Statement of Administration Policy: H.R. 1304 - Telephone Advertising Consumer Rights Act

(SENT 11/15/91)
(House)
(Markey (D) Massachusetts and 62 others)

The Administration opposes enactment of H.R. 1304. It would result in unnecessary regulation of commercial activities and could curtail technological innovation and eliminate legitimate business operations. The legislation could impose substantial costs on industry and the public, "and it has not been demonstrated that H.R. 1304 will produce benefits that outweigh these costs.

Current Federal law already prohibits harassing calls and calls made with intent to annoy. Current Federal and State laws already regulate telephone solicitation undertaken in a fraudulent manner.

The Federal Communications Commission (FCC) recently issued comprehensive rules that address concerns raised by this bill. The rules prohibit automated collect calls and require prompt disconnection of a telephone line by an automatic dialing machine when the call recipient hangs up.

The FCC and State public utility commissions already have authority to take further action, where necessary. Congress should not specify in legislation requirements for further FCC actions. The FCC can adapt rules to changing market conditions while continuing to safeguard individual privacy. Continued regulatory scrutiny and monitoring, subject to congressional review and oversight, is preferable to legislation.

Finally, the bill would make it unlawful for a person to make a telephone solicitation, as defined in the bill and further defined by the FCC, without prior express permission, except when made on behalf of a tax exempt, nonprofit organization. This provision could result in undesirable limits on speech.