DIRECT
MARKETING ASSOCIATION
The
Direct Marketing Association has issued a summary of federal requirements
for properties of prerecorded messages and has indicated that it does
not see resolution between the FTC and FCC positions on the topic.
Please contact me if you would like to discuss the FTC and FCC regimes.
FCC
The
FCC has designated an agency to handle portability issues and to administer
a database of numbers which have been switched from land line to portability
and vice versa. The agency will charge a $1,000 fee to provide access
to this database.
FTC
The
FTC has published a notice that it intends to raise the fees for the
"do-not-call" list to $45 per area code with a maximum fee
of $12,375 for a national purchase of the list. Currently, the national
maximum is $7,375. The FTC is accepting public comments on the rule
made through June 1, 2004.
The FTC
has sued and forcibly shut down a nonprofit credit repair firm and
its for-profit affiliates. The FTC had alleged that the companies
violated the Federal Trade Commission Act by misrepresentations and
omissions, as well as violations of other regulations and laws.
The FTC
also alleged that the agency charged high up-front fees and provided
little service to its consumers. In its recent revisions to the TCPA,
the FCC indicated that it would be giving additional scrutiny to these
types of organizations. This same stance has been reiterated by both
the IRS and the FTC. It is important that your script fulfillment
materials and services comply with state and federal consumer protection
laws and other laws and regulations, especially if you are or work
with this type of entity.
Chairman
Timothy J. Muris, under whose reign the national do-not-call
list was established, announced that he was stepping down as Chairman
of the FTC. It is uncertain what change this will have with regard
to the regulatory atmosphere from this agency.
ALASKA
A
bill has been proposed in the Alaska House which would add calls to
the national do-not-call list to the state list of prohibited
activities. The bill would retain the existing, and extremely difficult
to comply with, state black dot system.
FLORIDA
Florida
has passed legislation including violations of the Telemarketing Act
with its definition of racketeering activity.
HAWAII
Hawaii
has enacted a law designed to harmonize Hawaiis telemarketing
law with the national do-not-call list. Hawaii has adopted
the federal disclosures required by the Telemarketing Sales Rule,
as well as the federal list.
LOUISIANA
A
bill has been proposed in the Louisiana House which would exempt calls
from optometrists, dentists and chiropractors from the definition
of telephone solicitation for purposes of application
of the state do-not-call list. Content-based
exemptions like this are extremely questionable from a constitutional
standpoint and, if passed, could make the entire statute vulnerable
to a constitutional challenge.
MICHIGAN
A
bill has been proposed in the Michigan House which would amend the
states Home Solicitation Sales Law to change the liquidated
damages clause increasing potential fixed penalties to $2,000 per
violation with attorneys fees from the current level of $250.
The state law allows individuals to sue telephone solicitors for misrepresentations
or failure to honor individual do-not-call requests similar
to the Telemarketing Sales Rule.
Another
Michigan House Bill has been proposed which would allow criminal sanctions
for knowing or willful violations of the states telemarketing
law.
MISSOURI
A
Missouri trial judge recently issued summary judgment in favor of
a mortgage broker holding that the Missouri do-not-call
list does not apply to his activities. The Missouri law contains several
exemptions, but the Attorney General has attempted to enforce the
list even against exempt companies. It is uncertain whether or not
the Attorney General will appeal this Order.
OHIO
MCI
has closed a call center in Ohio and claims that the closure is a
direct result of the impact of the federal and state do-not-call
lists. The closure was in the District of Democrat Tim Ryan, one of
the only Congressmen to vote against the do-not-call list
implementation law in 2003.
UTAH
Utah
has amended its Telephone and Facsimile Solicitation Act to adopt
the Federal Trade Commissions do-not-call registry.
The law also makes changes in the exemptions for nonprofit organizations
recorded telephone calls.
VERMONT
Vermont
has amended its telephone solicitation law to require compliance with
the Telemarketing Sales Rule and the Telephone Consumer Protection
Act. The bill is effective immediately.
VIRGINIA
Virginia
has amended its telemarketing law to adopt the federal definition
of established business relationship and to apply its
restrictions both to calls to residences and to calls to wireless
telephones with Virginia area codes. The law also adopts the federal
do-not-call list.