For decades, telemarketers have been able to call consumers directly to market their services. Although it was a successful marketing technique, it had the effect of turning off some consumers-especially when companies employed more invasive practices, such as calling during dinnertime. As such, there was a public demand for legislature limiting telemarketing companies long before the legislature that created today's national Do Not Call registry was enacted.
The first attempt to limit telemarketing came in 1991, with the Telephone Consumer Protection Act. Congress designed a list of questions for consumers to ask telemarketers. The list included the following questions:
- Are you calling to sell me something?
- What is your full name?
- What is the company name?
- Do they have a Do Not Call list?
- Can you put me on that list?
If the caller refused to answer, or answered "no," to any of these questions, the consumer was granted the right to sue them in court.
However, many consumers felt that this protection didn't go far enough. Congress asked the FCC to create a national Do Not Call registry. However, the FCC judged that this measure would be too costly to telemarketers. Instead, they instituted a more cost-efficient system, requiring companies to keep in-house Do Not Call lists. To stop receiving calls, a consumer had to contact each company and ask to be put on their list-or wait until they received a call.
Although this saved telemarketers money and did not limit them too severely, it was not a popular measure with consumers. However, it went unchanged for about ten years. Around 2002, a drop in long-distance rates made American numbers more accessible to overseas telemarketers, many of which were scam artists. To protect consumers, congress and the FTC joined forces to create the national Do Not Call registry and the laws that enforce it.
President Bush signed the Do Not Call Implementation Act into law on March 11, 2003. This law made it illegal for telemarketers to call consumers with whom they do not have a prior business relationship. It also limited times of day when telemarketers could call, the use of auto-dialing technology, and the area codes accessible to telemarketers. It enforced severe fines for calling numbers on the national Do Not Call registry, and it required telemarketers to keep their own in-house Do Not Call lists up-to-date with the national Do Not Call registry.
To comply with the new law, the FTC opened the national Do Not Call registry on June 27, 2003. Many states followed with their own Do Not Call registries, with which telemarketers also had to comply.
After Do Not Call laws were scheduled to take effect, several lawsuits were filed on behalf of some states concerned about free speech rights, and companies worried about their ability to market to customers. The constitutionality of the national Do Not Call registry and its legislation was challenged. On February 17, 2004, the 10th Circuit Court of Appeals upheld the constitutionality of the Do Not Call registry.
Although there may continue to be challenges in court over various aspects of the Do Not Call legislation, chances are it's here to stay. It has changed the way companies do business, but not all the changes have been negative. Forcing companies to rethink their marketing strategies may ultimately make them stronger.
Also read: Making Your B2B Sales Calls More Effective Despite the National Do Not Call list
