Today's Regulatory Mix: FCC Issues Record Robocalling Fine, FCC To Modernize Rules For Additional Millimeter-Wave Spectrum Bands

FCC Issues Record Robocalling Fine; Seven Attorneys General File Suit

The FCC has proposed a $225 million fine against Texas-based health insurance telemarketers for apparently making approximately 1 billion illegally spoofed robocalls. According to the FCC, this is the largest proposed fine in its 86-year history, reflecting the seriousness of the apparent violations by John C. Spiller and Jakob A. Mears, who used business names including Rising Eagle and JSquared Telecom. The calls were made on behalf of clients that sell short-term, limited-duration health insurance plans.

According to the FCC, Mr. Spiller admitted to the USTelecom Industry Traceback Group that he knowingly called consumers on the Do Not Call list as he believed that it was more profitable to target these consumers. He also admitted that he made millions of calls per day, and that he was using spoofed numbers. The robocalls falsely claimed to offer health insurance plans from well-known health insurance companies such as Aetna, Blue Cross Blue Shield, Cigna, and UnitedHealth Group. Many of the calls were made to wireless phones without prior customer consent as required by FCC rules. The scam also caused the companies whose caller IDs were spoofed to become overwhelmed with angry call-backs from aggrieved consumers. At least one company was hit with several lawsuits because its number was spoofed, and another was so overwhelmed with calls that its telephone network became unusable.

In addition to the FCC’s Notice of Apparent Liability, the attorneys general of Arkansas, Indiana, Michigan, Missouri, North Carolina, Ohio, and Texas filed a lawsuit and request for injunctive relief against the same party in the US Disctrict Court for the Southern District of Texas. In response to the lawsuit, FCC Chairman Ajit Pai issued a statement saying: “Spoofed robocalls are a major problem for consumers across the country. I’m grateful to have partners like these state attorneys general as we fight on behalf of American consumers. We are making it clear that scamming consumers and—as we saw in this case—tricking them into buying products under false pretenses cannot and will not go unchecked. That is why the FCC and state officials are standing together and taking strong action to protect the American public from the scourge of spoofed robocalls.”

FCC To Modernize Rules For Additional Millimeter-Wave Spectrum Bands

At its Open Meeting yesterday, the FCC voted to seek comment on rule changes to promote innovative and more efficient use of the 70/80/90 GHz bands, including for the provision of wireless backhaul for 5G and the deployment of broadband services to aircraft and ships. These bands s are unused or underused in large parts of the country with current use of the spectrum primarily concentrated along a few high-traffic routes. The Notice of Proposed Rulemaking seeks comment on various proposals for expanded use of the bands for a myriad of innovative services by commercial industry, while protecting incumbent users of the band including federal users. Among other things, the item proposes changes to the FCC’s antenna rules for the 70/80/90 GHz bands that would allow for smaller antennas in these bands. This could lower costs, facilitate network densification, and help support the provision of backhaul for emerging 5G services. The item also seeks comment on amending existing rules or establishing new rules that would allow for the use of the 70/80/90 GHz bands for the delivery of broadband internet access aboard aircraft in flight and ships at sea.

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The Regulatory Mix, Inteserra’s blog of telecom related regulatory activities, is a snapshot of PUC, FCC, legislative, and occasionally court issues that our regulatory monitoring team uncovers each day. Depending on their significance, some items may be the subject of an Inteserra Briefing.