or permission to be called at the number given. In 2012, the FCC changed its position. The new interpretation requires a signed, written agreement in which the consumer specifically consents to receiving telemarketing or debt collection calls or text messages via automated systems, artificial callers and prerecorded voices on a cellphone or residential line. This new requirement goes into effect Oct. 16.

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by Paula Burkes
Reporter
A 1981 journalism graduate of Oklahoma State University, Paula Burkes has more than 30 years experience writing and editing award-winning material for newspapers and healthcare, educational and telecommunications institutions in Tulsa, Oklahoma...
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