Federal Communications Commission FCC 08-234 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of Tropical Travel Marketing Apparent Liability for Forfeiture ) ) ) ) ) ) ) ) ) File No. EB- 07-TC-2540 NAL/Acct. No. 200832170068 FRN: 0017919812 NOTICE OF APPARENT LIABILITY FOR FORFEITURE Adopted: October 2, 2008 Released: October 7, 2008 By the Commission: I. INTRODUCTION 1. In this Notice of Apparent Liability for Forfeiture (“NAL”)1, we find that Tropical Travel Marketing (“Tropical Travel”)2 apparently willfully or repeatedly violated section 227 of the Communications Act of 1934, as amended (“Act”), and the Commission’s related rules and orders, by delivering at least 21 unsolicited advertisements to the telephone facsimile machines of at least 17 consumers.3 Based on the facts and circumstances surrounding these apparent violations, we find that Tropical Travel is apparently liable for a forfeiture in the amount of $94,500. 1 See 47 U.S.C. § 503(b)(1). The Commission has the authority under this section of the Act to assess a forfeiture against any person who has “willfully or repeatedly failed to comply with any of the provisions of this Act or of any rule, regulation, or order issued by the Commission under this Act ....” See also 47 U.S.C. § 503(b)(5) (stating that the Commission has the authority under this section of the Act to assess a forfeiture penalty against any person who does not hold a license, permit, certificate or other authorization issued by the Commission or an applicant for any of those listed instrumentalities so long as such person (A) is first issued a citation of the violation charged; (B) is given a reasonable opportunity for a personal interview with an official of the Commission, at the field office of the Commission nearest to the person’s place of residence; and (C) subsequently engages in conduct of the type described in the citation). 2 According to publicly available information, Tropical Travel has offices at 1450 Eden Drive, Deltona, FL 32725- 3766. Louis Quiles, CEO, is listed as the contact person for Tropical Travel. Accordingly, all references in this NAL to “Tropical Travel” also encompass the foregoing individual and all other principals and officers of this entity, as well as the corporate entity itself. 3 See 47 U.S.C. § 227(b)(1)(C); 47 C.F.R. § 64.1200(a)(3); see also Rules and Regulations Implementing the Telephone Consumer Protection Act of 1991, Report and Order and Third Order on Reconsideration, 21 FCC Rcd 3787 (2006). Federal Communications Commission FCC 08-234 2 II. BACKGROUND 2. Section 227(b)(1)(C) of the Act makes it “unlawful for any person within the United States, or any person outside the United States if the recipient is within the United States . . . to use any telephone facsimile machine, computer, or other device to send, to a telephone facsimile machine, an unsolicited advertisement.”4 The term “unsolicited advertisement” is defined in the Act and the Commission’s rules 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 in writing or otherwise.”5 Under the Commission’s rules, an “established business relationship”6 exception permits a party to deliver a message to a consumer if the sender has an established business relationship with the recipient and the sender obtained the number of the facsimile machine through the voluntary communication by the recipient, directly to the sender, within the context of the established business relationship, or through a directory, advertisement, or a site on the Internet to which the recipient voluntarily agreed to make available its facsimile number for public distribution.7 3. On June 29, 2007, in response to one or more consumer complaints alleging that Tropical Travel had faxed unsolicited advertisements, the Enforcement Bureau (“Bureau”) issued a citation8 to Tropical Travel, pursuant to section 503(b)(5) of the Act.9 The Bureau cited Tropical Travel for using a telephone facsimile machine, computer, or other device, to send unsolicited advertisements for vacation travel packages to a telephone facsimile machine, in violation of section 227 of the Act and the Commission’s related rules and orders. The citation warned Tropical Travel that subsequent violations could result in the imposition of monetary forfeitures of up to $11,000 per violation, and included a copy of the consumer complaints that formed the basis of the citation.10 The citation informed Tropical Travel that within 30 days of the date of the citation, it could either request an interview with Commission staff, or could provide a written statement responding to the citation. Tropical Travel did not request an interview or otherwise respond to the citation. 