[House Report 111-461]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 111-461
======================================================================
TRUTH IN CALLER ID ACT OF 2010
_______
April 13, 2010.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Waxman, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
[To accompany H.R. 1258]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 1258) to amend the Communications Act of 1934 to
prohibit manipulation of caller identification information, and
for other purposes, having considered the same, report
favorably thereon with amendments and recommend that the bill
as amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 3
Legislative History.............................................. 3
Committee Consideration.......................................... 4
Committee Votes.................................................. 4
Statement of Committee Oversight Findings and Recommendations.... 4
Statement of General Performance Goals and Objectives............ 4
Constitutional Authority Statement............................... 4
Earmarks and Tax and Tariff Benefits............................. 4
Federal Advisory Committee Statement............................. 5
Applicability of Law to Legislative Branch....................... 5
Federal Mandates Statement....................................... 5
Committee Cost Estimate.......................................... 5
Budget Authority and Congressional Budget Office Cost Estimate... 5
Section-by-Section Analysis of the Legislation................... 6
Explanation of Amendment......................................... 8
Changes in Existing Law Made by the Bill, as Reported............ 9
Amendment
The amendments are as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Truth in Caller ID Act of 2010''.
SEC. 2. PROHIBITION REGARDING MANIPULATION OF CALLER ID INFORMATION.
Section 227 of the Communications Act of 1934 (47 U.S.C. 227) is
amended--
(1) by redesignating subsections (e), (f), and (g) as
subsections (f), (g), and (h), respectively; and
(2) by inserting after subsection (d) the following new
subsection:
``(e) Prohibition on Provision of Deceptive Caller ID Information.--
``(1) In general.--It shall be unlawful for any person within
the United States, in connection with any real time voice
communications service, regardless of the technology or network
utilized, to cause any caller ID service to transmit misleading
or inaccurate caller ID information, with the intent to defraud
or deceive.
``(2) Protection for blocking caller id information.--Nothing
in this subsection may be construed to prevent or restrict any
person from blocking the capability of any caller ID service to
transmit caller ID information.
``(3) Regulations.--
``(A) Deadline.--Not later than 6 months after the
date of enactment of this subsection, the Commission
shall prescribe regulations to implement this
subsection.
``(B) Consideration of related regulations.--In
conducting the proceeding to prescribe the regulations
required by subparagraph (A), the Commission shall
examine whether the regulations under subsection
(b)(2)(B) should be revised to require calls that are
not made for a commercial purpose to residential
telephone lines using an artificial or prerecorded
voice to deliver a message to transmit caller ID
information that is not misleading or inaccurate.
``(4) Law enforcement exception.--This section does not
prohibit lawfully authorized investigative, protective, or
intelligence activity of a law enforcement agency of the United
States, a State, or a political subdivision of a State, or of
an intelligence agency of the United States, or any activity
authorized under chapter 224 of title 18, United States Code.
``(5) Savings provision.--Except as provided for in paragraph
(3)(B), nothing in this subsection may be construed to affect
or alter the application of the Commission's regulations
regarding the requirements for transmission of caller ID
information, issued pursuant to the Telephone Consumer
Protection Act of 1991 (Public Law 102-243) and the amendments
made by such Act.
``(6) Definitions.--For purposes of this subsection:
``(A) Caller id information.--The term `caller ID
information' means information provided to an end user
by a caller ID service regarding the name or the
telephone number of the caller or other information
regarding the origination of a call made using any real
time voice communications service, regardless of the
technology or network utilized.
``(B) Caller id service.--The term `caller ID
service' means any service or device designed to
provide the user of the service or device with the name
or the telephone number of the caller or other
information regarding the origination of a call made
using any real time voice communications service,
regardless of the technology or network utilized. Such
term includes automatic number identification
services.''.
Amend the title so as to read:
A bill to amend the Communications Act of 1934 to prohibit
manipulation of caller ID information, and for other purposes.
Purpose and Summary
H.R. 1258, the Truth in Caller ID Act of 2010, was
introduced on March 3, 2009, by Reps. Eliot L. Engel (D-NY) and
Joe Barton (R-TX). The legislation would require the Federal
Communications Commission (FCC) to adopt rules prohibiting the
manipulation of caller identification information with the
intent to defraud or deceive.
