Complaints over telemarketing need better enforcement, not regulations, says CMA

The Canadian Marketing Association (CMA) says both the CRTC and its industry should find better ways to enforce telemarketing rules, rather than create new ones. The lobby group doesn’t object to a March 5 decision by the commission to ensure telemarketing rules are applied uniformly across all of Canada, and to all carriers – Order 2001-193. What does concern it, however, is a separate notice released the same day asking for comment on whether existing rules should be changed or extended – Telecom PN 2001-34. "We think it’s as much an enforcement problem as it is a regulation problem," says John Gustavson, the CMA’s president/CEO. While the responsibility for some of that rests with the CRTC and the telecom carriers it regulates, he concedes that better self-regulation is what’s ultimately required. "If the industry does not comprehensively self regulate and get itself under control, it’s going to lose the right to telemarket," Gustavson told Network Letter. "The whole field is being spoiled by a number of companies that are faxing and making phone calls at the wrong times, and refusing or not simply complying with requests with consumers to get their names off fax and telemarketing lists." In its public notice, the CRTC is asking for feedback on whether telemarketing rules can be made more effective and whether new restrictions should be placed on phone and fax solicitations. The prospect of putting market researchers and survey companies under the jurisdiction is also raised, as is the efficiency of "do not call" lists and the prohibition on automatic dialing and announcing devices (ADADs). Dealing with rising consumer complaints over "dead air" and "hang up" calls is expected to be a major issue in the proceeding. "These types of calls are very frightening for people who live alone, the elderly or single women," says Gustavson. "We assured the CRTC in the early 90s that the problem would be taken care of, and for some time, the complaints disappeared. But now it’s happening again." Gustavson says he will be meeting with officials from the Public Interest Advocacy Centre over the coming weeks to see if they can come up with ideas to deal with consumer concerns on these issues. Initial comments to PN 2001-34 are due April 24. One set of rules for all All telecom carriers, including wireless, IXCs and resellers, are now subject to the same telemarketing rules across Canada. The original restrictions, drawn from the CMA’s code of ethics, applied to Bell Canada’s operating territory, with later amendments expanding the rules to MTS and Telus (NL, July 16/00). The rules prohibit using ADADs to sell goods and services. (The CMA objected to this provision.) ADADs may still be employed in areas like debt collection and public service announcements. Calling hours are restricted from 9:30 a.m. to 8 p.m. weekdays, Saturdays from 10:30 a.m. to 5 p.m. and Sundays from noon until 5 p.m. (The commission uses the time zone of the originating caller rather than the recipient when determining compliance.) Live calls, which can include the use of automatic dialing devices to assist the telemarketer, feature no time restrictions. But callers must keep a "do not call" list which must be active for three years. Anyone who wants to be removed must be struck from the calling list within a month. Sequential and random dialing and calls to unpublished numbers are prohibited. Unsolicited faxes face similar limits. They may only be sent from 9 a.m. to 9:30 p.m. weekdays and 10 a.m. until 6 p.m. weekends. Unlike the voice restrictions, the time zone of the receiving party is used. Operators of fax marketers are also required to maintain a "do not call" list for three years. Removal from the calling list must be done within one week of the request. SaskTel complained about the time factor, since its residents live under two different time zones. The telco suggested voice restrictions should apply to the receiving party, rather than the caller.

Complaints over telemarketing need better enforcement, not regulations, says CMA

News | March 12, 2001

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