83_FR_26393 83 FR 26284 - Consumer and Governmental Affairs Bureau Seeks Comment on Interpretation of the Telephone Consumer Protection Act in Light of the D.C. Circuit's ACA International Decision

83 FR 26284 - Consumer and Governmental Affairs Bureau Seeks Comment on Interpretation of the Telephone Consumer Protection Act in Light of the D.C. Circuit's ACA International Decision

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 83, Issue 109 (June 6, 2018)

Page Range26284-26286
FR Document2018-12084

In this document, the Commission, via the Consumer and Governmental Affairs Bureau (Bureau), invites comment on several issues related to interpretation and implementation of the Telephone Consumer Protection Act (TCPA) following the recent decision of the U.S. Court of Appeals for the District of Columbia in ACA International v. FCC: What constitutes an ``automatic telephone dialing system,'' how to treat calls to reassigned wireless numbers, and how a called party may revoke prior express consent to receive robocalls under the TCPA. In addition, the Bureau seeks to refresh the record on two pending petitions for reconsideration of the Commission's Broadnet Declaratory Ruling and on a pending petition for reconsideration of the 2016 Federal Debt Collection Rules that implemented amendments to the TCPA.

Federal Register, Volume 83 Issue 109 (Wednesday, June 6, 2018)
[Federal Register Volume 83, Number 109 (Wednesday, June 6, 2018)]
[Notices]
[Pages 26284-26286]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-12084]


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FEDERAL COMMUNICATIONS COMMISSION

[CG Docket Nos. 18-152, 02-278; DA 18-493]


Consumer and Governmental Affairs Bureau Seeks Comment on 
Interpretation of the Telephone Consumer Protection Act in Light of the 
D.C. Circuit's ACA International Decision

AGENCY: Federal Communications Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: In this document, the Commission, via the Consumer and 
Governmental Affairs Bureau (Bureau), invites comment on several issues 
related to interpretation and implementation of the Telephone Consumer 
Protection Act (TCPA) following the recent decision of the U.S. Court 
of Appeals for the District of Columbia in ACA International v. FCC: 
What constitutes an ``automatic telephone dialing system,'' how to 
treat calls to reassigned wireless numbers, and how a called party may 
revoke prior express consent to receive robocalls under the TCPA. In 
addition, the Bureau seeks to refresh the record on two pending 
petitions for reconsideration of the Commission's Broadnet Declaratory 
Ruling and on a pending petition for reconsideration of the 2016 
Federal Debt Collection Rules that implemented amendments to the TCPA.

DATES: Comments are due on June 13, 2018. Reply comments are due on 
June 28, 2018.

ADDRESSES: Comments may be filed using the Commission's Electronic 
Comment Filing System (ECFS). See Electronic Filing of Documents in 
Rulemaking Proceedings, 63 FR 24121 (1998).
     Electronic Filers: Documents may be filed electronically 
using the internet by accessing ECFS: https://www.fcc.gov/ecfs/.
     Paper Filers: Parties who choose to file by paper must 
file an original and one copy of each filing.
     Filings can be sent by hand or messenger delivery, by 
commercial overnight courier, or by first-class or overnight U.S. 
Postal Service mail. All filings must be addressed to the Commission's 
Secretary, Office of the Secretary, Federal Communications Commission.
     All hand-delivered or messenger-delivered paper filings 
for the Commission's Secretary must be delivered to FCC Headquarters at 
445 12th Street SW, Room TW-A325, Washington, DC 20554. The filing 
hours are 8:00 a.m. to 7:00 p.m. All hand deliveries must be held 
together with rubber bands or fasteners. Any envelopes and boxes must 
be disposed of before entering the building.
     Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9050 Junction Drive, 
Annapolis Junction, MD 20701.
     U.S. Postal Service first-class, Express, and Priority 
mail must be addressed to 445 12th Street SW, Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: For further information, contact 
Kristi Thornton of the Consumer and Governmental Affairs Bureau at 
(202) 418-2467 or [email protected]; Christina Clearwater at 
(202) 418-1893 or [email protected]; or Karen Schroeder at 
(202) 418-0654 or [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Public 
Notice, document DA 18-493, released on May 14, 2018. The full text of 
document DA 18-493 will be available for public inspection and copying 
via ECFS, and during regular business hours at the FCC Reference 
Information Center, Portals II, 445 12th Street SW, Room CY-A257, 
Washington, DC 20554. A copy of document DA 18-493 and any subsequently 
filed documents in this matter may also be found by searching ECFS at: 
http://apps.fcc.gov/ecfs/ (insert CG Docket Nos. 18-152 or 02-278 into 
the Proceeding block).
    Interested parties may file comments on or before the dates 
indicated above in the Dates portion of this notice. All filings must 
reference CG Docket Nos. 18-152 and 02-278. Pursuant to Sec.  1.1200 of 
the Commission's rules, 47 CFR 1.1200, this matter shall be treated as 
a ``permit-but-disclose'' proceeding in accordance with the 
Commission's ex parte rules. Persons making ex parte presentations must 
file a copy of any written presentation or a memorandum summarizing any 
oral presentation within two business days after the presentation 
(unless a different deadline applicable to the Sunshine period 
applies). Persons making oral ex parte presentations are reminded that 
memoranda summarizing the presentation must: (1) List all persons 
attending or otherwise participating in the meeting at which the ex 
parte presentation was made; and (2) summarize all data presented and 
arguments made during the presentation. If the presentation consisted 
in whole or in part of the presentation of data or arguments already 
reflected in the presenter's written comments, memoranda, or other 
filings in the proceeding, the presenter may provide citations to such 
data or arguments in his or her prior comments, memoranda, or other 
filings (specifying the relevant page and/or paragraph numbers where 
such data or arguments can be found) in lieu of summarizing them in the 
memorandum. Documents shown or given to Commission staff during ex 
parte meetings are deemed to be written ex parte presentations and must 
be filed consistent with Sec.  1.1206(b) of the Commission's rules. In 
proceedings governed by Sec.  1.49(f) of the rules or for which the 
Commission has made available a method of electronic filing, written ex 
parte presentations and memoranda summarizing oral ex parte 
presentations, and all attachments thereto, must be filed through the 
electronic comment filing system available for that proceeding, and 
must be filed in their native format (e.g., .doc, .xml, .ppt, 
searchable .pdf). Participants in this proceeding should familiarize 
themselves with the Commission's ex parte rules.
    To request materials in accessible formats for people with 
disabilities (Braille, large print, electronic files, audio format), 
send an email to [email protected] or call the Consumer and