Background and Need for Legislation
Caller identification (caller ID) is a service offered by
most telephone companies to consumers for a fee. Caller ID
service allows phone calls to be identified with the name and
number of the incoming call. This consumer offering is derived
from the Signaling System Seven (SS7) database, which carriers
are required to transmit along with a call through the
traditional telephone system. SS7 provides carriers involved in
transmitting a call with the area code, phone number, and name
of the calling party to ensure proper routing and billing of
calls between carriers. Carriers must block the delivery of the
SS7 information to the called party at the calling party's
request. Callers can block their caller ID information on a
per-call basis by dialing *67 before a phone call is made.
Voice over internet protocol (VoIP) is a service that
allows users to make telephone calls over an Internet
connection. Although it functions in the same manner as a
traditional telephone call, this service has typically not been
subject to the same regulatory treatment as traditional
telephony, including the requirement to transmit caller
identification information. Some VoIP providers allow consumers
to change the caller ID information that is transmitted once a
call is made, while others do not.
H.R. 1258 would protect against a practice referred to as
caller ID ``spoofing,'' where a caller falsifies the original
caller ID information during the transmission of a phone call.
Typically, caller ID spoofing will involve a caller changing
the number or the name of the calling party as shown on the
call recipient's caller ID. Spoofing has been possible for
years but generally required expensive equipment to change the
outgoing call information. With the growth of VoIP, however,
spoofing has become easier and less expensive to execute. A
number of Internet Web sites also now offer spoofing services,
as well as other tools such as voice scrambling services.
The proliferation of these technologies and services means
that individuals and entities that wish to defraud or deceive
others through caller ID manipulation can do so with relative
ease. Spoofing threatens a number of business applications,
including credit card verification and automatic call routing,
because these systems rely on the telephone number as one piece
of a verification and authentication process. At other times,
however, spoofing may be utilized to protect consumers. For
example, domestic violence shelters sometimes use spoofing to
mask the identity of the caller for protective purposes.
The House of Representatives has passed near-identical
legislation in each of the past two Congresses.
Legislative History
Reps. Engel and Barton introduced H.R. 1258 on March 3,
2009. H.R. 1258 was referred to the Subcommittee on
Communications, Technology, and the Internet on March 4, 2009.
Similar legislation by Mr. Engel and Mr. Barton was introduced
in previous Congresses: H.R. 5126 in 2006 (109th Congress) and
H.R. 251 in 2007 (110th Congress). Subcommittee hearings were
held in the 109th Congress on May 18, 2006, and the 110th
Congress on February 28, 2007.\1\ Both measures passed in the
House by a voice vote but Senate action was not completed
before the Congresses ended.
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\1\House Committee on Energy and Commerce, 109th Cong. (June 6,
2006) (H. Rept. No. 109-489) and 110th Cong. (June 11, 2007) (H. Rept.
No. 110-188).
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Committee Consideration
On Thursday, October 8, 2009, the Subcommittee on
Communications, Technology, and the Internet met in open markup
session and favorably forwarded H.R. 1258, amended, to the full
Committee by a voice vote. An amendment in the nature of a
substitute offered by Subcommittee Chairman Boucher was
previously adopted by a voice vote.
On Wednesday, March 10, 2010, the full Committee met in
open mark up session to consider H.R. 1258. An amendment in the
nature of a substitute offered by Mr. Boucher was adopted by a
voice vote. The Committee subsequently ordered H.R. 1258
favorably reported to the House, amended, by a voice vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto. A
motion by Mr. Waxman to order H.R. 1258 favorably reported to
the House, amended, was agreed to by a voice vote. There were
no recorded votes taken during the consideration of the bill.
Statement of Committee Oversight Findings and Recommendations
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee's oversight findings and recommendations are
reflected in the descriptive portions of this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are reflected in the descriptive portions
of this report.
Constitutional Authority Statement
Under clause 3(d)(1) of rule XIII of the Rules of the House
of Representatives, the Committee must include a statement
citing the specific powers granted to Congress to enact the law
proposed by H.R. 1258. Article I, section 8, clauses 3 and 18
of the Constitution of the United States grants the Congress
the power to enact this law.
