[Federal Register Volume 85, Number 124 (Friday, June 26, 2020)]
[Rules and Regulations]
[Pages 38332-38334]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11252]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[DA 20-460; FRS 16754]


Implementing the Pallone-Thune Telephone Robocall Abuse Criminal 
Enforcement and Deterrence Act

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Commission adopts final rules, as 
required by the Pallone-Thune Telephone Robocall Abuse Criminal 
Enforcement and Deterrence Act (TRACED Act), to enhance penalties and 
provide additional time for the Commission to pursue entities that 
violate the restrictions on robocalls. The TRACED Act directed the 
Commission to prescribe implementing regulations in accordance with 
section 3 of the TRACED Act within 270 days after enactment.

DATES: The rule is effective July 27, 2020.

FOR FURTHER INFORMATION CONTACT: For additional information on this 
proceeding, contact Kimbarly Taylor of the Telecommunications Consumers 
Division, Enforcement Bureau, at [email protected] or (202) 418-
1188.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order, 
DA 20-460, adopted on May 1, 2020 and released on May 1, 2020, which is 
the subject of this rulemaking. The full text of this document is 
available for public inspection during regular business hours in the 
FCC Reference Center, 445 12th Street SW, Room CY-A257, Washington, DC 
20554, or online at https://docs.fcc.gov/public/attachments/DA-20-460A1.pdf. To request this document in accessible formats for people 
with disabilities (e.g., Braille, large print, electronic files, audio 
format, etc.) or to request reasonable accommodations (e.g., accessible 
format documents, sign language interpreters, CART, etc.), send an 
email to [email protected] or call the FCC's Consumer and Governmental 
Affairs Bureau at (202) 418-0530 (voice), (202) 418-0432 (TTY).

Synopsis

    1. In crafting the Pallone-Thune Telephone Robocall Abuse Criminal 
Enforcement and Deterrence Act (TRACED Act), Congress acknowledged the 
need for enhanced penalties and additional time for the Commission to 
pursue entities that violate the restrictions on robocalls. In this 
Order, the Federal Communications Commission (Commission) adopts final 
rules to implement section 3 of the TRACED Act (Section 3).
    2. Accordingly, this Order amends section 1.80 of the Commission's 
rules. We move directly to an order here because implementation of 
Section 3 entails no exercise of our administrative discretion and, 
therefore, notice and comment procedures are unnecessary under the 
``good cause'' exception to the Administrative Procedure Act (APA).
    3. Section 227 of the Communications Act of 1934, as amended (the 
Communications Act) is designed to protect consumers from unsolicited, 
unlawful calls by restricting autodialed or pre-recorded message calls 
and unsolicited facsimiles, and by minimizing transmission of 
misleading or inaccurate caller ID information. Section 227 of the 
Communications Act is known as the Telephone Consumer Protection Act 
(TCPA).
    4. Section 227(b) restricts calls using an automatic telephone 
dialing system or an artificial or prerecorded voice. It prohibits 
calls to residential phones if the call uses an artificial or 
prerecorded voice message, unless the called party consents or the call 
is for an emergency purpose. Absent coverage by a relevant exception, 
such practices are known colloquially as illegal ``robocalling.'' The 
provision also prohibits unsolicited advertisements to facsimile 
machines unless the party receiving the facsimile has a preexisting 
business relationship with the sender, has consented to receive the 
facsimile, or has agreed to make available its facsimile number for 
public distribution.
    5. Section 227(e), also known as the Truth in Caller ID Act, 
prohibits ``caus[ing] any caller identification service'' in connection 
with any voice service or text message service to ``knowingly transmit 
misleading or inaccurate caller identification information with the 
intent to defraud, cause harm or wrongfully obtain anything of 
value[.]'' Such practices are known colloquially as ``spoofing.''
    6. Section 3 of the TRACED Act amends section 227(b) of the TCPA in 
several respects. First, it removes the requirement that the Commission 
issue a citation, or warning, pursuant to

[[Page 38333]]

