Federal judge strikes down ban on unsolicited fax ads

By The Associated Press

03.29.02

Printer-friendly page

ST. LOUIS — Missouri Attorney General Jay Nixon will appeal a federal judge's ruling that clears the way for unsolicited fax advertisements, a spokesman for Nixon said yesterday.

U.S. District Judge Stephen Limbaugh ruled on March 13 in St. Louis that a federal ban on fax ads violated the First Amendment. Nixon spokesman Scott Holste said the attorney general learned of the ruling last week. Nixon was out of the office yesterday.

"We're disappointed," Holste said. "We don't think that consumers and small business owners should have to bear the cost of these unsolicited ads. When you consider not only the paper and the toner, but also the time these junk ads tie up fax machines, it can be extremely aggravating."

Nixon filed two lawsuits in 2000 against companies that fax ads — American Blast Fax Inc. and Fax.com. The lawsuits were later consolidated. American Blast Fax, based in Dallas, is now defunct.

Nixon's suit claimed unsolicited fax advertising violated the federal Telephone Consumer Protection Act of 1991. The Federal Communications Commission joined the suit to defend the ban.

Limbaugh ruled that the portion of the TCPA banning unsolicited fax ads violates freedom of speech.

Kevin Katz, founder and president of Aliso Viejo, Calif.-based Fax.com, called the ruling a triumph for First Amendment rights.

"We are pleased with the court's decision vindicating companies like ours that utilize modern technology to disseminate information to consumers," Katz said.

In the suit, Nixon cited American Blast Fax's own claim boasting that it provided advertising into 125,000 fax machines in St. Louis alone.

"These advertising faxes shift the cost of paper, toner and lost fax line availability squarely on the unwilling recipient, and that is just wrong," Nixon said in 2000.

But Limbaugh ruled the ads — typically one page — don't create substantial expense for recipients or prevent businesses and consumers from receiving other faxes.

The court also ruled there were other, less restrictive, means of dealing with unwanted fax ads. Fax.com provides an 800 telephone number that allows recipients to block unwanted faxes, the company said.

Fax.com was founded four years ago. In addition to faxing advertisements, the company said it sends out faxes to aid in the search for missing children, assist people needing organ transplants and assist in other police and charitable matters.

Related

Telemarketers battle static from federal regulators
By Douglas Lee Congress again takes aim at unpopular industry that is already overburdened.  06.27.00

California Legislature passes fax-ad bill
Measure would eliminate state law against sending unsolicited faxes to allow stronger federal law to take effect.  09.04.02