It was almost anti-climactic. But the Federal Communications Commission, after months of anticipation, announced plans June 26 for a national-do-not-call list. And almost nobody was happy, at least in the direct marketing business.
The American Teleservices Association slammed the FCC, saying that the changes would cost 2 million Americans their jobs.
In brief, the FCC called for:
-
A single nationwide do-not-call list to be run jointly with the Federal Trade Commission.
-
A restriction on calling customers who haven’t made a purchase within 18 months, or an inquiry within three months.
-
A requirement that callers must identify themselves and not block information sent to caller-ID systems.
In addition, telemarketers would be prohibited from abandoning more than 3% of their calls, and they would be required to inform recipients about the nature of the call being abandoned.
Finally, the FCC’s involvement would extend the registry’s purview to intrastate calls, and to those from the commercial telecom carrier, banking and airline industries, noted FCC chairman Michael K. Powell.
Telemarketers were quick to weigh in with their objections.
Steve Brubaker, senior vice president for corporate affairs at Akron, OH-based InfoCision Management Corp., said that the “one-size-fits-all approach” of the national list would hurt some industries.
“Eighteen months [as a maximum time for calling customers after they make a purchase] doesn’t work for many industries,” Brubaker said. “People don’t buy a car every 18 months. You can’t contact customers and tell them there’s a great new lease rate.”
Stuart Discount, president of Tele-Response Center Inc. in Philadelphia, said that so far this year he had laid off 100 workers, and wondered about the fate of the 400 he currently employs. Given the FTC’s own estimate that 50 million people would sign up for the national service, he questioned whether he could support the number of calling hours he now supplies.
If there was any good in the changes, it was seen by the Direct Marketing Association. The DMA praised the FCC for noting in the Federal Register that “any state regulation…that differs from our rules” would be preempted.
But the FCC national list wouldn’t supplant all state do-not-call registries, and the DMA believes it should.
The DMA also objected to the high cost of the federal service. The annual rate of $7,000 is 10 times the cost of the DMA’s own telephone suppression file.
And the trade group criticized the FTC’s requirement that teleservice bureaus purchase the list separately for each of their customers, and said it will lobby the FCC and FTC for a “more reasonable” payment system. Additionally, the DMA hopes an authentication process aimed at ensuring that consumers are registering their own numbers will be put into place.
Brubaker observed that the DMA’s benign position seemed to be in conflict with a lawsuit the association filed Jan. 29. In it, the DMA argued that the government-run do-not-call list would violate First Amendment rights regarding advertising, and that the FTC exceeded its statutory authority.
“The constitutional arguments are very similar,” Brubaker said.
Meanwhile, FCC commissioner Michael Copps defended the recommendations, claiming they balance commercial First Amendment rights with the individual’s right to be left alone. Another commissioner, Jonathan Adelstein, argued that the rule was “one of the best things the FCC has done for American families — restoring peace and quiet for everyone who asks for it. And I plan to ask for it.”
Consumers showed that they agreed with him by signing up for the FTC registry, which became available on July 1, at a breakneck pace.
At deadline, some 20 million numbers had been logged.
In a survey, Wirthlin Worldwide found that people 55 years of age and older were the most likely to sign up, as were those with annual household income of more than $60,000. Young Americans, especially individuals between the ages of 18 and 24, are least likely to enroll with the registry.
Married consumers show a high propensity to sign up as well, with 58% saying they would. Single adults and families without children were less likely to register: Twenty-seven percent and 24%, respectively, indicated they won’t.
Consumers believe the new laws will have an impact on the volume of calls they receive, with 53% indicating the regulations would have a strong effect and 37% feeling it would have a slight effect.
But respondents seem to understand the value of survey research. Sixty-nine percent favor an exemption that would allow research firms to continue to phone numbers on the do-not-call list.
Wirthlin Worldwide conducted the national telephone survey of 1,000 adult Americans between June 27 and June 30.
Network
