Fax Fine Could Prove To Be Worrisome Scam

In the past, sending out a broadcast fax advertising an exposition would be viewed as an inexpensive way for show managers to develop business. Nowadays, it could cost them big, up to $1,500 per document.

Tradeshow managers and suppliers have long relied on various means to advertise upcoming shows and services. With legal restrictions increasingly placed on what form that communication can take, lawyers are practically coming out of the woodwork to wring heavy fines from unsuspecting culprits. The problem has not yet grown into an epidemic, but may as lawyers begin to realize the amount of easy money to be made from suing show managers over what could be viewed as a mere formality.

Robert Kolinek, president of tradeshow production firm Helen Brett Enterprises, received a letter last month from attorney Jerold A. Greenker on behalf of Greenker's client, US Fax Law Center. It claimed Helen Brett violated the Telephone Consumer Protection Act and Colorado Consumer Protection Act by sending an unsolicited facsimile transmission to Colorado Forest Industries.

Kolinek claims to have never heard of the company. In fact, the fax, which he had supposedly sent to CFI, clearly is addressed to CTC-Geotek advertising exhibit space at the Pacific Coast Oil Show and Conference. According to Kolinek, CTC-Geotek had been receiving faxes from his company since 1993, and his company had updated its files as recently as 2002 to make sure that CTC-Geotek still wished to receive information on upcoming shows. Kolinek said the faxes were not unsolicited and his company is in the right.

In any case, the letter Greenker sent asks for "payment of damages in the amount of $1,500 (one fax with three violations)." Kolinek could choose to fight the suit, but doing so would almost certainly cost him more than the $1,500 Greenker is demanding.

Kolinek is not the only show manager to receive what he considers a "shakedown."

Jeff Haughton, president and CEO of Industrial Expositions, also received a notice demanding payment for having violated the fax law. He spoke with the attorney who sent him the notice, and "He said they were dealing with 90,000 of these faxes. There was some clearinghouse Web site where people could submit their junk faxes."

Haughton claims his firm only sends faxes by request, so he asked the lawyer to provide information on which specific unsolicited fax it was that his company was being accused of sending. "That was two weeks ago. We haven't heard from him since," said Haughton.

He would not tell Tradeshow Week the name of the lawyer or the clearinghouse the lawyer represented, hoping to avoid further trouble. While he doesn't think the problem will prove crucial for show managers, he did say, "it sounds like the attorneys are trying to milk a fat cow."

When asked by Tradeshow Week whether his law firm approaches companies about the use of his legal services to get money back from companies sending unsolicited facsimiles, Jerold Greenker replied, "I don't know." He then said he was "going to discontinue the conversation." However, he did admit that, thanks to the federal TCPA law passed in 1991, lawyers are suing over unsolicited facsimiles "more than in the past."

So far, Kolinek has paid nothing, calling Greenker an "ambulance chaser." "What if (lawyers) begin to say, 'Hey, the tradeshow industry is a good target for this?'" Kolinek asked.

Ken Lane, a deputy Colorado attorney general, said the issue has so far not resulted in any serious complaints from consumers. "If somebody files a frivolous lawsuit," Lane added, "it's a proof issue. They better have a record to back it up."

However, a brief Internet search turned up a site called Junkfax.org with a home page titled "How to get up to $1,500 per junk fax you receive." The site has no contact information, but details how to get money out of companies for sending unsolicited faxes. It even suggests, "Offer to settle for $400 per fax if they save you the trouble of taking them to court and suing for a minimum of $500 and a maximum of $1,500."

Another lawyer involved in consumer fraud issues, Joe Davies, said, "It's kind of a stick-up, but sometimes it's not," noting that stiff penalties do apply if a company is found to be in the wrong. When one of his clients received a similar letter, he said "we just ignored it, and nothing happened."