'Do Not Call' Legislation

Federal

FTC “Do Not Call” Registry   
Last December, the Federal Trade Commission (FTC) voted to create a national “Do Not Call” Registry.  Although most of the rule’s components became effective immediately, the national “do not call” registry included in the TSR was on hold pending approval of a Congressional FTC appropriations bill.

Central Ohio real estate brokers and agents who generate business by cold-calling for-sale-by-owners, expired for-sale listings and buyers and sellers with whom the agent has had a prior relationship should not be hindered by these new federal restrictions because the federal rule applies only to telemarketing calls that cross state lines.

NAR lobbied the FTC to extend the current exemption for calls made where the sale is not completed until after a face-to-face presentation to the provisions of the national registry, but this exemption was repealed.

The new rule contains the following narrowly tailored exemptions for existing business relationships, which is helpful to the real estate industry:

1. a telemarketer may call a consumer with whom it has an established business relationship for up to 18 months after the consumer’s last purchase, delivery, or payment, even if the consumer’s name is on the registry;
2. a telemarketer may call a consumer for up to 3 months after the consumer makes an inquiry to the company; and
3. a telemarketer may call a consumer who has provided the company written permission to call.

Beginning in July, consumers will be able to put their telephone numbers on the national registry, which telemarketers subsequently will be required to access. When registration opens in July, consumers can register for free in two ways: online or by telephone. The FTC will announce the Web site URL for online registration and the toll-free number in June.

To better manage the anticipated volume of registrations, initial sign-up by phone for the registry will be phased in, region-by-region, over an eight-week period. Online registration will be available throughout the United States in July. Names and telephone numbers will remain on the no-call list for five years. After that, consumers who wanted to remain on the registry would have to reregister.

As of October it will be illegal for most telemarketers to call a number listed on the registry.
In addition to establishing the national “do not call” registry, the amended TSR calls for other changes, including limiting abandoned calls, restricting unauthorized billing and requiring telemarketers to transmit Caller ID information.

In late March, the Federal Trade Commission said it will issue a revised proposal to amend the Telemarketing Sales Rule, adding a new section that would impose fees on entities accessing the national “do-not-call” registry.

The amendments, if adopted, would require only sellers to pay the annual fee for access to the national registry; propose an annual fee of $29 per area code, with a maximum annual fee of $7,250; allow access to up to five area codes for free; and set Oct. 1, 2003 as the effective date for the “do not call” provisions of the Amended TSR.  The only consumer information that companies will receive from the national registry is each registrant’s telephone number.

For more information, visit the FTC’s “Do Not Call” web site at www.ftc.gov/donotcall.

State

S.B. 28  ‘Do Not Call’ Registry requires the Ohio Attorney General to provide for a do-not-call registry for residential telephone subscribers, either by directly developing and maintaining the registry or by accepting a national do-not-call registry maintained by a federal agency.

S.B. 28

• Applies to intra-state telemarketing calls (made within Ohio)
• Prohibits calls to numbers on the list unless:
  - Made in response to a request
  - Made in connection to an established business relationship (established defined as within the last 18 months)
• Prohibits calls outside of 8a-9p and to phone numbers more than 30 days after the number appears on the registry 
• Requires a telephone solicitor to maintain their own do-not-call list
• Violations include stiff penalties & fines
• Does not include exemption if a subsequent, face-to-face meeting is required (i.e. real estate transaction)

Status at press time:  Opponents (and there are quite a few) formed a strong coalition.  A sub-bill was prepared but, due to other opposition, is not expected to get anywhere.  It is likely this issue will get pushed back into committee for work on another sub-bill.  However, the sub-bill did not include an exemption for subsequent, face to face meeting.  Further – we don’t have reason to believe that the next sub-bill will include the exemption. 

Position:  Oppose