[Federal Register: March 26, 2003 (Volume 68, Number 58)]
[Notices]
[Page 14659-14660]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26mr03-80]
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FEDERAL TRADE COMMISSION
Notice Concerning Telemarketing Sales Rule
AGENCY: Federal Trade Commission.
ACTION: Notice.
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SUMMARY: In this document, the Federal Trade Commission (``FTC'' or
``Commission'') announces that in response to petitions from the Direct
Marketing Association (``DMA'') and the American Teleservices
Association (``ATA''), the Commission has decided to extend the date by
which it will require full compliance with Sec. 310.4(b)(4)(iii) of
the Amended Telemarketing Sales Rule (``TSR'') until October 1, 2003.
DATES: The Commission will require full compliance with Sec.
310.4(b)(4)(iii) on October 1, 2003.
ADDRESSES: Requests for copies of the Amended Rule and this notice
should be sent to Public Reference Branch, Room 130, Federal Trade
Commission, 600 Pennsylvania Avenue, NW., Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT: Catherine Harrington-McBride, (202)
326-2452, Karen Leonard, (202) 326-3597, Michael Goodman, (202) 326-
3071, or Carole Danielson, (202) 326-3115, Division of Marketing
Practices, Bureau of Consumer Protection, Federal Trade Commission, 600
Pennsylvania Ave., NW., Washington, DC 20580.
SUPPLEMENTARY INFORMATION: On January 29, 2003, the Federal Trade
Commission published the Amended Telemarketing Sales Rule (``TSR''), 16
CFR part 310, and its Statement of Basis and Purpose in the Federal
Register.\1\ The notice stated that the Amended Rule would become
effective March 31, 2003; that full compliance with Sec. 310.4(a)(7),
the caller identification transmission provision, would be required by
January 29, 2004; and that the Commission would announce at a future
time the date by which full compliance with Sec. 310.4(b)(1)(iii)(B),
the ``do-not-call'' registry provision, would be required.
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\1\ 68 FR 4580 (Jan. 29, 2003).
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By letter dated February 27, 2003, the Direct Marketing Association
(``DMA'') petitioned the Commission either to ``forebear from enforcing
the requirements of Sec. 310.4(b)(1)(iv) * * * and Sec.
310.4(a)(6)(i) of the Telemarketing Sales Rule (TSR) or in the
alternative, stay the effectiveness of these sections of the rule * *
*.'' These are the provisions that, respectively, prohibit
telemarketers from abandoning calls, and require taping of the entire
telemarketing call in any transaction combining the use of preacquired
account information and a free-to-pay conversion offer.
Also on February 27, 2003, the American Teleservices Association
(``ATA'') petitioned the Commission to stay the effective date of the
Amended TSR pending resolution of lawsuits initiated by ATA and DMA
that challenge the validity of certain provisions of the Amended
Rule.\2\ ATA seeks, in the alternative, postponement of the March 31,
2003, effective date of the Amended TSR until the FCC has finished its
review of its regulations under the Telephone Consumer Protection Act
(``TCPA''), 47 U.S.C. 227.
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\2\ ATA v. FTC, No. 03-N-0184(MJW)(D. Col. filed Jan. 29, 2003);
DMA v. FTC, No. CIV 03-122-W (W.D. Okla. filed Jan. 29, 2003).
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Based on information submitted by the petitions together with
information obtained from other sources, the Commission has determined
that full compliance with the recording requirement of the call
abandonment safe harbor provision (Sec. 310.4(b)(4)(iii)) by March 31,
2003, many constitute an undue burden on some telemarketers and
sellers, who may need to reprogram or purchase software for their
equipment, or replace their current equipment. In some instances, it
will be very difficult or impossible to accomplish this by the March
31, 2003,
[[Page 14660]]
effective date. Therefore, the Commission has determined to extend the
date by which it will require full compliance with Sec.
310.4(b)(4)(iii) until October 1, 2003. The Commission also stays until
October 1, 2003, the date by which it will require full compliance with
the safe harbor record retention requirement, Sec. 310.4(b)(4)(iv), to
the extent it would require record keeping to document the use of a
recorded message in instances of call abandonment. The additional six
months should give industry ample time to make the changes in their
operations necessary to comply with the recording requirement of the
call abandonment safe harbor.
The requirement of full compliance with the prohibition on call
abandonment (Sec. 310.4(b)(1)(iv)) is not stayed, and the requirement
of full compliance with the other requirements of the call abandonment
safe harbor provision (Sec. Sec. 310.4(b)(4)(i), (ii) & (iv))
similarly is not stayed.\3\ The Commission determined that these
provisions are necessary to remedy the abusive practice of call
abandonment and the related abusive practice of disconnecting the call
after only one or two rings, before the consumer can reach the
telephone to answer it.\4\ Nothing the petitioners have submitted
demonstrates that telemarketers would be unable to comply with these
call abandonment provisions.
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\3\ The requirement of full compliance with Section
310.4(b)(4)(iv) is not stayed to the extent that it requires record
keeping to document compliance with Sec. Sec. 310.4(b)(4)(i) or
(ii).
\4\ See the Commission's discussion of these practices and the
TSR provisions adopted to remedy them at 68 FR at 4641 (Jan. 29,
2003).
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As the Statement of Basis and Purpose indicates, in the future the
Commission will announce the date by which full compliance with the
national ``do-not-call'' registry provisions of the amended Rule will
be required. Full compliance with all other provisions of the amended
Rule--with the exception of the Caller ID provision (Sec.
310.4(a)(7))--will be required by the date on which the amended Rule is
effective, March 31, 2003. Full compliance with the Caller ID
provisions will be required by January 29, 2004.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 03-7249 Filed 3-25-03; 8:45 am]
BILLING CODE 6750-01-M