On January 22, 2014, the United States Court of Appeals for the District of Columbia Circuit dismissed Dish Network LLC’s petition for review of a 2013 Declaratory Ruling (“Declaratory Ruling”)[1] by the Federal Communications Commission (FCC), which clarified whether a seller may be held vicariously liable under federal common law principles of agency for violations of Sections 227(b) or 227(c) of the TCPA.
Category - "FCC Actions"
Hobbs Act Issues Abound in TCPA Cases, Some Drawing FCC Reaction
Appropriate application of the Administrative Orders Review Act (aka the Hobbs Act) can become a contentious issue in some TCPA cases, and in this post we highlight a few recent examples. The Hobbs Act provides exclusive jurisdiction to the federal court of appeals to determine the validity of all final orders of the Federal Communications Commission (FCC) and also specifies that any party aggrieved by a final order of an agency such as the FCC may file a petition to review the order in the court of appeals with appropriate venue within 60 days after its entry. Thus, while plaintiffs in TCPA cases may allege that aspects of the TCPA laws or FCC rules have been violated, they are not free to collaterally attack the substance of FCC rules that they have not timely challenged. The FCC is understandably concerned when plaintiffs mount an indirect challenge of the agency’s rules, in some cases so much so that the agency participates in a court proceeding.
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FCC Opportunities for TCPA Rule Revision or Interpretation
The FCC’s far-reaching revisions to its prior TCPA rules took effect on October 16, 2013, without the FCC ruling on a number of pending petitions for clarification or declaratory ruling. Immediately upon the federal government’s reopening, two additional petitions were filed. While each presents unique facts and circumstances, each has in common a plea that the agency clarify just how extensive the job will be for telemarketers to seek and receive adequate forms of consumer consent to be contacted.
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New TCPA Rules Take Effect on October 16, 2013
The Telephone Consumer Protection Act of 1991 (“TCPA”)[1] places certain restrictions on telemarketing calls, text messages, and faxes. It has long been a favorite of the plaintiffs’ bar because it provides for statutory damages of $500 to $1500 per violation,[2] which in the aggregate can lead to substantial windfalls for plaintiffs. TCPA violations (even innocent ones) can place companies at significant risk and TCPA litigation has skyrocketed as a result.[3]
Last year, the Federal Communications Commission (“FCC”) added fuel to the fire by amending its TCPA rules and further restricting telemarketing calls.[4] The most significant of those amendments – which narrow and eliminate key statutory exemptions – will take effect tomorrow, on October 16, 2013.
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T-Minus 3, 2, 1…
Welcome!
If you are reading this post, chances are you already know a lot about the TCPA. You don’t need to be told that it stands for “Telephone Consumer Protection Act.” Or that it restricts certain telemarketing calls, texts and faxes by a labyrinthine mosaic of statutory provisions and FCC regulations. Or that its ambiguities and statutory damages have made it a hotbed of litigation, particularly class action litigation. Or that the courts are struggling to bring some sense and clarity to the entire regime, while defendants experience an almost hydraulic pressure to settle cases involving even the most innocent, hyper-technical violations. You already know all of that. And, you probably also know that there will be a major development in the law tomorrow, when the FCC’s new telemarketing rules requiring written consent finally take effect. For a summary of the new rules, see our post here.