[House Report 106-872]
[From the U.S. Government Publishing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-872
======================================================================
KNOW YOUR CALLER ACT OF 2000
_______
September 20, 2000.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Bliley, from the Committee on Commerce, submitted the following
R E P O R T
[To accompany H.R. 3100]
[Including cost estimate of the Congressional Budget Office]
The Committee on Commerce, to whom was referred the bill
(H.R. 3100) to amend the Communications Act of 1934 to prohibit
telemarketers from interfering with the caller identification
service of any person to whom a telephone solicitation is made,
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.............................................. 3
Background and Need for Legislation.............................. 3
Hearings......................................................... 4
Committee Consideration.......................................... 4
Committee Votes.................................................. 4
Committee Oversight Findings..................................... 5
Committee on Government Reform Oversight Findings................ 5
New Budget Authority, Entitlement Authority, and Tax Expenditures 5
Committee Cost Estimate.......................................... 5
Congressional Budget Office Estimate............................. 5
Federal Mandates Statement....................................... 7
Advisory Committee Statement..................................... 7
Constitutional Authority Statement............................... 7
Applicability to Legislative Branch.............................. 7
Section-by-Section Analysis of the Legislation................... 7
Changes in Existing Law Made by the Bill, as Reported............ 8
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 ``Know Your Caller Act of 2000''.
SEC. 2. PROHIBITION OF INTERFERENCE WITH CALLER IDENTIFICATION
SERVICES.
Section 227 of the Communications Act of 1934 (47 U.S.C. 227) is
amended--
(1) by redesignating subsections (e) and (f) as subsections
(f) and (g), respectively; and
(2) by inserting after subsection (d) the following new
subsection:
``(e) Prohibition on Interference With Caller Identification
Services.--
``(1) In general.--It shall be unlawful for any person within
the United States, in making any telephone solicitation--
``(A) to interfere with or circumvent the capability
of a caller identification service to access or provide
to the recipient of the telephone callinvolved in the
solicitation any information regarding the call that such service is
capable of providing; and
``(B) to fail to provide caller identification
information in a manner that is accessible by a caller
identification service, if such person has capability
to provide such information in such a manner.
For purposes of this section, the use of a telecommunications
service or equipment that is incapable of transmitting caller
identification information shall not, of itself, constitute
interference with or circumvention of the capability of a
caller identification service to access or provide such
information.
``(2) Regulations.--Not later than 6 months after the
enactment of the Know Your Caller Act of 2000, the Commission
shall prescribe regulations to implement this subsection, which
shall--
``(A) specify that the information regarding a call
that the prohibition under paragraph (1) applies to
includes----
``(i) the name of the person or entity who
makes the telephone call involved in the
solicitation;
``(ii) the name of the person or entity on
whose behalf the solicitation is made; and
``(iii) a valid and working telephone number
at which the person or entity on whose behalf
the telephone solicitation is made may be
reached during regular business hours for the
purpose of requesting that the recipient of the
solicitation be placed on the do-not-call list
required under section 64.1200 of the
Commission's regulations (47 CFR 64.1200) to be
maintained by such person or entity; and
``(B) provide that any person or entity who receives
a request from a person to be placed on such do-not-
call list may not use such person's name and telephone
number for telemarketing, mail marketing, or other
marketing purpose (including transfer or sale to any
other entity for marketing use) other than enforcement
of such list.
``(3) Private right of action.--A person or entity may, if
otherwise permitted by the laws or rules of court of a State,
bring in an appropriate court of that State--
``(A) an action based on a violation of this
subsection or the regulations prescribed under this
subsection to enjoin such violation;
``(B) an action to recover for actual monetary loss
from such a violation, or to receive $500 in damages
for each such violation, whichever is greater; or
``(C) both such actions.
If the court finds that the defendant willfully or knowingly
violated this subsection or the regulations prescribed under
this subsection, the court may, in its discretion, increase the
amount of the award to an amount equal to not more than 3 times
the amount available under subparagraph (B) of this paragraph.
``(4) Definitions.--For purposes of this subsection:
``(A) 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 an incoming
telephone call.
``(B) Telephone call.--The term `telephone call'
means any telephone call or other transmission which is
made to or received at a telephone number of any type
of telephone service and includes telephone calls made
using the Internet (irrespective of the type of
customer premises equipment used in connection with
such services). Such term also includes calls made by
an automatic telephone dialing system, an integrated
services digital network, and a commercial mobile radio
source.''.
SEC. 3. EFFECT ON STATE LAW AND STATE ACTIONS.
(a) Effect on State Law.--Subsection (f)(1) of section 227 of the
Communications Act of 1934 (47 U.S.C. 227(f)(1)), as so redesignated by
section 2(1) of this Act, is further amended by inserting after
``subsection (d)'' the following: ``and the prohibition under
paragraphs (1) and (2) of subsection (e),''.
(b) Actions by States.--The first sentence of subsection (g)(1) of
section 227 of the Communications Act of 1934 (47 U.S.C. 227(g)(1)), as
so redesignated by section 2(1) of this Act, is further amended by
striking ``telephone calls'' and inserting ``telephone solicitations,
telephone calls, or''.
SEC. 4. STUDY REGARDING TRANSMISSION OF CALLER IDENTIFICATION
INFORMATION.
The Federal Communications Commission shall conduct a study to
determine--
(1) the extent of the capability of the public switched
network to transmit the information that can be accessed by
caller identification services;
(2) the types of telecommunications equipment being used in
the telemarketing industry, the extent of such use, and the
capabilities of such types of equipment to transmit the
information that can be accessed by caller identification
services; and
(3) the changes to the public switched network and to the
types of telecommunications equipment commonly being used in
the telemarketing industry that would be necessary to provide
for the public switched network to be able to transmit caller
identification information on all telephone calls, and the
costs (including costs to the telemarketing industry) to
implement such changes.
The Commission shall complete the study and submit a report to the
Congress on the results of the study, not later than one year after the
date of the enactment of this Act.
Purpose and Summary
The purpose of this bill is to prevent telemarketers from
interfering with or circumventing caller identification
information from being transmitted to consumers. This bill
specifically prevents telemarketers from blocking caller
identification information and requires telemarketers to
provide that information when they have the capability to do
so. If a telemarketer's telecommunications service or equipment
is incapable of transmitting caller identification information,
it will not constitute a violation of the bill if that
information is not transmitted. The bill also prohibits
telemarketers from using information on ``do-not-call'' lists
for any marketing purpose.
Background and Need for Legislation
Telemarketing has been, and continues to be, a
controversial marketing practice. Telemarketing can provide
huge benefits for consumers. In many instances, consumers are
introduced to new opportunities or products through
telemarketing. Telemarketing can also promote the availability
of competitive alternatives to incumbent providers and thus
help facilitate a competitive marketplace. Unfortunately,
certain telemarketing practices can be a significant and
intrusive nuisance for consumers, as well as a source of
consumer confusion. In some instances, rogue telemarketers can
take advantage of this confusion to commit fraud against
consumers.
To protect against these abuses, Congress enacted the
Telephone Consumer Protection Act of 1991 (P.L. 102-243; 47
U.S.C. Sec. 227). Regulated by the FCC, the TCPA, among other
things, requires telemarketers to follow ``do not call''
requests from consumers, restricts telemarketing calling hours
to 8:00 a.m.-9:00 p.m., mandates that telemarketers provide the
name of the solicitor, name of the entity calling, and the
telephone number or address where that person may be contacted,
and includes a private right of action. Exemptions exist for
established business relationships and tax-exempt non-profit
organizations.
The FTC has also implemented the Telemarketing Sales Rule
which requires telemarketers to make certain disclosures and
prohibits certain misrepresentations. These rules give the
consumer the power to stop unwanted telemarketing calls,
requires solicitors to identify the seller, their purpose and
the nature of what is being sold, limits commercial telephone
solicitations to between 8:00 a.m. and 9:00 p.m., and gives
State law enforcement officers the authority to prosecute
fraudulent telemarketers who operate across State lines.
Despite these restrictions, complaints regarding
telemarketing practices continue to rise. According to the FTC,
telemarketing complaints have increased significantly from
1997-1999. In 1997, the FTC received 2,260 complaints, in 1998
complaints rose to 8,667, and in 1999 complaints totaled
17,423. In light of these concerns, H.R. 3100 was drafted to
create additional consumer protections.
Hearings
The Subcommittee on Telecommunications, Trade, and Consumer
Protection held a legislative hearing on H.R. 3100 on June 13,
2000. The Subcommittee received testimony from: The Honorable
Matt Salmon, M.C.; The Honorable Rodney Frelinghuysen, M.C.;
Ms. Eileen Harrington, Assistant Director of Marketing
Practices, Federal Trade Commission; The Honorable Jeff Hatch-
Miller, Arizona House of Representatives; Ms. Virginia Tierney,
on behalf of the American Association of Retired Persons; and
Mr. Steven R. Brubaker, Senior Vice President of Operations,
InfoCision Management Corp. on behalf of the American
Teleservices Association.
Committee Consideration
On September 14, 2000, the Subcommittee on
Telecommunications, Trade, and Consumer Protection was
discharged from the further consideration of H.R. 3100.
The Full Committee met in open markup session on September
14, 2000, and ordered H.R. 3100 reported to the House, with
amendment, 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. 3100 reported. A motion by Mr. Bliley to order H.R. 3100
reported to the House, with an amendment, was agreed to by a
voice vote.
