|
Are You Compliant with National Do-Not-Call Rules
Ok, you are not a credit card company trying to talk someone into the lowest APR available. You're not a telephone/communications company trying to switch a customer to the next best deal…You don’t make those kinds of calls to potential customers, but are you still breaking the law? In January 2003, the Federal Trade Commission (FTC) amended the “Telemarketing Sales Rule (TSR) to establish the do-not-call registry.”
The original rule contained the provision prohibiting any calls to a consumer who previously asked not to get calls from or on behalf of a particular seller. The amended rule retains that provision, and adds a new one prohibiting calls to any telephone number consumers placeon the National Do-Not-Call Registry maintained by the FTC.
Coverage Under TSR
The amended TSR regulates “telemarketing.” The amended rule states:
It is an abusive telemarketing act or practice and a violation of this rule for a telemarketer to engage in, or for a seller to cause a telemarketer to engage in, the following conduct: (iii) Initiating any outbound telephone call to a person when: (B) that person’s telephone number is on the “do-not-call” registry, maintained by the commission, of persons who do not wish to receive outbound telephone calls to induce the purchase of goods or services …
A seller means any person who, in connection with a telemarketing transaction, provides, offers to provide, or arranges for others to provide goods or services to the customer in exchange for consideration.
Telemarketing means a plan, program or campaign which is conducted to induce the purchase of goods or services or a charitable contribution, by use of one or more telephones and which involves more than one interstate telephone call.
According to the FTC Web site: “with some important exceptions, any businesses or individuals that take part in 'telemarketing' must comply with the rule. This is true whether, as 'telemarketers,' they initiate or receive telephone calls to or from consumers, or as 'sellers,' they provide, offer to provide, or arrange to provide goods or services to consumers in exchange for payment."
Registration
The TSR requires telemarketers to download the registry database and drop all registered numbers from their call lists. Since October 1, 2003, telemarketers now must access the registry every three months and scrub numbers on it from their call lists.
The FTC prepared a fully automated Web site to provide members of the telemarketing industry with access to the registry’s database of telephone numbers, sorted by area code.
Registration lasts for five years, until a number is disconnected, or until the consumer takes it off the registry. Telemarketers who call a number on the list could be fined up to $11,000 per call.
Here is the Deal
A company may call a consumer who has registered where the consumer gives the company written permission to do so. Notwithstanding registration on the “do not call” registry, the TSR allows companies with which the consumer has an established relationship to call if they are calling them: within 18 months of their last purchase, transaction, shipment, end of subscription/membership, or within 3 months of their last inquiry or application.
The “do not call” provisions of the amended TSR do not apply to business-to-business calls. The FTC’s rules also exempt bona fide surveys from the “do not call” list.
State Do-Not-Call Lists
The TSR does not preempt state law. The TSR covers only telemarketing across state lines, while state laws also cover any telemarketing that is confined within the state’s borders.
Coverage of the TSR is generally broader than state laws. The FTC’s “do not call” registry requirements are at least as stringent as most state laws.
To review which states currently have DNC laws, click here.
Relationship Between FTC and FCC Regulations
Both the FTC and the Federal Communications Commission regulate telemarketing. The FTC rules and the FCC rules, although promulgated by different agencies under different statutes, both address the same consumer concerns regarding telemarketers. The FCC’s authority to establish a do-not-call registry derives from Telephone Consumer Protection Act (TCPA). The FTC and the FCC now share responsibility for enforcing the national do-not-call list.
On March 11, 2003, the “Do-Not-Call Implementation Act,” was signed into law, authorizing the FTC to collect fees from telemarketers for the implementation and enforcement of a do-not-call registry. Under the Act, the FCC shall consult and coordinate with the FTC to maximize consistency with the rule promulgated by the FTC. The FCC registry covers both interstate and intrastate telemarketing calls. Click here to obtain a full copy of the FCC’s regulations.
For more information, contact Cathy MacFarlane, Office of Public Affairs, FTC, at 202-326-2710 or David Fiske, Office of Media Relations, FCC, at 202-418-0513.
[return to top]
|