FTC Adds “Do Not Call” Registry to Current Telemarketing Sales Rule
The Federal Trade Commission’s amended Telemarketing Sales Rule puts consumers in control of telemarketing calls they receive at home. With the creation of the National ”Do Not Call” Registry, the FTC will make it easier and more efficient for consumers to stop getting unwanted telemarketing.
The National “Do Not Call” Registry took effect in the summer of 2003.
• In July, the registry was phased in, region by region, over an eight-week period. Consumers may register for free by contacting the FTC at 1-877-382-4357 or online at www.donotcall.gov. Their numbers will stay in the database registry for five years, unless they change phone numbers.
• Since September, telemarketers and other sellers have had access to the registry.They are required to scrub their call lists against the National “Do Not Call” Registry at least once every 90 days.
• Enforcement of the new Telemarketing Sales Rule took effect in October with violators subject to a fine of $11,000 per violation. The FTC will be working with individual states and their “do not call” lists to avoid duplication.
Businesses Exempt from the New Rules
• Long distance phone companies, airlines, and insurance companies that operate under state regulations are exempt from these new rules.
• Organizations with which you have an established business relationship can call you for up to 18 months after your last purchase, payment, or delivery, even if your name is on the “Do Not Call” Registry. The Telemarketing Sales Rule Provide Additional Consumer Benefits
• Professional telemarketers cannot call you if your telephone number is on the registry.
• For consumers who wish to receive calls, telemarketers must promptly tell you the identity of the seller, inform you that this is a sales call or charitable solicitation, disclose all material information about the goods or services they are offering, and state the terms of the sale.
• Telemarketers will be required to connect the calls to a sales representative within two seconds of the consumer’s greeting, thus reducing abandoned calls.
• Telemarketers will be required by July 2004 to transmit their telephone number and, if possible, their name to your caller ID service. This will increase their accountability and help in the law enforcement efforts.
Top 10 Ways Americans Get Scammed
1. Telephone Fraud, including “slamming” (unauthorized changing of long distance carriers) and “cramming” (billing for unauthorized services such as call waiting, voice messaging, etc.).
2. Direct mail and mail order scams, including undelivered or unordered goods, negative-option magazine/book/video solicitations (in which companies consider you to have bought the item unless you notify them that you do not want it) and fraudulent billing.
3. Telemarketing scams, including advance-fee loans, lottery cons, pyramid schemes and phony investments.
4. Scholarship scams. The National Association of Student Financial Aid Administrators estimates that some 350,000 people lose $5 million a year to financial aid scams, including money-back-guarantee pitches for help with college applications and financial aid.
5. Internet or “dot-con” fraud, including phony auctions, credit card fraud, make-money-from-home scams, unauthorized long distance charges, misleading rebate offers and deceptive advertising.
6. Travel scams, especially unusually inexpensive holiday and Spring Break packages aimed at students.
7. Motor vehicle sales and repairs, including deceptive sales practices, unnecessary repairs and overcharging for service.
8. Home contractor scams, including unnecessary repairs, misrepresentation, bill padding, shoddy workmanship and door-to-door scams including paving, yard work and “free” service inspections.
9. Credit repair, including scams that “clean up” your credit record, deceptive marketing of bill consolidation services, home mortgages and equity loans.
10. Identity theft, including credit card, Social Security and account numbers and other personal information useful in obtaining unlawful access to your cash or credit line. The FBI estimates there are 350,000 to 500,000 incidents of identity theft in the United States.
DMCC is a 501 (c)3 is a charitable organization committed to educating consumers on financial issues and providing personal assistance to consumers who have become overextended with their debt. Education is provided free of charge to consumers as well as personal counseling to identify the best options for the repayment of any unsecured debt. To speak to a certified credit counselor, call 1-954-418-1466, email contact@dmcconline.org.
DMCC is located at 700 West Hillsboro Blvd., Building 1, Suite 105, Deerfield Beach, FL 33441.
