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Telemarketing Laws
Current List as of 11/14/99
1. NATIONAL -
· The Telephone Consumer Protection Act of 1991…TCPA
· The Telemarketing and Consumer Fraud Act and Abuse Protection Act of 1994
· TELEMARKETING SALES RULE - TSR
2. STATE LAWS - More then 200 telemarketing legislative initiatives were introduced in state houses across the country so far this year.
· DO-NOT-CALL LISTS - 8 STATES HAVE
In most cases, firms who use telemarketing will need to pay the states for each copy of this list
· NON-BLOCKING CALLER ID
· OTHER STATE LAWS
3. CANADIAN PARLIAMENT HAS REACTED TO CONSUMER COMPLAINTS AS WELL
· Bill C-20 passed as a package of amendments to the federal competition Act that helps government authorities crack down on telemarketing fraud:
1. NATIONAL -
· NATIONAL - THE TELEPHONE CONSUMER PROTECTION ACT OF 1991…TCPA
Restricts the use of automated telephone dialing systems (autodialers) and artificial or prerecorded voice messages for telemarketing purposes or for transmitting unsolicited telephone facsimile advertisements.
· THE TELEMARKETING AND CONSUMER FRAUD ACT AND ABUSE PROTECTION ACT OF 1994
· Telephone solicitations to residential subscribes to 8 A.M. to 9 P.M.
· Telemarketer has initiated written policies and procedures for maintaining a do-not-call list for subscribers who request not to receive further solicitations
· Telemarketers must inform and train all personnel engaged in telephone solicitation in the existence and use of the do-not-call list.
· Telemarketers must record on the do-not-call list the name and the telephone of any consumer who requests not to receive further solicitations.
· Prohibits calls to emergency lines, health care facilities, radio common carriers or to any number for which the called party is charged for the call
· Artificial or prerecorded voice message calls to residences are prohibited
· Unsolicited advertisements by telephone facsimile machines are prohibited
· Prerecorded voice messages must release the line of the called party within 5 seconds if the party has hung up
· Calls which simultaneously engage two or more lines of a multi-line business are prohibited
· Provides for the levy of $10,000 fine per violation
· TELEMARKETING SALES RULE - Issued by the Federal Trade Commission (FTC) after the TCFA & APA of 1994
· Must take prospects off calling lists if requested.
· Calling hours are restricted from 8 A.M. to 9 P.M.
· Must tell you who is calling
· Illegal to misrepresent any information
· Must tell you total cost
2. STATE LAWS - More then 200 legislative initiatives were introduced in state houses across the country so far this year.
· DO-NOT-CALL LISTS - 8 STATES HAVE
In most cases, firms who use telemarketing will need to pay the states for each time they update or receive a copy of this list.
1) ALABAMA - HB 589: COST $10, PENALTY - $200 PER VIOLATION
2) ARKANSAS -HB 1992 - PROHIBITS BLOCKING CALLER ID
HB 1564 - ESTABLISHES A STATE RUN DNC LIST(effective 7-1-2000)
3) GEORGIA HB 542 - telemarketers must disclose name and number in the first 25 seconds
HB 71, CARRIES A $2,000 FINE
4) OREGON
SB 915, business must subscribe to DNC list before telemarketing to OR residents
5) TENNESSEE - HB 677 & SB 1116:
A $500, PENALTY, $2,000 MAX PER VIOLATION, TIME 8 A.M. to 9 P.M., Caller ID non-block
6) ALASKA
7) KENTUCKY
8) FLORIDA
· NON-BLOCKING CALLER ID
STATES WHICH PROHIBITS BLOCKING CALLER ID
1) ARKANSAS
2) CALIFORNIA
3) INDIANA
4) KANSAS
5) KENTUCKY
6) LOUISIANA
7) MICHIGAN
8) NEW HAMPSHIRE
9) NEW YORK
10) TENNESSEE
11) TEXAS
12) UTAH
· OTHER LAWS OF VARIOUS STATES
1. STATES WITH RESTRICTIVE CALLING HOURS BEYOND THE FEDERAL 8 A.M. to 9 P.M. REQUIREMENT
· 10 A.M. to 9 P.M.
KENTUCKY
· 9 A.M. TO 9 P.M.
MICHIGAN
MINNESOTA
NEW MEXICO
SOUTH DAKOTA
TEXAS
· 8 A.M. TO 8 P.M.
ALABAMA
· NO SUNDAY CALLS
ALABAMA
MISSISSIPPI
· SUNDAY CALL ARE OKAY 12 P.M. to 9 P.M.
TEXAS
2. STATES WITH NO REBUTTAL LAWS - if the consumer says no to an offer, the call ends, the agent cannot try to change the caller's mind.