[[Page 26285]]

Governmental Affairs Bureau at (202) 418-0530 (voice), (844) 432-2275 
(videophone), or (202) 418-0432 (TTY). Document DA 18-493 can also be 
downloaded in Word or Portable Document Format (PDF) at: https://apps.fcc.gov/edocs_public/attachmatch/DA-18-493A1.docx.

Synopsis

    1. In the Public Notice, the Bureau seeks comment on several issues 
related to interpretation and implementation of the Telephone Consumer 
Protection Act (TCPA), following the recent decision of the U.S. Court 
of Appeals for the District of Columbia in ACA International v. FCC, 
885 F.3d 687 (D.C. Cir. 2018).
    First, the Bureau seeks comment on what constitutes an ``automatic 
telephone dialing system.'' The TCPA defines an automatic telephone 
dialing system as ``equipment which has the capacity--(A) to store or 
produce telephone numbers to be called, using a random or sequential 
number generator; and (B) to dial such numbers.'' The Commission had 
interpreted the term ``capacity'' to include a device ``even if, for 
example, it requires the addition of software to actually perform the 
functions described in the definition''--``an expansive interpretation 
of `capacity' having the apparent effect of embracing any and all 
smartphones.'' The court set aside this interpretation, finding the 
agency's ``capacious understanding of a device's `capacity' lies 
considerably beyond the agency's zone of delegated authority.''
    2. The Bureau seeks comment on how to interpret ``capacity'' in 
light of the court's guidance. For example, how much user effort should 
be required to enable the device to function as an automatic telephone 
dialing system? Does equipment have the capacity if it requires the 
simple flipping of a switch? If the addition of software can give it 
the requisite functionality? If it requires essentially a top-to-bottom 
reconstruction of the equipment? In answering that question, what kinds 
(and how broad a swath) of telephone equipment might then be deemed to 
qualify as an automatic telephone dialing system? Notably, in light of 
the court's guidance that the Commission's prior interpretation had an 
``eye-popping sweep,'' the Bureau seeks comment on how to more narrowly 
interpret the word ``capacity'' to better comport with the 
congressional findings and the intended reach of the statute.
    3. The Bureau seeks further comment on the functions a device must 
be able to perform to qualify as an automatic telephone dialing system. 
Again, the TCPA defines an ``automatic telephone dialing system'' as 
``equipment which has the capacity--(A) to store or produce telephone 
numbers to be called, using a random or sequential number generator; 
and (B) to dial such numbers.'' Regarding the term ``automatic,'' the 
Commission explained that the ``basic function[ ]'' of an automatic 
telephone dialing system is to ``dial numbers without human 
intervention'' and yet ``declined to `clarify[ ] that a dialer is not 
an [automatic telephone dialing system] unless it has the capacity to 
dial numbers without human intervention.' '' As the court put it, 
``[t]hose side-by-side propositions are difficult to square.'' The 
court further noted the Commission said another basic function was to 
``dial thousands of numbers in a short period of time,'' which left 
parties ``in a significant fog of uncertainty'' on how to apply that 
notation. How ``automatic'' must dialing be for equipment to qualify as 
an automatic telephone dialing system? Does the word ``automatic'' 
``envision non-manual dialing of telephone numbers''? Must such a 
system dial numbers without human intervention? Must it dial thousands 
of numbers in a short period of time? If so, what constitutes a short 
period of time for these purposes?
    4. Regarding the provision concerning a ``random or sequential 
number generator,'' the court noted that ``the 2015 ruling indicates in 
certain places that a device must be able to generate and dial random 
or sequential numbers to meet the TCPA's definition of an autodialer, 
[and] it also suggests a competing view: that equipment can meet the 
statutory definition even if it lacks that capacity.'' The court 
explained ``the Commission cannot, consistent with reasoned 
decisionmaking, espouse both competing interpretations in the same 
order.'' And so, like the court, the Bureau seeks comment on ``which is 
it?'' If equipment cannot itself dial random or sequential numbers, can 
that equipment be an automatic telephone dialing system?
    5. The court also noted that the statute prohibits ``mak[ing] any 
call . . . using any automatic telephone dialing system''--leading to 
the question ``does the bar against `making any call using' an 
[automatic telephone dialing system] apply only to calls made using the 
equipment's [automatic telephone dialing system] functionality?'' The 
Bureau seeks comment on this question. If a caller does not use 
equipment as an automatic telephone dialing system, does the statutory 
prohibition apply? The court also noted that adopting such an 
interpretation could limit the scope of the statutory bar: ``the fact 
that a smartphone could be configured to function as an autodialer 
would not matter unless the relevant software in fact were loaded onto 
the phone and were used to initiate calls or send messages.'' Should 
the Commission adopt this approach? More broadly, how should the 
Commission interpret these various statutory provisions in harmony? The 
Bureau also seeks comment on a petition for declaratory ruling filed by 
the U.S. Chamber Institute for Legal Reform and several other parties, 
asking the Commission to clarify the definition of ``automatic 
telephone dialing system'' in light of the D.C. Circuit's decision.
    6. Second, the Bureau seeks comment on how to treat calls to 
reassigned wireless numbers under the TCPA. The statute carves out 
calls ``made with the prior express consent of the called party'' from 
its prohibitions. The court vacated as arbitrary and capricious the 
Commission's interpretation of the term ``called party,'' including a 
one-call safe harbor for callers to detect reassignments, and noted 
that the Commission ``consistently adopted a `reasonable reliance' 
approach when interpreting the TCPA's approval of calls based on `prior 
express consent.' '' The Bureau seeks comment on how to interpret the 
term ``called party'' for calls to reassigned numbers. Does the 
``called party'' refer to ``the person the caller expected to reach''? 
Or does it refer to the party the caller reasonably expected to reach? 
Or does it refer to ``the person actually reached, the wireless 
number's present-day subscriber after reassignment''? Or does it refer 
to a ```customary user' (`such as a close relative on a subscriber's 
family calling plan'), rather than . . . the subscriber herself''? What 
interpretation best implements the statute in light of the decision? 
Should the Commission maintain its reasonable-reliance approach to 
prior express consent? Is a reassigned numbers safe harbor necessary, 
and if so, what is the specific statutory authority for such a safe 
harbor? May the Commission, consistent with the statute, interpret the 
term ``called party'' to mean different things in differing contexts? 
How should the Commission's proceeding to establish a reassigned 
numbers database impact the interpretation, if at all?
    7. Third, the Bureau seeks comment on how a called party may revoke 
prior express consent to receive robocalls. The court found that ``a 
party may revoke her consent through any reasonable means clearly 
expressing a desire to receive no further messages from the caller.'' 
Such a standard, the

