[House Report 109-489]
[From the U.S. Government Publishing Office]
109th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 109-489
======================================================================
TRUTH IN CALLER ID ACT OF 2006
_______
June 6, 2006.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Barton of Texas, from the Committee on Energy and Commerce,
submitted the following
R E P O R T
[To accompany H.R. 5126]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 5126) 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 an amendment and recommend that the bill
as amended do pass.
CONTENTS
Page
Amendment........................................................ 1
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 4
Committee Consideration.......................................... 4
Committee Votes.................................................. 4
Committee Oversight Findings..................................... 4
Statement of General Performance Goals and Objectives............ 4
New Budget Authority, Entitlement Authority, and Tax Expenditures 4
Committee Cost Estimate.......................................... 5
Congressional Budget Office Estimate............................. 5
Federal Mandates Statement....................................... 6
Advisory Committee Statement..................................... 6
Constitutional Authority Statement............................... 6
Applicability to Legislative Branch.............................. 6
Section-by-Section Analysis of the Legislation................... 6
Changes in Existing Law Made by the Bill, as Reported............ 7
Amendment
The amendment is 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 2006''.
SEC. 2. PROHIBITION REGARDING MANIPULATION OF CALLER IDENTIFICATION
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 Identification
Information.--
``(1) In general.--It shall be unlawful for any person within
the United States, in connection with any telecommunications
service or VOIP service, to cause any caller identification
service to transmit misleading or inaccurate caller
identification information, with the intent to defraud or cause
harm.
``(2) Protection for blocking caller identification
information.--Nothing in this subsection may be construed to
prevent or restrict any person from blocking the capability of
any caller identification service to transmit caller
identification information.
``(3) Regulations.--Not later than 6 months after the
enactment of this subsection, the Commission shall prescribe
regulations to implement this subsection.
``(4) Definitions.--For purposes of this subsection:
``(A) Caller identification information.--The term
`caller identification information' means information
provided to an end user by a caller identification
service regarding the telephone number of, or other
information regarding the origination of, a call made
using a telecommunications service or VOIP service.
``(B) Caller identification service.--The term
`caller identification service' means any service or
device designed to provide the user of the service or
device with the telephone number of, or other
information regarding the origination of, a call made
using a telecommunications service or VOIP service.
Such term includes automatic number identification
services.
``(C) VOIP service.--The term `VOIP service' means a
service that--
``(i) provides real-time voice communications
transmitted through end user equipment using
TCP/IP protocol, or a successor protocol, for a
fee or without a fee;
``(ii) is offered to the public, or such
classes of users as to be effectively available
to the public (whether part of a bundle of
services or separately); and
``(iii) has the capability to originate
traffic to, and terminate traffic from, the
public switched telephone network.
``(5) Savings provision.--Nothing in this Act may be
construed to affect or alter the application of the
Commission's regulations regarding the requirements for
transmission of caller identification information for
telemarketing calls, issued pursuant to the Telephone Consumer
Protection Act of 1991 (Public Law 102-243) and the amendments
made by such Act.''.
Purpose and Summary
The purpose of H.R. 5126, the ``Truth in Caller ID Act of
2006'' is to prohibit the manipulation of caller identification
information with the intent to defraud or cause harm.
Background and Need for Legislation
Most companies that offer telecommunications and Voice over
Internet-Protocol (VOIP) services also offer their customers
caller identification (caller ID) service that provides to the
consumer the telephone number of the incoming call and the name
of the subscriber to such number. Unfortunately, increasingly
there are callers who are misleading citizens with incorrect
caller ID information. This practice is known as caller ID
``spoofing'' and occurs when a caller masquerades as someone
else by falsifying the name or number that appears on the
recipient's caller ID display.
