FTC ANNOUNCES DO NOT CALL REGISTRY ACCESS FEE INCREASE

FROM:  U.S. FEDERAL TRADE COMMISSION 

FTC Updates Telemarketer Fees for the Do Not Call Registry as of October 1, 2014

The Federal Trade Commission has announced updated fees starting on October 1, 2014, for telemarketers accessing phone numbers on the National Do Not Call Registry.

All telemarketers calling consumers in the United States are required to download the numbers on the Do Not Call Registry to ensure they do not call those who have registered their phone numbers. The first five area codes are free, and organizations that are exempt from the Do Not Call rules, such as some charitable organizations, may obtain the entire list for free. Telemarketers must subscribe each year for access to the Registry numbers.

The access fees for the Registry are being increased as required by the Do‑Not‑Call Registry Fee Extension Act of 2007. Under the Act’s provisions, in fiscal year 2015 (from October 1, 2014 to September 30, 2015), telemarketers will pay $60, an increase of $1, for access to Registry phone numbers in a single area code, up to a maximum charge of $16,482 for all area codes nationwide, an increase from the previous maximum of $16,228. Telemarketers will pay the same as last year for numbers they subscribe to receive during the second half of the 12‑month subscription period, $30 per area code.

TELEMARKETER PERMANENTLY BANNED FROM TELEMARKETING

FROM:  FEDERAL TRADE COMMISSION 

Marketer of Robocalling Services Banned from Telemarketing

The head of an operation that enabled telemarketers to make illegal robocalls, call phone numbers on the National Do Not Call Registry, and mask Caller ID information, is permanently banned from telemarketing and robocalling under a settlement with the federal government.

In November 2011, on the Federal Trade Commission’s behalf, the Department of Justice filed a complaint alleging that Joseph Turpel sold services to telemarketers who were violating the FTC's Telemarketing Sales Rule.  The complaint alleged that Turpel knew, or consciously avoided knowing, that clients used his services while calling numbers on the National Do Not Call Registry, transmitting inaccurate caller ID information, and making illegal prerecorded telemarketing solicitations (robocalls).

According to the complaint, Turpel’s clients offered credit card services, home security systems, and grant procurement programs. He allegedly gave clients the means to hide their identity by transmitting inaccurate caller names, such as “SERVICE MESSAGE” or “SERVICE ANNOUNCEMENT,” on caller ID displays.

In addition to banning Turpel from telemarketing and robocalling, the settlement order imposes a $395,000 civil penalty that is suspended based on his inability to pay. The full penalty will become due immediately if Turpel is found to have misrepresented his financial condition.

The Commission vote authorizing DOJ staff to file the proposed  stipulated final order was 4-0. The final order was entered by the U.S. District Court for the Central District of California on April 15, 2014.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

FTC REPORTS TO CONGRESS ON "DO NOT CALL REGISTRY"

FROM:  U.S. FEDERAL TRADE COMMISSION 

The Federal Trade Commission published a biennial report to Congress focusing on the use of the Do Not Call Registry by both consumers and businesses over the past two years. The report also highlights how the FTC is responding to new technologies that have increased the number of illegal robocalls made to telephone numbers on the Do Not Call Registry.

As of September 2013, more than 223 million active numbers were registered for Do Not Call, an increase of more than 5.8 million registrations from the previous fiscal year. The Biennial Report to Congress Under the Do Not Call Registry Fee Extension Act of 2007 notes the FTC recently launched a mobile-friendly way for consumers to sign up for Do Not Call and register Do Not Call complaints, and that the agency received 27 percent of its registrations from mobile devices.

During fiscal year 2013, a total of 2,875 businesses and other entities paid more than $14 million to access the Do Not Call Registry. Another 27,626 entities were provided access, but are exempt from paying fees (because they access five or fewer area codes free of charge or are a charity).

The report notes that voice over internet protocol (VoIP), caller ID spoofing, and automated dialing technology have made it easier for individuals and companies who disregard the law to make high volumes of calls at very little cost. This led to an increase in illegal robocalls, which peaked at approximately 200,000 complaints to the FTC per month at the end of fiscal year 2012.

To combat the increase in illegal robocalls, the FTC hosted a robocall summit, sponsored a public challenge to develop technological solutions, and produced new resources for consumers. .

The Commission vote authorizing the report to Congress was 4-0.