Congressional Record, Volume 146 Issue 117 (Wednesday, September 27, 2000)

[Congressional Record Volume 146, Number 117 (Wednesday, September 27, 2000)]
[House]
[Pages H8272-H8275]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

KNOW YOUR CALLER ACT OF 1999

The Clerk called 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.
The Clerk read the bill, as follows:

H.R. 3100

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Know Your Caller Act of
1999''.

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, to interfere with or circumvent the ability of
a caller identification service to access or provide to the
recipient of the call the information about the call (as
required under the regulations issued under paragraph (2))
that such service is capable of providing.
``(2) Regulations.--Not later than 6 months after the
enactment of the Know Your Caller Act of 1999, the Commission
shall prescribe regulations to implement this subsection
which shall--
``(A) require any person making a telephone solicitation to
make such solicitation in a manner such that a recipient of
the solicitation having a caller identification service
capable of providing such information will be provided by
such service with--
``(i) the name of the person or entity on whose behalf the
solicitation is being made; and
``(ii) a valid and working telephone number at which the
caller or the entity on whose behalf the telephone
solicitation was 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 the person making the telephone
solicitation; 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 any
other telemarketing, mail marketing, or other marketing
purpose (including transfer or sale to any other entity for
marketing use) other than enforcement of such list.
``(2) 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.
``(3) 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 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. Such term 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

[[Page H8273]]

Act of 1934 (47 U.S.C. 227(f)(1)), as so redesignated by
section 2(1) of this Act, is further amended--
(1) in subparagraph (C), by striking ``or'' at the end;
(2) in subparagraph (D), by striking the period and
inserting ``; or''; and
(3) by adding at the end the following new subparagraph:
``(E) interfering with or circumventing caller
identification services.''.
(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(f)(1)), as such subsections is so redesignated by
section 2(1) of this Act, is further amended by inserting
after ``this section,'' the following: ``or has engaged or is
engaging in a pattern or practice of interfering with or
circumventing caller identification services of residents of
that State in violation of subsection (e) or the regulations
prescribed under such subsection,''.

The SPEAKER pro tempore. Pursuant to the rule, the bill is considered
read for amendment.

Committee Amendment in the Nature of a Substitute

The SPEAKER pro tempore. The Clerk will report the amendment in the
nature of a substitute recommended by the Committee on Commerce.
The Clerk read as follows:

Committee amendment in the nature of a substitute: Strike
out all after the enacting clause and insert:

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.

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.

Mr. BURR of North Carolina (during the reading). Mr. Speaker, I ask
unanimous consent that the committee amendment in the nature of a
substitute be considered as read and printed in the Record.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from North Carolina?
There was no objection.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
North Carolina (Mr. Burr) and the gentleman from Massachusetts (Mr.
Markey) each will control 30 minutes.
The Chair recognizes the gentleman from North Carolina (Mr. Burr).
Mr. BURR of North Carolina. Mr. Speaker, I yield myself such time as
I may consume.
Mr. Speaker, H.R. 3100, the Know Your Caller Act, deals with the
business practice of telemarketing. There are thousands of reputable
telemarketing companies that provide a benefit to consumers by offering
a broad range of consumer options and opportunities. Some companies are
helping to grow our economy, employing thousands of citizens and
fueling the economy with literally billions of dollars. Increasingly,
however, telemarketers are the cause of complaints. Consumers are
concerned that telemarketers are intruding into their homes. We
continue to see stories about telemarketing schemes that separate
consumers from their hard-earned money.

{time} 1300

In fact, the telemarketing complaints lodged with the Federal Trade
Commission seem to underscore these concerns. In 1997 there were 2,260
complaints. In 1999 that number rose to 17,423. Today's bill takes
these complaints seriously.
Thanks to the excellent work of the bill's sponsor, the gentleman
from New Jersey (Mr. Frelinghuysen), the legislation strips away the
ability of telemarketers to hide behind anonymous telephone calls.
H.R. 3100 prohibits telemarketers from blocking the transmission of
caller identification information. In addition, the bill affirmatively
requires telemarketers to transmit caller identification in their
equipment, if their equipment is capable of doing so. I believe this
bill strikes the appropriate balance between the consumer's right to
privacy and safety and the telemarketer's legitimate business
interests.
Mr. Speaker, I reserve the balance of my time.
Mr. MARKEY. Mr. Speaker, I yield myself such time as I may consume.

