TRS Providers Purple and CSDVRS, Settle With FCC, Combine
FCC commissioners approved 3-0 a consent decree under which telecom relay service (TRS) providers Purple Communications and CSDVRS agreed to repay $9.1 million for failing to submit accurate data to the TRS administrator and to use a reasonable process for verifying the registration information of thousands of TRS users. ZVRS, meanwhile, announced Wednesday it's buying Purple, combining it with CSDVRS, a company it already owns.
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ZVRS CEO Sherri Turpin told us resolving the enforcement action was critical to completing the company’s buy of Purple. The companies released a video announcing the deal.
“In addition to a monetary penalty for improper billing, the settlement … establishes a 5-year compliance plan to ensure that services going forward incorporate the required checks,” said an FCC news release. In December, the FCC issued an $11.9 million fine against Purple for alleged TRS violations (see 1512180054). “The settlement resolves that proceeding, as well as additional investigations and pending matters against the companies,” the FCC said. “Today’s action by the Commission approves a settlement that resolves all pending enforcement matters involving Purple and CSDVRS.” The FCC said in “the absence of material new evidence relating to these matters, we do not set for hearing the question of Purple’s or CSDVRS’ basic qualifications to hold or obtain any Commission license or authorization.”
FCC Chairman Ajit Pai and Commissioner Mike O’Rielly repeatedly expressed concerns about actions taken by the Enforcement Bureau under former Chairman Tom Wheeler, often without a commissioner vote (see 1701240064). Pai said in a statement last week the bureau is no longer allowed to settle enforcement actions begun by the full commission without a vote of commissioners (see 1702080080). The consent decree explains the commission’s authority to issue the decree. “Our authority to adopt such a consent decree stems from our authority under Section 4(i) of the Communications Act to ‘perform any and all acts . . . and issue such orders ... as may be necessary in the execution of [the Commission’s] functions,’” the consent decree said.
O’Rielly said in a statement he appreciated the chance to vote on the order and to seek a few changes, but still questions the legal underpinning. “I write only to note that the statute, in my view, does not clearly address the authority to issue Consent Decrees,” O’Rielly said. “For many years, the FCC has relied on 4(i), but I am not certain that provides direct authority. As Congress looks at potential improvements to the Communications Act, I respectfully offer this as an area where further clarity would be welcome and appreciated.”
“It has been an amazing journey,” Turpin said in an interview. “We came together, both Purple and Z, and we knew that we were stronger together.” Turpin said he had been working “night and day” to eliminate any barriers to a merger. “We have agreed to some money to pay back the fund,” she said. “We have paid back the fund. That was very important to me. … We’re not ashamed of what has happened. We’re actually honored to be able to solve this problem and put it behind us.”