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Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
)
In the Matter of ) File No. EB-02-TC-193
QuoteMaster USA, Ltd. ) NAL/Acct. No. 200732170069
Apparent Liability for Forfeiture ) FRN: 0016773566
)
)
)
NOTICE OF APPARENT LIABILITY FOR FORFEITURE
Adopted: August 13, 2007 Released: August 14, 2007
By the Commission:
I. INTRODUCTION
1. In this Notice of Apparent Liability for Forfeiture ("NAL"), we find
that QuoteMaster USA, Ltd. ("QuoteMaster") apparently willfully or
repeatedly violated section 227 of the Communications Act of 1934, as
amended ("Act"), and the Commission's related rules and orders, by
delivering at least six unsolicited advertisements to the telephone
facsimile machines of at least five consumers. Based on the facts and
circumstances surrounding these apparent violations, we find that
QuoteMaster is apparently liable for a forfeiture in the amount of
$43,500.
II. BACKGROUND
2. Section 227(b)(1)(C) of the Act makes it "unlawful for any person
within the United States, or any person outside the United States if
the recipient is within the United States . . . to use any telephone
facsimile machine, computer, or other device to send, to a telephone
facsimile machine, an unsolicited advertisement." The term
"unsolicited advertisement" is defined in the Act and the Commission's
rules as "any material advertising the commercial availability or
quality of any property, goods, or services which is transmitted to
any person without that person's prior express invitation or
permission in writing or otherwise." Under the Commission's rules, an
"established business relationship" exception permits a party to
deliver a message to a consumer if the sender has an established
business relationship with the recipient and the sender obtained the
number of the facsimile machine through the voluntary communication by
the recipient, directly to the sender, within the context of the
established business relationship, or through a directory,
advertisement, or a site on the Internet to which the recipient
voluntarily agreed to make available its facsimile number for public
distribution.
3. On August 13, 2002, in response to one or more consumer complaints
alleging that QuoteMaster had faxed unsolicited advertisements, the
Commission staff issued a citation to QuoteMaster, pursuant to section
503(b)(5) of the Act. The staff cited QuoteMaster for using a
telephone facsimile machine, computer, or other device, to send
unsolicited advertisements to a telephone facsimile machine, in
violation of section 227 of the Act and the Commission's related rules
and orders. The citation, which the staff served by certified mail,
return receipt requested, warned QuoteMaster that subsequent
violations could result in the imposition of monetary forfeitures of
up to $11,000 per violation, and included a copy of the consumer
complaints that formed the basis of the citation. The citation
informed QuoteMaster that within 21 days of the date of the citation,
it could either request an interview with Commission staff, or could
provide a written statement responding to the citation. QuoteMaster
did not request an interview or otherwise respond to the citation.
4. Despite the citation's warning that subsequent violations could
result in the imposition of monetary forfeitures, we have received
five additional consumer complaints indicating that QuoteMaster
continued to engage in such conduct after receiving the citation. We
base our action here specifically on complaints filed by five
consumers establishing that QuoteMaster continued to send six
unsolicited advertisements to telephone facsimile machines after the
date of the citation.
5. Section 503(b) of the Act authorizes the Commission to assess a
forfeiture of up to $11,000 for each violation of the Act or of any
rule, regulation, or order issued by the Commission under the Act by a
non-common carrier or other entity not specifically designated in
section 503 of the Act. In exercising such authority, we are to take
into account "the nature, circumstances, extent, and gravity of the
violation and, with respect to the violator, the degree of
culpability, any history of prior offenses, ability to pay, and such
other matters as justice may require."
III. DISCUSSION
A. Violations of the Commission's Rules Restricting Unsolicited Facsimile
Advertisements
6. We find that QuoteMaster apparently violated section 227 of the Act
and the Commission's related rules and orders by using a telephone
facsimile machine, computer, or other device to send at least six
unsolicited advertisements to the five consumers identified in the
Appendix. This NAL is based on evidence that the consumers received
unsolicited fax advertisements from QuoteMaster after the Bureau's
citation. The facsimile transmissions advertise life insurance
products. Further, according to the complaints, the consumers neither
had an established business relationship with QuoteMaster, nor gave
QuoteMaster permission to send the facsimile transmissions. The
faxes at issue here therefore fall within the definition of an
"unsolicited advertisement." Based on the entire record, including
the consumer complaints, we conclude that QuoteMaster apparently
violated section 227 of the Act and the Commission's related rules and
orders by sending six unsolicited advertisements to five consumers'
facsimile machines.
B. Proposed Forfeiture
7. We find that QuoteMaster is apparently liable for a forfeiture in the
amount of $43,500. Although the Commission's Forfeiture Policy
Statement does not establish a base forfeiture amount for violating
the prohibition against using a telephone facsimile machine to send
unsolicited advertisements, the Commission has previously considered
$4,500 per unsolicited fax advertisement to be an appropriate base
amount. We apply that base amount to each of three of the apparent
violations. In addition, where the consumer requests the company to
stop sending facsimile messages, and the company continues to send
them, the Commission has previously considered $10,000 per unsolicited
fax advertisement the appropriate forfeiture for such egregious
violations. Here, two consumers specifically requested that
QuoteMaster cease sending facsimiles. Notwithstanding these requests,
an additional three facsimiles were sent to these consumers. Thus, we
apply the $10,000 amount to each of three of the apparent violations.
Thus, a total forfeiture of $43,500 is proposed. QuoteMaster will have
the opportunity to submit evidence and arguments in response to this
NAL to show that no forfeiture should be imposed or that some lesser
amount should be assessed.
IV. CONCLUSION AND ORDERING CLAUSES
8. We have determined that QuoteMaster USA, Ltd. apparently violated
section 227 of the Act and the Commission's related rules and orders
by using a telephone facsimile machine, computer, or other device to
send at least six unsolicited advertisements to the five consumers
identified in the Appendix. We have further determined that
QuoteMaster is apparently liable for a forfeiture in the amount of
$43,500.
9. Accordingly, IT IS ORDERED, pursuant to section 503(b) of the Act, and
section 1.80 of the Rules, 47 C.F.R. S: 1.80, 47 U.S.C. S: 503(b),
that QuoteMaster is hereby NOTIFIED of this APPARENT LIABILITY FOR A
FORFEITURE in the amount of $43,500 for willful or repeated violations
of section 227(b)(1)(C) of the Communications Act, 47 U.S.C. S:
227(b)(1)(C), sections 64.1200(a)(3) of the Commission's rules, 47
C.F.R. S: 64.1200(a)(3), and the related orders described in the
paragraphs above.
10. IT IS FURTHER ORDERED THAT, pursuant to section 1.80 of the
Commission's rules, within thirty (30) days of the release date of
this Notice of Apparent Liability for Forfeiture, QuoteMaster USA,
Ltd. SHALL PAY the full amount of the proposed forfeiture or SHALL
FILE a written statement seeking reduction or cancellation of the
proposed forfeiture.
11. Payment by check or money order, payable to the order of the "Federal
Communications Commission," may be mailed to Forfeiture Collection
Section, Finance Branch, Federal Communications Commission, P.O. Box
358340, Pittsburgh, PA 15251. Payment by overnight mail may be sent to
Mellon Client Service Center, 500 Ross Street, Room 670, Pittsburgh,
PA 15262-0001, Attn: FCC Module Supervisor. Payment by wire transfer
may be made to: ABA Number 043000261, receiving bank Mellon Bank, and
account number 911-6229. The payment should note NAL/Acct. No.
200732170069.
12. The response, if any, must be mailed both to the Office of the
Secretary, Federal Communications Commission, 445 12th Street, SW,
Washington, DC 20554, ATTN: Enforcement Bureau - Telecommunications
Consumers Division, and to Colleen Heitkamp, Chief, Telecommunications
Consumers Division, Enforcement Bureau, Federal Communications
Commission, 445 12th Street, SW, Washington, DC 20554, and must
include the NAL/Acct. No. referenced in the caption.
