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NADA tries to loosen fax rules for dealers

November 23, 2010
Dealers should be able to fax ads to customers with whom they already have a business relationship, NADA officials recently told the Federal Communications Commission. The FCC is considering revising rules that protect consumers from unwanted ads sent by fax or prerecorded phone messages. The Telephone Consumer Protection Act bars businesses from sending such ads without prior express permission. They also permit prerecorded phone ads to those with whom a company has an "established business relationship." The problem: The FCC regulations do not specifically recognize the exception for unsolicited ads via fax. The FCC will decide whether revisions to the regulation are warranted. An O'Fallon, Ill., new-car dealer was fined $6.5 million last July for sending an ad to more than 33,000 local fax machines. Consumers can claim as much as $500 for each unsolicited advertisement they receive.