ARKANSAS
KANSAS
KENTUCKY
MISSISSIPPI
OREGON
PENNSYLVANIA
SOUTH CAROLINA
SOUTH DAKOTA
UTAH
WASHINGTON
3. STATES WITH TAPE RECORDING LAWS
MARYLAND
4. REGULATE WORKPLACE ELECTRONIC MONITORING
CONNECTICUT - IF A SUPERVISOR WILL BE LISTENING AND RECORDING AGENTS, NOTICE MUST BE GIVEN TO THE AGENTS
PENNSYLVANIA - AT LEASE ONE OF THE PARTIES CALLED MUST CONSENT TO THE MONITORING
3. CANADIAN PARLIAMENT HAS REACTED TO CONSUMER COMPLAINTS AS WELL
· Bill C-20 passed as a package of amendments to the federal competition Act that helps government authorities crack down on telemarketing fraud:
-Making false or misleading representation is illegal. Employers and agents are held responsible.
-Widening the net to include calls made from outside of Canada
-Requiring fair market value of any free bonus or incentive offered
-Providing penalties of up to five years in prison and a $200,000 fine.
· Bill C-54 THE PERSONAL INFORMATION AND ELECTRONIC DOCUMENTS ACT, IF PASSED THIS SUMMER WOULD GO INTO EFFECT IN ONE YEAR
Consumers must give consent before information on them is collected, used or transferred to a third party for such purposes as creating and segmenting outbound telemarketing, e-mail and inbound response campaigns and programs. Consumers have the right to find out what data is kept on file about them and to change false information in their records. If a Federal court finds in their favor, it can order corrective action and fines up to $20,000. The commissioner is empowered to audit the firm's data management practices.
The CMA support this bill as it was modeled after CMA's Privacy Code became the basis for the Canadian Standards Association (CSA) Model Code for the Protection of Personal Information, adopted in 1995.
TELEMARKETING RELATED STATE LAWS
ID HB 138 PROHIBITS BLOCKING CALLER ID
ILLEGAL 'INTIMIDATION' to repeat calls to people whom asked not to be called
IL SB 663 must remove people who request so from contact list
LA HB 144 PROHIBITS BLOCKING CALLER ID
MT SB 27 TELEMARKETING REGISTRATION
OK HB 1715 PROHIBITS BLOCKING CALLER ID
OR SB 915 CREATE DNC LIST AND PROHIBITS THE USE OF AUTODIALERS THAT DO NOT COMPLETE THE CALL TO THE CALLED PARTY
RI HB 5753 Creates the RI Telemarketing Act of 1999, requires registration
UT HB 162 Amends Utah Telemarketing Registration Act, $50 fee
TN Can't make outbound calls from unlisted numbers
UT Require marketers to hang up when they here a negative response, prohibits blocking caller-ID
WV Requires registration of telemarketers
DNC LAWS THAT HAVE DIED IN THE STATES
AL, CA, CT(4), DE, FL, ID, IN, LA(4), MD(2), MI(2), MN(2), MS(2), MT, NE, NC(3), ND, OH, PA, RI, SC(2), TN(2), TX, VA, VT, WA(2),
STATE LAWS PENDING
CA -AB 2134 DNC
CO -HB 98-1222 (1998) CREATE DNC, $400 annual fee for quarterly up-dates (DEAD)
CT -HB 5209 DNC
-HB 5535 DNC
-HB 5537 DNC
-HB 6557 DNC
DE -HB 491 1998-Registration & Bonding of telemarketers
FL -HB 3927 & SB 1594 DNC (1998-DEAD)
IL -HB 157 PROHIBITS BLOCKING CALLER ID, ADAD calls 9 a.m. to 9 p.m.
MA -SD 1083 PROHIBITS BLOCKING CALLER ID, ADAD calls 9 a.m. to 9 p.m.
MA -HB 2433 DNC
MA -HB 246 Prohibit blocking Caller-ID
ME -HB 898 DNC
MI -HB 5267 &CREATE DNC LIST, (SB 121 & HB 4250-DEAD)
MI -HB 4984 require signed agreement for valid telemarketing transactions
MI -HB 5387 Prohibit blocking Caller-ID
MI -HB 5439 Requires telemarketer registration
NE -AB 283 require telemarketers to apply for work permits
NJ -AB 2873 CREATE DNC LIST, PROHIBITS BLOCKING CALLER ID
-AB 295 Requires registration of telemarketers
NY -AB 10695 & SB 7220 DNC, Can't call to cell, page units thus sequential number calls prohibited
NC -SB 221 CREATE DNC LIST, HB 1080 CREATE DNC LIST
OH -HB 265 CREATE DNC LIST(DEAD)
OK -HB 2839 require written contact before sale is final
PA -SB 594 CREATE DNC LIST
-HB 2168 Regulates ADAD calls
SC -HB 3724 & SB 596 Prohibits telemarketing calls after 6 P.M.
TN -SB 2156 & HB 2096 Prohibits the blocking of Caller-ID
TX -HB 450 ADAD machine must disconnect the called line w/in 5-sec after call term.
VA -SB 648 DNC
WA -HB 1345 DNC
WI -SB 140 PROHIBITS BLOCKING CALLER ID
-HB 400 telephone directory listings to indicate DNC wish
WY -HB 164 telephone directory listings to indicate DNC wish
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Copyright 1998 McMillen Advertising Corporation