4. Despite the citation’s warning that subsequent violations could result in the imposition of monetary forfeitures, we have received 17 additional consumer complaints indicating that Tropical Travel continued to engage in such conduct after the citation was issued.11 We base our action here specifically 4 47 U.S.C. § 227(b)(1)(C); 47 C.F.R. § 64.1200(a)(3). 5 47 U.S.C. § 227(a)(4); 47 C.F.R. § 64.1200(f)(13). 6 An “established business relationship” is defined as a prior or existing relationship formed by a voluntary two-way communication “with or without an exchange of consideration, on the basis of an inquiry, application, purchase or transaction by the business or residential subscriber regarding products or services offered by such person or entity, which relationship has not been previously terminated by either party.” 47 C.F.R. § 64.1200(f)(5). 7 See 47 U.S.C. § 227(b)(1)(C); 47 C.F.R. § 64.1200(a)(3)(i),(ii). 8 Citation from Kurt A. Schroeder, Deputy Chief, Telecommunications Consumers Division, Enforcement Bureau, File No. EB-07-TC-2540 issued to Tropical Travel on June 29, 2007. 9 See 47 U.S.C. § 503(b)(5) (authorizing the Commission to issue citations to non-common carriers for violations of the Act or of the Commission’s rules and orders). 10 Commission staff mailed the citation to: Tropical Travel Marketing, Attn: Louis Quiles, CEO, 1450 Eden Drive, Deltona, FL 32725-3766. See n.2, supra. 11 See Appendix for a listing of the consumer complaints against Tropical Travel requesting Commission action. Federal Communications Commission FCC 08-234 3 on 17 complaints filed by 17 consumers establishing that Tropical Travel continued to send 21 unsolicited advertisements to telephone facsimile machines after the date of the citation.12 5. Section 503(b) of the Act authorizes the Commission to assess a forfeiture of up to $11,000 for each violation of the Act or of any rule, regulation, or order issued by the Commission under the Act by a non-common carrier or other entity not specifically designated in section 503 of the Act. The maximum penalty for such a violation is $11,000 for a violation occurring before September 2, 2008, and $16,000 for a violation occurring on or after September 2, 2008.13 In exercising such authority, we are to take into account “the nature, circumstances, extent, and gravity of the violation and, with respect to the violator, the degree of culpability, any history of prior offenses, ability to pay, and such other matters as justice may require.”14 III. DISCUSSION A. Violations of the Commission’s Rules Restricting Unsolicited Facsimile Advertisements 6. We find that Tropical Travel apparently violated section 227 of the Act and the Commission’s related rules and orders by using a telephone facsimile machine, computer, or other device to send at least 21 unsolicited advertisements to the 17 consumers identified in the Appendix. This NAL is based on evidence that 17 consumers received unsolicited fax advertisements from Tropical Travel after the Bureau’s citation. The facsimile transmissions advertise vacation travel packages. Further, according to the complaints, the consumers neither had an established business relationship with Tropical Travel nor gave Tropical Travel permission to send the facsimile transmissions.15 The faxes at issue here therefore fall within the definition of an “unsolicited advertisement.”16 Based on the entire record, including the consumer complaints, we conclude that Tropical Travel apparently violated section 227 of 12 Following the issuance of this citation, the Commission continued to receive complaints from multiple consumers alleging that Tropical Travel faxed unsolicited advertisements to them. These complaints, received after the Commission’s citation, resulted in the issuance of a Notice of Apparent Liability for Forfeiture against Tropical Travel in the amount of $49,500. Tropical Travel, Notice of Apparent Liability for Forfeiture, FCC 08-162, released July 3, 2008. We note that evidence of additional instances of unlawful conduct by Tropical Travel may form the basis of subsequent enforcement action. 