FCC CONSIDERS REVISING TELEMARKETING RULES
FCC Thurs. asked for comments on whether and in what ways it should update and improve its rules on telemarketing and junk faxes. Commission said it was looking for ways to improve consumer privacy protection without putting unnecessary burdens on telemarketers. “Given the number of consumer inquiries and complaints about telemarketing the Commission has received, and in light of technological and market changes, we have determined that it is time to review the rules under the Telephone Consumer Protection Act (TCPA) of 1991 on unsolicited advertising using telephones and facsimile machines,” said FCC Chmn. Powell. He said FCC was also seeking comments on establishment of national do-not- call list that would cover most telemarketing calls.
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Telemarketing practices have changed “dramatically” since Commission adopted rules to implement TCPA 10 years ago, FCC said. Modern technologies allow telemarketers to improve returns by targeting potential customers better, they said, but telemarketers still make a hundred million calls daily, FCC official said. “The new telemarketing techniques have increased public concern about the impact on consumer privacy,” FCC said.
Commission asked for comments on: (1) Whether it should change its rules to more effectively follow Congress’ directives in TCPA that individuals’ privacy rights, public safety interests and commercial freedom of speech and trade be balanced in way that protects privacy of individuals and permits legitimate telemarketing practices. (2) Whether FCC should improve existing rules or adopt additional rules on use of autodialers, prerecorded messages and unsolicited facsimile advertisements to account for technological developments in recent years and emerging telemarketing practices. (3) Whether company-specific do-not-call lists are effective. (4) Whether Commission should revisit option of establishing national do-not-call list, and, if so, how such action might be performed in conjunction with FTC’s recent proposal to adopt national do-not-call list and various existing state do-not-call lists.
Consumer Federation of America (CFA) supported FCC’s initiative to consider establishing national do-not-call list. “Consumers are being bombarded with telemarketing calls,” said CFA’s Dir. of Consumer Protection Jean Ann Fox: “We think consumers need greater ability to protect themselves from unwanted telemarketing.” She said CFA was “disappointed” when Commission chose to establish company- specific do-not-call list within TCPA in 1992 that only required companies to keep their own do-not-call lists. She said several states, such as N.Y. and Mo. had adopted do-not- call lists, and “they are very popular with consumers. It is the right time for the FCC” to implement a do-not-call list on national level.
“We need to cooperate with other government agencies” to protect consumer privacy, Comr. Copps said. FTC has already proposed amendment to its Telemarketing Sales Rule (TSR) establishing national do-not-call list, but FTC doesn’t have authority to regulate telecom. FCC said it would cooperate with FTC and, if latter proceeds with its proposed do-not- call registry or revises its TSR, FCC may need to seek additional comments. “We work closely with the FTC, and both of us want to make things as simple and effective for consumers as possible,” FCC official said: “We expect the comments will address the issue of how the two agencies can work together most effectively for consumer benefit.” However, FCC official said, “there is no guarantee that both agencies will come up with the lists.”
FCC also expressed concerns about possibility of telemarketing calls to wireless phones by autodialers, since consumers have to pay for incoming calls. “There have been sporadic reports of violations of our current ban on such calls,” said Comr. Abernathy: “The Commission will continue to vigorously enforce this ban.” However, some commissioners said, as technology evolves, it’s becoming more complicated to prevent such calls. Comr. Abernathy expressed concern that “when local number portability is implemented for wireless devices late in 2003, telemarketers will not be able to readily distinguish landline phone numbers from wireless numbers.” FCC said it was important to have technology that would help telemarketers understand whether they were calling wireless or wireline. “The marketing industry, carriers, consumers, and the Commission will need to work together to develop solutions that implement our bar against wireless calls from autodialers and the use of prerecorded messages even after local number portability is a reality,” Abernathy said.
Comments will be due 45 days after FCC notice appears in Federal Register, which will occur in about 2 weeks, FCC said. Replies will be due in 15 days after that.