The following amendments were agreed to by a voice vote:
An amendment in the nature of a substitute by Mr. Tauzin,
No. 1, prohibiting telemarketers from blocking caller
identification information, preempting State law relating to
such violations, and requiring a FCC study to investigate the
current state of transmission of caller identification
information; and,
An amendment to the amendment in the nature of a substitute
by Mr. Stearns, No. 1b, including Internet telephony as a
communication governed under the bill.
The following amendment was withdrawn by unanimous consent:
An amendment to the amendment in the nature of a substitute
by Mr. Wynn, No. 1a, to require a live operator when using
automatic dialing or predictive dialing equipment.
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.
Committee on Government Reform Oversight Findings
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, no oversight findings have been
submitted to the Committee by the Committee on Government
Reform.
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.
3100, the Know Your Caller Act of 2000, 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:
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 20, 2000.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3100, the Know
Your Caller Act of 2000.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Ken Johnson
(for federal costs), Shelley Finlayson (for the state and local
impact), and Jean Wooster (for the private-sector impact).
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
H.R. 3100--Know Your Caller Act of 2000
CBO estimates that implementing H.R. 3100 would have a
negligible impact on the federal budget. H.R. 3100 would
prohibit telephone solicitors from purposefully blocking their
contact information so that it does not appear on caller
identification systems. The contact information that must be
transmitted consists of the name of the person or entity that
is placing the call, the organization on whose behalf the call
is being made, and a return phone number. The bill would
require the Federal Communications Commission (FCC) to issue
regulations to implement the bill within six months of
enactment. In addition, H.R. 3100 would establish a private
right of action in state courts to punish violations of these
provisions. Finally, the bill would require the FCC to study
issues surrounding the transmission of caller identification
information and report to the Congress within one year of the
bill's enactment.
Based on information from the FCC, CBO estimates that the
FCC would spend less than $500,000 annually to implement H.R.
3100, assuming the availability of appropriated funds. Because
the commission is authorized under current law to collect fees
from the telecommunications industry sufficient to offset the
cost of its enforcement programs, CBO assumes that those
additional costs would be offset by an increase in collections
credited to annual appropriations for the FCC.
H.R. 3100 contains an intergovernmental mandate as defined
in the Unfunded Mandates Reform Act (UMRA) because it would
preempt certain provisions of state telemarketing statutes,
which could affect the associated fines and penalties. Because
states vary significantly in their regulation of telephone
solicitors, CBO cannot determine precisely the total revenue
loss they would experience as a result of this bill. However,
based on our estimate of the number of states regulating in
this area, the size of the fines assessed, and the amount of
revenues generated from fines, CBO estimates that revenue
losses to states would not exceed the threshold established by
UMRA ($55 million in 2000, adjusted annually for inflation).
H.R. 3100 would also impose private-sector mandates, as
defined by UMRA, on telephone solicitors. A company that has
telecommunication services or equipment that is capable of
transmitting its name and phone number would be required to do
so. The bill also would prohibit those companies from using a
person's name and number for telemarketing, mail marketing, or
any other marketing purposes when that person has requested to
be placed on a ``do-not-call'' list.
Based on information from the FCC and industry
representatives, CBO estimates that the cost of the mandates
would be well below the threshold established by UMRA for
private-sector mandates ($109 million in 2000, adjusted
annually for inflation).
The CBO staff contacts for this estimate are Ken Johnson
(for federal costs), Shelley Finlayson (for the state and local
impact), and Jean Wooster (for the private-sector impact). This
estimate was approved by Robert A. Sunshine, 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
Sec. 1. Short title
This section establishes the short title of the
legislation, the ``Know Your Caller Act of 2000''.
Sec. 2. Prohibition of interference with caller identification services
This section amends section 227 of the Communications Act
of 1934 (47 U.S.C. Sec. 227) by making it unlawful for any
person making a telephone solicitation to interfere with or
circumvent the transmission of caller identification
information. If a person making a telephone solicitation has
the ability to provide caller identification information, that
person must provide such information. The use of
telecommunications service or equipment that is incapable of
transmitting such information does not constitute interference
or circumvention pursuant to the bill.
This section also directs the Federal Communications
Commission to prescribe regulations implementing the
subsection. The regulations must direct the person making the
telemarketing call to disclose the following caller
identification information: the name of the person placing the
telephone solicitation, the name of the person on whose behalf
the solicitation is being made, and a valid working telephone
number of the person or entity on whose behalf the telephone
solicitation is being made. This section also provides that the
names and telephone numbers complied as part of a ``do-not-
call'' list must not be used for any marketing purpose.
