Do Not Call: National registry won't take place of Missouri list

While a recent amendment by the Federal Trade Commission to the Telemarketing Sales Rule will create a national "do not call" registry, it's too early to tell how a national list will mesh with Missouri's no call list.

"It's not really clear how the federal government is going to enforce violations of the (federal) law at this point. That is something that remains to be seen," said Scott Holste, a spokesman for the office of Missouri Attorney General Jay Nixon.

Consumers can begin registering for the national "do not call" list online at www.ftc.gov/donotcall or by calling a toll-free number, which will be released June 30. The initial sign-up by phone will be phased in, region-by-region, over an eight-week period. The service is free.

Holste noted that Nixon's office wants to make sure that people know they should still sign up for the Missouri No Call List even after the national "do not call" list goes into effect.

"Our biggest concern has been that any kind of federal law in this area not pre-empt the strong state laws that we have, which we feel do cover quite a few of the telemarketing calls that are made in Missouri," Holste said. "Also, I think people need to realize that there are going to be gaps in the federal law, so far as the federal government would not have jurisdiction over telemarketing calls made intrastate within the same state."

He added that under state law, "We can go after intrastate calls and interstate calls, and we can also go after international calls, too."

Holste, however, still believes Missouri residents should use the national service.

"We're not discouraging anyone from signing up for the national no call list, but we certainly wouldn't want them to sign up for the national no call list instead of the state no call list, and you can sign up for both," Holste said.

According to the FTC, telemarketers and other sellers will have access to the registry in September. Enforcement of the amended Telemarketing Sales Rule will begin in October. Telemarketing companies will be required to scrub their call lists against the national "do not call" registry at least once every 90 days.

Businesses that violate the rule will be subject to fines of up to $11,000 per violation.

The FTC states that the Telemarketing Sales Rule applies to any plan, program or campaign to sell goods or services through interstate phone calls. This includes telemarketers who solicit consumers, often on the behalf of third-party sellers. It also includes sellers who provide, offer to provide, or arrange to provide goods or services to consumers in exchange for payment.

Economic impact

Tim Searcy, executive director of the American Teleservices Association, said the implementation of a national "do not call" list will have a negative effect on the economy. The ATA represents call centers, trainers, consultants and equipment suppliers that initiate, facilitate and generate telephone, Internet and e-mail sales service and support.

The FTC estimates that 50 million people will sign up for the national lsit, Searcy said.

"Based on that, we anticipate that somewhere between October and probably the end of the year, there will be about 2 (million) to 2.5 million jobs lost.

"People who'd otherwise be on welfare, single mothers, African Americans, college students folks who need a second job to make ends meet, those are groups most likely affected by this law," Searcy said.

Approximately 6 percent to 7 percent of the gross domestic product is in the teleservices industry, Searcy said, and, "depending on who you talk to, between 5 (percent) and 6 percent of the U.S population is directly or indirectly involved in telesales." He said about 40 percent of those people will be put out of work by the new regulations.

Exemptions

The FTC states that businesses that remain exempt from the Telemarketing Sales Rule include long-distance phone companies, airlines and insurance companies operating under state regulations. Although these companies are not subject to the TSR, any telemarketers they hire to make calls on their behalf are required to comply.

Under the amended Telemarketing Sales Rule, telemarketers and sellers will be required to search the registry at least quarterly and drop from their call lists the phone numbers of consumers who have registered.

Searcy said one problem with the national "do not call" list is that it's not going to stop telephone calls.

"The exemptions that are created allow charities to continue to call, they allow banks, airlines, insurance companies to continue to call," he said, as well as the companies that have existing relationships with consumers. Market research and political campaigning calls also are allowed.

The ATA's position is that "a ringing phone is a ringing phone," he added.

Searcy cited statistics from an opponent of telemarketing that indicated that the average household receives about 1.4 telemarketing calls per week.

"We don't consider that to be an excessive amount, given the number of jobs that it creates and the amount of revenue. You have to understand that our industry, it creates $654 billion in revenue per year," he said.

"If (teleservices) didn't work, nobody would do it. If teleservices were ineffective, it would stop being done. In reality, it's very effective," he said.

Searcy said that the difference between an unwanted call and a wanted call is very simple: "An unwanted call is something when you didn't buy. A wanted call is when you did. But the only way you know whether it's a wanted call or an unwanted call is to answer the phone and listen."

Checking the list

According to the FTC, when telemarketers or sellers access the system for the first time, they will have to provide some identifying information, such as company name and address, company contact person, and the contact person's telephone number and e-mail address. If the telemarketer is accessing the registry on behalf of another company, the telemarketer will need to identify the company (or companies).

The FTC states that telemarketers may call a consumer with whom the company has an established business relationship for up to 18 months after the consumer's last purchase, delivery or payment even if the consumer's number is on the national "do not call" registry.

Companies also may call consumers for up to three months following inquiries by consumers or submissions of applications to the companies. If a consumer has given a company written permission, the company may call the consumer even if the consumer's number is on the national "do not call" registry.

One caveat is if a consumer asks a company not to call, the company may not call even if there is an established business relationship. A company may not call a consumer regardless of whether the consumer's number is on the registry if the consumer has asked to be put on the company's "do not call" list.

In court

If the ATA gets its way, the national "do not call" list will not be put into effect. The association has sued in federal court on grounds the list is unconstitutional.

Preliminary proceedings in the lawsuit are continuing, Searcy said, but the ATA hopes that a hearing date will be set for July.

"By picking one type of speech and saying it's exempted, and leaving another type of speech in, they're creating two classes of speech, which goes against the First Amendment and the commercial speech rights that we enjoy," Searcy said.