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Financial Services Law Insights and Observations

FCC seeks comment on TCPA exemptions

Agency Rule-Making & Guidance FCC TCPA TRACED Act

Agency Rule-Making & Guidance

On October 1, the FCC issued a Notice of Proposed Rulemaking (NPRM), seeking comment on exemptions already granted under the TCPA allowing certain entities and types of calls to be made using an automatic telephone dialing system. The FCC is required by Section 8 of The Pallone-Thune Telephone Robocall Abuse Criminal Enforcement and Deterrence Act (TRACED Act) to ensure that any exemption granted under the TCPA “includes requirements with respect to: (i) the classes of parties that may make such calls; (ii) the classes of parties that may be called; and (iii) the number of such calls that may be made to a particular called party.” Section 8 of the TRACED Act requires the FCC to prescribe new regulations or amend existing regulations with regard to the TCPA exemptions no later than December 30, 2020. The FCC is seeking comment on the current nine exemptions, which include, among other things, financial-institution calls to a wireless number. The FCC notes that the current conditions under the financial institution exemption “appear to satisfy section 8 of the TRACED Act” because there are limitations on the class of calling parties, the class of called parties, and the number of calls (no more than three calls per event over a three-day period for each affected account).

Additionally, the FCC seeks comment on the exemption allowing commercial calls to residences that do not constitute telemarketing. The FCC notes that the current exemption does not appear to satisfy Section 8’s requirements, as there is not enough specificity of the class of party that makes the calls, nor is there a limit on the number of calls that can be made. The FCC proposes to alter this exemption into two types of classes of parties: informational and transactional callers and seeks comment on whether to limit the number of calls that can be made under this exemption.

Comments will be due 15 days after publication in the Federal Register.

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