[[Page 26286]]

court made clear, means ``callers . . . have no need to train every 
retail employee on the finer points of revocation'' and have ``every 
incentive to avoid TCPA liability by making available clearly-defined 
and easy-to-use opt-out methods.'' The Bureau seeks comment on what 
opt-out methods would be sufficiently clearly defined and easy to use 
such that ``any effort to sidestep the available methods in favor of 
idiosyncratic or imaginative revocation requests might well be seen as 
unreasonable.'' For example, what opt-out method would be clearly 
defined and sufficiently easy to use for unwanted calls? Pushing a 
standardized code (such as ``*7'')? Saying ``stop calling'' in response 
to a live caller? Offering opt-out through a website? For unwanted 
texts, would a response of ``stop'' or similar keywords be sufficiently 
easy to use and clearly defined? What other methods would be 
sufficient? And must callers offer all or some combination of such 
methods to qualify?
    8. Fourth, in light of the court's decision on several key TCPA 
issues, the Bureau seeks renewed comment on two pending petitions for 
reconsideration of the Commission's Broadnet Declaratory Ruling. In the 
first, National Consumer Law Center asks the Commission to reconsider 
its interpretation of ``person'' and clarify that federal government 
contractors, regardless of their status as common-law agents, are 
``persons'' under the TCPA. In the second, Professional Services 
Council asks the Commission to reconsider its reliance on common-law 
agency principles and clarify that contractors acting on behalf of the 
federal government are not ``persons'' under the TCPA.
    9. The Bureau seeks comment on issues raised in those petitions and 
whether contractors acting on behalf of federal, state, and local 
governments are ``persons'' under the TCPA. While the question of 
whether contractors acting on behalf of state and local governments are 
``persons'' for purposes of the TCPA is not raised in the pending 
petitions for reconsideration of the Broadnet Declaratory Ruling, the 
Commission has not addressed these questions. Should it do so now? Are 
all three levels of government subject to the same legal framework in 
determining whether they are ``persons''? How is a state or local 
government official, or a contractor making calls on their behalf, 
legally similar to or different from federal government callers?
    10. Fifth, the Bureau seeks renewed comment on the pending petition 
for reconsideration of the 2016 Federal Debt Collection Rules, 
published at 81 FR 80594, November 16, 2016, filed by Great Lakes 
Higher Education Corp. et al. Great Lakes asks the Commission to 
reconsider several aspects of the rules, including the applicability of 
the TCPA's limits on calls to reassigned wireless numbers. In light of 
the court's opinion on reassigned numbers, the Bureau seeks renewed 
comment on this and other issues raised by the petition.
    11. The Bureau also seeks comment on the interplay between the 
Broadnet decision and the Budget Act amendments--if a federal 
contractor is not a ``person'' for purposes of the TCPA (as the 
Commission held in Broadnet), would the rules adopted in the 2016 
Federal Debt Collection Rules even apply to a federal contractor 
collecting a federal debt?
    Do persons who are not federal contractors collect federal debts? 
Or does the Budget Act amendment underlying the 2016 Federal Debt 
Collection Rules undermine the rationale of Broadnet?

