5.6 MILLION PEOPLE IN 13 STATES SAY ‘DON'T TELEMARKET TO ME’
Some 5.6 million telephone subscribers in 13 states have made clear their wish not to receive calls from telemarketers by placing their home phone numbers on state “no-call” telemarketing lists. Wis. last week became 14th state to enact statewide no- call list law, while similar bills in Cal. and Mich. have advanced out of their chamber of origin and are pending in opposite chamber’s committees.
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State list in N.Y. is largest, with 1.8 million names, but other states with lists have tallied subscribers in thousands to millions. The 5.6 million total doesn’t include customers in 12 other states that rely on and enforce telemarketing no-call requirements of federal law that compel telemarketers to record names of persons who ask not to be called again, and refrain from calling those people for 10 years. After N.Y. comes Mo. with 1.5 million names on its state list, then: Conn., 750,000 names; Tenn., 636,000; Ga., 224,500; Fla., 143,400; Ky, 123,000; Ind., 115,000; Ore., 43,000; Ida., 38,700; Ark., 16,000; Alaska, 5,300. Also included are 230,000 on Colo. no-call list maintained by nonprofit Bighorn Center in Denver that are likely to be incorporated into state-run no-call list that’s to debut next year under law enacted this spring..
In most of these states, telemarketers that call numbers on no-call lists face fines of $2,000-$5,000 per offending call, but in Ore., the fine can be as high as $25,000 per call and in Fla. and Ind. up to $10,000. In most cases, list administration and enforcement is through state attorney gen. or consumer protection agency, but in Tenn. and Ga. those jobs belong to state regulators, while Alaska delegates list administration to its incumbent telcos. Typically, telemarketers must pay fee, averaging around $400, to consult state lists, which generally are updated quarterly. Consumer registration in most states is free, or no more than $10.
Some 26 states considered some sort of no-call legislation this year and subject is expected to be on legislative agendas again in 2002, according to Gryphon Networks, one of several companies that have sprung up in recent years specializing in no- call list administration services.
Wis. Gov. Scott McCallum (R) signed state budget bill (SB-55) that makes his state 14th to establish statewide no-call telemarketing list. But as he said he would, he used his line- item veto powers to reduce fine for offenses to $100 from $10,000 per call and to expand exemption for charities to include fraternal organizations, political parties and most other nonprofit organizations. Legislature will return in Oct. for veto override session. State Consumer Protection Div., which will manage and enforce list, plans hearings this winter to draw up rules and guidelines. It expects list will cost $230,000 annually to run, and require 2 persons for enforcement and 3 for administration of list when it becomes operational next year. List law exempts businesses calling existing customers, political parties, fraternal organizations and other nonprofit groups. While McCallum’s decision to cut penalty drew criticism, consumer officials noted 1999 state law provided fine up to $10,000 for telemarketers that failed to disclose all terms or persisted in calling individuals who had asked that company not to call them again.
In Cal., Assembly Appropriations Committee tentatively scheduled 2nd set of hearings Sept. 6 on no-call telemarketing bill (SB-771) that would direct Cal. Dept of Consumer Affairs to establish state no-call list, enforced by $500 fine per call on first offense and $1,000 per call on additional offenses. There would be few exemptions. Appropriations panel last week added amendments to make list registrations expire after 3 years, make access to list free for telemarketers having fewer than 5 employees, and included provision prohibiting companies from encouraging their customers to sign up on no-call list as means of preventing their competitors from contacting their customers.
In Mich., Senate Technology & Energy Committee will consider whether to take up House-passed no-call list bill (HB-4042) after legislature returns for fall session Sept. 19. Bill passed by House June 30 directs PSC either to establish its own no-call list or designate as official state list an existing list such as that maintained by Direct Mktg. Assn. Telephone Preference Service. Under bill, no-call list violations would be unfair and deceptive trade practice, punishable by misdemeanor fine of $500. Mich. bill would exempt small businesses having fewer than 25 employees, charities and public safety organizations.