[[Page H8274]]

Mr. Speaker, I want to begin by complimenting the gentleman from New
Jersey (Mr. Frelinghuysen). He did good work here. In our committee
process, we were able to take his legislation, fine tune it a little
bit, and to ultimately bring it out here to the floor of the House for
action by every Member.
Consumers who want to exercise their right to be placed on a do-not-
call list or to take a telemarketer to small claims court after being
called are often frustrated when they cannot get the Caller ID
information from the telemarketer to identify them. This legislation
addresses whether telemarketers may actively block Caller ID
information, and contains a prohibition against anyone making a
telephone solicitation who interferes with or circumvents the
capability of Caller ID services to work with consumers.
An amendment was made in the Committee on Commerce. The gentleman
from North Carolina (Mr. Burr) and I and other members of the committee
worked to construct an amendment to make clear that telemarketers will
not be forced to buy all new equipment, and that the use of equipment
that is incapable of transmitting Caller ID information is not in and
of itself a violation.
In my view, however, telemarketers who solicit the public in their
homes for commercial gain should not be permitted to evade the purpose
and functionality of Caller ID services. This bill will prevent
telemarketers from doing so, while further empowering consumers to
control the communications going to and from their home.
Mr. Speaker, the bottom line is that the telecommunications
revolution gives enormous opportunities for telemarketers, but it also
gives to consumers powers, and those powers should include the ability,
using Caller ID, to prevent information from going to their family
which they believe is inappropriate. I think that this balances
something which is very much consistent with the nonpartisan, non-
ideological way in which we have been constructing telecommunications
policy over the last generation in Congress.
I again congratulate the gentleman from New Jersey.
Mr. Speaker, I reserve the balance of my time.
Mr. BURR of North Carolina. Mr. Speaker, I yield such time as he may
consume to the gentleman from New Jersey (Mr. Frelinghuysen).
(Mr. FRELINGHUYSEN asked and was given permission to revise and
extend his remarks.)
Mr. FRELINGHUYSEN. Mr. Speaker, I want to thank the gentleman from
North Carolina (Mr. Burr) for yielding me time and for his leadership
and assistance, and particularly the gentleman from Virginia (Mr.
Bliley), the chairman of the Committee on Commerce, and the staff on
the Committee on Commerce for their assistance with this bill, and also
thank the gentleman from Massachusetts (Mr. Markey) for his kind words
and for his assistance in fine-tuning this bill as well.
Mr. Speaker, I also need to thank the gentleman from Louisiana
(Chairman Tauzin) and the ranking member of the Committee on Commerce,
the gentleman from Michigan (Mr. Dingell), and their staffs for their
help with this bill.
Further, I want to thank the chairman of the Corrections Advisory
Group, the gentleman from Michigan (Mr. Camp), the gentleman from
California (Mr. Waxman), and members of the Corrections Advisory Group
for their prompt acceptance of this proposal.
Mr. Speaker, the Know Your Caller Act will provide a simple but
important consumer protection. Many consumers purchase and pay for the
Caller ID service and Caller ID equipment for several reasons: to
protect their privacy, to provide security by identifying an incoming
call, and to allow them the opportunity to decide before picking up the
receiver whether or not to answer that call.
But, guess what? Some of the most frequent calls, those from
telemarketers, appear with the message on Caller ID box, ``Out of the
area; caller unknown.''
Mr. Speaker, telemarketing is a commercial enterprise. As such, what
would be the reason for not disclosing your business telephone number?
There simply is no reason.
I believe that all commercial enterprises that use the telephone to
advertise or sell their services to encourage the purchase of property
or goods or for any other commercial purposes should be required to
have the name of their business and their business telephone number
disclosed on Caller ID boxes.
Some telemarketer enterprises purposely block out Caller ID, yet
these same companies know your name, your address, and your telephone
number. Is it not only fair that they share their company name and
their telephone number so a person can make sure that they are a
legitimate company?
Also, if you are like me and politely ask to have your name removed
from their list, I think you should also be able to track the name and
number of these telemarketing callers to ensure that they do not call
back again repeatedly. My legislation will simply require any person
making a telephone solicitation to identify themselves on Caller ID
devices.
Mr. Speaker, this legislation I think will greatly help separate
legitimate telemarketers from fraudulent telemarketers. While a
majority of these telemarketers are legitimate business people
attempting to sell a product or service, there are some unscrupulous
individuals and companies violating existing telemarketing rules and
scamming consumers.
Consumers pay a monthly fee to subscribe to a Caller ID service
because they want to protect their privacy and their pocketbooks, but
they have little recourse because most telemarketers intentionally
block their identity from being transmitted to Caller ID devices.
Mr. Speaker, we already require telemarketers under present law to
identify themselves over the telephone and via telephone fax
transmissions. This bill simply extends that protection to consumers
with Caller ID devices.
Mr. Speaker, in closing, when someone knocks at your door, do you not
usually look out the window to see who it is before you answer it?
Well, Caller ID acts as a window for consumers to let them know who is
calling before you answer the telephone.
Mr. Speaker, I urge my colleagues to support this legislation.
Mr. MARKEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, again I echo what the gentleman from New Jersey (Mr.
Frelinghuysen) just said. I urge all Members of the House to support
this good legislation.
Mr. KING. Mr. Speaker, I rise today in support of H.R. 3100, the Know
Your Caller Act, which will help protect the privacy of consumers from
telemarketers. I cannot begin to tell you how many constituents have
complained to me about the number of annoying telephone calls they get
at home. These calls come from credit card companies and other
telemarketers trying to make a sale. These calls are intrusive and are
wrong. H.R. 3100 would prevent telemarketers from interfering with
consumers' caller-identification machines and require the companies to
make their name readable to applicable caller ID services. Most
importantly, because consumers have very little recourse, telemarketers
would have to provide a phone number to the ID service that consumers
can call to have their names and numbers removed from call lists. In
addition, consumers could sue telemarketers for up to $500 per
unidentified call. Because we live in a very fast paced world where
every free moment with our family and friends is valuable, we cannot
allow these companies and businesses to violate our privacy. I support
this measure and urge my colleagues to do the same.
Mr. CAMP. Mr. Speaker, I would like to thank Chairman Bliley of the
Commerce Committee for all of the work he has done on this bill. I
would also like to thank Mr. Frelinghuysen for authoring this bill. He
has demonstrated his dedication and leadership on this issue.
On July 25, Mr. Frelinghuysen presented H.R. 3100 before the Speakers
advisory group on corrections. The corrections group is a bi-partisan
group that seeks to fix, update or repeal outdated or unnecessary laws,
rules or regulations.
H.R. 3100 would prohibit telemarketers from intentionally hiding
their identity by blocking caller ID devices. This would ensure someone
knows if a telemarketer is calling them. One simple rule of
telemarketing is that once you get a person on the phone your chances
to make a sale are greatly increased. This is especially true with
senior citizens who are seen as easy targets by telemarketers. That is
why

