HOUSE BILL REPORT

EHB 2299

As Amended by the Senate

BYRepresentatives Crane, Jacobsen, Todd, Heavey, Brekke, P. King and Phillips

Regulating telefacsimile messages for commercial solicitation.

House Committe on Energy & Utilities

Majority Report:  Do pass as amended.  (12)

      Signed by Representatives Nelson, Chair; H. Myers, Vice Chair; Hankins, Ranking Republican Member; Bennett, Brooks, Cooper, Jacobsen, Jesernig, May, R. Meyers, Miller and S. Wilson.

House Staff:Harry Reinert (786-7110)

AS PASSED HOUSE FEBRUARY 6, 1990

BACKGROUND:

A telefacsimile machine is a device that is capable of receiving, and copying onto paper, reasonable reproductions or facsimiles of documents and photographs that have been transmitted over telecommunications lines.  Fax machines, as they are known, have existed for some time.  However, it has only been recently that technology has improved to the point that they are easier and more convenient to use.

There have been an increasing number of complaints about unsolicited advertising since fax machines have become more widely available.  Depending on the type of machine and the amount of detail in the message, it may take over a minute to transmit a single letter size page.  Fax machines generally can respond to only one call at a time.  If the machine is busy, a subsequent transmission from another fax machine will receive a busy signal.

In 1989, a number of states considered and several states adopted legislation prohibiting unsolicited advertising over fax machines.  Some states have prohibited solicitation without prior authorization of the machine owner.  Others have prohibited solicitations once the machine owner notifies the solicitor that the solicitations are unwelcome.  Other restrictions allow unsolicited transmissions of limited length only between 9 p.m. and 6 a.m.

The Council on State Governments (CSG) has prepared suggested legislation for states that wish to enact restrictions on unsolicited advertising by fax machine.  The CSG recommendation would prohibit unsolicited advertising unless the two parties had a prior business relationship.  Solicitations of five pages or less sent between 9 p.m. and 6 a.m. are permitted whether or not there has been a prior business relationship.  No solicitations may be sent to a recipient who has notified the solicitor that the advertising is not wanted.  The CSG recommends a penalty of up to $100.

The Washington Consumer Protection Act prohibits unfair methods of competition and unfair or deceptive acts or practices.  The attorney general is authorized to initiate proceedings to prohibit violations of the Consumer Protection Act.  A person who is injured by a Consumer Protection Act violation may obtain, in addition to damages, reasonable attorneys fees.  The court is authorized to award treble damages.

SUMMARY:

With some exceptions, a person shall not promote goods or services by telefacsimile message without the prior approval of the recipient.  Solicitations made between 9 p.m. and 6 a.m. that are five pages or less in length are permitted.  Solicitations may also be sent to persons with whom the solicitor has had a prior business relationship.  No transmissions may be sent to a recipient who has notified the solicitor that the solicitations are unwanted.  No unsolicited transmission may be sent to a person the sender knows, or reasonably should have known, is a governmental entity.

It is a violation of the consumer protection act to make an unsolicited transmission of promotional materials in violation of this act.  Damages available to the recipient are the greater of $500 or actual damages.

The authority of the Utilities and Transportation Commission to adopt additional rules regulating telefacsimile messages is not affected.

EFFECT OF SENATE AMENDMENTS:  The Senate amendment adds language necessary to bring a violation of the act under the Consumer Protection Act.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Representative Crane and Joe Daniels, Direct Marketing Association.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    There has been some abuse of fax machines by some solicitors.  This bill is a reasonable limitation on the time when solicitations can be made and the length of those solicitations.

House Committee - Testimony Against:      None.

VOTE ON FINAL PASSAGE:

      Yeas 97; Excused 1

Excused:    Representative Miller