The National Association of Consumer Agency Administrators ("NACAA") appreciates the opportunity to comment on the Telemarketing Sales Rule ("Telemarketing Rule") and its importance to consumers. NACAA supports public agencies responsible for ensuring a fair and informed marketplace and representing the interests of consumers. NACAA is a nonprofit association representing approximately 165 consumer agencies at all levels of government in the United States and other countries.

NACAA member agencies across the country receive consumer complaints and inquiries about a vast array of issues and concerns, including telemarketing fraud. NACAA is supported by, and works with, various state and federal regulatory and enforcement agencies who assist in creating a fair but competitive marketplace for consumers and industries. It is from this perspective that NACAA offers the following comments for consideration by the Commission in reviewing the Telemarketing Rule.

The Telemarketing Rule is an important tool for law enforcement in the protection of consumers against fraudulent telemarketers. In particular, the opportunity of State Attorneys General to file actions in federal court is an important first step in turning the tide against fraudulent telemarketers. It has also been vital that the Federal Trade Commission has actually filed many actions against companies under the Telemarketing Sales Rule to act as a deterrent against companies that are considering engaging in such conduct. NACAA urges the Commission to continue to actively enforce the Telemarketing Rule and to increase the effectiveness of the Telemarketing Rule in protecting consumers.

NACAA supports the Comments filed by the National Association of Attorneys General. NACAA urges the Federal Trade Commission to strengthen the Telemarketing Rule to provide additional protections for consumers against fraudulent telemarketing activities. The need for additional protections are essential now more than ever because more and more illegal telemarketing companies are locating outside the boundaries of the United States. Enforcement authorities need a stronger Telemarketing Rule to reach these companies.

We specifically urge the Federal Trade Commission to:

(1) Clearly permit law enforcement to file actions against third parties that are supporting or assisting fraudulent telemarketing activities by eliminating the "actual knowledge" requirement;

 

(2) Correct the problems associated with dual purpose telemarketing calls, such as requiring the total costs of the purchase associated with a prize contest be disclosed before any other portion of the call continues and before the telemarketer solicits payment for those costs;

 

(3) Require important disclosures when telemarketers offer "free trial periods" such as disclosure of the total costs of the goods or services being sold and all terms of the free offer;

 

(4) Add a strong definition of "prompt" within the Telemarketing Rule requiring that it be immediate and at the commencement of the call;

 

(5) Limit exemptions to the Telemarketing Rule especially those that permit illegal telemarketing activities to target small businesses and clarify coverage when non-profits utilizing for-profit telemarketers who engaged in for-profit activities through the sale of goods or services;

 

(6) Clarify that the Telemarketing Rule covers international calls of telemarketers outside boundaries of the United States into the United States;

 

(7) Confirm that telemarketing activities involving the switching of a consumer’s long distance service are covered by the Telemarketing Rule;

 

(8) Establish rules making it easier for consumers to place their names on "Don’t Call Lists" such as modification of the Rule to include enrolling in any state don’t call list as considered a request by a consumer to be placed on a company’s "Do Not Call List" or by oral notification during the telemarketing call with the company required to confirm a consumer’s request to be placed on the "Don’t Call List" with a confirmation postcard from the company; and

 

(9) Require that all companies are prohibited from blocking caller identification display systems and failing to transmit identifying caller information.

NACAA wants to thank the Commission for the opportunity to submit Comments on the Telemarketing Sales Rule. Should you have any questions regarding our Comments, please feel free to contact us.

RESPECTFULLY SUBMITTED,

______________________________________
LARRY R. KAPLAN, President
NATIONAL ASSOCIATION OF CONSUMER
AGENCY ADMINISTRATORS
1010 Vermont Avenue, N. W.
Suite 514
Washington, D.C. 20005
(202) 347-7395

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