Caller ID spoofing can make a call appear to come from any
phone number the caller wishes. For instance, the American
Association of Retired Persons issued a ``scam alert'' when
someone posing to be a courthouse employee called a Sterling,
Michigan woman claiming that she had missed jury duty that
week. The caller threatened that a warrant was being issued for
her arrest and then asked her to confirm her Social Security
number, to verify her identity. This scam appeared even more
real when the con artist used a caller ID ``spoofing'' product
which allowed the con to display the name and number of the
courthouse on the caller ID box.
Today, caller ID works through the use of Signalling System
7 (SS7), which is the standard for connecting phone companies'
networks world-wide. SS7 allows the caller's exchange to send a
Calling Party Number (CPN), which includes the number of the
caller and whether or not the caller wants their number to be
blocked. By Federal Communications Commission (FCC or
Commission) regulation, when a telecommunications carrier uses
SS7 to set up a call, it must transmit the CPN and its
associated privacy indicator for that call to the connecting
carrier. By regulation, consumers also have the right to
conceal their CPN by dialing *67.
VOIP networks are not currently subject to the same caller
ID Commission regulations that apply to traditional telephony.
The Commission has not set a standard way for VOIP providers to
handle the transmission of caller ID information to a called
party. Additionally, VOIP services give the calling party far
more control over the content and transmission of caller ID.
VOIP customers are able to control the features of their phone
service through their web settings. Some VOIP companies offer
customers the ability to change the caller ID information that
is distributed when a call is made. Other VOIP companies
restrict or block the ability of their customers to change the
calling party's phone number.
It has been possible for a number of years to ``spoof'' or
manipulate caller ID, although it required specific phone
connections and expensive equipment. Today, however, with
advances in technology and the advent of VOIP, it has become
easier for callers to transmit any caller ID information the
calling party chooses. Moreover, there are a number of online
websites that offer spoofing services, eliminating the need for
any specialized hardware. Not only do these services mask the
correct caller ID information, but many offer voice scrambling
services which can make the caller sound like someone of the
opposite sex. The Commission recently initiated an
investigation of these online websites that offer caller ID
spoofing services. That investigation is ongoing.
Although these caller ID spoofing services promote
themselves for use in ``prank calls'' or for ``entertainment
purposes only,'' such services can be easily accessed and used
by criminals and identity thieves, or others who wish to harm
or deceive someone. Additionally, many business functions, from
credit card verification to automatic call routing, opt to use
caller ID for security purposes, which spoofing can render
useless.
There are, however, legitimate reasons to alter caller ID
information. For example, the Committee received a letter from
the National Network to End Domestic Violence which explained
that many phones are set to refuse blocked or private calls. It
therefore becomes important for domestic violence shelters to
transmit caller ID information so a call is completed, but it
may be necessary to alter the caller ID information to ensure
the safety of the domestic violence victims.
Although there are specific caller ID rules that govern how
telemarketers may transmit caller ID information, under current
FCC regulations, there is no broad mandate that all callers
transmit accurate caller ID information. In fact, there is
nothing that prohibits the deceptive manipulation of caller ID.
H.R. 5126, the ``Truth in Caller ID Act of 2006'' remedies this
problem.
Hearings
The Subcommittee on Telecommunications and the Internet
held a hearing on H.R. 5126, the ``Truth in Caller ID Act of
2006'' on May 18, 2006. The Subcommittee received testimony
from: Mr. Tom Navin, Wireline Bureau Chief, Federal
Communications Commission; Ms. Staci Pies, Vice President,
PointOne Communications, on behalf of Voice on the Net (VON)
Coalition; Mr. Lance James, Chief Technology Officer, Secure
Science Corporation; and Mr. Marc Rotenberg, Executive
Director, Electronic Privacy Information Center.
Committee Consideration
On Wednesday, May 24, 2006, the Committee on Energy and
Commerce met in open markup session and ordered H.R. 5126
reported to the House, amended, by a voice vote, a quorum being
present.
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.
