Fax-Spammers fax.com Sued For 2.2 Trillion

linuxwrangler writes "Fed up with junk faxes which have been illegal since 1991, a Silicon Valley businessman has launched a lawsuit against junk faxer fax.com. Steve Kirsch seeks the damages provided in the law: $500/fax for the last four years. If certified as a class-action on behalf of the 3 million receipients of the faxes that fax.com claims to send each day the total damages would reach 2.2 billion even without invoking the "triple-damages" clause for "willful" violations. Federal regulators hit fax.com with a 5.4 million fine just two weeks ago after the company ignored numerous warnings from the FCC and was found to be in "flagrant violation" of the law. Fax.com maintains that their actions are protected by the constitution and court decisions in this case could lay the foundation for the future of junk email regulation"

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The Law in question

[borcharc]

Title 47, Section 227(b) of the United States Code.

This law makes it illegal "to use any telephone facsimile machine, computer, or other device to send an unsolicited advertisement to a telephone facsimile machine." The term "unsolicited advertisement'' is defined as "any material advertising the commercial availability or quality of any property, goods, or services which is transmitted to any person without that person's prior express invitation or permission." Damages are set at actual monetary damages, or $500, whichever is greater. The court may increase the damages up to three times this amount if it finds the defendant "willfully or knowingly" violated this law.

Under federal law, these unsolicited faxes are illegal, but fax advertisers simply ignore the law because few people know about and exercise their private right of action.

Jurisdiction

State courts are expressly given jurisdiction under 47 U.S.C. 227(b)(3). The following federal court cases have found that state courts have sole jurisdiction under this law:

International Science and Technology Institute, Inc. v. Inacom Communications, Inc., 106 F.3d 1146 (4th Cir. 1997)

Chair King, Inc. v. Houston Cellular Corporation, 1997 WL 768609 (5th Cir. 12/15/97);

Foxhall Realty Law Offices, Inc. v. Telecommunications Premium Services, LTD, 975 F.Supp. 329 (S.D.N.Y. 1997)