NEWSRELEASE
For Release: June 29, 2005
Congressional Action To Stop Junk Faxes Helps Allows Small Businesses To Communicate With Customers WASHINGTON, D.C. - With the passage of the Junk Fax Prevention Act of 2005
(S. 714) Congress has acted to stop junk faxes while ensuring that small
businesses can communicate with their customers. The legislation will ensure
that business can send faxes to customers with whom they already have an
established business relationship without having to obtain written prior
approval. The bill has been sent to President Bush for his signature. “The passage of the Junk Fax Prevention Act of 2005 by both the U.S. House
and Senate is good for small businesses and their customers,” said Chief Counsel
for Advocacy Thomas M. Sullivan. “Junk faxes remain illegal, but real estate
agents can still fax listings based on a telephone request, jobbers can fax
updated price lists to stores, and caterers can fax menus to brides-to-be. It’s
bipartisan win-win legislation that’s good for all concerned,” he said. The legislation prohibits sending unsolicited fax advertisements to anyone
who has requested that they not be sent. Unsolicited faxes can be sent if the
senders have an established business relationship with the customer and the fax
contains a conspicuous notice on its first page that the recipient may request
not to be sent any further unsolicited faxes. To prevent third party mass
marketers from buying fax lists businesses must obtain fax numbers either
directly from the recipient, or from a published source such as a directory,
advertisement, or Internet site. The Junk Fax Prevention Act of 2005 overturns overly broad regulations issued
by Federal Communications Commission (FCC) in July, 2003. Those regulations
would have made it illegal for businesses to send faxes to even long-time
customers unless they had specific written permission to send a fax to a
particular number. The FCC regulations were opposed by a broad range of over 600
businesses and trade associations who joined the “Fax Ban Coalition” organized
to oppose and reverse the FCC’s regulations. In a May 2004 letter to the Office of Management and Budget, Advocacy
identified the FCC regulations as overly burdensome on small businesses and in
need of reform. The letter noted that the rule “places a substantial burden on
manufacturers and other businesses by compelling them to obtain the signed
written consent of each recipient before any commercial fax may be sent” and
that the rule should be modified “to continue the established business
relationship exemption.” The Office of Advocacy, the “small business watchdog” of the government,
examines the role and status of small business in the economy and independently
represents the views of small business to federal agencies, Congress, and the
President. It is the source for small business statistics presented in
user-friendly formats and it funds research into small business issues. For more
information, visit the Office of Advocacy website at
Contact: John McDowell, (202) 205-6941
john.mcdowell@sba.gov
SBA Number: 05-29 ADVO
Press Kit
Small Business
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The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed Chief Counsel for Advocacy advances the views, concerns, interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. For more information, visit
www.sba.gov/advo , or call (202) 205-6533.