The Federal Communications Commission yesterday published the final rulemaking document laying out changes it voted on during its meeting last week, but did make one compromised at the request of the Online Lenders Alliance, agreeing to allow 12 months for companies to make the necessary changes to comply, instead of the six months that was originally announced.
- The FCC said it agreed with the Online Lenders Alliance that extending the implementation period will help mitigate some of the challenges to implementing the new rules. The Online Lenders Alliance had requested an implementation period of 12-to-18 months.
- When it first announced the proposed rule, the FCC was going to put it into effect six months after it was published in the Federal Register, which is expected to happy at some point in the coming days.
- In a footnote, the FCC said the Consumer and Governmental Affairs Bureau would announce the effective date for Section 64.1200(f)(9) at a later date. That section provides that prior express written consent for a call or text message must be directly to one seller at a time. Consumer consent to be contacted by one seller is not consent to be contacted by another seller who purchased the lead from the first seller.
Why This Matters: Depending on when the rule is published in the Federal Register, it might not go into effect until after the presidential inauguration on January 20, 2024. If a Republican wins the White House in November, there may be a chance to prevent the rule from ever going into effect.
Specifically, Section 64.1200(f)(9) of the Telephone Consumer Protection Act is amended to read:
- The term prior express written consent means an agreement, in writing, that bears the signature of the person called or texted that clearly and conspicuously authorizes no more than one identified seller to deliver or cause to be delivered to the person called or texted advertisements or telemarketing messages using an automatic telephone dialing system or an artificial or prerecorded voice. Calls and texts must be logically and topically associated with the interaction that prompted the consent and the agreement must identify the telephone number to which the signatory authorizes such advertisements or telemarketing messages to be delivered.
- (i) The written agreement shall include a clear and conspicuous disclosure informing the person signing that:
- (A) By executing the agreement, such person authorizes the seller to deliver or cause to be delivered to the signatory telemarketing calls or texts using an automatic telephone dialing system or an artificial or prerecorded voice; and
- (B) The person is not required to sign the agreement (directly or indirectly), or agree to enter into such an agreement as a condition of purchasing any property, goods, or services. The term “signature” shall include an electronic or digital form of signature, to the extent that such form of signature is recognized as a valid signature under applicable federal law or state contract law.
- (i) The written agreement shall include a clear and conspicuous disclosure informing the person signing that: