Is Enough Being Done to Control Unwanted Telemarketing Calls?
By: Source: AARP Bulletin Today Date Posted: 2003-09-03 13:50:00-04:00
Yes Just Enforce All Existing Laws
By G.M. Mattingley
Telemarketing is one of the most heavily regulated businesses in America. It has grown to a $661 billion industry that employs some 6 million Americans. More than 180 million consumers made purchases from telemarketers last year.
Despite this huge economic contribution, telemarketing has become the favorite whipping boy of opportunistic politicians. Nowhere is this phenomenon more evident than in the rush to pass do-not-call laws. We now have 27 states with such laws, and the Federal Trade Commission is calling for a national registry. The FTC proposal does not replace any of these existing programs but simply adds one more to the list.
The biggest problem with these do-not-call programs is that they don't work. The politicians fail to inform consumers that in passing these laws, they exempted themselves from being covered by every no-call program. Nonprofits and charities are also exempt, as are companies that have an established relationship with the consumer. The FTC proposal would also not cover banks and financial institutions, the insurance industry and telephone companies, all huge telemarketing users.
Instead of new laws, we need to enforce those we have. Telemarketing has some unethical elements, as does every industry. Passing more laws isn't the answer; the scoundrels who ignore the current laws are not going to suddenly obey new ones.
Look at the FTC's enforcement actions over the last year on its website, and you'll see press releases extolling hefty fines, probation, consent decrees left and right. But look again. How many of them, including many multiple offenders, involve prison time? None. Why? Because a press release is easier than bringing a criminal action in court.
Let us take some of the millions of taxpayer dollars being spent on bloated government bureaucracies that run huge programs that don't work and put them into law enforcement where they will actually do some good.
G.M. Mattingley is director of government affairs of the American Teleservices Association, Inc., in Washington, D.C.
No National No-Call Registry Is Needed
By Susan Grant
Many consumers feel besieged by sales calls and want an easy way to stop them. Current federal law, under which you can ask telemarketers not to call again only after you've already been disturbed, is clearly inadequate. That's why nearly 30 states have created do-not-call lists, and millions of consumers have signed up for them. Before soliciting in those states, telemarketers must remove those people's numbers from call lists.
Now the Federal Trade Commission is considering whether to establish a national registration system for people who don't want to get telemarketing calls. The National Consumers League believes that proposal would give consumers more privacy. A federal do-not-call list would be especially helpful to those of us who find it difficult (or forget) to say, "Stop calling me."
| " I'll be your server, and Todd will be interrupting your dinner with annoying phone calls. " Illustration by Peter Steiner |
The list wouldn't solve all problems with unwanted calls—nonprofits and certain types of businesses would probably be exempt from the federal rule, and it might not apply to marketers that already have some sort of relationship with the people they call. To be effective, however, exceptions should be minimal.
The FTC should also set zero tolerance for hang-up calls caused by "predictive dialers." These devices are programmed to dial more numbers than there are salespeople on duty and hang up if there's no answer. This means the salesperson's time isn't wasted. But because the number of "live" calls can't be predicted with total accuracy, predictive dialing can result in "dead air" when consumers pick up the phone. And if no one is available to talk to them, consumers may think they're being stalked or harassed.
No matter what the FTC decides, consumers can help reduce their sales calls. Don't put your telephone number on contest forms, warranty registrations and applications for store discount cards since these are commonly used to compile marketing lists. For more advice, visit the Consumers League website at www.nclnet.org/privacy/stopcalling.htm.
Susan Grant is vice president of public policy of the National Consumers League in Washington, D.C.
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