There were no record votes taken in connection with ordering
H.R. 5126, the ``Truth in Caller ID Act of 2006'' reported. A
motion by Mr. Barton to order H.R. 5126 reported to the House,
amended, was agreed to by a voice vote.
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee held a legislative
hearing and made findings that are reflected in this report.
Statement of General Performance Goals and Objectives
The goal of the H.R. 5126, the ``Truth in Caller ID Act of
2006'' is to prohibit the manipulation of caller identification
information with the intent to defraud or cause harm.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee finds that H.R.
5126, the ``Truth in Caller ID Act of 2006'', would result in
no new or increased budget authority, entitlement authority, or
tax expenditures or revenues.
Committee Cost Estimate
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
Congressional Budget Office Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
H.R. 5126--Truth in Caller ID Act of 2006
Summary: H.R. 5126 would amend the Communications Act of
1934 to prohibit the manipulation of caller identification
services (Caller ID) to transmit misleading or inaccurate
caller identification information with the intent to defraud or
cause harm through any traditional telephone or voice over
Internet protocol (VOIP) service. Caller ID services allow
consumers to see the names and telephone numbers of incoming
calls. The Federal Communications Commission (FCC) also would
be directed to promulgate regulations and implement the bill's
provisions.
Assuming appropriation of the necessary amounts, CBO
estimates that implementing the bill would cost the FCC less
than $500,000 in 2006 and about $5 million over the 2007-2011
period. Enacting the bill also would affect federal revenues by
increasing collections of fines and penalties, but CBO
estimates that any such increase would not be significant.
H.R. 5126 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 5126 is shown in the following table.
The costs of this legislation fall within budget function 370
(commerce and housing credit).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------
2006 2007 2008 2009 2010 2011
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated authorization level....................... * 1 1 1 1 1
Estimated outlays................................... * 1 1 1 1 1
----------------------------------------------------------------------------------------------------------------
NOTE: * = Less than $500,000.
Basis of estimate: For this estimate, CBO assumes that the
bill will be enacted in 2006 and that spending will follow
historical patterns for similar FCC programs.
Based on information from the FCC and subject to the
availability of appropriated funds, CBO estimates that
implementing the bill would cost less than $500,000 in 2006 and
$1 million annually in each subsequent year for the FCC to
issue new regulations and to enforce the new regulations.
Enacting the bill would likely increase federal revenues as
a result of the collection of additional civil penalties
assessed for violations of the new law and regulations.
Collections of civil penalties are recorded in the budget as
revenues. CBO estimates, however, that any additional revenues
that would result from enacting the bill would not be
significant because of the relatively small number of cases
likely to be involved.
Intergovernmental and private-sector impact: H.R. 5126
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments.
Estimate prepared by: Federal costs: Matthew Pickford;
impact on state, local, and tribal Governments: Sarah Puro;
impact on the private sector: Fatimot Ladipo.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional authority for this legislation is provided in
Article I, section 8, clause 3, which grants Congress the power
to regulate commerce with foreign nations, among the several
States, and with the Indian tribes.
Applicability to Legislative Branch
The Committee finds that the legislation 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 the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Short title
Section 1 designates the short title of the bill as the
``Truth in Caller ID Act of 2006.''
Section 2. Prohibition regarding manipulation of caller identification
information
Section 2 adds a new subsection (e) to Section 227 of the
Communications Act of 1934. New subsection (e)(1) makes it
unlawful for any person within the United States, in connection
with any telecommunications service or VOIP service, to cause
any caller ID service to transmit misleading or inaccurate
caller identification information with the intent to defraud or
cause harm. The term ``fraud'' is defined at common law to mean
an intentional misrepresentation of material existing fact made
by one person to another with knowledge of its falsity and for
the purpose of inducing the other person to act, and upon which
the other person relies with resulting injury or damage.
