President Bush on Monday signed legislation to give the Federal Trade Commission authority to set up a national do-not-call list, but the legality of the list is still unresolved.
Federal Communications Commission Chairman Michael Powell said his agency would enforce the penalties because the FTC was prevented from doing so by a federal judge’s order. The list will take effect Oct. 1 as originally planned.
The FCC joined last summer with the FTC, which operates the registry, to ensure the list applies to all industries. The FCC’s regulations basically mirror and expand upon those of the FTC, which have been put on hold.
The Direct Marketing Association asked all direct marketers to abide by the list, which contains the names of the more than 50 million people who don’t want to receive telemarketing calls.
“The industry seems to understand what we’ve said for almost 20 years,” said Lou Mastria, DMA spokesman. “If people don’t want to get called, they shouldn’t get called.”
Last Monday, U.S. District Judge Lee R. West in Oklahoma City ruled that the FTC lacked the proper statutory authority from Congress to administer this list. His ruling was in response to a lawsuit by the DMA and three telemarketers.
That led both the House and Senate to quickly pass legislation enabling the FTC to administer this list. That’s the legislation that Bush signed.
Separately last Thursday, U.S. District Judge Edward W. Nottingham in Denver ruled that the list was unconstitutional because it restrained commercial free speech from telemarketers while still allowing calls from charities.
Before the court challenges, it was uncertain whether the FCC would have a role in enforcing the list.
FCC’s Powell noted that in yet another court ruling related to the list, a three-judge panel of the Denver appeals court denied a request from telemarketers who wanted to block the FCC’s role in the registry on Friday. The case could reportedly still go before the U.S. Supreme Court.
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