With Do-Not-Call enforced shouldn't we see some increased initial claims number?
Tomorrow's consensus is for 390K
Appeals Court Clears the FTC
To Enforce Its Do-Not-Call List
By RYAN J. FOLEY
Staff Reporter of THE WALL STREET JOURNAL
WASHINGTON -- A federal appeals court gave the Federal Trade Commission clearance to enforce its national do-not-call registry pending the outcome of legal challenges.
The victory for federal regulators -- and the millions of consumers who have listed more than 51.5 million phone numbers that they don't want telemarketers to call -- came as the federal appeals court in Denver granted the FTC's request to stay a lower-court decision.
Last month, a federal judge ruled that the FTC program violated telemarketers' free-speech rights because it allowed charities to call numbers on the list while barring calls from commercial enterprises.
FTC officials said they would begin enforcing the program immediately. "This is an important victory for American consumers," said FTC Chairman Timothy Muris in a statement. "We believe the rule fully satisfies the requirements of the U.S. Constitution, and we will now proceed to implement and enforce the Do Not Call Registry."
With Tuesday's court action, the FTC will be able to begin selling the list again to companies, allowing companies that have already purchased the list to download it, and will begin registering more consumers who want their phone numbers added to the do-not-call registry. It also means the FTC will begin investigating complaints from consumers -- something the FCC has been trying to do all along. "The ability to cooperate with the FTC will make our enforcement efforts more efficient and more effective," said Federal Communications Commission Chairman Michael Powell. "This means better protection from unwanted calls for the tens of millions of Americans who asked not to be bothered."
The court noted the telemarketers' businesses will be hurt by the registry but concluded "that the public does have strong privacy and expectation interests that weigh in favor of granting this stay pending review of the merits."
The registry has been in legal limbo since late last month -- just before its planned Oct. 1 debut. The FCC has been enforcing the program but lacked a basic tool -- the FTC's list. The lower court had warned the FTC not to share the list.
Because of the swirl of legal questions, many companies with telemarketing operations either hadn't yet purchased a copy of the FTC list or hadn't downloaded the database. As a result, many faced the choice of either violating the law or temporarily stopping selling products over the phone.
While the court ruled the FTC has a substantial likelihood of success on the merits of the case, telemarketing industry lawyers emphasized that the ruling isn't a decision on the merits and they haven't raised all of their constitutional arguments yet. The FTC has estimated that the issue could be tied up in court for as long as two years.
Tuesday's decision to lift the stay was also a major victory for the states, which found their own programs in legal limbo after the lower-court decision. More than 10 states relied on the national list for enforcement, and as a result their programs had been temporarily rendered moot. Officials from more than 45 states filed a friend-of-the-court brief on behalf of the FTC.
"At least it brings some clarity to the whole issue for both the telemarketers and the American public," conceded Sean R. Gallagher, an attorney in Denver representing the American Teleservices Association, which is challenging the rules.
But the ruling didn't address the constitutional questions, which the appeals court is still considering. The question facing the court is whether the program violates telemarketers' right to commercial speech because it allows exemptions for charities. The telemarketing industry will also argue that the program amounts to a revenue-based taxation on free speech, because companies have to pay to purchase the list. The appeal court will hear oral arguments on the matter Nov. 10.
With the ruling, consumers should start to see faster results from their complaints. The FTC's Bureau of Consumer Protection will be able to take the lead role, as had been planned, while the FCC will focus on certain industries, including banks and telecommunications companies. FTC investigators also have access to an automated system to track complaints. |
