CBA Joint Petition to FCC re Auto Dialer Capacity

The U.S. Chamber of Commerce, the U.S. Chamber Institute for Legal Reform, and the U.S. Chamber Technology Engagement Center (collectively "the Chamber"), ACA International, American  Association of Healthcare Administrative Management, American Bankers Association, American Financial Services Association, Consumer Bankers Association, Consumer Mortgage Coalition, Credit Union National Association, Edison Electric Institute, Electronic Transactions Association, Financial Services Roundtable, Insights  Association, Mortgage Bankers Association, National Association of Federally-Insured Credit Unions,  National Association of Mutual Insurance Companies, Restaurant Law Center, and Student Loan Servicing Alliance request that the Commission expeditiously issue a declaratory ruling to clarify the Telephone Consumer Protection Act's  ("TCPA") definition of automatic telephone dialing system ("ATDS"). In light of the D.C. Circuit's decision on the FCC's interpretation of ATDS, Petitioners ask that the Commission (1) confirm that to be an ATDS, equipment must use a random or sequential number generator to store or produce numbers and dial those numbers without human intervention, and (2) find that only calls made using actual ATDS  capabilities are subject to the TCPA's restrictions.

The TCPA landscape is dysfunctional and in need of clarity from the FCC.  The statute, originally intended to target a specific abusive telemarketing practice, has been expanded by courts and the FCC, turning it into a breeding ground for frivolous lawsuits against legitimate businesses trying to communicate with their customers.  As a result, TCPA litigation has skyrocketed, harming businesses large and small, with no clear benefit  to consumers.  Recent regulatory efforts, like the 2015 Omnibus Order, have not helped-they made matters worse.  That Order distorted the TCPA's plain meaning  and clear definition of "ATDS," expanding it to potentially include devices such as smartphones and tablets.

The D.C. Circuit recognized the serious flaws in the 2015 Omnibus Order and recently vacated its ATDS interpretation as unreasonable, arbitrary and capricious.  In that opinion, the court provided a logical roadmap for how the Commission should interpret ATDS.  The Commission should follow the court's guidance in interpreting that phrase.

First, the Commission should confirm that to be an ATDS, equipment must use a random or sequential number generator to store or produce numbers and dial those numbers without human intervention.  This straightforward interpretation flows from the functions of an ATDS outlined in the TCPA.  The Commission should also make clear that these functions must be actually-not theoretically-present and active in a device at the time the call is made.  The FCC should also clarify that if human intervention is required in generating a list of numbers to call or in making a call, then the equipment in use is not automatic and therefore not an ATDS.  Adopting this interpretation follows the statutory text and would provide clarity to businesses seeking to reach their customers.

 Click here to read full petition.