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FEDERAL COMMUNICATIONS COMMISSION
WASHINGTON, D.C. 20554
DECEMBER 27, 2000
Robert M. Horne
President
American Blast Fax, Inc.
16200 Addison Road
Suite 250
Addison, Texas 75001
RE: EB-00-TC-132
Dear Mr. Horne:
This is an official CITATION, issued pursuant to section
503(b)(5) of the Communications Act of 1934, as amended
(Communications Act), for possible violations of the Telephone
Consumer Protection Act of 19911 (TCPA) and the Federal
Communications Commission's rules that implement that Act.2
It has come to our attention that your company recently
transmitted to telephone facsimile machines unsolicited
advertisements for products, goods, or services offered by
Benchmark Financial a.k.a. Benchmark Mortgage d.b.a. Mortgage
Direct d.b.a. Compulease Distribution, Inc. d.b.a. ARKLATEX
Financial and Imperial Mortgage (see attachments). Pursuant to
the TCPA and the Commission's Rules, it is unlawful to use a
``telephone facsimile machine, computer, or other device to send
an unsolicited advertisement to a telephone facsimile machine.''3
The term ``unsolicited advertisement'' is defined in the TCPA 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.''4 The Commission has
specified that an established business relationship between a fax
sender and recipient constitutes prior express invitation or
permission to send a facsimile advertisement.5 Mere distribution
or publication of a fax number, however, does not establish
consent to receive advertisements by fax.6
Although entities that merely transmit facsimile messages on
behalf of others are not liable for compliance with the
prohibition on faxing unsolicited advertisements,7 the exemption
from liability does not exist when a fax transmitter has ``'a
high degree of involvement or actual notice of an illegal use and
[has] fail[ed] to take steps to prevent such transmissions.'''8
Accordingly, fax transmitters do not enjoy an absolute exemption
from liability under the TCPA and the Commission's Rules.
This citation serves as notice that the unsolicited
facsimile advertisements sent by Benchmark Financial a.k.a.
Benchmark Mortgage d.b.a. Mortgage Direct d.b.a. Compulease
Distribution, Inc. d.b.a. ARKLATEX Financial and Imperial
Mortgage and transmitted by your company violate the TCPA and the
Commission's Rules. The Commission may assess to your company
monetary forfeitures not to exceed $11,000 for each subsequent
violation if (1) your company has been highly involved on behalf
of the sender of any unsolicited facsimile advertisements, or (2)
your company continues to transmit facsimile advertisements for
Benchmark Financial a.k.a. Benchmark Mortgage d.b.a. Mortgage
Direct d.b.a. Compulease Distribution, Inc. d.b.a. ARKLATEX
Financial and Imperial Mortgage without taking steps to ensure
that the sender has obtained permission from recipients to fax
the advertisements.
Pursuant to section 503(b)(5) of the Communications Act, you
may request a personal interview at the Commission's Field Office
nearest to your place of business. The nearest office appears to
be the Dallas Office at 9330 LBJ Freeway, Room 1170, Dallas,
Texas 75243-3429. You may contact the Dallas Field Office by
telephone at 214-575-6361. You must schedule this interview to
take place within 21 days of the date of this citation.
Alternatively, you may submit a written statement to the
following address within 21 days of the date of this citation:
Kurt A. Schroeder
Deputy Chief
Telecommunications Consumers Division
Enforcement Bureau
Federal Communications Commission
445 - 12th Street, S.W.
Washington, D.C. 20554
Please reference EB-00-TC-132 when corresponding with the
Commission.
If you choose to submit a written statement, you should
discuss in detail your company's involvement in faxing
advertisements on behalf of Benchmark Financial a.k.a. Benchmark
Mortgage d.b.a. Mortgage Direct d.b.a. Compulease Distribution,
Inc. d.b.a. ARKLATEX Financial and Imperial Mortgage, including
any specific arrangements under which you transmit their
advertisements. Please provide copies of any contracts or
agreements that memorialize the terms and conditions under which
you fax for Benchmark Financial a.k.a. Benchmark Mortgage d.b.a.
Mortgage Direct d.b.a. Compulease Distribution, Inc. d.b.a.
ARKLATEX Financial and Imperial Mortgage. You should also
answer the following questions:
1. Has your company had any control over or involvement in
determining the content of advertisements transmitted by
facsimile on behalf of Benchmark Financial a.k.a.
Benchmark Mortgage d.b.a. Mortgage Direct d.b.a.
