They have become the bane of practically everyone who owns a telephone, whether cell or land-line: so-called “robocalls.” These prerecorded commercial telemarketing calls come in at all hours of the day and night, and until now, there wasn’t much anyone could do about them.
But that’s all going to change Tuesday, when such calls will be prohibited unless the telemarketer has obtained permission from consumers who say they want to receive them, or if message senders meet other conditions.
Mike Boynton, vice president of marketing with the Better Business Bureau of Greater Atlanta, explains the details of the new rule and how it will affect consumers and businesses:
Q: Explain exactly what the new rule states with regard to these prerecorded telemarketing calls.
A: The new requirement is part of amendments to the Federal Trade Commission’s Telemarketing Sales Rules (TSR) that were announced a year ago. It states that sellers and telemarketers who transmit prerecorded messages to consumers who have not agreed in writing to accept such messages will face penalties. These calls are prohibited whether or not consumers have previously done business with the seller.
Q: How large are the penalties?
A: Penalties can be as high as $16,000 per call. The FTC will rule on penalties for each instance based on things like how egregious the violations are, whether there is harassment and other factors like that. I believe they will lend their full weight to this to send a strong message to the marketplace.
Q: How does this new requirement amend the TSR that went into effect last year?
A: Under the previous rule, which took effect on Dec. 1, 2008, telemarketing robocall messages by businesses covered by the TSR must tell consumers how to opt out of further calls at the start of the message, and also provide an automated opt-out mechanism that is voice- or keypress-activated. And prerecorded messages left on answering machines must provide a toll-free number that connects to the automated opt-out mechanism.
Q: Are there any types of prerecorded calls that are exempt from the rule?
A: Yes there are. The rule amendments do not prohibit calls that deliver purely informational recorded messages, as long as they don’t attempt to interest consumers in the sale of any goods or services. Nor do they apply to calls concerning the collection of debts if the calls don’t seek to promote the sale of goods or services. Also, calls from politicians, banks, telephone carriers, most charitable organizations and certain health care messages are not covered by the new rule.
Q: What specifically do you mean by “purely informational recorded messages”?
A: These would be messages that notify recipients that their flight has been canceled, for example, or that an appliance will be delivered at a certain time.
Q: What should consumers do if they receive robocalls after Tuesday?
A: Consumers who receive prerecorded telemarketing calls after the rule goes into effect, but have not agreed in writing to get them, should file a complaint with the Federal Trade Commission, either at www.ftc.gov or by calling 1-877-FTC-HELP.
Q: Do you have any advice for businesses that use telemarketing as a sales and marketing tool?
A: They should be aware of all of the regulations governing telemarketing. If they have any doubt, they can check with the FTC, which spells out the requirements that are designed not only to protect consumers, but also businesses.
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