Congress Failed to Pass Fax Legislation That Would Help Small Businesses

DETROIT – The Detroit Regional Chamber is deeply disappointed Congress was unable to pass legislation that would have restored the “established business relationship” exception to the Federal Communications Commission “Do Not Fax” rule. Passage is crucial for the health of small business in the Detroit Region and across the United States.

The proposed FCC regulations would require businesses and nonprofits to obtain written consent from their customers, suppliers and members before sending faxes advertising goods, services and memberships. This rule is commonly known as the FCC “Fax Ban.”

Adopted in 2003 but currently on hold, the FCC regulations lifted the longstanding and completely logical “established business relationship” criteria permitting businesses and associations to send faxes without prior written consent. S. 2603 and H.R. 4600, known as the Junk Fax Prevention Act, would restore that exception.

A survey from the U.S. Chamber of Commerce shows a dramatic cost increase to small businesses if either of these bills do not pass. According to the survey, it could cost a small business as much as $5,000 to comply with the paperwork for the do-not-fax rule in the first year, and then it would cost more than $3,000 every year thereafter.

“Our government tends to burden small business with excessive and time- consuming paperwork,” said Detroit Regional Chamber President and CEO Richard E. Blouse Jr., CCE. “This is an example of unnecessary bureaucracy and part of the Detroit Regional Chamber’s legislative agenda to create a business climate that encourages small business growth, not deters it.”

The FCC has postponed its own regulations, and is clearly deferring to Congress to clarify the issue. Congress’ failure to restore the established business precedent has exposed American businesses to a proliferation of lawsuits and costly settlements.

The Chamber will lobby to urge passage in the 2005 session.

For more information, contact Sarah Hubbard at (517) 372-2278 or e-mail: shubbard@detroitchamber.com

The Detroit Regional Chamber is the leading business organization in the region and the largest chamber of commerce in the country. The Chamber’s mission — to power the economy for Southeast Michigan — is carried out through business attraction efforts, public policy advocacy, strategic partnerships and quality products and services for members.