Florida launched an inquiry into the marketing practices of The List Source USA Inc. this summer after a business complained of receiving an unsolicited fax from the list company.
That single complaint led to an expanded investigation into List Source USA's marketing of its own fax services, according to Bob Buchner, Florida's assistant attorney general. The firm has failed to advise potential clients of its fax service that unsolicited commercial faxes could violate the law, Buchner said.
“If companies are going to say fax broadcasting is the greatest thing since sliced bread, it should say right there, not in little mouse print, that transmitting fax advertising without permission is in violation of federal law,” Buchner continued, noting the case is likely to be settled in the near future.
Dan Daly, CEO of List Source USA, a St. Petersburg, FL data provider, declined comment.
The controversy started July 23, when Bartholomew Realty Inc. of Fort Myers, FL alleged it received a one-page unsolicited fax from List Source USA promoting list rentals. A disclaimer stated if the fax had been received in error to call the company's 800 number.
A week later, Florida AG Robert Butterworth's office sent a cease-and-desist letter to List Source USA. It reiterated that Florida law makes it illegal to transmit an unsolicited facsimile.
In the meantime, the AG's office discovered an advertisement on a page at List Source USA's Web site titled FaxMarketing. The ad, which was for List Source USA's own fax services, did not disclose that “unsolicited commercial faxes advertising the sale of real property, goods or services may be in violation of state and federal law and may subject advertisers to civil penalties.”
List Source USA was issued a subpoena on Aug. 21 — held in abeyance since the firm may be willing to settle — requesting documents and other information, Buchner said.
Florida continually investigates violations of its fax law. In May it reached a settlement with Cable & Wireless USA Inc., Vienna, VA, for $45,000. In November 2001, an agreement was struck with Xpedite Systems Inc., an Eatontown, NJ provider of electronic document distribution and data messaging services, for $70,000.
