FTC Official Faces Industry Music (Telemarketing)

DMNews.com ^ | 24 June 2002 | Scott Hovanyetz

[steve-b]

PALM BEACH, FL - Eileen Harrington, the Federal Trade Commission's point person on the national do-not-call list and other proposed rules, went into a den of telemarketers Friday and got an earful of complaints.

But Harrington, who met with industry representatives for a roundtable discussion at the DMA Teleservices Conference 2002 held here at The Breakers hotel, gave back as good as she got.

"You don't have a lot of credibility, to be perfectly honest," Harrington, the FTC's director of marketing practices, told the audience of approximately 50 telemarketers.

If telemarketers had adhered to the present rules, which give each company one shot at each consumer and require them to honor all DNC requests, a national DNC list would not be under discussion, Harrington said.

"This industry since 1995 has had a chance to make a company-specific do-not-call system work," Harrington said. "This is an industry that was given more than an inch and has taken more than a mile."

In her own personal experience, Harrington said, she was aware that telemarketers often try to circumvent the rules by hanging up when consumers ask to be placed on their DNC lists, or by denying that their calls are for sales purposes, then trying to make a sale. Technology, such as predictive dialers, is being abused, Harrington said.

While Harrington got to speak her mind, telemarketers at the roundtable gave voice to their frustrations and fears about the FTC's proposals. Most were concerned the FTC was punishing the entire industry for the faults of bad telemarketers and had not considered the economic impact of its proposals.

"Eventually, everybody is going on the list," said Art Conway, president of DialAmerica Marketing. "If you create this national do-not-call list, the way you have it proposed, we're going out of business."

Telemarketers at the meeting indicated they were not reassured by Harrington's statement that the FTC would be able to enforce its proposed rules against teleservices agencies outside the United States. The FTC could take legal action against overseas companies, but the process would be longer and more difficult, they said.

"By the time you get around to doing it, you're going to put a minimum of 300,000 people back on welfare," said Jon Hamilton, president of JHA Telemanagement. "Small towns, like Harlan, IA, you're going to wipe them off the map."

Many suggested that the FTC conduct an economic impact study of the effect of the proposed new telemarketing regulations. Harrington said no such study had been conducted, nor was any planned, but the FTC was accepting data from the industry and had a team of economists studying the issue.

"If you take away the channel, you're going to damage commerce," said Paul Glancy, senior vice president for call services with The Martin Agency.

[steve-b]

These guys are as brazen as Arafat when it comes to squirming for One Last Chance.

[capt. norm]

There is an even uglier side to telemarketing.

They place ads in the "help wanted" section, often lying about the job being offered. Then they quickly train the new recruits and get them on the phones calling numbers from a printed list or they may choose to call a few people they know to try to make a sale.

Usually each will make one or two sales to people they know (usually relatives) and shortly thereafter, quit when they find they can make no more sales nor do they want to hear one more angry reply on the phone.

The company pays them minimum wage and walks off with the proceeds made from that ex-employees closest friends and relatives. It's the "gift that keeps on giving" as these job-hungry people are not only, once again unemployed but now they have to take heat from their friends who got into contracts they will have to fulfill.

[steve-b]

Yep, that sounds just like the sort of sleazoids who would turn harassment into a business model.

[D-fendr]

"Eventually, everybody is going on the list," said Art Conway, president of DialAmerica Marketing. "If you create this national do-not-call list, the way you have it proposed, we're going out of business."

If everyone wants on the list, you don't zero value to offer and should go out of business.

You could still leap out from behind trees in front of people and make your sales pitch.

[D-fendr]

Oops, rather: If everyone wants on the list, you have zero value to offer and should go out of business.

[steve-b]

That statement is a confession that he knows that the "businesses" he represents are a pack of unwanted pests. Let them go into a more reputable line of work, such as turning tricks or selling crack.

[dheretic]

The company pays them minimum wage

The going rate in my town in NW Virginia is around $7.5-$9/hr.

[Joan912]

"By the time you get around to doing it, you're going to put a minimum of 300,000 people back on welfare," said Jon Hamilton, president of JHA Telemanagement. "Small towns, like Harlan, IA, you're going to wipe them off the map."

Okay, so are we to assume that any/all telemarketers who are thrown out of work will be unable to find new employment? I detest sky-is-falling scare tactics almost as much as I detest getting phone calls from telemarketers...