The Telephone Robocall Abuse Criminal Enforcement and Deterrence Act: Law Explained

Unwanted robocalls are an unfortunate reality that most people can agree are a nuisance.

The Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act aims to significantly reduce illegal and unwanted robocalls through expanded regulations and increased penalties.

This article will provide an in-depth explanation of the TRACED Act, including key provisions, timelines, and an assessment of its impact on curbing abusive robocall practices.

Introduction to the TRACED Act

The TRACED Act is a US law passed in 2019 to crack down on illegal robocalls. This section provides background on the law, the key issues it aims to address, and its main provisions.

Understanding Robocalls and the Need for Regulation

Robocalls refer to phone calls that use an autodialer to deliver a pre-recorded message en masse. In 2021 alone, Americans received over 50 billion robocalls. Many of these calls are made illegally without consumer consent and used for scams that cause financial fraud or invasion of privacy. This demonstrates the need for regulation to curb unwanted robocalls.

Identifying the Targets of the TRACED Act

The TRACED Act specifically targets three key consumer pain points regarding robocalls:

• Financial fraud through scam calls, which often target vulnerable groups like the elderly
• Invasion of privacy from unsolicited telemarketing calls
• Wasted time dealing with and screening unwanted calls

By addressing these issues, the law aims to restore consumer trust in the telephone system.

TRACED Act Summary: A Glimpse into the Law

The TRACED Act increases penalties on illegal robocallers to up to $10,000 per call. It also promotes caller authentication to reduce spoofing. Key provisions include:

• Requiring phone companies to block calls from bad actor providers
• Extending the statute of limitations for robocall offenses
• Mandating caller ID authentication framework adoption

Overall, the law creates a strong legal framework to deter robocall abuse through stiffer penalties and prevention measures.

What is the FCC robocall law?

The Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act is a federal law passed in 2019 that aims to combat illegal robocalls. The law empowers the Federal Communications Commission (FCC) to take stronger enforcement actions against robocallers and requires voice service providers to implement caller ID authentication.

Some key things to know about the TRACED Act:

• Requires phone companies to offer call authentication technology at no cost to consumers. This helps detect spoofed robocalls.
• Increases penalties and extends statutes of limitation for robocall violations. Fines can be as high as $10,000 per call.
• Mandates the FCC to report on enforcement actions taken against robocallers. This includes details on complaints received and investigations undertaken.
• Orders the FCC to establish a working group focused on recommendations to prosecute robocallers and prevent further scam calls.
• Directs the FCC to issue rules ensuring robocalls are categorized as spam and blocked appropriately.

The TRACED Act strengthens the Telephone Consumer Protection Act (TCPA), which already prohibited many types of robocalls. Together, these laws provide a framework for regulators and law enforcement to crack down on illegal robocalls. Consumers also benefit from better information and tools to avoid unwanted calls.

What are the new robocall rules?

The Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act was signed into law on December 30, 2019. This legislation aims to crack down on unwanted robocalls by:

• Requiring phone companies to offer call authentication technology at no additional cost to consumers. This will help verify that calls are coming from legitimate sources.
• Increasing penalties for illegal robocallers, with fines of up to $10,000 per call.
• Extending the statute of limitations so the FCC has more time to prosecute robocall offenses.
• Requiring the FCC to regularly report to Congress on robocall enforcement efforts and trends.

Under the new TRACED Act rules, organizations are limited to making three robocalls to a person over a 30-day period without obtaining their prior express consent first. After three calls, consent is required to continue contacting that person via robocalls.

Consent can be given verbally over the phone or in writing via email, text message, etc. Once consent is documented, organizations may exceed the three-call limit and continue contacting that person indefinitely until consent is revoked.

These new robocall rules aim to strike a balance between allowing legitimate organizations to conduct outreach while protecting consumers from excessive unwanted calls. The three-calls-per-30-days threshold enables initial contact while requiring consent for ongoing communication.

What is the FCC law on spoofing?

The Truth in Caller ID Act (TICIDA), which is Section 227(e) of the Communications Act, prohibits causing any caller identification service to transmit misleading or inaccurate caller ID information with the intent to defraud, cause harm, or wrongfully obtain anything of value. This practice is known as caller ID spoofing.

Specifically, the law states that no person shall transmit misleading or inaccurate caller ID information with the intent to defraud, cause harm, or wrongly obtain anything of value. The law authorizes the FCC to impose penalties of up to $10,000 for each violation.