Federal Communications Commission.
Gregory Haledjian,
Legal Advisor, Consumer and Governmental Affairs Bureau.
[FR Doc. 2018-12084 Filed 6-5-18; 8:45 am]
BILLING CODE 6712-01-P



                                               26284                         Federal Register / Vol. 83, No. 109 / Wednesday, June 6, 2018 / Notices

                                               OMB. This decrease is due in part to a                  pending petitions for reconsideration of               Room CY–A257, Washington, DC 20554.
                                               decrease in the number of new                           the Commission’s Broadnet Declaratory                  A copy of document DA 18–493 and any
                                               technician certifications and the time                  Ruling and on a pending petition for                   subsequently filed documents in this
                                               allotted for maintenance of the                         reconsideration of the 2016 Federal Debt               matter may also be found by searching
                                               technician certification records. In this               Collection Rules that implemented                      ECFS at: http://apps.fcc.gov/ecfs/ (insert
                                               ICR EPA estimates the number of new                     amendments to the TCPA.                                CG Docket Nos. 18–152 or 02–278 into
                                               technician certifications to be 40,000                  DATES: Comments are due on June 13,                    the Proceeding block).
                                               per year, a decrease from the 50,000                    2018. Reply comments are due on June                      Interested parties may file comments
                                               estimated in the previous ICR, based on                 28, 2018.                                              on or before the dates indicated above
                                               information provided by the largest                     ADDRESSES: Comments may be filed
                                                                                                                                                              in the Dates portion of this notice. All
                                               technician certification program. The                                                                          filings must reference CG Docket Nos.
                                                                                                       using the Commission’s Electronic
                                               maintenance of these records is                                                                                18–152 and 02–278. Pursuant to
                                                                                                       Comment Filing System (ECFS). See
                                               estimated to require 0.067 clerical work                                                                       § 1.1200 of the Commission’s rules, 47
                                                                                                       Electronic Filing of Documents in
                                               hours per certification, a decrease from                                                                       CFR 1.1200, this matter shall be treated
                                                                                                       Rulemaking Proceedings, 63 FR 24121
                                               0.08 hours in the previous ICR,                                                                                as a ‘‘permit-but-disclose’’ proceeding in
                                                                                                       (1998).
                                               recognizing the move towards electronic                    • Electronic Filers: Documents may                  accordance with the Commission’s ex
                                               recordkeeping which may be more                                                                                parte rules. Persons making ex parte
                                                                                                       be filed electronically using the internet
                                               efficient. Another reason for the burden                                                                       presentations must file a copy of any
                                                                                                       by accessing ECFS: https://www.fcc.gov/
                                               decrease is a decrease in the market for                                                                       written presentation or a memorandum
                                                                                                       ecfs/.
                                               small containers of CFC–12 refrigerant.                    • Paper Filers: Parties who choose to               summarizing any oral presentation
                                               In this ICR, EPA estimates that the                     file by paper must file an original and                within two business days after the
                                               number of purchases for resale only by                  one copy of each filing.                               presentation (unless a different deadline
                                               uncertified purchasers of small cans                       • Filings can be sent by hand or                    applicable to the Sunshine period
                                               will be 50% less than in the previous                   messenger delivery, by commercial                      applies). Persons making oral ex parte
                                               ICR, or approximately 69 purchases,                     overnight courier, or by first-class or                presentations are reminded that
                                               because EPA estimates that there has                    overnight U.S. Postal Service mail. All                memoranda summarizing the
                                               been at least a 50% reduction in the                    filings must be addressed to the                       presentation must: (1) List all persons
                                               CFC–12 vehicle fleet since 2015.                        Commission’s Secretary, Office of the                  attending or otherwise participating in
                                                                                                       Secretary, Federal Communications                      the meeting at which the ex parte
                                                 Dated: May 23, 2018.                                                                                         presentation was made; and (2)
                                               Cynthia A. Newberg,                                     Commission.
                                                                                                          • All hand-delivered or messenger-                  summarize all data presented and
                                               Director, Stratospheric Protection Division.                                                                   arguments made during the
                                                                                                       delivered paper filings for the
                                               [FR Doc. 2018–12163 Filed 6–5–18; 8:45 am]
                                                                                                       Commission’s Secretary must be                         presentation. If the presentation
                                               BILLING CODE 6560–50–P
                                                                                                       delivered to FCC Headquarters at 445                   consisted in whole or in part of the
                                                                                                       12th Street SW, Room TW–A325,                          presentation of data or arguments
                                                                                                                                                              already reflected in the presenter’s
