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New VoIP, AI Requirements

Pallone Files Anti-Robocall Bill Countering Facebook v. Duguid 'Loopholes'

House Commerce Committee ranking member Frank Pallone of New Jersey led four Democrats Monday in filing the Do Not Disturb Act to counteract perceived undermining of anti-robocall protections following the U.S. Supreme Court's unanimous 2021 ruling in Facebook v. Duguid. In that case, the court backed a narrow definition of an automatic telephone dialing system under the Telephone Consumer Protection Act (see 2104010063). Senate Communications Subcommittee leaders focused during an October hearing on DOJ’s perceived reluctance in enforcing existing anti-robocall statutes (see 2310240065).

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The Do Not Disturb Act would replace the term "automatic telephone dialing system” in federal law with “robocall,” which it would define as a “call made or text message sent” either “using equipment that makes calls or sends text messages to stored telephone numbers or telephone numbers generated by a random or sequential number generator” or by “using an artificial or prerecorded voice or an artificially generated message, with limitations for calls and text messages sent using equipment that requires substantial human intervention.” It expands the definition of telephone solicitations under TCPA to include all calls and text messages made for "deception, fraud or wrongfully containing anything of value” or to encourage the purchase of property, goods, or services. It also adds text messages to the definition of telemarketing for FTC authority purposes.

The Pallone bill would require the FCC issue rules requiring a VoIP provider to ”verify the identity of each customer” on its network and “proactively monitor and analyze traffic” to determine if robocalls are made. In addition, it would direct the FCC to require voice providers to make robocall-blocking software available to subscribers for no additional charge. The legislation would double TCPA fines for robocalls that use AI to impersonate a person “with the intent to defraud, cause harm, or wrongfully obtain anything of value.” It would require those using AI on a robocall to emulate another person's voice to disclose that at the beginning of the call. And it would direct the FTC to double fines for AI-generated calls that violate telemarketing rules.

As technology evolves, illegal robocallers are finding new ways to scam Americans and abuse the loopholes created by the Supreme Court’s recent decision to undermine one of the foundations of anti-robocall protections,” Pallone said. His bill “brings anti-robocall protections into the 21st century and ensures illegal robocallers and scam artists can’t exploit new loopholes even as technology continues to evolve.” The Democratic co-sponsors include House Communications Subcommittee ranking member Doris Matsui of California and Consumer Protection Subcommittee ranking member Jan Schakowsky of Illinois.