Earmarks and Tax and Tariff Benefits
H.R. 1258 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9(d), 9(e), or 9(f) of rule XXI of the Rules of the
House of Representatives.
Federal Advisory Committee Statement
The Committee finds that the legislation does not establish
or authorize the establishment of an advisory committee within
the definition of 5 U.S.C. App., section 5(b).
Applicability of Law to the Legislative Branch
The Committee finds that H.R. 1258 does not relate to the
terms and conditions of employment or access to public services
or accommodations within the meaning of section 102(b)(3) of
Public Law 104-1.
Federal Mandates Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by section 101(a)(2) of the Unfunded
Mandate Reform Act, P.L. 104-4) requires a statement whether
the provisions of the reported include unfunded mandates. In
compliance with this requirement the Committee adopts as its
own the estimates of federal mandates prepared by the Director
of the Congressional Budget Office.
Committee Cost Estimate
Pursuant to clause 3(d)(2) of rule XIII of the Rules of the
House of Representatives, the Committee adopts as its own the
cost estimate on H.R. 1258 prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act.
Budget Authority and Congressional Budget Office Cost Estimate
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives and section 402 of the Congressional
Budget Act of 1974, the Committee has received the following
cost estimate for H.R. 1258 from the Director of the
Congressional Budget Office:
April 7, 2010.
Hon. Henry A. Waxman,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1258, the Truth in
Caller ID Act of 2010.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susan Willie.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 1258--Truth in Caller ID Act of 2010
H.R. 1258 would amend the Communications Act of 1934 to
prohibit caller identification services (known as Caller ID)
from transmitting misleading or inaccurate information with the
intent to defraud or deceive. Caller ID allows consumers to see
the names and telephone numbers of incoming calls. Prohibitions
under the bill would apply to both traditional telephone and
voice over Internet protocol services.
Based on information from the Federal Communications
Commission (FCC), CBO expects that developing and enforcing
regulations required under the bill would cost about $1 million
annually, assuming appropriation of the necessary amounts.
Furthermore, under current law, the FCC is authorized to
collect fees from the telecommunications industry sufficient to
offset the cost of its regulatory program. Therefore, CBO
estimates the net budgetary impact of H.R. 1258 would be
negligible.
Enacting H.R. 1258 would not affect direct spending or
revenues; therefore, pay-as-you-go procedures would not apply.
By prohibiting entities from providing caller ID
information that is deceptive, the bill would impose an
intergovernmental and private-sector mandate, as defined in the
Unfunded Mandates Reform Act (UMRA). The number of entities
affected by the mandate would depend on decisions made by the
FCC in its rulemaking process. For example, the prohibition
could affect entities such as domestic violence shelters that
provide false caller ID numbers to prevent call recipients from
discovering the location of victims. The costs of complying
with the mandate would be the expenditures necessary to use
other means to protect the identity of a caller, such as using
disposable cell phones to make calls. The legislation also
would direct the FCC to consider requiring entities to transmit
accurate caller ID information when making noncommercial calls
with an artificial or prerecorded message to households. Such a
requirement, if implemented by the FCC, would impose a mandate
on those entities. Based on information from industry sources,
CBO expects that the total cost of the mandates in the bill
would fall well below the annual thresholds for
intergovernmental and private-sector mandates established in
UMRA ($70 million and $141 million, respectively, in 2010,
adjusted annually for inflation).
On August 24, 2009, CBO transmitted an estimate for S. 30,
the Truth in Caller ID Act of 2009, as ordered reported by the
Senate Committee on Commerce, Science, and Transportation on
August 5, 2009. The Senate legislation includes language that
would authorize civil and criminal penalties for violations of
the Caller ID provisions; H.R. 1258 does not. S. 30 also
contains a narrower prohibition on entities that transmit
inaccurate caller ID information and thus would not impose the
mandates that would be imposed by H.R. 1258. The estimates for
each bill reflect those differences.
The CBO staff contacts for this estimate are Susan Willie
(for federal costs), Elizabeth Cove Delisle (for
intergovernmental mandates), and Sam Wice (for private-sector
mandates). The estimate was approved by Theresa Gullo, Deputy
Assistant Director for Budget Analysis.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This Act is entitled the ``Truth in Caller ID Act of
2010''.