13 Section 503(b)(2)(C) provides for forfeitures up to $10,000 for each violation in cases not covered by subparagraph (A) or (B), which address forfeitures for violations by licensees and common carriers, among others. See 47 U.S.C. § 503(b). In accordance with the inflation adjustment requirements contained in the Debt Collection Improvement Act of 1996, Pub. L. 104-134, Sec. 31001, 110 Stat. 1321, the Commission implemented an increase of the maximum statutory forfeiture under section 503(b)(2)(C) first to $11,000 and more recently to $16,000. See 47 C.F.R. §1.80(b)(3); Amendment of Section 1.80 of the Commission’s Rules and Adjustment of Forfeiture Maxima to Reflect Inflation, 15 FCC Rcd 18221 (2000) (forfeiture maximum for this type of violator set at $11,000); Amendment of Section 1.80(b) of the Commission’s Rules and Adjustment of Forfeiture Maxima to Reflect Inflation, 19 FCC Rcd 10945 (2004) (amendment of section 1.80(b) to reflect inflation left the forfeiture maximum for this type of violator at $11,000); Amendment of Section 1.80(b) of the Commission’s Rules, Adjustment of Forfeiture Maxima to Reflect Inflation, FCC 08-154, rel. June 13, 2008.( amendment of section 1.80(b) to reflect inflation left the forfeiture maximum for this type of violator at $16,000). 14 47 U.S.C. § 503(b)(2)(D); The Commission’s Forfeiture Policy Statement and Amendment of Section 1.80 of the Rules to Incorporate the Forfeiture Guidelines, Report and Order, 12 FCC Rcd 17087, 17100-01 para. 27 (1997) (Forfeiture Policy Statement), recon. denied, 15 FCC Rcd 303 (1999). 15 See, e.g., complaint dated October 15, 2007, from Paul Wharton, Homestar Direct (stating that he has never done any business with the fax advertiser, never made an inquiry or application to the fax advertiser, and never gave permission for the company to send the fax.) The complainants involved in this action are listed in the Appendix. 16 See 47 U.S.C. § 227(a)(4); 47 C.F.R. § 64.1200(f)(13) (definition previously at § 64.1200(f)(10)). Federal Communications Commission FCC 08-234 4 the Act and the Commission’s related rules and orders by sending 21 unsolicited advertisements to 17 consumers’ facsimile machines. B. Proposed Forfeiture 7. We find that Tropical Travel is apparently liable for a forfeiture in the amount of $94,500. Although the Commission’s Forfeiture Policy Statement does not establish a base forfeiture amount for violating the prohibition against using a telephone facsimile machine to send unsolicited advertisements, the Commission has previously considered $4,500 per unsolicited fax advertisement to be an appropriate base amount.17 We apply that base amount to each of 21 apparent violations. Thus, a total forfeiture of $94,500 is proposed. Tropical Travel will have the opportunity to submit evidence and arguments in response to this NAL to show that no forfeiture should be imposed or that some lesser amount should be assessed.18 IV. CONCLUSION AND ORDERING CLAUSES 8. We have determined that Tropical Travel Marketing apparently violated section 227 of the Act and the Commission’s related rules and orders by using a telephone facsimile machine, computer, or other device to send at least 21 unsolicited advertisements to the 17 consumers identified in the Appendix. We have further determined that Tropical Travel Marketing is apparently liable for a forfeiture in the amount of $94,500. 9. Accordingly, IT IS ORDERED, pursuant to section 503(b) of the Act, 47 U.S.C. § 503(b), and section 1.80 of the rules, 47 C.F.R. § 1.80, that Tropical Travel Marketing is hereby NOTIFIED of this APPARENT LIABILITY FOR A FORFEITURE in the amount of $94,500 for willful or repeated violations of section 227(b)(1)(C) of the Communications Act, 47 U.S.C. § 227(b)(1)(C), sections 64.1200(a)(3) of the Commission’s rules, 47 C.F.R. § 64.1200(a)(3), and the related orders described in the paragraphs above. 