section 503(b)(5) of the Communications Act before the Commission may 
propose a monetary forfeiture under section 227(b). Second, Section 3 
prescribes an additional potential monetary penalty for violations of 
section 227(b) if the Commission determines that the person violated 
section 227(b) ``with the intent to cause such violation.'' Third, 
Section 3 sets a four-year statute of limitations period in which the 
Commission may take enforcement action against intentional violations 
of section 227(b); previously the statute of limitations was one year. 
Fourth, Section 3 sets a four-year statute of limitations period in 
which the Commission may take enforcement action against violations of 
section 227(e); previously the statute of limitations was two years.
    7. We amend section 1.80 of our rules to implement Section 3. 
First, consistent with the amendments that Section 3 makes to section 
227(b) of the Communications Act, we amend section 1.80 of our rules to 
provide that the Commission may in the first instance impose a penalty 
against any person or entity that violates Section 227(b), as amended. 
The TRACED Act removes the requirement that the Commission must first 
issue a citation to any person or entity that violates section 227(b) 
if that person or entity not hold any license, permit, certificate, or 
other authorization issued by the Commission, or is not an applicant 
for any license, permit, certificate, or other authorization issued by 
the Commission.
    8. Second, we amend section 1.80 of our rules to augment existing 
penalties for those violators that commit intentional violations of 
section 227(b). Under the amended rule, the Commission has the 
authority to impose a penalty of up to $10,000 per intentional unlawful 
robocall in addition to the forfeiture penalty amount that may be 
proposed under section 503(b) of the Communications Act.
    9. Third, we amend section 1.80 of our rules to extend the statute 
of limitations period to four years for intentional violations of 
section 227(b). By extending the enforcement period for intentional 
violations, Congress granted the Commission additional time to pursue 
violators that intentionally violate laws restricting the use of 
prerecorded or artificial voice messages and/or automatic telephone 
dialing systems.
    10. Fourth, we amend section 1.80 of our rules to extend the 
statute of limitations period to four years for violations under 
section 227(e) of the Act.
    11. Consistent with previous decisions, we amend our rules as set 
forth above without providing for prior public notice and comment. Our 
action here is largely ministerial because it simply effectuates 
regulations established by legislation and requires no exercise of 
administrative discretion. For this reason, we conclude that prior 
notice and comment would serve no useful purpose and are unnecessary. 
We therefore find that this action comes within the ``good cause'' 
exception to the notice and comment requirements of the APA.
    12. The Enforcement Bureau is responsible for, among other things, 
rulemaking proceedings regarding general enforcement policies and 
procedures. In the TRACED Act, Congress mandated the Commission to 
prescribe implementing regulations for Section 3 within 270 days after 
enactment. Therefore, action on delegated authority is properly taken 
in this Order amending section 1.80 of our rules, which is part of the 
Commission's general enforcement policies and procedures. In addition, 
because a notice of proposed rulemaking is not required for these rule 
changes, no regulatory flexibility analysis is required.
    13. Paperwork Reduction Act of 1995 Analysis. The Order does not 
contain proposed information collection(s) subject to the Paperwork 
Reduction Act of 1995, Public Law 104-13. In addition, therefore, the 
Order does not contain any new or modified information collection 
burden for small business concerns with fewer than 25 employees, 
pursuant to the pursuant to the Small Business Paperwork Relief Act of 
2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4).
    14. Congressional Review Act. The Commission has determined, and 
the Administrator of the Office of Information and Regulatory Affairs, 
Office of Management and Budget, concurs, that this rule is non-major 
under the Congressional Review Act, 5 U.S.C. 804(2). The Commission 
will send a copy of this Order in a report to be sent to Congress and 
the Government Accountability Office, pursuant to 5 U.S.C. 
801(a)(1)(A).
    15. Accordingly, it is ordered, pursuant to sections 4(i), 4(j), 
and 227 of the Communications Act of 1934, as amended, 47 U.S.C. 
154(i), 154(j), 227, sections 0.111(a)(22) and 0.311(a)(1) of the 
Commission's rules, 47 CFR 0.111(a)(22), 0.311(a)(1), and section 3 of 
the Pallone-Thune Telephone Robocall Abuse Criminal Enforcement and 
Deterrence Act, Public Law 116-105, 133 Stat. 3274, that this Order is 
adopted.
    16. It is further ordered that section 1.80 of the Commission's 
rules, 47 CFR 1.80, is AMENDED as set forth in the Appendix below.
    17. It is further ordered that this Order and the foregoing 
amendments to the Commission's rules shall be effective thirty (30) 
days after the date of publication in the Federal Register. It is 
further ordered that the Enforcement Bureau shall coordinate with the 
Commission's Consumer & Governmental Affairs Bureau, Reference 
Information Center, TO SEND a copy of this Order to Congress and the 
Government Accountability Office pursuant to the Congressional Review 
Act, see 5 U.S.C. 801(a)(1)(A).

List of Subjects in 47 CFR Part 1

    Administrative Procedure, Penalties.

Federal Communications Commission.
Lisa Gelb,
Deputy Chief, Enforcement Bureau.

Final Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR part 1 as follows:

PART 1--PRACTICE AND PROCEDURE

0
1. The authority citation for part 1 continues to read as follows:

    Authority: 47 U.S.C. chs. 2, 5, 9, 13; 28 U.S.C. 2461 note, 
unless otherwise noted.


0
2. Amend Sec.  1.80 by:
0
a. Revising paragraph (a)(4);
0
b Redesignating paragraphs (b)(5) through (9) as paragraphs (b)(6) 
through (10).and adding a new paragraph (b)(5);
0
c. Revising paragraph (c)(3);
0
d.Redesignating paragraph (c)(4) as (c)(5) and adding a new paragraph 
(c)(4); and
0
e. Revising paragraph (d) introductory text.
    The revisions and additions read as follows:


Sec.  1.80   Forfeiture proceedings.

    (a) * * *
    (4) Violated any provision of sections 227(b) or (e) of the 
Communications Act or of the rules issued by the Commission under 
sections 227(b) or (e) of that Act; or
* * * * *
    (b) * * *
    (5) Any person determined to have violated section 227(b)(4)(B) of 
the Communications Act or the rules issued by the Commission under 
section 227(b)(4)(B) of the Communications Act

[[Page 38334]]

shall be liable to the United States for a forfeiture penalty 
determined in accordance with paragraphs (A)-(F) of section 503(b)(2) 
plus an additional penalty not to exceed $10,000.
* * * * *
    (c) * * *
    (3) In the case of a forfeiture imposed under section 227(e), no 
forfeiture will be imposed if the violation occurred more than 4 years 
prior to the date on which the appropriate notice was issued.
    (4) In the case of a forfeiture imposed under section 227(b)(4)(B), 
no forfeiture will be imposed if the violation occurred more than 4 
years prior to the date on which the appropriate notice is issued.
* * * * *
    (d) Preliminary procedure in some cases; citations. Except for a 
forfeiture imposed under sections 227(b) and 227(e)(5) of the Act, no 
forfeiture penalty shall be imposed upon any person under this section 
of the Act if such person does not hold a license, permit, certificate, 
or other authorization issued by the Commission, and if such person is 
not an applicant for a license, permit, certificate, or other 
authorization issued by the Commission, unless, prior to the issuance 
of the appropriate notice, such person:
* * * * *
[FR Doc. 2020-11252 Filed 6-25-20; 8:45 am]
BILLING CODE 6712-01-P