Section 2. Prohibition regarding manipulation of caller identification
information
Section 2 adds a new subsection (e) to section 227 of the
Communications Act. Subsection (e)(1) makes it unlawful for any
person, in connection with any real-time voice
telecommunications service, regardless of technology, to cause
any caller identification service to transmit misleading or
inaccurate caller ID information with the intent to defraud or
deceive.
To be legally actionable, fraud and deceit require the
intent to cause harm to the person to whom misleading
information is being conveyed.\2\ H.R. 1258 recognizes that
there are legitimate reasons and service offerings that permit
manipulation of caller ID information. For example, domestic
abuse shelter residents need to manipulate caller ID
information to protect their identity. Because certain
businesses will not accept calls where the caller ID
information is blocked by the calling party, relying only on
call blocking would deny these residents access to such
businesses. Therefore, H.R. 1258 would permit caller ID
manipulation in these circumstances. Similarly, VoIP services
often allow subscribers to select an area code and number that
is independent from the actual location where the service is
being used. This ``nomadic'' phone number might, for example,
allow subscribers to designate a phone number in an area that
is local for frequent callers, family members, or business
customers.
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\2\See definition of ``deceit'' in Black's Law Dictionary (8th ed.
2004).
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Similarly, call-routing services, also referred to as
unified-communications services, offer subscribers a single
telephone number as a point of contact that will then route
calls to phone numbers the subscriber has pre-determined to
receive calls based on such factors as time of day or caller
identity. These services provide subscribers with the ability
to manage their incoming calls more efficiently. Additionally,
there are business services that allow companies to use a
single telephone number, regardless of the internal extension
that the call actually originates from, as the information
displayed to called parties so that the called party has a
better understanding of the caller's identity.
By including the intent standards defraud or deceive, both
of which require harm to be legally actionable, H.R. 1258
provides the FCC with the authority to write regulations in a
way that prohibits caller ID manipulation for nefarious
purposes but permits legitimate services like those discussed
above and numerous others that exist in the marketplace today
or might emerge in the future.
Subsection (e)(2) ensures that nothing in the bill prevents
or restricts any person from blocking caller identification
information. Subsection (e)(3) requires the FCC to prescribe
regulations within six months of the date of enactment and to
consider whether to revise related regulations to require non-
commercial calls to residential telephone lines using an
artificial or pre-recorded voice to deliver a message that
transmits caller ID information that is not misleading or
inaccurate.
The Committee intends that the Commission's authority to
promulgate rules under subsection (e)(3) includes the authority
to specify exemptions from the prohibition where the requisite
intent of the statute is not met, for example where the carrier
or provider is merely transmitting the information it receives
from another carrier, provider, or customer. Furthermore, the
prohibition is not intended to stifle innovative new services
such as pick your own area code, location, or call back number
services.
In the rulemaking conducted pursuant to subsection
(e)(3)(A), the Committee anticipates that the Commission will
consider imposing obligations on entities that provide caller
ID spoofing services to the public. The widespread availability
of caller ID spoofing services presents a significant potential
for abuse and hinders law enforcement's ability to investigate
crime. The prohibition in this bill of the use of such services
with the intent to defraud or deceive could be of limited value
if entities continue to provide these services without making
any effort to verify their users' ownership of the phone number
being substituted.
Subsection (e)(4) contains an exception for law enforcement
to ensure that lawfully authorized investigations or
intelligence activity utilizing spoofing will remain
permissible after enactment.
Subsection (e)(5) clarifies that the bill will not alter
the application of the FCC's regulations issued pursuant to the
Telephone Consumer Protection Act of 1991.
Subsection (e)(6) contains the definitions of ``caller ID
information'' and ``caller ID service.'' Caller ID information
is defined as any information provided to an end user by a
caller ID service regarding the name or telephone number of the
caller or other information regarding the origination of a call
using ``any real time voice communications service, regardless
of the technology or network utilized.'' In recognition of the
evolving communications marketplace, the legislation defines
caller ID information and caller ID service in a manner that is
agnostic to the means by which the call is made. This permits
the FCC to ensure that its regulations can be updated to meet
market changes and to stay aligned with consumers' expectations
when receiving caller ID information.
Caller ID service means any service or device designed to
provide the user of the service or device with the name or
telephone number of the caller or other information regarding
the origination of a call made using any real time voice
communications service, regardless of the technology or network
utilized.
Explanation of Amendments
During subcommittee consideration of the bill, Chairman
Boucher offered an amendment in the nature of a substitute to
H.R. 1258. The amendment made changes to harmonize H.R. 1258
with a related bill approved by the House Committee on the
Judiciary. The substitute amendment was adopted by a voice
vote.
Subcommittee Chairman Boucher offered an amendment in the
nature of a substitute during full Committee consideration of
H.R. 1258. The Committee adopted the substitute amendment on a
voice vote. The original legislation contained a legal standard
that made spoofing unlawful in those cases where the party
manipulating the caller ID information did so with the intent
to ``defraud or cause harm.'' The Boucher substitute amendment
modified that language to ``defraud or deceive'' in order to
make the intent standard less subjective. The Committee is
concerned that various parties may interpret a determination of
whether certain conduct caused ``harm'' quite differently. Harm
for one party may be only a nuisance to another. In contrast,
the question of whether deception has occurred is less
subjective and should be more directly linked to objective
criteria.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
COMMUNICATIONS ACT OF 1934
* * * * * * *
TITLE II--COMMON CARRIERS
PART I--COMMON CARRIER REGULATION
* * * * * * *
SEC. 227. RESTRICTIONS ON THE USE OF TELEPHONE EQUIPMENT.
(a) * * *
* * * * * * *
(e) Prohibition on Provision of Deceptive Caller ID
Information.--
(1) In general.--It shall be unlawful for any person
within the United States, in connection with any real
time voice communications service, regardless of the
technology or network utilized, to cause any caller ID
service to transmit misleading or inaccurate caller ID
information, with the intent to defraud or deceive.
(2) Protection for blocking caller id information.--
Nothing in this subsection may be construed to prevent
or restrict any person from blocking the capability of
any caller ID service to transmit caller ID
information.
(3) Regulations.--
(A) Deadline.--Not later than 6 months after
the date of enactment of this subsection, the
Commission shall prescribe regulations to
implement this subsection.
(B) Consideration of related regulations.--In
conducting the proceeding to prescribe the
regulations required by subparagraph (A), the
Commission shall examine whether the
regulations under subsection (b)(2)(B) should
be revised to require calls that are not made
for a commercial purpose to residential
telephone lines using an artificial or
prerecorded voice to deliver a message to
transmit caller ID information that is not
misleading or inaccurate.
(4) Law enforcement exception.--This section does not
prohibit lawfully authorized investigative, protective,
or intelligence activity of a law enforcement agency of
the United States, a State, or a political subdivision
of a State, or of an intelligence agency of the United
States, or any activity authorized under chapter 224 of
title 18, United States Code.
(5) Savings provision.--Except as provided for in
paragraph (3)(B), nothing in this subsection may be
construed to affect or alter the application of the
Commission's regulations regarding the requirements for
transmission of caller ID information, issued pursuant
to the Telephone Consumer Protection Act of 1991
(Public Law 102-243) and the amendments made by such
Act.
(6) Definitions.--For purposes of this subsection:
(A) Caller id information.--The term ``caller
ID information'' means information provided to
an end user by a caller ID service regarding
the name or the telephone number of the caller
or other information regarding the origination
of a call made using any real time voice
communications service, regardless of the
technology or network utilized.
(B) Caller id service.--The term ``caller ID
service'' means any service or device designed
to provide the user of the service or device
with the name or the telephone number of the
caller or other information regarding the
origination of a call made using any real time
voice communications service, regardless of the
technology or network utilized. Such term
includes automatic number identification
services.
[(e)] (f) Effect on State Law.--
(1) * * *
* * * * * * *
[(f)] (g) Actions by States.--
(1) * * *
* * * * * * *
[(g)] (h) Junk Fax Enforcement Report.--The Commission shall
submit an annual report to Congress regarding the enforcement
during the past year of the provisions of this section relating
to sending of unsolicited advertisements to telephone facsimile
machines, which report shall include--
(1) * * *
* * * * * * *