                                                                                                       Washington, DC 20554. The filing hours
                                               FEDERAL COMMUNICATIONS                                                                                         written comments, memoranda, or other
                                                                                                       are 8:00 a.m. to 7:00 p.m. All hand
                                               COMMISSION                                                                                                     filings in the proceeding, the presenter
                                                                                                       deliveries must be held together with
                                                                                                                                                              may provide citations to such data or
                                               [CG Docket Nos. 18–152, 02–278; DA 18–                  rubber bands or fasteners. Any
                                                                                                                                                              arguments in his or her prior comments,
                                               493]                                                    envelopes and boxes must be disposed
                                                                                                                                                              memoranda, or other filings (specifying
                                                                                                       of before entering the building.
                                                                                                                                                              the relevant page and/or paragraph
                                               Consumer and Governmental Affairs                          • Commercial overnight mail (other
                                               Bureau Seeks Comment on                                                                                        numbers where such data or arguments
                                                                                                       than U.S. Postal Service Express Mail
                                               Interpretation of the Telephone                                                                                can be found) in lieu of summarizing
                                                                                                       and Priority Mail) must be sent to 9050
                                               Consumer Protection Act in Light of                                                                            them in the memorandum. Documents
                                                                                                       Junction Drive, Annapolis Junction, MD
                                               the D.C. Circuit’s ACA International                                                                           shown or given to Commission staff
                                                                                                       20701.
                                               Decision                                                   • U.S. Postal Service first-class,                  during ex parte meetings are deemed to
                                                                                                                                                              be written ex parte presentations and
                                                                                                       Express, and Priority mail must be
                                               AGENCY: Federal Communications                                                                                 must be filed consistent with § 1.1206(b)
                                                                                                       addressed to 445 12th Street SW,
                                               Commission.                                                                                                    of the Commission’s rules. In
                                                                                                       Washington, DC 20554.
                                               ACTION: Notice.                                                                                                proceedings governed by § 1.49(f) of the
                                                                                                       FOR FURTHER INFORMATION CONTACT: For                   rules or for which the Commission has
                                               SUMMARY:    In this document, the                       further information, contact Kristi                    made available a method of electronic
                                               Commission, via the Consumer and                        Thornton of the Consumer and                           filing, written ex parte presentations
                                               Governmental Affairs Bureau (Bureau),                   Governmental Affairs Bureau at (202)                   and memoranda summarizing oral ex
                                               invites comment on several issues                       418–2467 or Kristi.Thornton@fcc.gov;                   parte presentations, and all attachments
                                               related to interpretation and                           Christina Clearwater at (202) 418–1893                 thereto, must be filed through the
                                               implementation of the Telephone                         or Christina.Clearwater@fcc.gov; or                    electronic comment filing system
                                               Consumer Protection Act (TCPA)                          Karen Schroeder at (202) 418–0654 or                   available for that proceeding, and must
                                               following the recent decision of the U.S.               Karen.Schroeder@fcc.gov.                               be filed in their native format (e.g., .doc,
                                               Court of Appeals for the District of                    SUPPLEMENTARY INFORMATION: This is a                   .xml, .ppt, searchable .pdf). Participants
                                               Columbia in ACA International v. FCC:                   summary of the Commission’s Public                     in this proceeding should familiarize
daltland on DSKBBV9HB2PROD with NOTICES




                                               What constitutes an ‘‘automatic                         Notice, document DA 18–493, released                   themselves with the Commission’s ex
                                               telephone dialing system,’’ how to treat                on May 14, 2018. The full text of                      parte rules.
                                               calls to reassigned wireless numbers,                   document DA 18–493 will be available                      To request materials in accessible
                                               and how a called party may revoke prior                 for public inspection and copying via                  formats for people with disabilities
                                               express consent to receive robocalls                    ECFS, and during regular business                      (Braille, large print, electronic files,
                                               under the TCPA. In addition, the Bureau                 hours at the FCC Reference Information                 audio format), send an email to fcc504@
                                               seeks to refresh the record on two                      Center, Portals II, 445 12th Street SW,                fcc.gov or call the Consumer and


                                          VerDate Sep<11>2014   17:35 Jun 05, 2018   Jkt 244001   PO 00000   Frm 00033   Fmt 4703   Sfmt 4703   E:\FR\FM\06JNN1.SGM   06JNN1


                                                                             Federal Register / Vol. 83, No. 109 / Wednesday, June 6, 2018 / Notices                                             26285

