Five9 Agrees to Pay $2 Million to Resolve FCC Investigation into Regulatory Compliance Issues

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In a Consent Decree released earlier this week, the Enforcement Bureau (“Bureau”) of the Federal Communications Commission (“Commission”) announced the resolution of its investigation into whether Five9, Inc. (“Five9”), a cloud-based, contact center solutions provider, complied with its obligations as a telecommunications services provider to:

  1. Register with the Commission before providing interstate telecommunications services;
  2. Obtain Commission authorization prior to providing international telecommunications services;
  3. Make required payments to the Universal Service Fund, the Telecommunications Relay Service Fund; the Local Number Portability and the North American Numbering Plan cost recovery mechanisms;
  4. Pay required regulatory fees; and
  5. File Telecommunications Reporting Worksheets, international traffic and revenue reports, and reports certifying its compliance with the Commission’s customer proprietary network information (CPNI) rules. 

Five9 admitted that it failed to comply with the obligations listed above from 2003 until December 17, 2012.  To resolve the investigation, Five9 agreed to pay a civil penalty of $2,000,000, pay and remain current on all fund and regulatory fee obligations, and implement a long-term compliance plan to ensure future compliance with the Commission’s rules.

If your company is uncertain about the regulatory classification of the services it offers and the compliance implications thereof, we urge you to contact the attorney assigned to your account or you may directly contact Jonathan S. Marashlian at jsm@commlawgroup.com.

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