New FCC Rules: Expert Legal Analysis with Q&A

Compliance Webinar

March 1, 2012

Joseph Sanscrainte

Law Office of

Joseph W. Sanscrainte

212-626-6934

jws@sanscrainte.com

FCC Compliance Webinar

Ryan Thurman

Director of Sales & Marketing

866-362-5478 ext. 116

Ryan@dnc.com

Compliance Solutions

DNC Scrub

Training Master

Compliance Guide

Data Enhancement

Issues

• What part of these rules applies to my organization?

• How does this affect the type of dialer I can use?

• Are pre-recorded calls totally off the table?

• Do calls to wireless devices and texts still require

consent?

• What do I need to scrub for telemarketing and collection

calls?

• What impact do the rules have on the call abandonment

rate and abandoned call message?

• When do I need to comply with the new FCC rules?

BACKGROUND

• 2008: FTC changes its prerecorded rules

– prerecorded telemarketing messages require express written consent

– Opt-out via automated keypress or voice-activated mechanism

– Technology “agnostic” – doesn’t matter how you make the call; doesn’t matter if its to a landline or wireless

– Successive, 30 day, per campaign standard for abandonment

• January 2010: FCC NPRM

– FCC correctly concludes its prerecorded rules are different

– Proposed rules keep existing FCC framework – NOT agnostic

– “Rolling” v. “successive” abandonment measurement

ISSUE 1: PRED DIAL/PREREC (PD/PR) CALLS TO CELL PHONES

• Old rule: no PD/PR to cell phones w/out PEC (PDQ)

• New rule: FCC creates two categories: – Category 1: telemarketing PD/PR calls to cell phones

– Category 2: all other PD/PR calls cell phones

• Category 1 - FCC divides THESE calls into:– Calls that constitute telemarketing generally: prior express

WRITTEN consent required

– Telemarketing calls made by tax-exempt non-profit orgs – PEC (i.e., no writing) sufficient

– HIPAA calls

• Category 2 – “catch-all”– All PD/PR calls to cells OTHER than above – PEC only

– Informational, non-telemarketing calls

ISSUE 2: PR CALLS TO RESIDENTIAL LINES

• Old rule: PEC to deliver PR TM call to residential line– UNLESS you have an EBR – then no PEC required

– FTC removed EBR exemption in August, 2008 AND required EWC

• New rule: FCC follows FTC rule– You can not rely on EBR when delivering a PR TM call

to a residential line

– You must obtain EWC for ANY such call

– FCC makes clear this ONLY applies to TM, and NOT informational and non-telemarketing calls

– New rule does not apply to HIPAA calls

ISSUE 3: ABANDONED CALL CHANGES

• Old rule: measure abandonment rate every 30 days across all calling campaigns– FTC requires measurement on a 30 day

successive day basis per campaign

• New rule: Same as FTC– Ok, almost . . . Seller has to disclose that the call

was for “telemarketing purposes” along with name and telephone number of the seller

ISSUE 4: AUTOMATED OPT-OUTS

• FTC rule: – PR TM calls that “could be answered by a person”

must have interactive voice or keypress opt-out

– PR TM calls that “could be answered by an answering machine” require toll-free # disclosure

• FCC rule: see above, but . . . – Unlike FTC, FCC requires opt-out during

ABANDONED CALL message

– Toll-free # disclosure must be made during PR TM messages that are in fact left on answering machines

ISSUE 5: IMPLEMENTATION

• “Start” point: publication of OMB’s approval

• FCC establishes:– 30-day period for abandoned call rule

– 90-day period for opt-out mechanism for PR TM calls and abandoned messages

– 12-month period for phasing out EBR exemption for PR TM calls to residential lines

– 12-month period for implementing rule that PEC be in writing for predictive dialer calls to cell phones

Special Offers: Free Wireless Number Analysis

Free State Registration Review

Ryan Thurman

866-362-5478 ext. 116

Ryan@dnc.com

Joseph Sanscrainte

212-626-6934

jws@sanscrainte.com

Contact Center Compliance Solutions

DNC Scrub

Training Master

Compliance Guide

Data Enhancement