The FTC has posted its new regulations controlling unsolicited telemarketing calls on its site at www.ftc.gov/donotcall. The FTC’s new Telemarketing Sales Rule (TSR) is designed to give consumers a choice about whether or not they want to receive most telemarketing calls. Scheduled to be available for sign-up nationally in July, the federal “do not call list” will make it illegal for most telemarketers to call those on the list. Once available this summer, consumers can sign up for no-call list either on line (at a yet to be announced web address) or through a toll-free number. Registration on the FTC list will be free, valid for 5 years, and then renewable for another 5 years. Consumers can withdraw their numbers from the list upon request to the FTC. Starting this October, most telemarketers will be prohibited from calling any numbers on the list; they will be required to periodically check the list, and purge any numbers listed from their calling lists. Severe penalties will be imposed on any telemarketers who violate the new regulations by calling any phone numbers on the FTC list. Other new consumer protection features are also included in the new TSR, specifically requiring telemarketers to transmit valid caller ID information (this requirement goes into effect in 2004), controlling automated dialers using recorded sales pitches, and restricting unauthorized billing scams.

Because of the prevalence of telemarketing problems, the FTC has posted a series of helpful documents on the Internet at their “do not call” website. While the Texas Public Utilities Commission (www.puc.state.tx.us) periodically has a nominally priced sign-up procedure (typically less then $5 for a 5 year registration) available online directly from a State contractor at www.texasnocall.com, by mail, or by phone at 1-866-TXNOCAL (1-866-896-6225), there are some online scams being propagated by spam mail or by illicit telemarketers. It should also be noted that the Texas list only regulated intrastate solicitations. There is also a legitimate national no-call list ($5 for online registration) maintained by the Direct Marketing Association (DMA) at www.dmaconsumers.org. Some scammers are offering to register individuals on state or DMA lists at greatly inflated prices. The FTC has taken notice of such questionable activities, and posted a warning on its no-call web page “consumer” link “Fraud on the Line: Avoiding "Do Not Call" Scams”. Some scammers are even using the no-call solicitation for even more nefarious uses, such as identity theft. The FTC has warned that some telemarketers are soliciting for the FTC list (which is not yet available), claiming to represent the FTC, or some other provider of no-call services. The caller typically asks for personal information to verify that you want to be on the list. In reality, the caller may be a con man that may use your personal information to steal your identity, open credit accounts, and charge goods in your name. The FTC warns that once signed up for a legitimate no-call list, it is not necessary to confirm personal information. The FTC and other legitimate registrars will never use unsolicited calls to ask consumers to be put on a no-call registry.

Also on the FTC website is information for telemarketers. This information states that the no-call list will be available to telemarketers in September, and that they will have 90 days to purge their calling lists of any numbers listed. They are also required to recheck their lists every 90 days to delete any new numbers registered. There is a substantial fine of up to $11,000 per violation, giving telemarketers a significant incentive not to make illicit calls to listed numbers. Consumers will be able to file complaints about possible violations online. Not all companies and organizations will be required to abide by the TSR rules, but those that are exempt must remove your number upon request. While charities themselves are generally exempt from the no-call requirements, those that use professional telemarketing fundraisers are covered by the TSR, and these telemarketing fundraisers must not call any numbers on the FTC list.

There are also other consumer protections included in the TSR. The rules prohibit deceptive and abusive telemarketing acts and practices, and prohibits unwanted late-night telemarketing calls. The rules restrict telemarketing calls to the hours between 8 a.m. and 9 p.m., local time. Callers must also immediately inform you of the true identity of the seller or charitable organization before they can make any sales pitch, and cannot conceal the fact that the call is a sales call. Telemarketers are prohibited from lying about any terms of their offer. The new regulations also restrict the use of automatic dialing equipment that play a recorded message, and then tie up the consumer’s phone line until a sales rep can come on the line. A recorded sales pitch is also prohibited during this waiting period, and the identity and phone number of the caller must be disclosed if the sales rep does not immediately come on the line.

When the FTC posts the final Internet address of the federal no-call list, I will announce it here in the Examiner.

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