Telemarketers who call consumers who have asked not be called could be fined up to $11,000 per call under new regulations proposed by the Federal Trade Commission (FTC).

The new regulations proposed by the FTC create a nationwide "do not call" list of consumers who have indicated they do not want to get calls from any telemarketing advertiser. Consumers could add their phone numbers to the exclusion list by simply calling an automated toll-free number.

Telemarketers would be required to remove callers on the national "do not call" list from their calling lists, compare their calling lists to the national "do not call" list at least once per month, and take all measure necessary to ensure that consumers listed on the "do not call" list do not get called.

While existing federal law requires telemarketers to honor the requests of callers who ask not to be called back, the law has no provision to prevent telemarketers from calling consumers for the first time. The proposed FTC regulations would allow consumers to "opt out" in advance, preventing even initial calls from telemarketers.

According to the head of the FTC's consumer-protection division Howard Beales, an increasing number of complaints from consumers triggered the new regulations.

"There has been an enormous amount of concern expressed by consumers about calls," said Beales.

The proposed regulations would also prohibit the use by telemarketers of systems that defeat consumers' caller-ID systems. In addition, the current practices of telemarketers sharing consumers' credit card numbers, addresses and other billing information would be banned.

Before the proposed regulation can take effect, the FTC must hold public hearings, solicit comments from the public and the telemarketing industry, and refine the regulations accordingly. The hearing and revision process could take over a year, according to FTC officials.

Government budget analysts estimate the initial setup cost of the nationwide "do not call" list system to be from $4 million to $6 million, with far lower annual operating costs.

Free Speech Objections Anticipated
FTC anticipates objections to the regulations based on free-speech rights infringements and lost income will come from the powerful Direct Marketing Association. Lobbyists for the DMA contend the telemarketing industry creates more than 6 million jobs and creates annual sales of over $668 billion nationwide.

Accroding to the FTC's Howard Beales, the regulations would be constitutional because consumers, rather than the government, would be requesting not to be called. "The choice is being made by consumers. We're not saying, 'Don't call.' It's consumers saying, 'Don't call," said Beales.

Not All Calls Would be Blocked
Charities, banks, telephone companies and intrastate telemarketers are regulated by the Federal Communications Commission (FCC) rather than the FTC, and would thus be exempt from the proposed regulations. Commercial fund-raising companies working for charities would, however, be required to observe the national "do not call" list.

According to Beales, FTC officials have approached the FCC about tightening their telemarketing regulations.