[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.
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------

                        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.
---------------------------------------------------------------------------
    \2\See definition of ``deceit'' in Black's Law Dictionary (8th ed. 
2004).
---------------------------------------------------------------------------
    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) * * *

           *       *       *       *       *       *       *


                                  
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