10. IT IS FURTHER ORDERED THAT, pursuant to section 1.80 of the Commission’s rules,19 within thirty (30) days of the release date of this Notice of Apparent Liability for Forfeiture, Tropical Travel Marketing SHALL PAY the full amount of the proposed forfeiture or SHALL FILE a written statement seeking reduction or cancellation of the proposed forfeiture. 11. Payment of the forfeiture must be made by check or similar instrument, payable to the order of the Federal Communications Commission. The payment must include the NAL/Account Number and FRN Number referenced above. Payment by check or money order may be mailed to Federal Communications Commission, P.O. Box 979088, St. Louis, MO 63197-9000. Payment by overnight mail may be sent to U.S. Bank – Government Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO 63101. Payment by wire transfer may be made to ABA Number 021030004, receiving bank TREAS/NYC, and account number 27000001. For payment by credit card, an FCC Form 159 (Remittance Advice) must be submitted. When completing the FCC Form 159, enter the NAL/Account number in block number 23A (call sign/other ID), and enter the letters “FORF” in 17 See Get-Aways, Inc., Notice of Apparent Liability For Forfeiture, 15 FCC Rcd 1805 (1999); Get-Aways, Inc., Forfeiture Order, 15 FCC Rcd 4843 (2000); see also US Notary, Inc., Notice of Apparent Liability for Forfeiture, 15 Rcd 16999 (2000); US Notary, Inc., Forfeiture Order, 16 FCC Rcd 18398 (2001); Tri-Star Marketing, Inc., Notice of Apparent Liability For Forfeiture, 15 FCC Rcd 11295 (2000); Tri-Star Marketing, Inc., Forfeiture Order, 15 FCC Rcd 23198 (2000). 18 See 47 U.S.C. § 503(b)(4)(C); 47 C.F.R. § 1.80(f)(3). 19 47 C.F.R. § 1.80. Federal Communications Commission FCC 08-234 5 block number 24A (payment type code). Tropical Travel Marketing will also send electronic notification on the date said payment is made to Johnny.drake@fcc.gov. Requests for full payment under an installment plan should be sent to: Chief Financial Officer -- Financial Operations, 445 12th Street, S.W., Room 1-A625, Washington, D.C. 20554. Please contact the Financial Operations Group Help Desk at 1-877-480-3201 or Email: ARINQUIRIES@fcc.gov with any questions regarding payment procedures. 12. The response, if any, must be mailed both to the Office of the Secretary, Federal Communications Commission, 445 12th Street, SW, Washington, DC 20554, ATTN: Enforcement Bureau – Telecommunications Consumers Division, and to Colleen Heitkamp, Chief, Telecommunications Consumers Division, Enforcement Bureau, Federal Communications Commission, 445 12th Street, SW, Washington, DC 20554, and must include the NAL/Acct. No. referenced in the caption. 13. The Commission will not consider reducing or canceling a forfeiture in response to a claim of inability to pay unless the petitioner submits: (1) federal tax returns for the most recent three- year period; (2) financial statements prepared according to generally accepted accounting practices; or (3) some other reliable and objective documentation that accurately reflects the petitioner’s current financial status. Any claim of inability to pay must specifically identify the basis for the claim by reference to the financial documentation submitted. 14. IT IS FURTHER ORDERED that a copy of this Notice of Apparent Liability for Forfeiture shall be sent by Certified Mail Return Receipt Requested and regular mail to Tropical Travel Marketing, Attention: Louis Quiles, CEO, 1450 Eden Drive, Deltona, FL 32725-3766. FEDERAL COMMUNICATIONS COMMISSION Marlene H. Dortch Secretary Federal Communications Commission FCC 08-234 6 APPENDIX Complainants and Violation Dates Complainant received facsimile solicitations Violation Date(s) Paul Wharton, Homestar Direct 10/15/2007 Hannah Graves 10/15/2007 Suzanne Steele 10/17/2007 Misty Elkins, Niche Jewelry 10/17/2007 Michael Carpenter 10/17/2007 Karl Kohl, Gold’n Country Gifts LLC 10/16/2007 Edward Paladino 10/18/2007 Mark Lebovitz, L2 Consulting Services, Inc. 10/15/2007, 10/17/2007 Christy McGinty 10/17/2007 Rae Weese, Durango Button Company, Inc. 10/24/2007 Walter Alexander 10/24/2007 Jewel Clay, Troutman Sanders LLP 10/17/2007, 10/30/2007 Thomas Walsh, International Protein Colloids, Inc. 10/30/2007 Charles Somerville, Eastman Kodak Company 10/30/2007 Joe Shields, Lockheed Martin 10/30/2007 (three faxes) Mel Manuel 10/30/2007 Patrick Ross, Palmer Disposable Products 10/30/2007