Trade Groups Petition FCC for Clarification of Autodialer

A coalition of industry trade groups, including bank and credit union trade associations, asked the Federal Communications Commission (FCC) for new rules that would ensure that customers can receive important communications from their financial institutions and other businesses.

In a joint petition to the FCC, the groups asked the FCC to issue a new interpretation of a key term in the Telephone Consumer Protection Act (TCPA) -- the definition of an “automatic telephone dialing system,” commonly known as an “autodialer.” The TCPA imposes restrictions on calls made by financial institutions and other businesses when using an autodialer.

The petition comes after a federal appellate court in March struck down the portion of a 2015 FCC order that had defined “autodialer” expansively to include, for example, ordinary smartphones -- and potentially covering nearly every type of dialing equipment that a business would use to call its customers.

“The TCPA landscape is dysfunctional and in need of clarity from the FCC,” the groups wrote to the FCC. “The statute, originally intended to target a specific abusive telemarketing practice, has been expanded by courts and the FCC, turning it into a breeding ground for frivolous lawsuits against legitimate businesses trying to communicate with their customers.”

If the FCC reinterprets the term autodialer in line with the TCPA’s text and congressional intent, it would significantly reduce the number of calls made by banks and credit unions that are subject to the TCPA’s restrictions, lowering compliance and litigation costs.

Read the letter.