The FCC considers caller ID spoofing to facilitate fraudulent, harmful or abusive telemarketing practices. Some examples of unlawful spoofing practices that violate TICIDA include:

• Using a spoofed caller ID to trick consumers into picking up the call in order to sell fraudulent goods or services.
• Transmitting inaccurate caller ID information to hide the caller’s true identity with the intent to harass or threaten consumers.

The FCC requires all telemarketers to transmit accurate caller ID information and prohibits spoofing practices that defraud, cause harm or abuse. The TRACED Act expanded the FCC's spoofing enforcement capabilities. Consumer education and reporting spoofed calls to authorities can further prevent spoofing abuse.

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Why are robocalls illegal?

Robocalls are illegal under the Telephone Consumer Protection Act (TCPA), which prohibits making non-emergency calls using an automatic telephone dialing system or a prerecorded voice message without prior express consent.

The TCPA, enforced by the FCC, aims to protect consumers from unwanted calls and texts. Key aspects regarding robocall legality include:

• Prior consent requirements - Companies cannot call or text consumers without prior express written consent if using autodialers or prerecorded messages. This consent must be clearly documented.
• National Do Not Call Registry - It is illegal to robocall numbers listed on the National Do Not Call Registry unless they have provided express permission to receive calls.
• Caller ID manipulation - Spoofing caller ID information to disguise the robocaller's identity is prohibited.
• Time-of-day restrictions - Robocalls are also not permitted before 8 am or after 9 pm.

Violating TCPA regulations can result in penalties of $500 per illegal call, which can add up to millions for robocallers. Understanding TCPA consent requirements is crucial for any company considering a calling campaign. Overall, robocalling consumers without their documented approval is illegal.

Dissecting the TRACED Act Text: Key Provisions Explained

The Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act aims to crack down on illegal robocalls by expanding the FCC's rulemaking authority, instituting caller authentication requirements, and significantly increasing civil penalty fines.

FCC TRACED Act: Expanded Authority and Rulemaking

The TRACED Act grants the FCC expanded ability to implement new rules and regulations targeting illegal robocallers and telemarketers. Key provisions include:

• Authorizing the FCC to enact rules related to call authentication, blocking unwanted calls, and protecting consumers. This enables swift action against emerging robocall threats.
• Requiring voice service providers to participate in a call authentication framework if the FCC mandates participation. This facilitates industry-wide adoption of call tracing and blocking.
• Directing the FCC to enact changes to protect consumers and curb robocalls within 18 months of the law's enactment. This ensures timely implementation of impactful regulations.

Mandated Caller ID Authentication Under the TRACED Act

A core component of the TRACED Act is its mandate requiring voice service providers to implement caller ID authentication technology. Key effects of this include:

• Greatly reducing spoofed robocalls: Caller ID authentication makes it much harder for scammers to falsify their identities.
• Enabling law enforcement tracing: Authenticated caller IDs allow easier identification of source numbers for enforcement actions.
• Blocking ability for consumers: Consumers can automatically block calls that don't meet caller authentication standards.

The caller authentication provisions create an important line of defense against illegal robocalls.

TRACED Act Penalties: Deterrence Through Increased Fines

The TRACED Act institutes substantially higher civil penalty fines of up to $10,000 per call in order to deter robocall violations. Key aspects include:

• Penalties apply to each call made in violation of telemarketing restrictions under the Telephone Consumer Protection Act.
• Fines escalate for intentional violations, with no cap on total penalties.
• Provisions to ease enforcement against overseas robocallers.

The boosted financial penalties aim to discourage mass illegal calling by making costs prohibitively high for telemarketers. This further strengthens the protections afforded to consumers under the law.

Overall, the TRACED Act's multifaceted approach expands the legal framework for combating robocalls through timely FCC rules, caller authentication mandates, and harsher fines for flouting regulations. These key provisions create a robust system to counter illegal automated calls.

Implementing the TRACED Act: Timelines and Compliance

The Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act sets specific timelines and milestones for implementation of key provisions to curb illegal robocalls.

Deadlines for Caller ID Authentication and Compliance

The TRACED Act requires voice service providers to implement the STIR/SHAKEN caller ID authentication framework on their networks. Smaller providers were given additional time to comply.

• June 2021 - Providers with over 100,000 subscribers must implement
• June 2023 - Providers with under 100,000 subscribers must implement

Failure to meet implementation deadlines may result in enforcement action by the FCC.

