January 9, 2003 | Read Time: 2 minutes
The Federal Trade Commission has proposed exempting charities from a program that would prohibit telemarketers from calling consumers who sign on to a national registry.
Under the proposal, consumers would be able to contact a national hotline to have their names and phone numbers placed on a “do not call” list. Any telemarketer who phoned people on that list would be subject to fines of as much as $11,000 per violation. But nonprofit organizations and their commercial fund raisers would still be allowed to contact people on the registry.
Any telemarketing company hired by a nonprofit group, however, would have to keep its own list of people who have been contacted but who do not wish to be called again. If the company subsequently called that person, it also would face an $11,000 fine. Nonprofit groups that conduct their own fund-raising campaigns would not have to keep such a list and would not be liable for penalties.
In addition, when charities and their commercial telemarketers phone potential donors, they would be required to say early in the call what organization they are raising funds for and clearly state that the purpose of the call is to solicit a donation.
‘Welcome Relief’
Despite the requirements of the trade-commission proposal, Senny Boone, executive director of the Direct Marketing Association Nonprofit Federation, called the exemption from the registry “welcome relief for the nonprofit community.”
When — and even whether — the rules would take effect is uncertain.
The Direct Marketing Association, the telemarketing industry’s largest trade group, has pledged to challenge the proposed regulations in court and in Congress. The association views the rules as violations of its members’ right to free speech.
Details of the proposed regulations are available on the Federal Trade Commission’s Web site, http://www.ftc.gov/bcp/conline/edcams/donotcall.