                                               Governmental Affairs Bureau at (202)                    dialing system’’ as ‘‘equipment which                  of the statutory bar: ‘‘the fact that a
                                               418–0530 (voice), (844) 432–2275                        has the capacity—(A) to store or                       smartphone could be configured to
                                               (videophone), or (202) 418–0432 (TTY).                  produce telephone numbers to be                        function as an autodialer would not
                                               Document DA 18–493 can also be                          called, using a random or sequential                   matter unless the relevant software in
                                               downloaded in Word or Portable                          number generator; and (B) to dial such                 fact were loaded onto the phone and
                                               Document Format (PDF) at: https://                      numbers.’’ Regarding the term                          were used to initiate calls or send
                                               apps.fcc.gov/edocs_public/attachmatch/                  ‘‘automatic,’’ the Commission explained                messages.’’ Should the Commission
                                               DA-18-493A1.docx.                                       that the ‘‘basic function[ ]’’ of an                   adopt this approach? More broadly, how
                                                                                                       automatic telephone dialing system is to               should the Commission interpret these
                                               Synopsis
                                                                                                       ‘‘dial numbers without human                           various statutory provisions in
                                                  1. In the Public Notice, the Bureau                  intervention’’ and yet ‘‘declined to                   harmony? The Bureau also seeks
                                               seeks comment on several issues related                 ‘clarify[ ] that a dialer is not an                    comment on a petition for declaratory
                                               to interpretation and implementation of                 [automatic telephone dialing system]                   ruling filed by the U.S. Chamber
                                               the Telephone Consumer Protection Act                   unless it has the capacity to dial                     Institute for Legal Reform and several
                                               (TCPA), following the recent decision of                numbers without human intervention.’ ’’                other parties, asking the Commission to
                                               the U.S. Court of Appeals for the District              As the court put it, ‘‘[t]hose side-by-side            clarify the definition of ‘‘automatic
                                               of Columbia in ACA International v.                     propositions are difficult to square.’’                telephone dialing system’’ in light of the
                                               FCC, 885 F.3d 687 (D.C. Cir. 2018).                     The court further noted the Commission                 D.C. Circuit’s decision.
                                                  First, the Bureau seeks comment on                   said another basic function was to ‘‘dial                 6. Second, the Bureau seeks comment
                                               what constitutes an ‘‘automatic                         thousands of numbers in a short period                 on how to treat calls to reassigned
                                               telephone dialing system.’’ The TCPA                    of time,’’ which left parties ‘‘in a                   wireless numbers under the TCPA. The
                                               defines an automatic telephone dialing                  significant fog of uncertainty’’ on how to             statute carves out calls ‘‘made with the
                                               system as ‘‘equipment which has the                     apply that notation. How ‘‘automatic’’                 prior express consent of the called
                                               capacity—(A) to store or produce                        must dialing be for equipment to qualify               party’’ from its prohibitions. The court
                                               telephone numbers to be called, using a                 as an automatic telephone dialing                      vacated as arbitrary and capricious the
                                               random or sequential number generator;                  system? Does the word ‘‘automatic’’                    Commission’s interpretation of the term
                                               and (B) to dial such numbers.’’ The                     ‘‘envision non-manual dialing of                       ‘‘called party,’’ including a one-call safe
                                               Commission had interpreted the term                     telephone numbers’’? Must such a                       harbor for callers to detect
                                               ‘‘capacity’’ to include a device ‘‘even if,             system dial numbers without human                      reassignments, and noted that the
                                               for example, it requires the addition of                intervention? Must it dial thousands of                Commission ‘‘consistently adopted a
                                               software to actually perform the                        numbers in a short period of time? If so,              ‘reasonable reliance’ approach when
                                               functions described in the definition’’—                what constitutes a short period of time                interpreting the TCPA’s approval of
                                               ‘‘an expansive interpretation of                        for these purposes?                                    calls based on ‘prior express consent.’ ’’
                                               ‘capacity’ having the apparent effect of                   4. Regarding the provision concerning               The Bureau seeks comment on how to
                                               embracing any and all smartphones.’’                    a ‘‘random or sequential number                        interpret the term ‘‘called party’’ for
                                               The court set aside this interpretation,                generator,’’ the court noted that ‘‘the                calls to reassigned numbers. Does the
                                               finding the agency’s ‘‘capacious                        2015 ruling indicates in certain places                ‘‘called party’’ refer to ‘‘the person the
                                               understanding of a device’s ‘capacity’                  that a device must be able to generate                 caller expected to reach’’? Or does it
                                               lies considerably beyond the agency’s                   and dial random or sequential numbers                  refer to the party the caller reasonably
                                               zone of delegated authority.’’                          to meet the TCPA’s definition of an                    expected to reach? Or does it refer to
                                                  2. The Bureau seeks comment on how                   autodialer, [and] it also suggests a                   ‘‘the person actually reached, the
                                               to interpret ‘‘capacity’’ in light of the               competing view: that equipment can                     wireless number’s present-day
                                               court’s guidance. For example, how                      meet the statutory definition even if it               subscriber after reassignment’’? Or does
                                               much user effort should be required to                  lacks that capacity.’’ The court                       it refer to a ‘‘‘customary user’ (‘such as
                                               enable the device to function as an                     explained ‘‘the Commission cannot,                     a close relative on a subscriber’s family
                                               automatic telephone dialing system?                     consistent with reasoned                               calling plan’), rather than . . . the
                                               Does equipment have the capacity if it                  decisionmaking, espouse both                           subscriber herself’’? What interpretation
                                               requires the simple flipping of a switch?               competing interpretations in the same                  best implements the statute in light of
                                               If the addition of software can give it the             order.’’ And so, like the court, the                   the decision? Should the Commission
                                               requisite functionality? If it requires                 Bureau seeks comment on ‘‘which is                     maintain its reasonable-reliance
                                               essentially a top-to-bottom                             it?’’ If equipment cannot itself dial                  approach to prior express consent? Is a
                                               reconstruction of the equipment? In                     random or sequential numbers, can that                 reassigned numbers safe harbor
                                               answering that question, what kinds                     equipment be an automatic telephone                    necessary, and if so, what is the specific
                                               (and how broad a swath) of telephone                    dialing system?                                        statutory authority for such a safe
                                               equipment might then be deemed to                          5. The court also noted that the statute            harbor? May the Commission, consistent
                                               qualify as an automatic telephone                       prohibits ‘‘mak[ing] any call . . . using              with the statute, interpret the term
                                               dialing system? Notably, in light of the                any automatic telephone dialing                        ‘‘called party’’ to mean different things
                                               court’s guidance that the Commission’s                  system’’—leading to the question ‘‘does                in differing contexts? How should the
                                               prior interpretation had an ‘‘eye-                      the bar against ‘making any call using’                Commission’s proceeding to establish a
                                               popping sweep,’’ the Bureau seeks                       an [automatic telephone dialing system]                reassigned numbers database impact the
                                               comment on how to more narrowly                         apply only to calls made using the                     interpretation, if at all?
                                               interpret the word ‘‘capacity’’ to better               equipment’s [automatic telephone                          7. Third, the Bureau seeks comment
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                                               comport with the congressional findings                 dialing system] functionality?’’ The                   on how a called party may revoke prior
                                               and the intended reach of the statute.                  Bureau seeks comment on this question.                 express consent to receive robocalls.
                                                  3. The Bureau seeks further comment                  If a caller does not use equipment as an               The court found that ‘‘a party may
                                               on the functions a device must be able                  automatic telephone dialing system,                    revoke her consent through any
                                               to perform to qualify as an automatic                   does the statutory prohibition apply?                  reasonable means clearly expressing a
                                               telephone dialing system. Again, the                    The court also noted that adopting such                desire to receive no further messages
                                               TCPA defines an ‘‘automatic telephone                   an interpretation could limit the scope                from the caller.’’ Such a standard, the


