DMA Pleased By Ruling on California Fax Ban Law

WASHINGTON, February 28, 2006 – The Direct Marketing Association is pleased with yesterday’s US District Court decision that California’s fax-ban law as it applies to interstate faxes is preempted by federal laws that govern the sending of commercial faxes.

The US District Court for the eastern District of California ruled in a declaratory judgement that the California Fax Ban Law (SB 833), as it applies to interstate faxes, is preempted by the federal Telephone Consumer Protection Act. As it applies to intrastate faxes, the court ruled that the law is valid and not preempted.

"For small businesses especially, and those involved in business-to-business marketing, faxes remain a vital channel for communication with customers," said Jerry Cerasale, DMA’s senior vice president, government relations. "We have been following the California lawsuit closely and think the court’s decision represents a significant victory in our fight to keep this important line of communication open for legitimate commerce."

DMA firmly believes that the authority to regulate interstate commercial fax messages lies with the federal government. The Communications Act of 1934, the Telephone Consumer Protection Act of 1991 and the Junk Fax Prevention Act of 2005 all confer upon the Federal Communications Commission exclusive jurisdiction over interstate telemarketing.

DMA supports federal preemption for the Do Not Call List and other regulations governing telephone and fax marketing. Two years ago, DMA formally petitioned the FCC to use its preemptive power to regulate interstate telephone and fax marketing. And just last month, DMA joined with the American Association of Advertising Agencies, the Association of National Advertisers, and Magazine Publishers of America in joint formal comments to the FCC in support of a petition filed by the Fax Ban Coalition requesting that the FCC have exclusive authority to regulate interstate commercial fax messages.

"A unified national standard is almost always preferable to a patchwork of state laws that prove impractical and unworkable for legitimate marketers and nonprofits that routinely work across state lines," added Cerasale. "We hope this decision bodes well for our efforts to have interstate telemarketing governed by a single national standard."

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The Direct Marketing Association (www.the-dma.org) is the leading global trade association of business and nonprofit organizations using and supporting multichannel direct marketing tools and techniques. DMA advocates industry standards for responsible marketing, promotes relevance as the key to reaching consumers with desirable offers, and provides cutting-edge research, education, and networking opportunities to improve results throughout the entire direct marketing process. Founded in 1917, DMA today has more than 4,800 corporate, affiliate, and chapter members from the US and 46 other nations, including 55 companies listed on the Fortune 100.

In 2005, companies spent an estimated $161 billion on direct marketing in the United States. Measured against total US sales, these advertising expenditures generated an estimated $1.85 trillion in increased sales in 2005, or 7% of the $26 trillion in total sales in the US economy (which includes intermediate sales). All together, direct marketing accounted for 10.3% of total US GDP in 2005.