More States Are Putting Telemarketers on Hold

By Julie Rawe

In recent months, Alabama, Oregon, Louisiana and Tennessee joined the other states that maintain "do not call" lists that consumers can join and telemarketers must obey. Companies that ignore these no-call lists can pay a high price. In May, Georgia's consumer-affairs office fined TruGreen/Chemlawn $45,000 for repeated violations. In states such as Arkansas and Florida, consumers pay nominal fees to join the lists, and companies pay a few dollars for copies. "It's duplicative, and it's expensive," argues Stephen Altobelli, spokesman for the Direct Marketing Association, says of the state lists. The group maintains a nationwide no-call list of nearly 3 million consumers, although companies aren't required to use it.

States are tightening skimpy federal rules that have been in place since 1991. The Telephone Consumer Protection Act requires companies to keep a list of people who request not to receive such calls, and gives consumers the right to sue telemarketers $500 for each violation. Last month a South Carolina man took AT&T to small-claims court for repeat calls, and was awarded $700.

But federal and state no-call rules exempt so many callers--nonprofits, political parties, pollsters and certain businesses such as newspapers or Realtors--that Kentucky warns those who join its list that "approximately 95% of callers will still be able to call you." These loopholes also invite companies to team up with or pose as charities. To fight such scams, Arizona requires telemarketers to register with the state or face fines up to $10,000.

--By Julie Rawe