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                                               26286                                Federal Register / Vol. 83, No. 109 / Wednesday, June 6, 2018 / Notices

                                               court made clear, means ‘‘callers . . .                             Council asks the Commission to                                         11. The Bureau also seeks comment
                                               have no need to train every retail                                  reconsider its reliance on common-law                               on the interplay between the Broadnet
                                               employee on the finer points of                                     agency principles and clarify that                                  decision and the Budget Act
                                               revocation’’ and have ‘‘every incentive                             contractors acting on behalf of the                                 amendments—if a federal contractor is
                                               to avoid TCPA liability by making                                   federal government are not ‘‘persons’’                              not a ‘‘person’’ for purposes of the TCPA
                                               available clearly-defined and easy-to-                              under the TCPA.                                                     (as the Commission held in Broadnet),
                                               use opt-out methods.’’ The Bureau seeks                                9. The Bureau seeks comment on                                   would the rules adopted in the 2016
                                               comment on what opt-out methods                                     issues raised in those petitions and                                Federal Debt Collection Rules even
                                               would be sufficiently clearly defined                               whether contractors acting on behalf of                             apply to a federal contractor collecting
                                               and easy to use such that ‘‘any effort to                           federal, state, and local governments are                           a federal debt?
                                               sidestep the available methods in favor                             ‘‘persons’’ under the TCPA. While the                                  Do persons who are not federal
                                               of idiosyncratic or imaginative                                     question of whether contractors acting                              contractors collect federal debts? Or
                                               revocation requests might well be seen                              on behalf of state and local governments                            does the Budget Act amendment
                                               as unreasonable.’’ For example, what                                are ‘‘persons’’ for purposes of the TCPA                            underlying the 2016 Federal Debt
                                               opt-out method would be clearly                                     is not raised in the pending petitions for                          Collection Rules undermine the
                                               defined and sufficiently easy to use for                            reconsideration of the Broadnet                                     rationale of Broadnet?
                                               unwanted calls? Pushing a standardized                              Declaratory Ruling, the Commission has                              Federal Communications Commission.
                                               code (such as ‘‘*7’’)? Saying ‘‘stop                                not addressed these questions. Should it
                                                                                                                                                                                       Gregory Haledjian,
                                               calling’’ in response to a live caller?                             do so now? Are all three levels of
                                               Offering opt-out through a website? For                             government subject to the same legal                                Legal Advisor, Consumer and Governmental
                                                                                                                                                                                       Affairs Bureau.
                                               unwanted texts, would a response of                                 framework in determining whether they
                                                                                                                                                                                       [FR Doc. 2018–12084 Filed 6–5–18; 8:45 am]
                                               ‘‘stop’’ or similar keywords be                                     are ‘‘persons’’? How is a state or local
                                               sufficiently easy to use and clearly                                government official, or a contractor                                BILLING CODE 6712–01–P