Compulease Distribution, Inc. d.b.a. ARKLATEX Financial
and Imperial Mortgage or any other entities on whose
behalf you transmit advertisements by facsimile? Please
describe such control or involvement in detail.
2. Who provided, compiled, or generated the distribution
list(s) of telephone facsimile numbers that your company
has used to transmit advertisements on behalf of
Benchmark Financial a.k.a. Benchmark Mortgage d.b.a.
Mortgage Direct d.b.a. Compulease Distribution, Inc.
d.b.a. ARKLATEX Financial and Imperial Mortgage or any
other entities on whose behalf you transmit
advertisements by facsimile?
3. If your company has been involved in any way in
providing, compiling, generating, or editing the
distribution list(s) of telephone facsimile numbers that
your company has used to transmit advertisements of
behalf of Benchmark Financial a.k.a. Benchmark Mortgage
d.b.a. Mortgage Direct d.b.a. Compulease Distribution,
Inc. d.b.a. ARKLATEX Financial and Imperial Mortgage or
any other entities on whose behalf you transmit
advertisements by facsimile, describe in detail the
process by which your company produces or participates in
the generation of such list(s). Does your company employ
or compensate any individuals or entities outside the
company, including any tax-exempt nonprofit
organizations, for any service, activity, assistance, or
facilities used in connection with your company's
providing, compiling, generating, or editing of such
list(s)? Please describe such arrangements in detail.
4. If your company has been involved in any way in
providing, compiling, generating, or editing the
distribution list(s) of telephone facsimile numbers that
your company has used to transmit advertisements of
behalf of Benchmark Financial a.k.a. Benchmark Mortgage
d.b.a. Mortgage Direct d.b.a. Compulease Distribution,
Inc. d.b.a. ARKLATEX Financial and Imperial Mortgage or
any other entities on whose behalf you transmit
advertisements by facsimile, what steps has your company
taken to ensure that the telephone facsimile numbers
belong to individuals or entities who have agreed, by
explicit consent or by virtue of an established business
relationship with the advertiser, to receive the
advertisement? Please describe in detail the manner in
which you record consumers' consent or the existence of
an established business relationship and provide copies
of any written record-keeping policies with respect to
maintaining evidence of such consent or business
relationship.
5. Does your company advertise its fax transmittal
services, and, if so, by what means? Please provide
copies of all print, audio, and video materials that have
been used within the past year to advertise your
company's fax transmittal services. For each
advertisement, list the media in which the advertisement
appeared and the date(s) of such appearance(s).
Under the Privacy Act of 1974, 5 U.S.C. § 552(a)(e)(3), we
are informing you that the Commission's staff will use all
relevant material information before it to determine what, if
any, enforcement action is required to ensure your compliance
with the TCPA and the Commission's rules. This will include any
information that you disclose in your interview or written
statement. Please be advised that if you choose not to respond
to this citation and a Notice of Forfeiture is issued, your
unresponsiveness will be considered in our assessment of a
forfeiture amount.
You should also be aware that the knowing and willful making
of any false statement, or the concealment of any material fact,
in reply to this citation is punishable by fine or imprisonment
under 18 U.S.C. § 1001.
Thank you in advance for your anticipated cooperation.
Sincerely,
Kurt A. Schroeder
Deputy Chief
Telecommunications Consumers
Division
Enforcement Bureau
Federal Communications Commission
Enclosures
_________________________
1 Pub.L. No. 102-243, 105 Stat. 2394-2402 (1991) (codified at
47 U.S.C. § 227)
2
47 C.F.R. § 64.1200.
3 47 U.S.C. § 227(b)(1)(C); 47 C.F.R. § 64.1200(a)(3).
4 47 U.S.C. § 227(a)(4); 47 C.F.R. § 64.1200(f)(5).
5 Rules and Regulations Implementing the Telephone Consumer
Protection Act of 1991, Report and Order, 7 FCC Rcd 8752, 8779 n.
87 (1992) (TCPA Report and Order); Rules and Regulations
Implementing the Telephone Consumer Protection Act of 1991,
Memorandum Opinion and Order, 10 FCC Rcd 12391, 12408 (1995)
(TCPA Memorandum Opinion and Order).
6
TCPA Memorandum Opinion and Order, 10 FCC Rcd 12391, 12408.
7 Id. at 12407.
8 TCPA Report and Order, 7 FCC Rcd 8752, 8780 (1992) (quoting
Use of Common Carriers, 2 FCC Rcd 2819, 2820 (1987).)