Regulators crack down on telemarketing pitches

WASHINGTON Wed Feb 15, 2012 1:55pm EST

Related Topics

WASHINGTON (Reuters) - Telemarketers will have to get written consent before placing automated calls to consumers under new rules U.S. communications regulators voted to adopt on Wednesday.

The Federal Communications Commission will enforce stricter rules on so-called telemarketing "robocalls," mandating that these autodialed or prerecorded calls can only be placed to consumers who have already agreed in writing to receive them.

Companies will no longer be able to point to an established business relationship with a consumer to justify the automated pitches.

"Consumers have complained to us by the thousands about annoying robocalls," said FCC Chairman Julius Genachowski during the agency's monthly open meeting.

Robocalls made by charities and political campaigns and providing information like school closings, flight changes and prescription refill reminders will not be affected by the new rules.

The vote cracks down on telemarketers for banks, insurance agents, phone companies and others who used loopholes in the law that established the Federal Trade Commission's Do Not Call Registry to continue to automatically dial consumers.

"The order we adopt today will require written opt-in, and it will make it easy for consumers to opt out. We're closing loopholes that have allowed robocallers to sneak through," Genachowski said.

The FCC said the calls invade consumers' privacy. The agency added that the calls often cut into wireless customers' minutes as more consumers rely solely on wireless services and do not have landlines.

All robocalls will also have to include an automated opt-out option to allow consumers to immediately notify telemarketers that they no longer want to receive these calls.

The FCC also voted to require Voice over Internet Protocol services, or VoIP, to report network outages that affect 911 emergency calls.

The reporting requirements are already in place for traditional carriers, and the vote extends them to the nearly one-third of residential telephone subscriptions provided through VoIP services like those of Vonage Holding Corp (VG.N).

(Reporting By Jasmin Melvin; Editing by Tim Dobbyn and Gerald E. McCormick)

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (4)
wallynm wrote:
Dirty bastar#$ robo political calls should be banned.

Feb 15, 2012 5:37pm EST  --  Report as abuse
DougGunnit wrote:
Even the Wall Street Journal, panderers to anything that makes a profit, describes telemarketing calls as ‘bothersome’. That telemarketing isn’t a felony testifies to the likelihood that our ‘representatives’ in Washington are accepting money from these people as political contributions, knowing thoroughly that we overwhelmingly want this business stopped.

Feb 15, 2012 10:27pm EST  --  Report as abuse
LouannO wrote:
Finally a rule that I can agree with. Initiated by the people. These type of laws are beneficial. I think a way to give this law some teeth is to allow consumers to get the billing address for these “lower your interest rate of your credit cards”companies, who also call cell phones. This way consumers will have a way to initiate lawsuits against these companies.

Feb 17, 2012 7:04am EST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.