When the Law Says 'Do Not Call': This Is the First in a Three-Part Series Summarizing What You Need to Know about Compliance with Federal Legislation concerning Marketing by Telephone, Facsimile Machine or E-Mail

By Becker, Kristine M. | ABA Bank Marketing, May 2007 | Go to article overview

When the Law Says 'Do Not Call': This Is the First in a Three-Part Series Summarizing What You Need to Know about Compliance with Federal Legislation concerning Marketing by Telephone, Facsimile Machine or E-Mail


Becker, Kristine M., ABA Bank Marketing


[ILLUSTRATION OMITTED]

These days it's faster and cheaper for bank marketers to communicate with customers and prospective customer using telephones, facsimile machines and e-mail--rather than direct mail, Unfortunately, from a compliance point of view. it's also riskier. If your financial institution employs telephone. fax or e-mail marketing, you need to be aware of three federal laws:

* The National Do-Not-Call Act.

* The Junk Fax Prevention Act.

* The CAN-SPAM Act.

Ignoring these laws could subject your institution to lawsuits and fines.

Let's look at the National Do-Not-Call Act. which created the National Do-Not-Call Registry in 2003. The registry is enforced through a joint effort of the Federal Communications Commission (FCC) and the Federal Trade Commission (FTC). Although the FTC is the primary agency that enforces the registry, the FCC is the agency that has jurisdiction over banks. The purpose of the registry is to allow consumers to register their residential or mobile telephone numbers in a central database if they do not wish to receive advertising calls from businesses. As a result, companies must now subscribe to the registry and scrub their calling lists against the numbers contained in that database before making a telephone call for the purpose of inducing a consumer to purchase, rent or invest in property, goods or services.

There are a few exceptions to this rule, however. Calls that are not made for the purpose of soliciting goods or services are exempt, as are all calls made by political organizations, tax-exempt entities and telephone surveyors. Telephone calls to persons with whom companies have personal relationships (such as family members, friends or acquaintances) are also exempt. With a few exceptions, most telephone calls to businesses are exempt. In addition, if a company has an "established business relationship" (EBR) with a consumer or has obtained the signed written consent of a consumer authorizing such calls, the company is allowed to call that consumer.

What is an EBR?

An EBR means that the consumer has made a purchase or conducted another transaction with a company in the past 18 months or has made an inquiry or application regarding the company's products or services in the past three months. If a financial services or other type of company can demonstrate that it has an EBR with a consumer, the company may call the consumer even if the consumer's telephone number appears on the registry, at least until the consumer specifically requests not to be called again. If a consumer makes such a request, the company is required by law to place the consumer's telephone number on an internal list maintained by the company. (Internal do-not-call lists are discussed below in more detail.)

Accessing the National Do-Not-Call Registry

After a company determines that it will be making telephone solicitations to consumers and that the calls are not exempt, the next step is for the company to access the registry every 31 days (at www.ftc.gov). In fact, making telephone solicitations without accessing the registry is a violation of federal law by itself. In other words, if a company is making telephone solicitations to a particular area code and the company fails to access that area code in the registry to check whether a telephone number is listed, the company has violated federal law (even if it turns out that the telephone number is not listed on the registry) and may be subject to penalties.

[ILLUSTRATION OMITTED]

Although a company may obtain five area codes for free, the FTC charges an annual fee of $62 for each additional area code requested, with a maximum annual fee of $17,050 for the entire U.S. database. Companies that make low-volume telephone solicitations are permitted to check a small number of telephone numbers (10 or less) for free through the FTC's website. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

When the Law Says 'Do Not Call': This Is the First in a Three-Part Series Summarizing What You Need to Know about Compliance with Federal Legislation concerning Marketing by Telephone, Facsimile Machine or E-Mail
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.