October 2007
DNC.com Monthly Compliance Update
Table of Contents
Featured Article: Offshore Call Center Challenges and Opportunities - Part II
State Holiday Alerts: State DNC Restrictions for October and November Holidays
Pennsylvania may adopt 5 year expiration for DNC requests
Congressman to introduce bill to eliminate 5 year expiration for DNC requests
Colorado Court rules mixed-use phone can be on State's DNC List
Featured Article
by Ryan Thurman
Ryan Thurman is the Director of Sales & Marketing for Contact Center Compliance.
Visit us at DNC.com to contact Ryan Thurman.
While compliance is usually an increasing annual budget item for most companies in the U.S., offshore centers oftentimes have a different take on implementing best practices. One benefit clients have witnessed with the Federal Do Not Call Registry is that response rates for some verticals of consumer goods have gone up since the Registry has grown on size to over 143 million numbers. Offshore centers in many markets have seen this as well, and it has spurred many to increase their focus on compliance; however, some countries and offshore locations provide a haven for the bad apples in the contact center business to proliferate. Just take a look at Canada where it was recently estimated by the FTC that Canadian call centers are responsible for approximately $100 million in illegal business annually, harming U.S. consumers. In comparison, InternationalStaff.net estimates that South Asian call centers operating illegally are currently generating four to five times that amount in total revenues. In addition, InternationalStaff.net estimates that in India on any given business day, there are at least 300 call centers actively engaged in violations of U.S. telemarketing rules and that the actual number of outlaw facilities in India could be twice that figure if unincorporated operations and those with less than 10 seats are included. According to Workforce Management's Matthew Heller, Conseco, Inc. sold its India-based ExlServices because customers complained that they could not understand the call center agents, and Dell Computers pulled two of its products out of an Indian call center due to customer complaints.
E-commerce Times' columnist Anthony Mitchell estimates that less than 12 percent of Indian call centers comply with state telemarketing rules. Mitchell has worked with the Indian IT industry for 17 years, and he specializes in offshore process migration and call center program management. "Even though your own firm's programs may be in compliance," Mitchell asserts, "having out-of-compliance programs running in tandem at the same offshore facility presents risks of collateral damage in the event that enforcement efforts ever target that facility operator."
Since the advent of Voice Over IP (VoIP), call centers are sprouting up all over areas that now have enhanced telecommunications access. This has led to an increase in credit card scams, automated dialers that are used with pre-recorded messages, and other major compliance issues due to the lack of international enforcement. The FTC and State Attorney Generals in the U.S. have thus far pursued several well known U.S. corporations that violated compliance rules and even U.S. based outsourcers. There has been little news about offshore enforcement.
One of the benefits of outsourcing offshore lies in the educational background of many local economies where a job in a call center is considered a prominent position. In the call center business, your lowest paid employee is your main defense to ongoing daily compliance such as scripting rules or in-house does not call or policy requests. With a better-educated work force and more dedication to the call center as a career, more concern about compliance and following the rules goes hand in hand. This is one reason certain markets like the Philippines, Panama, and Costa Rica are exploding as sellers are becoming increasingly confident in these countries' abilities to deliver results and document compliance across the enterprise.
Starting a relationship with an offshore center is akin to getting a prenuptial agreement in the global marketplace; you want to put controls in place so that you don't get burned. As a seller, you may want to control things like making sure the data stays in your possession or that the calls are routed through your U.S. switch so that you can monitor quality and compliance. You also may need to support the outsourcer with clarifications on so-called legal gray areas so that everything is black and white in the agreement.
Proper due diligence and reference checks will help you uncover any previous issues. Ensure that the firm has a dedicated compliance officer and that they have all the necessary policies in place as well as any necessary State registration and bonding requirements up to date. Clarify the use of the client's Federal Registration (SAN number) and if calls will be placed under any Existing Business Relationships (EBR's) or under any industry exemptions such as non-profit, supervised financial lender, or newspaper/magazine seller. Make sure there are no deviations from scripts and that proper scripts are populated to account for non-rebuttal states. Newer technologies such as NICE Systems allow you to pinpoint deviations from scripts or key phrases such as "Put me on your do not call list" so that remote monitoring is not only effective for quality, but also for compliance escalation processes where database centralization is critical.