                                               defined? What other methods would be                                making calls on their behalf, legally
                                               sufficient? And must callers offer all or                           similar to or different from federal
                                               some combination of such methods to                                 government callers?
                                                                                                                      10. Fifth, the Bureau seeks renewed                              FEDERAL DEPOSIT INSURANCE
                                               qualify?
                                                  8. Fourth, in light of the court’s                               comment on the pending petition for                                 CORPORATION
                                               decision on several key TCPA issues,                                reconsideration of the 2016 Federal Debt                            Notice of Termination of Receiverships
                                               the Bureau seeks renewed comment on                                 Collection Rules, published at 81 FR
                                               two pending petitions for                                           80594, November 16, 2016, filed by                                     The Federal Deposit Insurance
                                               reconsideration of the Commission’s                                 Great Lakes Higher Education Corp. et                               Corporation (FDIC or Receiver), as
                                               Broadnet Declaratory Ruling. In the                                 al. Great Lakes asks the Commission to                              Receiver for each of the following
                                               first, National Consumer Law Center                                 reconsider several aspects of the rules,                            insured depository institutions, was
                                               asks the Commission to reconsider its                               including the applicability of the                                  charged with the duty of winding up the
                                               interpretation of ‘‘person’’ and clarify                            TCPA’s limits on calls to reassigned                                affairs of the former institutions and
                                               that federal government contractors,                                wireless numbers. In light of the court’s                           liquidating all related assets. The
                                               regardless of their status as common-law                            opinion on reassigned numbers, the                                  Receiver has fulfilled its obligations and
                                               agents, are ‘‘persons’’ under the TCPA.                             Bureau seeks renewed comment on this                                made all dividend distributions
                                               In the second, Professional Services                                and other issues raised by the petition.                            required by law.

                                                                                                              NOTICE OF TERMINATION OF RECEIVERSHIPS
                                                                                                                                                                                                                          Termination
                                                       Fund                                           Receivership name                                                    City                              State           date

                                               10092   .....................   Community First Bank .................................................      Prineville ...........................     OR                      6/1/2018
                                               10189   .....................   Rainier Pacific Bank ....................................................   Tacoma .............................       WA                      6/1/2018
                                               10252   .....................   High Desert State Bank ...............................................      Albuquerque .....................          NM                      6/1/2018
                                               10388   .....................   The First National Bank of Olathe ...............................           Olathe ...............................     KS                      6/1/2018



                                                  The Receiver has further irrevocably                             Federal Deposit Insurance Corporation.                              SUMMARY:  The Board of Governors of the
                                               authorized and appointed FDIC-                                      Robert E. Feldman,                                                  Federal Reserve System (Board) is
                                               Corporate as its attorney-in-fact to                                Executive Secretary.                                                adopting a proposal to extend for three
                                               execute and file any and all documents                              [FR Doc. 2018–12092 Filed 6–5–18; 8:45 am]                          years, without revision, the Survey of
                                               that may be required to be executed by                                                                                                  Consumer Finances (FR 3059; OMB
                                                                                                                   BILLING CODE 6714–01–P
                                               the Receiver which FDIC-Corporate, in                                                                                                   No.7100–0287).
                                               its sole discretion, deems necessary,                                                                                                   FOR FURTHER INFORMATION CONTACT:
                                               including but not limited to releases,                                                                                                  Federal Reserve Board Clearance
                                               discharges, satisfactions, endorsements,                            FEDERAL RESERVE SYSTEM                                              Officer—Nuha Elmaghrabi—Office of
                                               assignments, and deeds. Effective on the                                                                                                the Chief Data Officer, Board of
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                                               termination dates listed above, the                                 Agency Information Collection                                       Governors of the Federal Reserve
                                               Receiverships have been terminated, the                             Activities: Announcement of Board                                   System, Washington, DC 20551, (202)
                                               Receiver has been discharged, and the                               Approval Under Delegated Authority                                  452–3829. Telecommunications Device
                                               Receiverships have ceased to exist as                               and Submission to OMB                                               for the Deaf (TDD) users may contact
                                               legal entities.                                                                                                                         (202) 263–4869, Board of Governors of
                                                                                                                   AGENCY: Board of Governors of the                                   the Federal Reserve System,
                                                  Dated at Washington, DC, on May 31, 2018.                        Federal Reserve System.                                             Washington, DC 20551.


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Document Created: 2018-06-06 00:53:58
Document Modified: 2018-06-06 00:53:58
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesComments are due on June 13, 2018. Reply comments are due on June 28, 2018.
ContactFor further information, contact Kristi Thornton of the Consumer and Governmental Affairs Bureau at (202) 418-2467 or [email protected]; Christina Clearwater at (202) 418-1893 or [email protected]; or Karen Schroeder at (202) 418-0654 or [email protected]
FR Citation83 FR 26284 

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