Compliance News: Industry Resource Center

Our compliance department is always up-to-date on changes to telemarketing laws.

The purpose of the compliance news section is to keep our clients knowledgeable and informed about the most recent compliance changes and updates. 

The most current regulatory changes are highlighted in green.

FTC

President Bush signed two bills that impact the National Do Not Call Registry.  Senate Bill 781, The Do Not Call Registry Fee Extension Act of 2007, extended the FTC’s authority to collect funds to maintain the Do Not Call Registry.  The Registry fee for 2009 will be set at $54 for each area code (with the first five still being free of charge) and $14,850 for access to every area code (this is a reduction from the current fees). After 2009, these amounts will be increased each fiscal year in accordance with the consumer price index.  House Bill 3541, The Do Not Call Improvement Act of 2007, removes the need for consumers to have to re-register for the National DNC Registry, and requires the FTC to regularly remove telephone numbers that have been disconnected and reassigned.

FCC

The FCC ruled that it is permissible to call cell phones in connection with existing debt using auto dialers and prerecorded messages. However, prior express consent must have been given by the customer.  The FCC defines prior express consent as that of having been given during the transaction that resulted in the debt owed.  The Commission states that persons who knowingly release their phone numbers have in effect given permission to be called at the number which they have given, absent instructions to the contrary. It is the creditor's responsibility to demonstrate that the consumer provided prior express consent to be called.

Pennsylvania

House Bill 1717 was introduced.  The bill would no longer exempt organizations that conduct their own fundraising through volunteers if the organization otherwise employs the services of professional fundraisers.

A Pennsylvania congressman wants to make the federal Do Not Call Registry permanent.  The legislation introduced would eliminate the five-year expiration period and make the entry on the federal Registry permanent.

South Carolina

New legislation was passed that exempts organizations that receive revenue less than $7,500, regardless if professional fundraisers are used from registration.  The legislation also now allows charitable organizations to file their annual registration on the same date that financial reports need to be filed.

Minnesota

Effective immediately, Minnesota has enabled its state do not call list.  The National Do Not Call Registry is no longer accepting the Minnesota Do Not Call list and therefore callers must now purchase their list separately, as well as continuing to download the national registry (in some instances).  Callers will need to download the list at least once every 90 days and costs $75 each time. 

Wisconsin

Recently, Wisconsin interpreted the definition of “unsolicited telephone call” to include upsells on an inbound call.  The Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) recently confirmed that its interpretation would be a violation of the Wisconsin’s Do Not Call rules if the person is on the Do Not Call list and an upsell is attempted on an inbound phone call.

 Back to Issue 9 / March 2008