The Federal Trade Commission, concerned over reports that telemarketers are failing to honor consumer opt-out requests, will reexamine its Telemarketing Sales Rule with an eye toward strengthening it.
The Direct Marketing Association was notified of the decision last week, and is in the process of alerting its members, according to Patricia Faley, vice president for consumer affairs for the DMA.
The worst-case scenario is that the FTC will decide that the self-regulatory opt-out provision, included as a critical part of the Sales Rule in 1995, no longer works. The agency would then recommend changes to Congress.
“The opt-out is a good balance of protections for consumers and business,” Faley said. “It was agreeable to us four years ago. But if that balance is not working, we could endanger cold calling altogether.”
The problem stems from apparent from apparent violations of the Rule.
“The evidence is more anecdotal than researched, but an increased number of consumers have said, `I asked to opt out, and they called me back again,'” Faley said. “We’ve been told that it’s not the mainstream organizations.”
The problem is that consumer expectations may be out of sync with technical reality, Faley continued.
“The consumer expects opt outs to be honored in the same day they are made,” she said. “But the service bureau has to get a request by the marketer, and it may take more than a day or two.”
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