[[Page H8275]]

this bill is supported by the American Association of Retired People,
the National Senior Citizens Law Center and the Federal Trade
Commission.
During the meeting several Members shared stories about how their
constituents have been affected by telemarketers who hide their
identity.
I am proud as chairman of the advisory group to speak in favor of
H.R. 3100 and would advise my colleagues from both sides of the aisle
to support it.
Mr. MARKEY. Mr. Speaker, I have no further requests for time, and I
yield back the balance of my time.

General Leave

Mr. BURR of North Carolina. Mr. Speaker, I ask unanimous consent that
all Members may have 5 legislative days within which to revise and
extend their remarks and include extraneous material on H.R. 3100, as
amended.
The SPEAKER pro tempore (Mr. Walden of Oregon). Is there objection to
the request of the gentleman from North Carolina?
There was no objection.
Mr. BURR of North Carolina. Mr. Speaker, I have no further requests
for time, and I yield back the balance of my time.
The SPEAKER pro tempore. Pursuant to the rule, the previous question
is ordered on the amendment recommended by the Committee on Commerce
and on the bill.
The question is on the committee amendment in the nature of a
substitute.
The committee amendment in the nature of a substitute was agreed to.
The SPEAKER pro tempore. The question is on engrossment and third
reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
The SPEAKER pro tempore. The question is on the passage of the bill.
The question was taken.
Mr. BURR of North Carolina. Mr. Speaker, on that I demand the yeas
and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.

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