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Do-Not-Call List Blocked by First Amendment

Aired September 26, 2003 - 15:38   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.


MILES O'BRIEN, CNN ANCHOR: Now some telephone static. Despite support from Congress and the president, the do-not-call list may need some rescuing. Early next week President Bush signs the express legislation enacted by Congress yesterday. The national list that targets telemarketers continues to face hang-ups though. The most recent a federal judge in Colorado who struck it down as a violation of telemarketers free speech.
Greg Clarkin of CNN financial news has the latest. These federal judges just don't like the list, do they?

GREG CLARKIN, CNNfn CORRESPONDENT: No, I tell you, Miles. And actually over the last few minutes we've even had some developments. The FTC saying they will appeal the case -- decision handed down by the judge in the Denver Case yesterday. Now that decision basically found that the do-not-call list did not stand up under scrutiny in terms of free speech rights. Basically the judge defining it discriminated against the telemarketers, the commercial entities that want to call you with telephone solicitations. And here's how.

The do-not-call list has exemptions. Those exemptions are charities, politicians, political calls as well as pollsters and survey takers. So they basically are exempted. They still is call you. And what the telemarketing industry has been saying all along that that is a discrimination and it is -- it violates their right to free speech. That if you're going to bar them from calling that these other folks shouldn't be exempt as well.

Yesterday a judge agreeing with the telemarketing industry in striking down do-not-call list. We have now this issue really has kind of wound up in the courts. The FTC saying that they will appeal the judge's decision.

This again throws into question what happened October 1? That was the day that the almost 51 million phone numbers on the list were supposed to not be called by telemarketers. Whether or not that happens remains to be seen.

But we do know that the largest industry group, the industry trade group called the Direct Marketing Association has already asked their members to respect the list one way or the other come Wednesday. They're telling us if someone has raised their hand and said please don't call me, that it makes good business sense and common sense not to call that individual or that household. So they are asking their members, the actual telemarketers not to call those people come Wednesday regardless of where the list stands in terms of the legal wrangling.

So that's some of the latest developments here. What is expected next is that the president will sign the legislation, which really was the first legal setback to rectify the first legal setback from midweek. The president is expected to sign that Monday. And what remains to see is how the court process unfolds over the weekend and into next week -- Miles.

O'BRIEN: So let me get this straight, Greg. Did the judge imply if the exemptions were removed for political activities and charities, this particular do-not-call list would past muster?

CLARKIN: Didn't go that far in the division. Basically saying on the grounds as it's constructed right now that it did discriminate against the telemarketers, against the commercial enterprises.

O'BRIEN: OK, Greg Clarkin, watching this for us in New York. Thanks very much.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired September 26, 2003 - 15:38   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: Now some telephone static. Despite support from Congress and the president, the do-not-call list may need some rescuing. Early next week President Bush signs the express legislation enacted by Congress yesterday. The national list that targets telemarketers continues to face hang-ups though. The most recent a federal judge in Colorado who struck it down as a violation of telemarketers free speech.
Greg Clarkin of CNN financial news has the latest. These federal judges just don't like the list, do they?

GREG CLARKIN, CNNfn CORRESPONDENT: No, I tell you, Miles. And actually over the last few minutes we've even had some developments. The FTC saying they will appeal the case -- decision handed down by the judge in the Denver Case yesterday. Now that decision basically found that the do-not-call list did not stand up under scrutiny in terms of free speech rights. Basically the judge defining it discriminated against the telemarketers, the commercial entities that want to call you with telephone solicitations. And here's how.

The do-not-call list has exemptions. Those exemptions are charities, politicians, political calls as well as pollsters and survey takers. So they basically are exempted. They still is call you. And what the telemarketing industry has been saying all along that that is a discrimination and it is -- it violates their right to free speech. That if you're going to bar them from calling that these other folks shouldn't be exempt as well.

Yesterday a judge agreeing with the telemarketing industry in striking down do-not-call list. We have now this issue really has kind of wound up in the courts. The FTC saying that they will appeal the judge's decision.

This again throws into question what happened October 1? That was the day that the almost 51 million phone numbers on the list were supposed to not be called by telemarketers. Whether or not that happens remains to be seen.

But we do know that the largest industry group, the industry trade group called the Direct Marketing Association has already asked their members to respect the list one way or the other come Wednesday. They're telling us if someone has raised their hand and said please don't call me, that it makes good business sense and common sense not to call that individual or that household. So they are asking their members, the actual telemarketers not to call those people come Wednesday regardless of where the list stands in terms of the legal wrangling.

So that's some of the latest developments here. What is expected next is that the president will sign the legislation, which really was the first legal setback to rectify the first legal setback from midweek. The president is expected to sign that Monday. And what remains to see is how the court process unfolds over the weekend and into next week -- Miles.

O'BRIEN: So let me get this straight, Greg. Did the judge imply if the exemptions were removed for political activities and charities, this particular do-not-call list would past muster?

CLARKIN: Didn't go that far in the division. Basically saying on the grounds as it's constructed right now that it did discriminate against the telemarketers, against the commercial enterprises.

O'BRIEN: OK, Greg Clarkin, watching this for us in New York. Thanks very much.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com