ROBOCALLS Have Been Banned by FTC Ruling

BBB Predicts Change in Volume of Telemarketing Complaints

Courtesy: police.unl.edu

(LAKE OSWEGO, Ore.) - Although Better Business Bureau complaints regarding robocalls have become increasingly more common in recent years, a new law could drastically reduce complaints of this nature.

The Federal Trade Commission recently announced a rule that prevents unsolicited robocalls to consumers.

Effective September 1st, 2009, most robocalls will be illegal and telemarketers must obtain permission in writing from consumers in order to make prerecorded commercial telemarketing calls.

Telemarketers in violation can incur penalties of up to $16,000 per call.

As an amendment of the FTC's Telemarketing Sales Rule (TSR) from 2008, this new regulation enforces a strict stance against prerecorded pitches and harassment from robocallers.

According to figures cited by the White House in January, credit-card debt increased 25 percent in the past 10 years, totaling $963 billion – with per household credit card debt at nearly $9,000 now. Knowing that so many families are drowning in debt, telemarketers offering suspect financial assistance have been taking full advantage of the situation.

Consumers have reported receiving calls as early as three in the morning and on both their cell and home phones even when they have registered the numbers with federal Do-Not-Call lists. Consumers also tell BBB that, despite their requests to the telemarketers to stop calling, the calls continue to come.

"Similar to telemarketing calls claiming your auto warranty is expiring, calls offering to lower credit card interest rates also seem to have complete disregard for federal laws," said Robert. W.G. Andrew, CEO of BBB serving Alaska, Oregon, and Western Washington.

"These telemarketers are not forthcoming about the company they're calling on behalf of, but BBB has identified some offenders by working with consumers who, unfortunately, paid for assistance in reducing their interest rate."

Robocalls generally begin with recorded messages that include statements like: "There are no problems currently with your account, however it is urgent that you contact us..."

Prior to this new rule, soliciting businesses were required to provide an opt-out function in their prerecorded messages—such as a voice or keypad—activated prompt, or a toll-free phone number with an automated opt-out system. Now, these calls are prohibited regardless of whether the consumer has previously done business with the seller.

This prohibition does not include or affect "informational" calls or recorded messages from select healthcare providers, banks, telephone carriers, politicians, and certain charitable organizations.

In addition, calls that do not solicit the sale of goods or services may also be exempt.

"For those who have felt burdened by the recent influx of robocalls, it's been a long time coming,” said Robert W.G. Andrew, CEO of BBB serving Alaska, Oregon and Western Washington.

“Now, consumers can decide whether to accept or decline prerecorded telemarketing calls.”

Those who receive unwanted prerecorded telemarketing calls after the rule goes into effect, but have not agreed to them in writing, should:

• Register home and cell phone numbers on the Do Not Call List at www.donotcall.gov or call 1-888-382-1222.
• Contact the FTC and file a complaint at www.ftccomplaintassistant.gov or call 1-877-382-4357.

For more information, check with the FTC and your BBB at www.bbb.org.

Source: Better Business Bureau (BBB)