FCC Aligns Rules with FTC?
by Joseph Sanscrainte
On January 22, 2010, the Federal Communications
Commission (FCC) released a Notice of Proposed Rulemaking (NPRM) regarding
its rules governing the delivery of prerecorded calls (these rules appear
at Title 47, Section 64.1200 in the Code of Federal Regulations).
As the FCC correctly points out, its prerecorded rules
are different than the rules promulgated by the Federal Trade Commission
(FTC), which has long caused confusion and frustration for entities in the
telemarketing space. The FCC proposes, in the NPRM, to help alleviate this
confusion by streamlining its rules with the FTC's.
In 2008, the FTC changed its rules regarding the delivery
of prerecorded messages. These new rules mandate that all prerecorded
telemarketing messages delivered by entities subject to the jurisdiction
of the FTC are prohibited unless the sender has a signed, written
agreement from the recipient (or the call meets one of three very limited
carve-outs.) In addition, the FTC required all prerecorded calls to allow
the called consumer to, via an automated keypress or voice-activated
mechanism, assert a Do Not Call request to the company making the call.
Finally, the FTC determined that it would adopt a "successive 30-day, per
campaign" standard for determining a company's abandoned call rate.
The FCC is specifically seeking comment with regard to
the following:
- Whether its existing "express consent" provision should be changed
to required "express written consent"
- Whether the FCC should reconsider its determination that an
established business relationship may be deemed to constitute express
invitation or permission to receive unsolicited prerecorded
telemarketing calls
- Whether the FCC should exempt calls that are subject to HIPAA from
the general prohibition on prerecorded message calls to residential
lines
- Whether the FCC should conform its rule to the FTC's rule by
requiring interactive opt-out mechanisms at the beginning of any
prerecorded call
- Whether the FCC should adopt a "per campaign" limitation to its
abandoned call measurement standard
Although the FCC appears to believe it is addressing all
of the differences with the FTC's rules, there is a danger that in fact
the new rules may create yet further complexities. Fundamentally, the FTC
approaches its prerecorded rules from a "technology-agnostic" standpoint -
the rules apply if you make a prerecorded call, and it doesn't matter how
the call is generated, and it doesn't matter whether it is made to a
landline or a wireless device. The FCC, on the other hand, appears to be
proposing to keep much of its existing language - and this language
divides calls up depending upon whether they are made by "an automatic
telephone dialing system" (aka, a predictive dialer) or to (amongst other
things) a "cellular telephone service."
This language poses many complexities, especially for
entities (e.g., debt collectors), seeking to contact individuals via their
wireless devices for purposes other than offering the sale of goods or
services. Finally, the FCC's proposal with regard to its abandonment rate
measurement standard still does not conform entirely with the FTC's - the
FCC does not appear interested in addressing its "rolling" 30 day period
versus the FTC's "successive" 30 day period language.
Here's a modest proposal (with apologies to Jonathan
Swift): if the FCC seeks to "harmonize" its prerecorded rules with the
FTC's rules, it could just copy the FTC's rules verbatim - attempting to
keep the skeleton of its rules intact may create more confusion than it
resolves.
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