The Federal Trade Commission plans to create a national do-not-call registry where consumers can eliminate most telemarketing calls by making one call to the commission, the FTC said today.
The proposal would modify the Telemarketing Sales Rule, which protects consumers from unwanted telemarketing calls and prohibits deceptive sales calls.
“The proposed amendments to the TSR are designed to enhance the rule’s ability to prevent deceptive telemarketing practices and to enable consumers to exert greater control over when and whether to receive telemarketing calls in their homes,” the FTC said in a statement.
The DMA expressed concern over the creation of a national list.
“The telemarketing sector is an essential part of our communications and marketing industry,” DMA president H. Robert Wientzen, said in a statement. “The government may be overstepping its boundaries by spending taxpayers dollars to limit communication, that is protected by the first amendment, to American consumers who benefit from and shop via telephone solicitations.
Telemarketing generated $668 billion last year and employed six million, the DMA said. The DMA maintains the Telephone Preference Service, a national do-not-call list of 4.1 million Americans.
One proposed change would prohibit the practices of receiving any consumer’s billing information from third parties for use in telemarketing, or disclosing any consumer’s billing information to third parties for us in telemarketing.
Another expands the TSR to cover calls made to solicit charitable contributions by for-profit telemarketers, which currently covers only calls made to sell goods and services.
Other proposals include:
* A consumer would be able to stop calls from all companies within the FTC’s jurisdiction by registering with the FTC.
* Permit calls to registered consumers from companies and organizations that have been provided by the consumer the express verifiable authorization to make those calls.
* Expand on the current prize promotion disclosures to include a statement that any purchase or payment will not increase a consumer’s chances of winning.
* Clarify that facsimile transmissions, electronic mail and other similar methods of delivery are direct mail for purposes of the direct mail exemption.
The proposal for the registry was first announced by the commission last October as a key component in its new privacy initiative.
A period of public comment is being taken by March 29 by mail to: FTC, Office of the Secretary, Room 159, 600 Pennsylvania Ave. NW, Washington, DC, 20580 or to e-mail address [email protected]. A public forum will be held at the FTC headquarters after the close of the public comment period.
The TSR, initiated six years ago in March, authorizes both the FTC and state attorneys general to enforce the TSR in federal court. Over the years, $500,000 has been paid in civil penalties and $152 million in consumer redress.
A detailed summary of the proposals is located at the FTC’s Web site at www.ftc.gov.
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