As we have seen with the majority of the enforcement actions to date, the number one impetus for a State or Federal investigation is the result of do not call violations. This is, in part, because the average U.S. consumer does not realize there are exemptions to the DNC list and that being on the list will not stop all telephone solicitations. They may not be aware because they are an existing customer or may have, for example, visited a vacation property that employs telemarketing calls, hence the importance of mitigating potential complaints before they are escalated to a regulatory authority and the importance of working with your outsourcer to have a compliance escalation plan.
For companies that outsource their call center work offshore, there is certainly more complexity when trying to stay updated with current DNC laws and the multiple DNC lists, while also adhering to reporting requirements for database centralization across the enterprise. The most efficient way for an enterprise to ensure compliance is to employ the necessary solutions to monitor internal and external processes. The proper solution not only provides the necessary tools to adhere to the Do Not Call regulations, but it can also provide real-time service to keep the call center up-to-date on consistently changing rules.
Compliance technology solutions from a company such as Contact Center Compliance (DNC.com) offer complete automation to save time and expense, the ability to clean lists before calling to prevent violations as calls are being dialed, provide centralized failsafe compliance as well as integrated rules and detailed reporting. DNC.com provides a completely hosted rule-based model with an integrated legal matrix that a company with internal call centers abroad or a company outsourcing work overseas can utilize to ensure their data is managed to remove all necessary State and Federal Do Not Call numbers as well as wireless numbers by applying the most conservative rules, including Existing Business Relationship (EBR) regulations before calls are placed that automatically centralize the company's calling lists with any new, updated company-specific DNC numbers.
Compliance Tools
QUESTIONS ABOUT DO NOT CALL REGULATIONS?
DNC.com is now offering a complimentary audio CD filled with 13 tracks of commentary from a panel of leading industry experts. Get detailed information on scrub lists, safe harbor provisions, exemptions, enforcement actions and more! To get your free CD visit DNC.com.
There are no further Holiday restrictions in October following Columbus Day, which, as announced in the previous edition of our newsletter, was on Oct. 8th and affected Alabama, Rhode Island and Utah.
Outbound calling is prohibited in Alabama, Louisiana, Rhode Island and Utah on Monday, November 12th, 2007 in observance of Veterans' Day.
Outbound calling is prohibited in Alabama, Louisiana, Rhode Island and Utah on Thursday, November 22nd, 2007 in observance of Veterans' Day.
Win a Free iPhone
Visit DNC.com at the upcoming American Teleservices Association Convention at the Assurant Offices in Miami, Florida on Oct. 22nd.
Meet us and enter to win a FREE iPhone! For more information contact us at 1-866-362-5478 or visit DNC.com.
Regulation Alerts
Pennsylvania House Bill, HB 1234, has been introduced, which would change the state Do Not Call list to use the federal five year expiration period for DNC requests. Additionally, businesses could begin to remove numbers from the list that are longer valid for the residential or wireless subscriber.
Even as the Pennsylvania house moves to possibly adopt the federal 5 year expiration period, Pennsylvania Congressman, Mike Doyle, is seeking to introduce a bill that would eliminate the five year expiration period for DNC requests from the Federal Do Not Call list. This would prevent the removal of numbers from the DNC list, including an estimated 50 million numbers due to be purged next year.
Ruling by a Colorado appellate court upheld that a residential telephone subscriber could register a number on the Colorado State DNC list that is used for business in addition to personal use. Questions of constitutionality could arise as businesses do not have "privacy interests" and Do Not Call list protections are based on privacy interests.
Contact Center Compliance Corporation
350 E Street, Suite 300A | Santa Rosa, CA 95404
866-DNC-LIST (866-362-5478) | www.DNC.com
All information contained in this newsletter has been researched to ensure accuracy. However, Contact Center Compliance will not be held legally responsible for the accuracy of this information and is not a substitution for legal counsel.