This section further allows a person or entity to bring a
private right of action for an injunction, actual monetary
damages or $500 per violation, or both. If a court finds the
defendant acted willfully or knowingly, the court may award
treble damages.
This section also defines a ``caller identification
service'' and ``telephone call.''
Sec. 3. Effect on State law and State actions
This section makes it clear that any State may bring an
action for blocking caller identification information during a
telephone solicitation or telephone call. This section also
preempts State laws that deal with the same subject matter,
although it allows States to set fines higher than the $500
fine set forth in section 2(e)(3)(B).
Sec. 4. Study regarding transmission of caller identification
information
This section requires that the FCC, within one year,
conduct a study to determine the capability of the public
switched network to transmit caller identification information;
the types of equipment being used by the telemarketing industry
and the capability of such equipment to transmit caller
identification information; the changes necessary to the public
switched network and telemarketing equipment to allow for the
transmission of caller identification information in all
instances; and the cost related to those changes.
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 Interference With Caller Identification
Services.--
(1) In general.--It shall be unlawful for any person
within the United States, in making any telephone
solicitation--
(A) to interfere with or circumvent the
capability of a caller identification service
to access or provide to the recipient of the
telephone call involved in the solicitation any
information regarding the call that such
service is capable of providing; and
(B) to fail to provide caller identification
information in a manner that is accessible by a
caller identification service, if such person
has capability to provide such information in
such a manner.
For purposes of this section, the use of a
telecommunications service or equipment that is
incapable of transmitting caller identification
information shall not, of itself, constitute
interference with or circumvention of the capability of
a caller identification service to access or provide
such information.
(2) Regulations.--Not later than 6 months after the
enactment of the Know Your Caller Act of 2000, the
Commission shall prescribe regulations to implement
this subsection, which shall--
(A) specify that the information regarding a
call that the prohibition under paragraph (1)
applies to includes--
(i) the name of the person or entity
who makes the telephone call involved
in the solicitation;
(ii) the name of the person or entity
on whose behalf the solicitation is
made; and
(iii) a valid and working telephone
number at which the person or entity on
whose behalf the telephone solicitation
is made may be reached during regular
business hours for the purpose of
requesting that the recipient of the
solicitation be placed on the do-not-
call list required under section
64.1200 of the Commission's regulations
(47 CFR 64.1200) to be maintained by
such person or entity; and
(B) provide that any person or entity who
receives a request from a person to be placed
on such do-not-call list may not use such
person's name and telephone number for
telemarketing, mail marketing, or other
marketing purpose (including transfer or sale
to any other entity for marketing use) other
than enforcement of such list.
(3) Private right of action.--A person or entity may,
if otherwise permitted by the laws or rules of court of
a State, bring in an appropriate court of that State--
(A) an action based on a violation of this
subsection or the regulations prescribed under
this subsection to enjoin such violation;
(B) an action to recover for actual monetary
loss from such a violation, or to receive $500
in damages for each such violation, whichever
is greater; or
(C) both such actions.
If the court finds that the defendant willfully or
knowingly violated this subsection or the regulations
prescribed under this subsection, the court may, in its
discretion, increase the amount of the award to an
amount equal to not more than 3 times the amount
available under subparagraph (B) of this paragraph.
(4) Definitions.--For purposes of this subsection:
(A) 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 an incoming telephone call.
(B) Telephone call.--The term ``telephone
call'' means any telephone call or other
transmission which is made to or received at a
telephone number of any type of telephone
service and includes telephone calls made using
the Internet (irrespective of the type of
customer premises equipment used in connection
with such services). Such term also includes
calls made by an automatic telephone dialing
system, an integrated services digital network,
and a commercial mobile radio source.
[(e)] (f) Effect on State Law.--
(1) State law not preempted.--Except for the
standards prescribed under subsection (d) and the
prohibition under paragraphs (1) and (2) of subsection
(e), and subject to paragraph (2) of this subsection,
nothing in this section or in the regulations
prescribed under this section shall preempt any State
law that imposes more restrictive intrastate
requirements or regulations on, or which prohibits--
(A) * * *
* * * * * * *
[(f)] (g) Actions by States.--
(1) Authority of states.--Whenever the attorney
general of a State, or an official or agency designated
by a State, has reason to believe that any person has
engaged or is engaging in a pattern or practice of
[telephone calls] telephone solicitations, telephone
calls, or or other transmissions to residents of that
State in violation of this section or the regulations
prescribed under this section, the State may bring a
civil action on behalf of its residents to enjoin such
calls, an action to recover for actual monetary loss or
receive $500 in damages for each violation, or both
such actions. If the court finds the defendant
willfully or knowingly violated such regulations, the
court may, in its discretion, increase the amount of
the award to an amount equal to not more than 3 times
the amount available under the preceding sentence.
* * * * * * *