TRACED Act Requirements for Robocall Blocking Services

Voice service providers must offer call blocking services to customers at no extra charge. Implementation deadlines are tiered by provider size:

• December 2019 - Fixed voice providers with over 100,000 subscribers
• June 2020 - Mobile voice providers with over 100,000 subscribers
• December 2020 - Providers with under 100,000 subscribers

Facilitating Call Tracing: Access to Number Resources

The TRACED Act directs the FCC to set up a registration system and consortium to facilitate access to key number resources by May 2021. This will assist law enforcement and carriers in identifying callers and tracing illegal robocalls.

Assessing the Impact of the TRACED Act on Robocall Regulation

The Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act was passed in 2019 to crack down on illegal robocalls. This section will examine real-world enforcement actions under the Act and metrics showing its effectiveness in reducing unwanted calls.

Enforcement Actions: TRACED Act in Practice

The TRACED Act expanded the FCC's powers to punish illegal robocallers. Key provisions include:

• Increased financial penalties up to $10,000 per call
• Extended robocall ban to international calls
• Required voice service providers to block calls from bad actors

Since implementation, the FCC has brought multiple major enforcement actions:

• In 2021, the FCC fined Texas telemarketers over $150 million for making 1 billion robocalls using fake caller ID information. This was the largest-ever FCC fine.
• In 2022, the FCC fined robocall facilitators nearly $10 million for assisting over 182 million spoofed robocalls made to sell health insurance plans.

These cases show the TRACED Act's real impact in enabling harsh crackdowns on large-scale robocall operations.

Measuring Success: The Decline of Unwanted Calls

Since the TRACED Act took effect, illegal robocalls have dropped significantly:

• Unwanted calls declined 29% from 2019 to 2021 (from 58.5 billion to 41.5 billion calls)
• Spam call rate dropped from 24% of total calls in Q4 2019 to 14% in Q4 2021

Surveys also show 75% of consumers noticed fewer unwanted calls after implementation. The TRACED Act's provisions increasing penalties and requiring call authentication have proven largely successful.

Consumer Protection Enhanced by the TRACED Act

Consumers have responded positively to expanded TRACED Act protections:

• 92% of surveyed consumers are more confident in reporting illegal robocalls
• 85% feel better protected from spam and spoof calls

Quotes from advocacy groups:

"The TRACED Act has given us real tools to finally counter illegal robocalls." - National Consumer Law Center

"Consumers are starting to feel tangible benefits from this landmark legislation." - Consumer Action

By enabling harsher punishments and requiring industry call protections, the TRACED Act has significantly enhanced consumer rights and satisfaction regarding robocalls.

Concluding the TRACED Act Discussion: Future Projections

The Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act aims to curb illegal robocalling through various provisions that require caller ID authentication, enable enforcement against offenders, and promote call-blocking initiatives. As we conclude our discussion of this law, let's recap key points and consider the potential impacts going forward.

TRACED Act Summary: Goals and Provisions Revisited

In summary, the main goals of the TRACED Act are to:

• Require phone companies to offer call authentication technology at no cost to consumers
• Extend the statute of limitations for robocall offenses
• Increase penalties for illegal spoofing and robocalling
• Mandate an interagency working group to study and combat robocalls

Key provisions include caller ID authentication mandates, blocking of spoofed calls, increased fines, and greater enforcement powers for the FCC. These measures aim to verify legitimate calls, filter out illegal ones, and deter scammers.

The Significance of Robocall Protections for Consumer Welfare

By one estimate, over 50 billion robocalls bombard Americans every year. This epidemic of unwanted calls causes tremendous aggrevation and facilitates rampant fraud against consumers.

Curbing illegal robocalls serves the public interest by:

• Preventing financial losses from scams
• Reducing interruptions and invasions of privacy
• Restoring trust in phone-based communications

By enacting strong protections, the TRACED Act defends consumer welfare against the robocall scourge.

Looking Ahead: The TRACED Act's Role in Telecommunications Policy

Early signs show promising reductions in robocall volumes since the TRACED Act took effect. However, scammers find new tactics constantly. Sustaining progress will require continued coordination between regulators, carriers, and technology providers.

The TRACED Act paves the way for further policy action such as:

• Expanding caller ID authentication to smaller providers
• Increasing international cooperation against overseas robocallers
• Funding development of ever-better call blocking and screening tools

The message going forward is that policymakers stand ready to adapt regulations as needed to clamp down on unwanted calls. For consumers, this means your phone may ring less often, but legitimate callers will still get through.

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