The Committee notes the inclusion of the ``intent to
defraud or cause harm'' language is intended to prohibit the
misuse of caller ID technology for harmful impersonation. Such
language is included in the section to ensure that Congress
does not inadvertently prohibit the conduct of an individual or
an entity who is not intending to defraud or harm the recipient
of a call, but instead may be protecting privileged
communication or ensuring the safety of an individual. For
example, a domestic violence shelter may alter caller ID
information in order to return a call to a victim in a way that
will protect the shelter's confidential location and not alert
the victim's abuser that she has contacted a shelter program.
Because the shelter in this example is not intending to defraud
or harm the recipient of the call, the shelter would not be in
violation of the section.
Further, the Committee intends that ``the intent to defraud
or cause harm'' standard set out in section 227(e)(1) includes
all types of harm that may result from such caller ID
``spoofing,'' including financial, physical, and emotional
harm.
Commission regulations currently provide that any caller
shall be able to block their caller ID information from
reaching the end user. New subsection (e)(2) is designed to
ensure that nothing in this bill prevents or restricts any
person from blocking the capability of any caller
identification service to transmit caller identification
information.
New subsection (e)(3) requires the FCC to complete
regulations within six months of enactment to implement the
Act.
New subsection (e)(4) contains the definitions of ``caller
identification information'', ``caller identification
service'', and ``VOIP service.''
New subsection (e)(5) is a savings clause stating that
nothing in this Act is intended to affect or alter the
application of the Commission's requirement for transmission of
caller ID information for telemarketing calls. Pursuant to the
Telephone Consumer Protection Act of 1991 (P.L. 102-243), the
Commission adopted regulations requiring telemarketers to
transmit caller ID information. The Commission also stated that
any number supplied must permit an individual to make a do-not-
call request during regular business hours for the duration of
the telemarketing campaign. Under these regulations,
telemarketers may transmit the caller ID information of the
client for whom they are calling. Nothing in H.R. 5126 is
intended to change the application of those rules.
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):
SECTION 227 OF THE COMMUNICATIONS ACT OF 1934
SEC. 227. RESTRICTIONS ON THE USE OF TELEPHONE EQUIPMENT.
(a) * * *
* * * * * * *
(e) Prohibition on Provision of Deceptive Caller
Identification Information.--
(1) In general.--It shall be unlawful for any person
within the United States, in connection with any
telecommunications service or VOIP service, to cause
any caller identification service to transmit
misleading or inaccurate caller identification
information, with the intent to defraud or cause harm.
(2) Protection for blocking caller identification
information.--Nothing in this subsection may be
construed to prevent or restrict any person from
blocking the capability of any caller identification
service to transmit caller identification information.
(3) Regulations.--Not later than 6 months after the
enactment of this subsection, the Commission shall
prescribe regulations to implement this subsection.
(4) Definitions.--For purposes of this subsection:
(A) Caller identification information.--The
term ``caller identification information''
means information provided to an end user by a
caller identification service regarding the
telephone number of, or other information
regarding the origination of, a call made using
a telecommunications service or VOIP service.
(B) Caller identification service.--The term
``caller identification service'' means any
service or device designed to provide the user
of the service or device with the telephone
number of, or other information regarding the
origination of, a call made using a
telecommunications service or VOIP service.
Such term includes automatic number
identification services.
(C) VOIP service.--The term ``VOIP service''
means a service that--
(i) provides real-time voice
communications transmitted through end
user equipment using TCP/IP protocol,
or a successor protocol, for a fee or
without a fee;
(ii) is offered to the public, or
such classes of users as to be
effectively available to the public
(whether part of a bundle of services
or separately); and
(iii) has the capability to originate
traffic to, and terminate traffic from,
the public switched telephone network.
(5) Savings provision.--Nothing in this Act may be
construed to affect or alter the application of the
Commission's regulations regarding the requirements for
transmission of caller identification information for
telemarketing calls, issued pursuant to the Telephone
Consumer Protection Act of 1991 (Public Law 102-243)
and the amendments made by such Act.
[(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) * * *
* * * * * * *