January 23, 2002

UNION-TRIBUNE STAFF WRITER

National List Would Curb Telemarketing By Kim Peterson

In perhaps its toughest stance yet against invasive telemarketing, the federal government yesterday proposed compiling a national list of telephone numbers that are off-limits to sales calls. The Federal Trade Commission said people could eliminate most telemarketing calls by adding their telephone numbers to a centralized "Do Not Call" registry. It could be at least a year before the idea becomes a reality. Companies that continue to phone people on the list could be fined up to $11,000 per call, according to the proposal. Telemarketers also would be banned from blocking their telephone numbers from caller ID devices, and from selling or sharing consumers' credit card or account numbers. The registry would not completely eliminate telemarketing calls, however, said commission spokeswoman Catherine Harrington-McBride. "While this would not be a panacea, we believe it would pretty significantly limit the calls that consumers don't want to get," she said. The proposal lacks some important details, such as how much the registry would cost to create and maintain. Also missing is whether the federal government's plan would pre-empt similar "Do Not Call" programs in the works in at least 25 states, including California. A marketing trade association came out against the proposal yesterday, saying the government was overstepping its boundaries and possibly violating the American right to free speech. "There are First Amendment issues, we think," said Jerry Cerasale of the Direct Marketing Association. "We are concerned about that." Some people actually benefit from phone solicitations and even get shopping ideas from them, the association said. Under the proposal, people could decide to receive telemarketing calls from specific companies. For example, someone could sign up to block calls from all companies except Sprint. The proposal would strengthen efforts already under way to control telemarketing, the commission said. In 1995, the commission ruled that telemarketers must state four things in each call: who they are, why they are calling, what they are selling and, in the case of prize promotions, that no purchase or payment is necessary to win. Telemarketers also were banned from calling people before 8 a.m. or after 9 p.m. The rules don't apply to certain companies, however, including banks, credit unions, nonprofit organizations and insurance firms. Some say they are skeptical about the government's plan. There is always a way for telemarketers to get around the rules, said Robert Bulmash, founder of Private Citizen, an organization formed to fight junk mail and unsolicited sales calls. Telemarketers could set up partnerships with insurance companies, for example, which could exempt them from many restrictions, Bulmash said. There would be so many exceptions that the rules would be ineffective, he added. "This is a ruse," he said. Florida's "Do Not Call" list is so effective that a national law isn't necessary, said Terence McElroy, a spokesman for the state's consumer services department. "I can't imagine it would do a whole lot more," he said. About 140,000 people have submitted their phone numbers to the Florida list, and they report that telemarketing calls have dropped from three each day to about one per week, McElroy said. "It's one of the best consumer protection programs we offer," he said. California is planning to start its own plan next year, but a federal registry might eliminate the need to do so, said Joanne McNabb, chief of the state's privacy protection office. "Potentially a federal (program) would be more effective," McNabb said. Cerasale said the Direct Marketing Association has formed a subsidiary that could help telemarketers keep track of all the government and private lists of people who do not want to be called. That would be more appropriate than a national registry, he said. A New York-based company has already worked out deals with telephone carriers to do the same thing. Call Compliance continually updates numbers in its database, and telemarketers using the system are prevented from calling people who prefer to be left alone, said company chairman Dean Garfinkel. Telemarketers prefer it this way, he said. "They don't want to call people who don't want to be called," he said. "They really don't, because it's a waste of time for them." Bulmash at Public Citizen took the opposite view. "If telemarketers didn't call people who didn't want to be called, they'd be out of business," he said. "Nobody wants to be called." Bulmash said people who receive unwanted telemarketing calls must specifically ask to be put on the company's "Do Not Call" list. People also should avoid giving out their phone numbers whenever possible, he said.