August 2007
DNC.com Monthly Compliance Update
State Holiday Alerts
Outbound calling is prohibited in Rhode Island on Monday, August 13th, 2007 in observance of Victory Day.
Featured Article
LEST WE FORGET: ISSUES IN WIRELESS CALL COMPLIANCE
by Joseph Sanscrainte
Joseph Sanscrainte is an attorney with Bryan Cave, LLP, specializing in telemarketing law.
Visit us at DNC.com for information on contacting Joseph Sanscrainte.
Compliance with state and federal rules has come a long way in the teleservices industry. There was a time not too many years ago where few, if any, telemarketing companies had one individual tasked with managing compliance issues. Today most of the big players in the industry have a dedicated Compliance Officer, very often with his or her own staff, whose job it is to stay one step ahead of the regulations. There was also a time when "compliance" meant "we still haven't been fined yet, so we must be doing something right"; today, telemarketers understand that a comprehensive, proactive compliance program is necessary in order to even have a chance at claiming the protection of statutory "safe harbor" provisions.
There is one area, however, that many in the industry have yet to properly address: wireless calling compliance. A brief history: in June of 2003, the FCC adopted changes to its regulations implementing the Telephone Consumer Protection Act of 1991 (TCPA). Among many other changes, the FCC also clarified its definition of the term "automatic telephone dialing equipment." Specifically, the FCC made it clear for the first time that a predictive dialer "falls within the meaning and statutory definition of ?automatic telephone dialing equipment' and the intent of Congress." This clarification, coupled with the FCC's affirmation of its rule that "under the TCPA, it is unlawful to make any call using an automatic telephone dialing system . . . to any wireless telephone number," meant that telemarketers using predictive dialers had to ensure that no calls were made to wireless numbers.
An additional, and ultimately more complex, problem was presented by Wireless Number Portability (WNP). Since the start of WNP on November 24, 2003, United States consumers have had the ability to "port" their phone numbers from one wireless service to another, as well as to port numbers between wireless and wireline services.
Prior to WNP, the vast majority of wireless numbers were trackable via area code and exchange (NPA - NXX-(X); after WNP, for each number ported, the number of potentially untrackable wireless numbers increased.
There are several options to identify the "trackable" wireless numbers, including the list maintained by the Direct Marketing Association, and Telcordia's "Local Exchange Routing Guide." For "ported" wireless numbers (especially those that were ported from the landline universe), the only source is Neustar's "Intermodal Ported Telephone Number Identification Service" (available at www.tcpacompliance.us.) Under the FCC's rules, companies have a 15-day implementation period to ensure that no calls are placed to numbers ported from landline to wireless services. Managing these lists, and properly incorporating them into calling campaigns, can be a frustrating and complex experience for even the most sophisticated of companies.
To add a little more fuel to the wireless compliance fire, individual states have their own rules with regard to such calls. The FCC regulates these calls based upon the method by which the calls are made (i.e., predictive dialers). The states, meanwhile, regulate such calls based upon the intent of the call (i.e., whether the call is made for the purpose of making a sale.) For example, New Jersey prohibits all telemarketing sales calls to wireless numbers, regardless of how the phone call is made. In addition, the wireless companies themselves have taken action to stop illegal telemarketing calls to their subscribers. In September of 2005, Verizon Wireless filed lawsuits against two telemarketers that allegedly had made calls in violation of FCC rules.
The dangers associated with wireless calling issues come from many angles, and teleservices professionals would be well advised to take heed of them. Where a company lacks the internal resources to properly address these issues, it would be proper (and advisable) to seek out the advice and assistance of outside third-party experts.
Compliance Tools
QUESTIONS ABOUT DO NOT CALL REGULATIONS?
DNC.com is now offering a complimentary audio CD filled with 13 tracks of commentary from a panel of leading industry experts. Get detailed information on scrub lists, safe harbor provisions, exemptions, enforcement actions and more! To get your free CD visit DNC.com.
Enforcement Actions
TWO TELEMARKETERS PERMANENTLY BANNED FROM MISSOURI
On July 24th, 2007, a St. Louis judge ruled that two companies facing charges of repeatedly violating Missouri's No Call list could no longer contact Missouri residents after they failed to appear in court.
LIST BROKERS LIABLE FOR SELLING TO FRAUDULENT TELEMARKETERS
On July 31st Lydia Parnes, Director of the FTC Bureau of Consumer Protection, in testimony to the Senate Committee on Commerce, Science, and Transportation Subcommittee on Consumer Affairs, Insurance, and Automotive Safety, stated that the FTC has made targeting fraudulent and abusive telemarketing a top priority.
Win a Free iPhone
Visit DNC.com at the upcoming American Teleservices Association free one-day compliance seminar in Dallas, Texas at the Verizon Auditorium on Thursday, September 6th and enter to win a FREE iPhone!
For more information, or to register for this free one-day seminar, contact us at 1-866-362-5478 or visit DNC.com.
Contact Center Compliance Corporation
350 E Street, Suite 300A | Santa Rosa, CA 95404
866-DNC-LIST (866-362-5478) | www.DNC.com
All information contained in this newsletter has been researched to ensure accuracy. However, Contact Center Compliance will not be held legally responsible for the accuracy of this information and is not a substitution for legal counsel.