December 2007
DNC.com Monthly Compliance Update
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Table of Contents
Featured Article: The ATA Introduces Standards for the Teleservices Industry
State Holiday Alerts: State DNC Restrictions for December and January Holidays
FCC officially proposes extending the 5-year registration period for numbers on the NDNC
Pennsylvania moves to eliminate 5-year expiration of numbers on state DNC list
Connecticut senate proposes bill changing regulation of prerecorded calls
Featured Article
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.
Now that the American Teleservices Association has officially unveiled a set of comprehensive standards for inbound and outbound calling, there is little doubt that 2007 will go down as a critical turning point in the history of the teleservices industry. These standards represent the first steps (long overdue) by the industry to take control of the future of teleservices channel in the United States. The standards form the framework of a comprehensive program designed to: 1) protect consumer's privacy interests; 2) spell out the rules of engagement for inbound and outbound telephone communications; and 3) codify as much as possible the conflicting state and federal rules governing telephonic solicitation.
It is clear, based upon trends in legislation introduced at both the state and federal levels, that teleservices remains on the legislative radar screen; it is also clear that inbound teleservices is the next vista for regulation. An industry-wide self-regulatory organization (SRO) that promotes Standards that encompass all elements of teleservices would send a strong message to the regulators that, like the advertising and funeral industries, no further regulation is necessary. It will also send a strong message that the industry has finally reached a point where it is willing to do what is necessary to ensure the continued vitality of the channel while taking seriously the very real concerns of consumers.
The SRO Standards spell out in detail best practices regarding outbound/inbound calling; state registration requirements; call monitoring; and policies and recordkeeping. The Standards also provide guidance with regard to calls by (and on behalf of) charities, and also contain an initial set of recommendations with regard to data privacy. Perhaps most importantly the Standards start out with "A Teleservices Consumer Bill of Rights" ? a bold statement by the industry to the effect that consumer's rights and interests come first, and that these interests played a central role in the creation of the Standards
There are many innovations within the Standards, but perhaps none more important than the definitions. The definitions for the Standards set up a coherent and comprehensive foundation for everything that follows, and create a common terminology that cuts across the conflicting and confusing terms in the State and Federal laws. For example, when the Standards refer to an "informational call" made by a "service bureau" using a "preview dialer" to a "consumer" who is "former customer" of the "seller" responsible for call, you can be certain that you will know exactly what Standards apply, and which do not. This in and of itself represents a huge step forward for an industry struggling to deal with the many inconsistent terms used at the state and federal levels.
The Standards also reduce, wherever possible, the complexity associated with the conflicting rules among state and federal regulatory schemes. The sheer number of such regulations has made it extremely difficult for teleservices providers to maintain effective compliance, and as a result, legitimate consumer interests and expectations are not being met on a consistent basis. Perhaps the most important example of this streamlining has to do with the established business relationship (EBR) exemption to Do Not Call rules. The Standards help to clarify EBR by creating three categories ("existing customer," "former customer," and "inquiring consumer") and setting up specific rules that apply to each. By doing so, the Standards help to remove much of the confusion created by the intersection of state and federal EBR rules. The Standards also tackle such complex areas as prerecorded messaging, billing authorizations, and calls to wireless devices.
The Standards also take the important step of incorporating guidance and best practices based upon enforcement actions and opinions issued by the states, the FTC and the FCC. As a result, the Standards contain detailed instructions regarding the creation of policies and procedures, training programs, monitoring and testing of compliance, and recordkeeping. The Standards also use enforcements and opinions to clarify such areas as In-House DNC requests, extension of EBR and In-House requests to a seller's "affiliates," and disclosure rule specifics.
It is of course important for any set of Standards to address the existing set of laws governing teleservices, but the SRO Standards go much further. Included in the Standards is a set of guidelines for inbound calling, with rules governing disclosures, billing authorizations, and the use of IVR. This last category is of course extremely important ? the one area most consistently raised by regulators for future legislation is IVR systems. The Standards create best practices regarding navigation, consumer interrupt, the use of plain language, and most importantly, create a "press 0" standard that ensures that consumers can rely on getting a response with helpful information upon pressing "0" during an inbound call. The Standards also introduce best practices for charity calls, for answering machine messages, and also provide guidance with respect to maintaining the privacy and security of private information.
Although many attempts have been made to increase the visibility and viability of teleservices as a channel, I can say with certainty that these Standards, by themselves, represent a significant, necessary and welcome addition to the everyday lexicon of teleservices compliance professionals. In conjunction with an SRO program whereby the Standards are effectively promulgated and enforced, these Standards will serve as the lynchpin of a program that will focus and strengthen compliance at all levels of the industry, and in turn serve to ensure the continued vitality of the teleservices channel for years to come.
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.
Outbound calling is prohibited in Alabama, Louisiana, Rhode Island and Utah on Tuesday, December 25th, 2007 in observance of Christmas Day.
Outbound calling is prohibited in Alabama, Louisiana, Rhode Island and Utah on Tuesday, January 1st, 2008 in observance of New Year's Day.
Outbound calling is prohibited in Alabama, Louisiana, Rhode Island and Utah on Monday, January 21st, 2008 in observance of Dr. Martin Luther King, Jr. Day.
Free Webinar
Contact Center Compliance and leading teleservices attorney, Joe Sanscrainte, are hosting another in their popular series of compliance webinars on Thursday, February 7, 2008 from 10:00 AM to 11:00 AM (PST).
Do not miss learning the inside scoop on recent FTC enforcement actions that lead to $7.7 million in fines! Be one of the first 50 people to register and receive a free Starbuck's Gift Card. CLICK HERE TO REGISTER!
Regulation Alerts
Under a recent FCC proposal, telemarketers would be required to indefinitely honor National Do Not Call registrations. Registered numbers would begin to expire in June 2008 under current rules, but the new proposal would keep numbers on the registry unless cancelled by the consumer or the telephone number is disconnected or reassigned.
The introduction of State Senate Bill, SB 1116, in Pennsylvania would eliminate the 5-year expiration period for numbers registered on the state's Do Not Call list. If passed, the bill would allow telephone numbers to remain on the list until no longer valid for the residential or wireless subscriber.
The state senate of Connecticut has put forth a bill, SB 157, that would alter regulation of prerecorded calls within Connecticut. Prerecorded calls by business to consumers with whom the business has an existing business relationship (EBR) with will continue to be allowed. Prerecorded calls from political candidates however, and by entities to individuals who is not a current customer will face new regulations and restrictions.
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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.