13. The Commission will not consider reducing or canceling a forfeiture in
response to a claim of inability to pay unless the petitioner submits:
(1) federal tax returns for the most recent three-year period; (2)
financial statements prepared according to generally accepted
accounting practices; or (3) some other reliable and objective
documentation that accurately reflects the petitioner's current
financial status. Any claim of inability to pay must specifically
identify the basis for the claim by reference to the financial
documentation submitted.
14. Requests for payment of the full amount of this Notice of Apparent
Liability for Forfeiture under an installment plan should be sent to:
Chief, Revenue and Receivables Operations Group, 445 12th Street, SW,
Washington, DC 20554.
15. IT IS FURTHER ORDERED that a copy of this Notice of Apparent Liability
for Forfeiture shall be sent by Certified Mail Return Receipt
Requested to QuoteMaster USA, Ltd., Attention: David Kleinhandler,
Robert Bland and Joseph Galluzzi, 420 Lexington Ave., Suite 2516, New
York, NY 10170-0002; 171 Madison Ave., New York, NY 10016; 180 Madison
Ave, New York, NY 10016; and 36 W. 44th St., New York, NY 10036.
FEDERAL COMMUNICATIONS COMMISSION
Marlene H. Dortch
Secretary
APPENDIX
Complainant sent facsimile solicitations Violation Date(s)
Rosalind Kovacs August 15, 2006
Harold Brown August 16, 2006
Bernard Shine August 17, 2006
Complainant sent facsimile solicitations after Violation Date(s)
requesting no more be sent
Steven Thomas August 15, 2006
August 15, 2006
Niz Brown August 16, 2006
See 47 U.S.C. S: 503(b)(1). The Commission has the authority under this
section of the Act to assess a forfeiture against any person who has
"willfully or repeatedly failed to comply with any of the provisions of
this Act or of any rule, regulation, or order issued by the Commission
under this Act ...." See also 47 U.S.C. S: 503(b)(5) (stating that the
Commission has the authority under this section of the Act to assess a
forfeiture penalty against any person who is not a common carrier so long
as such person (A) is first issued a citation of the violation charged;
(B) is given a reasonable opportunity for a personal interview with an
official of the Commission, at the field office of the Commission nearest
to the person's place of residence; and (C) subsequently engages in
conduct of the type described in the citation).
According to publicly available information, QuoteMaster is also doing
business as "David Kleinhandler & Associates," and "The Kleinhandler
Corporation." Therefore, all references in this NAL to "QuoteMaster"
encompass QuoteMaster as well as "David Kleinhandler & Associates," and
"The Kleinhandler Corporation." QuoteMaster has offices at 420 Lexington
Ave., New York, NY, 10170-0002; 171 Madison Ave., New York, NY, 10016; 180
Madison Ave., New York, NY 10016; and 36 W. 44th St., New York, NY 10036.
David Kleinhandler, President and Chief Executive Officer; Robert Bland,
President and Sales Executive; and Joseph Galluzzi, Owner; are listed as
the contact persons for QuoteMaster. Accordingly, all references in this
NAL to QuoteMaster also encompass the foregoing individuals and all other
principals and officers of this entity, as well as the corporate entity
itself.
See 47 U.S.C. S: 227(b)(1)(C); 47 C.F.R. S: 64.1200(a)(3); see also
Rules and Regulations Implementing the Telephone Consumer Protection Act
of 1991, Report and Order and Third Order on Reconsideration, 21 FCC Rcd
3787 (2006).
47 U.S.C. S: 227(b)(1)(C); 47 C.F.R. S: 64.1200(a)(3).
47 U.S.C. S: 227(a)(4); 47 C.F.R. S: 64.1200(f)(13).
An "established business relationship" is defined as a prior or existing
relationship formed by a voluntary two-way communication "with or without
an exchange of consideration, on the basis of an inquiry, application,
purchase or transaction by the business or residential subscriber
regarding products or services offered by such person or entity, which
relationship has not been previously terminated by either party." 47
C.F.R. S: 64.1200(f)(5).
