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Editorial #63-FCC Settles Investigations of Purple Communications, Inc.; Settlement Requires Payments in Excess of $22 Million

The FCC, in the form of a consent decree, settled with Purple on FCC’s investigations of past practices of Purple.

Under the terms of the settlement, Purple must:

  • repay $18.5 million to the TRS Fund over a period of five years, plus an additional $3.1 million in interest and penalties;
  • make a $550,000 payment to the U.S. Treasury; and
  • adopt a detailed compliance plan designed to ensure that the company strictly adheres to the Commission’s TRS rules.

The $22 million will be paid over a period of 5 years and includes penalties and interest.

In addition, the compliance plan requires Purple to do the following:

  • appoint a compliance director
  • establish an FCC Regulatory Committee of its Board of Directors to ensure high-level management oversight of its compliance efforts
  • provide comprehensive training to all employees regarding FCC regulations
  • conduct detailed compliance reviews of all programs involving the generation of new TRS business
  • certify to the accuracy of its requests for reimbursement from the TRS Fund,
  • review those submissions for anomalous calling patterns that could indicate misuse of TRS, and immediately take steps to correct any incorrect reimbursement requests.

The documents can be found at the FCC website with the following links:  (press release)  (consent decree).

Dr. Z (and the FCC) cares about your communication access.

Disclosure: Dr. Z is a contractor working with CSDVRS on several projects.

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