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CNN Live At Daybreak

Nation-wide Anti-telemarketing Law a Possibility

Aired April 02, 2002 - 05:51   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Endless calls from those telemarketers, it has to be on the top ten list of things you just absolutely hate. Now New Yorkers are celebrating their move to block those annoying calls.

Yes, they used steamrollers to do it. They crushed about 100 phones. It was the New York Consumer Protection Board's way of marking the first anniversary of the Do Not Call telemarketing law. I know what you're wondering. Could we have such a law nationwide?

As CNN's Brooks Jackson reports, a proposal is already on the table, but it may hit a few busy signals along the way.

(BEGIN VIDEOTAPE)

BROOKS JACKSON, CNN SENIOR CORRESPONDENT (voice-over): Christa Hardin (ph) isn't buying, but the telemarketers just keep calling anyway.

UNIDENTIFIED MALE: We can lower your rates for $37.99...

JACKSON: As many as 10 per day, morning to night. So many, she kept a log.

UNIDENTIFIED FEMALE: Already one, two, three, four, five, six of them today.

JACKSON: Telemarketers may be the most despised industry in America, judging by the public response to a plan to block their calls. The Federal Trade Commission says it has received more than 32,000 comments on its proposal for a national Do Not Call registry and still counting -- overwhelmingly in favor.

"Where do I sign up?" "It would be wonderful." "Finally, an equivalent for a no solicitors sign, but for my phone."

Telemarketers say the proposal would cramp their freedom of speech.

JERRY CERASALE, DIRECT MARKETING ASSOCIATION: The FTC's Do Not Call list -- proposed Do Not Call list is more restrictive than necessary to meet the government needs, and, therefore, it violates the first amendment. JACKSON: But consumers say their right to privacy is more important. Example, "the Constitution doesn't say anything about anyone having the right to invade my home and talk to me just because he wants to." Lots like that.

Telemarketers are orchestrating opposing comments; 973 mostly identical messages from this one Oklahoma firm's workers alone. "This new rule will impact by job," goes the script. But consumers bristle at that. "Those people need to get real jobs." The telemarketers boilerplate says consumers like their services. "The people we call are pleasant...I am proud of what I do."

But consumers say that telemarketers should be ashamed. "I feel I am being stalked by these people." "In the name of a suffering humanity, make it stop."

The proposal would let consumers list their phone numbers on a national Do Not Call list maintained by the FTC. Telemarketers calling those numbers anyway could be fined up to $11,000 per call. But many telemarketers would not be covered, including the phone company salesman pressuring Christa Hardin (ph).

UNIDENTIFIED MALE: We're even willing to play for your first month line charge.

JACKSON: Others not covered: national banks, non-profits, such as colleges, state regulated insurance companies, local businesses calling within a state, political candidates and parties. All fall outside the FTC's jurisdiction. The industry says that means the rule won't work.

CERASALE: We're looking at, at least 50 -- probably 50 percent of the calls aren't even covered by it.

JACKSON: And many consumers agree, but they'd like even stronger action. "Telemarketing should be illegal," said many. Outlawed completely. You can already sign up for an industry-sponsored Don't Call list, send a letter or pay $5 at their Web site.

(on camera): But the complaints keep coming. Consumers calling telemarketers a plague and a curse. More than 90 percent of the commenters say they want a Do Not Call registry. And the rest, nearly all work for telemarketers.

Brooks Jackson, CNN, Washington.

(END VIDEOTAPE)

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