January 2008
DNC.com Monthly Compliance Update
Call our consulting division today for a free analysis of your data.
Contact Center Compliance will perform a one time analysis of your data for free up to 1 million records! Find out if your current solution is keeping you compliant with Federal and State laws.
In today's complex environment peace of mind is priceless.
What do you have to lose?
Email us at: info@dnc.com for more information and to get your free analysis.
Table of Contents
Featured Article: The Politics of Pre-recorded Political Calls
State Holiday Alerts: State DNC Restrictions for January and February Holidays
Free Compliance Webinar: Thursday, February 7 from 10:00 - 11:00 AM (PST)
Bell Canada awarded contract for Canadian Do Not Call List
House and Senate permanently extend registrations on the National Do Not Call
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.
One of the more enduring myths across the teleservices world is that political calling is completely off-limits to any and all state and federal regulations. Although this idea is largely correct when it comes to "live" calls, a large percentage of political calling in the United States involves the delivery of pre-recorded messages. This latter group of calls is, in fact, highly regulated, and all teleservices providers who choose to become involved in political calling need to take state and federal laws into account. Candidates for political office need to be aware of, and ensure compliance with, these rules as well ? failure to follow such rules would provide welcome, and effective, fodder for negative campaigning by opponents.
The most extensive form of regulation would be, of course, a complete ban on the delivery of pre-recorded messages, even for political purposes. The state of Arkansas, for example, pulls no punches in its rules (A.C.A. ? 5-63-204):
It shall be unlawful for any person to use a telephone for the purpose of offering any goods or services for sale . . . or for soliciting information, gathering data, or for any other purpose in connection with a political campaign when such use involves an automated system for the selection and dialing of telephone numbers and the playing of recorded messages when a message is completed to the called number.
Wyoming has a similar ban in place, and Maryland bans the use of pre-recorded calls for purposes of conducting polls.
Another form of regulation that for most, if not all, providers would amount to a de facto ban would be a requirement that a "live" person announce the call prior to delivery of the pre-recorded political message. Five states (California, Indiana, New Jersey, North Dakota, and Tennessee) have such laws in place. The California rule provides:
Whenever telephone calls are placed through the use of an automatic dialing-announcing device, the device may be operated only after an unrecorded, natural voice announcement has been made to the person called by the person calling. The announcement shall do all of the following: (1) State the nature of the call and the name, address, and telephone number of the business or organization being represented, if any. (2) Inquire as to whether the person called consents to hear the prerecorded message of the person calling.
For any entity making pre-recorded political calls into these states, the live person announcement requirement completely undermines the cost-savings associated with the use of pre-recorded message delivery. In addition to these five "announcement" states, five other states require consent before the delivery of a political pre-recorded message. This consent may take the form of a live person announcement, or it could be in a writing (these states are Kentucky, Minnesota, Mississippi, Montana, and South Carolina.)
Another major hurdle for entities making political pre-recorded calls is a requirement to register with the state into which the calls are being made. Georgia, Kentucky, New Hampshire, Tennessee and Texas all have such rules in place. A careful review of each such rule is required to determine whether it applies solely to automated dialers located within the state, or to all pre-recorded calls made into the state, independent of where the automated dialer is located.
In addition to all of the above rules, many states (and the FCC) have requirements regarding specific identification disclosures that must be made in the context of pre-recorded political calls, as well as time restrictions for placing such calls. (Maine is especially interesting on this latter point, because it mandates that only one such call can be made to any specific telephone number within any 8 hour period.) On the "do not call" front, Massachusetts requires each telephone carrier operating within the state to maintain a listing of all of its customers who wish not to receive telephone calls from an automated dialer. Massachusetts further requires "any person using an automatic telephone dialing system shall prevent such system from selecting or dialing any telephone numbers so listed." And in New Hampshire, where any entity making "telemarketing sales calls" must abide by the state DNC rules, this term specifically includes any call "made on behalf of a political campaign by a vendor using automatic dialing equipment."
The rules governing the delivery of pre-recorded messages for political purposes are, in fact, extensive and complex. The ability to deliver a high volume of calls at a low price point is, of course, going to be extremely attractive for many candidates this election cycle. The allure of making such calls, combined with the complexity of the laws governing them, will inevitably result in many programs that run afoul of the rules. They say " there's no such thing as negative press" ? my guess, however, is that this adage would definitely not apply to a candidate caught making illegal "robo" calls.
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 Monday, January 21st, 2008 in observance of Dr. Martin Luther King, Jr. Day.
Outbound calling is prohibited in Alabama and Louisiana on Tuesday, February 5th, 2008 in observance of Mardi Gras Day.
Outbound calling is prohibited in Alabama, Rhode Island and Utah on Monday, February 18th, 2008 in observance of President's Day.
Free Webinar
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
A five-year contract has been awarded to Bell Canada by the CRTC to operate Canada's National Do Not Call list (DNCL). Stipulated in the contract is a launch date for the list by September 30, 2008. Additionally, as part of their responsibilities, Bell Canada will register numbers, receive consumer complaints and also provide updated versions of the NDNCL list to telemarketers. The National DNCL will be self-financing via fees collected from telemarketers who must pay to subscribe to the list.
New legislation passed by the House of Representatives in early December removes the five-year expiration for numbers on the National Do Not Call List (NDNC). The FTC will be required to remove numbers from the list that have been either reassigned or simply disconnected, but consumers will otherwise no longer need to reregister. A second bill also passed which makes permanent the funding system for the NDNC based on collections of fees from telemarketers by the FTC.
The United States Senate followed the House by passing similar legislation, entitled "Do Not Call Registry Fee Extension Act (S. 781) and the Do Not Call Improvement Act (S. 2096). S. 781 extends the FTC's ability to collect fees and sets standard yearly fee increases for utilization of the NDNC list. S. 2096 removes the expiration for registered numbers and requires the FTC report to Congress improvements it makes to make the list more accurate.
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.