On December 30, 2020, the Federal Communications Commission (“FCC”) released a Report and Order (“Order”) that imposed certain new restrictions on nonmarketing prerecorded calls to residential lines.  The action was in response to Congress’s mandate in the TRACED Act that the FCC reevaluate certain exemptions the agency previously granted regarding the consent requirements for prerecorded calls under the Telephone Consumer Protection Act (“TCPA”).

The FCC recognized that its rule changes may present implementation challenges for some, so it delayed the effective date of its new rules for six months.  The six-month period will commence only after the Office of Management and Budget has approved the rule changes; so as a practical matter these changes are not likely to take effect for several months.

Previously, prerecorded calls to residential lines that were either noncommercial in nature or did not contain marketing were completely exempt from TCPA consent requirements.  The Order narrows these exemptions by requiring consent to transmit more than three such prerecorded calls per 30-day period to a residential line.  The Order also requires callers to permit call recipients to opt out of such calls through an automated opt out mechanism.

The Order does not define what “consent” means in this context.  Because these are nonmarketing calls by definition, it stands to reason that consent means “prior express consent,” as that term has been construed by the FCC.  A group of trade associations recently asked the FCC to confirm this point.  The Order also makes certain other conforming changes to its rules governing prerecorded calls to residential numbers.

The Order does not change existing exemptions for calls to wireless numbers, finding that these exemptions already satisfy the TRACED Act’s requirements.  Nevertheless, the order codifies these exemptions, which previously were set forth only in FCC declaratory rulings.

Tags: FCC, Federal Communications Commission, TCPA
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Yaron Dori has over 25 years of experience advising technology, telecommunications, media, life sciences, and other types of companies on their most pressing business challenges. He is a former chair of the firm’s technology, communications and media practices and currently serves on the…

Yaron Dori has over 25 years of experience advising technology, telecommunications, media, life sciences, and other types of companies on their most pressing business challenges. He is a former chair of the firm’s technology, communications and media practices and currently serves on the firm’s eight-person Management Committee.

Yaron’s practice advises clients on strategic planning, policy development, transactions, investigations and enforcement, and regulatory compliance.

Early in his career, Yaron advised telecommunications companies and investors on regulatory policy and frameworks that led to the development of broadband networks. When those networks became bidirectional and enabled companies to collect consumer data, he advised those companies on their data privacy and consumer protection obligations. Today, as new technologies such as Artificial Intelligence (AI) are being used to enhance the applications and services offered by such companies, he advises them on associated legal and regulatory obligations and risks. It is this varied background – which tracks the evolution of the technology industry – that enables Yaron to provide clients with a holistic, 360-degree view of technology policy, regulation, compliance, and enforcement.

Yaron represents clients before federal regulatory agencies—including the Federal Communications Commission (FCC), the Federal Trade Commission (FTC), and the Department of Commerce (DOC)—and the U.S. Congress in connection with a range of issues under the Communications Act, the Federal Trade Commission Act, and similar statutes. He also represents clients on state regulatory and enforcement matters, including those that pertain to telecommunications, data privacy, and consumer protection regulation. His deep experience in each of these areas enables him to advise clients on a wide range of technology regulations and key business issues in which these areas intersect.

With respect to technology and telecommunications matters, Yaron advises clients on a broad range of business, policy and consumer-facing issues, including:

Artificial Intelligence and the Internet of Things;
Broadband deployment and regulation;

IP-enabled applications, services and content;
Section 230 and digital safety considerations;
Equipment and device authorization procedures;
The Communications Assistance for Law Enforcement Act (CALEA);

Customer Proprietary Network Information (CPNI) requirements;

The Cable Privacy Act
Net Neutrality; and
Local competition, universal service, and intercarrier compensation.

Yaron also has extensive experience in structuring transactions and securing regulatory approvals at both the federal and state levels for mergers, asset acquisitions and similar transactions involving large and small FCC and state communication licensees.

With respect to privacy and consumer protection matters, Yaron advises clients on a range of business, strategic, policy and compliance issues, including those that pertain to:

The FTC Act and related agency guidance and regulations;
State privacy laws, such as the California Consumer Privacy Act (CCPA) and California Privacy Rights Act, the Colorado Privacy Act, the Connecticut Data Privacy Act, the Virginia Consumer Data Protection Act, and the Utah Consumer Privacy Act;
The Electronic Communications Privacy Act (ECPA);
Location-based services that use WiFi, beacons or similar technologies;
Digital advertising practices, including native advertising and endorsements and testimonials; and

The application of federal and state telemarketing, commercial fax, and other consumer protection laws, such as the Telephone Consumer Protection Act (TCPA), to voice, text, and video transmissions.

Yaron also has experience advising companies on congressional, FCC, FTC and state attorney general investigations into various consumer protection and communications matters, including those pertaining to social media influencers, digital disclosures, product discontinuance, and advertising claims.

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