See 47 U.S.C. S: 227(b)(1)(C); 47 C.F.R. S: 64.1200(a)(3)(i), (ii).
Citation from Colleen Heitkamp, Chief, Telecommunications Consumers
Division, Enforcement Bureau, File No. EB-02-TC-193, issued to QuoteMaster
on August 13, 2002.
See 47 U.S.C. S: 503(b)(5) (authorizing the Commission to issue citations
to persons who do not hold a license, permit, certificate or other
authorization issued by the Commission or an applicant for any of those
listed instrumentalities for violations of the Act or of the Commission's
rules and orders).
Commission staff mailed the citation to 36 W. 44th St., Suite 1100, New
York, NY 10036; 803 Pondside Dr., White Plains, NY 10607; and 180 Madison
Ave., New York, NY 10016. See n.2, supra.
See Appendix for a listing of the consumer complaints against QuoteMaster
requesting Commission action.
We note that evidence of additional instances of unlawful conduct by
QuoteMaster may form the basis of subsequent enforcement action.
Section 503(b)(2)(C) provides for forfeitures up to $10,000 for each
violation in cases not covered by subparagraph (A) or (B), which address
forfeitures for violations by licensees and common carriers, among others.
See 47 U.S.C. S: 503(b). In accordance with the inflation adjustment
requirements contained in the Debt Collection Improvement Act of 1996,
Pub. L. 104-134, Sec. 31001, 110 Stat. 1321, the Commission implemented an
increase of the maximum statutory forfeiture under section 503(b)(2)(C) to
$11,000. See 47 C.F.R. S:1.80(b)(3); Amendment of Section 1.80 of the
Commission's Rules and Adjustment of Forfeiture Maxima to Reflect
Inflation, 15 FCC Rcd 18221 (2000); see also Amendment of Section 1.80(b)
of the Commission's Rules and Adjustment of Forfeiture Maxima to Reflect
Inflation, 19 FCC Rcd 10945 (2004) (this recent amendment of section
1.80(b) to reflect inflation left the forfeiture maximum for this type of
violator at $11,000).
47 U.S.C. S: 503(b)(2)(D); The Commission's Forfeiture Policy Statement
and Amendment of Section 1.80 of the Rules to Incorporate the Forfeiture
Guidelines, Report and Order, 12 FCC Rcd 17087, 17100-01 para. 27 (1997)
(Forfeiture Policy Statement), recon. denied, 15 FCC Rcd 303 (1999).
See, e.g., complaint dated December 21, 2006, from Steven C. Thomas
stating that "[QuoteMaster] continue[s] to fax unwanted material to me
even when I use their `opt out' telephone number." The complainants
involved in this action are listed in the Appendix below.
See 47 U.S.C. S: 227(a)(4); 47 C.F.R. S: 64.1200(f)(13) (definition
previously at S: 64.1200(f)(10)).
See Get-Aways, Inc., Notice of Apparent Liability For Forfeiture, 15 FCC
Rcd 1805 (1999); Get-Aways, Inc., Forfeiture Order, 15 FCC Rcd 4843
(2000); see also US Notary, Inc., Notice of Apparent Liability for
Forfeiture, 15 Rcd 16999 (2000); US Notary, Inc., Forfeiture Order, 16 FCC
Rcd 18398 (2001); Tri-Star Marketing, Inc., Notice of Apparent Liability
For Forfeiture, 15 FCC Rcd 11295 (2000); Tri-Star Marketing, Inc.,
Forfeiture Order, 15 FCC Rcd 23198 (2000).
See Carolina Liquidators, Inc., Notice of Apparent Liability for
Forfeiture, 15 FCC 16,837, 16,842 (2000); 21st Century Fax(es) Ltd., AKA
20th Century Fax(es), 15 FCC Rcd 24,406, 24,411 (2000).
See 47 U.S.C. S: 503(b)(4)(C); 47 C.F.R. S: 1.80(f)(3).
47 C.F.R. S: 1.80.
47 C.F.R. S: 1.1914.
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Federal Communications Commission FCC 07-146