As many of you will recall, in 2021, as part of implementing the TRACED Act, the Federal Communications Commission ("FCC") began enforcing its Robocall Mitigation Database ("RMD") rules. The TRACED Act required certain voice service providers ("VSPs") to implement STIR/SHAKEN by June 30, 2021, while others got extensions. The FCC created the RMD, where VSPs were required to certify the status of their implementation of STIR/SHAKEN and to host their robocall-mitigation plans. (The TRACED Act only expressly authorizes the FCC to require robocall-mitigation plans "during the time of a delay of compliance granted" under the extensions for deploying STIR/SHAKEN, but as we now know, the FCC now requires both STIR/SHAKEN and robocall mitigation programs from essentially every VSP.)
The FCC's robocall-mitigation plan rules require VSPs to take "reasonable steps" to significantly reduce the origination, carrying, and/or processing of illegal robocalls, which must be explained in the VSP's robocall-mitigation plan. The FCC has repeatedly declined to define what constitutes such "reasonable steps." While the FCC tries to explain that decision as providing VSPs with discretion in deciding what steps to take, it clearly gives the FCC latitude to legislate via enforcement proceedings. Now, in a Report and Order released on January 8, 2025, the FCC has adopted new RMD rules, fees, and fines for noncompliance, which we address below.
New RMD Rules, Fees, and Fines.
1. 10 Business Days to Update Changed Information. The FCC is requiring VSPs that have filed in the RMD to update any changed information within 10 business days of such change. That rule also applies to information provided when registering an FRN through CORES. Such information includes entity name, entity type, contact name and title, address, valid email address, and taxpayer identification number (or SSN if an individual). Any VSP seeking to file in the RMD must acquire a business-type FCC Registration Number ("FRN"). A VSP must create an account with CORES, the FCC's Commission Registration System, to get an FRN. After establishing a CORES account and registering an FRN, the VSP can log into the RMD and submit a new filing or manage any existing filings. When the VSP selects its FRN in the RMD, the RMD auto-populates the RMD certification form with the VSP's name and business address associated with its FRN. Those fields cannot be edited through the RMD; changes can only be made through associated changes in CORES. Thus, the FCC is requiring that both information submitted to the RMD and CORES be updated within 10 business days of any changes. The rule will not become effective until the Office of Management and Budget ("OMB") has completed its review.
2. $1,000 Baseline Forfeiture for Failing to Update Changed Information Within 10 Business Days. The FCC adopted an accompanying $1,000 baseline fine for failing to comply with the new rule requiring persons and entities to update changed information submitted to the RMD or CORES within 10 business days of such change. The FCC held that the failure to comply with that rule constitutes a continuing violation until the relevant information is updated. This rule will be effective 30 days after publication of the FCC's Report and Order in the Federal Register. On January 20, 2025, President Trump, through an executive order, ordered executive agencies, like the FCC, to immediately withdraw any rules that have been sent to the Office of the Federal Register but not published in the Federal Register, until an agency head appointed by President Trump (Commissioner Carr for the FCC), reviews and approves the rule. Therefore, it may take longer than normal for this rule to be published in the Federal Register.
3. $10,000 Baseline Forfeiture for Submission of False or Inaccurate Information to the RMD. The FCC is imposing a $10,000 baseline fine for each submission of false or inaccurate information to the RMD. The FCC held that such submissions constitute a continuing violation until they are corrected. This rule will be effective 30 days after publication of the FCC's Report and Order in the Federal Register. Due to President Trump's executive order discussed above, it may take longer than normal for this rule to be published in the Federal Register.
4. $100 Initial Filing Fee. There will be a $100 filing fee for any person or entity's initial RMD filing. This rule will not become effective until the OMB has completed its review.
5. Annual RMD Certification. The FCC adopted a rule requiring all VSPs listed in the RMD to certify annually, on or before March 1, that any information they have submitted to the RMD is true and correct. There is a $100 filing fee for a VSP's annual RMD certification. The FCC will publish a notice in the Federal Register announcing the effective date of the annual certification requirement portion of this rule. The fee portion of this rule will not become effective until the OMB has completed its review.
6. Reporting of Deficient, False, or Inaccurate RMD Filings and Information. The FCC directed the Wireline Competition Bureau to establish a mechanism for reporting deficient, false, or inaccurate RMD filings and information. The FCC, in seeking help in policing deficient, false, or inaccurate RMD filings, wishes to create a mechanism where members of the public can report such filings to the FCC.
7. Two-Factor Authentication for the RMD. In the interest of protecting the security of the RMD, the FCC directed the Wireline Competition Bureau to develop a two-factor authentication tool for accessing the RMD.
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