[Congressional Record (Bound Edition), Volume 145 (1999), Part 19]
[Extensions of Remarks]
[Page 27527]
[From the U.S. Government Publishing Office, www.gpo.gov]



              TELEMARKETING VICTIMS PROTECTION ACT OF 1999

                                 ______
                                 

                            HON. MATT SALMON

                               of arizona

                    in the house of representatives

                       Thursday, October 28, 1999

  Mr. SALMON. Mr. Speaker, I rise to introduce the Telemarketing 
Victims Protection Act of 1999. The bill directs the Federal Trade 
Commission (FTC) to promulgate rules and regulations which require 
telemarketing firms to notify consumers that they are eligible to be 
placed on national and state do-not-call lists. If a consumer elects 
not to be called, the telemarketing firm must report that request to 
the appropriate state or national authority. Additionally, the 
legislation prohibits telemarketing firms from blocking the identity of 
their phone number in order to evade caller ID devices. Furthermore, it 
requires telemarketing firms to obtain (and reconcile with their own 
lists) the appropriate do-not-call list. It also amends the time of day 
telemarketers are allowed to call consumers. Under current law, 
telemarketers are prohibited from calling consumers before 8 a.m. or 
after 9 p.m. My bill would amend current law to prohibit pesky 
telemarketers from disturbing families during dinner hours. And 
finally, it requires the FTC to study appropriate penalties for 
telemarketers who repeatedly violate the law. My legislation does not 
affect organizations already exempt from current law.
  As you know, Congress has spent the last decade trying to help 
consumers cope with an industry that is out of control. Despite 
Congress' efforts, great advances in technology have enabled bad 
telemarketers to continue to flourish. According to numerous sources, 
it is estimated that consumers lose $40 billion a year to fraudulent 
telemarketers. As telemarketing operations become more sophisticated, 
so must our laws governing the industry.
  In my home state of Arizona, many consumers--especially seniors--fall 
prey to fraudulent telemarketers. The Federal Bureau of Investigations 
(FBI) estimates that Arizonans have lost roughly $100 million to fraud 
during the last five years. And, according to the Arizona Republic and 
Daniel Drake, Executive Assistant U.S. Attorney, victims from Arizona 
are lucky if they recover five percent of what they lose. According to 
FBI Special Agent Jim Whalen, ``Arizona continues to be a high target 
area for illegal telemarketers due to the State's significant number of 
elderly residents.'' Agent Whalen recently reported to the Arizona 
Republic that the average Arizonan loses $20,000 to $100,000, including 
one man who lost roughly $1.8 million. In another extreme case, the 
Arizona Republic reported that one family lost $2 million of its 
inheritance to fraudulent investment scams. And, Mr. Drake reported 
that the last three cases his agency prosecuted involved scams of $17 
million.
  Many other states besides Arizona are beginning to recognize the 
problem. Georgia, Indiana, Maryland, and Pennsylvania (to name a few) 
have or are considering legislation to set up a do-not-call list. The 
Direct Marketing Association (DMA) currently maintains a national do-
not-call list for the industry. But, too often, fraudulent and 
pernicious telemarketers target the most vulnerable who are unaware of 
their right to be placed on these lists. Currently, telemarketing 
companies are not required to subscribe to the DMA's list and simply 
putting your name on the list does not guarantee that you won't be 
called. Besides, most consumers are not even aware of their current 
rights dealing with professional telemarketers.
  Telemarketing fraud seems to be alive and well. That is why I believe 
that my legislation, particularly the consumer information section, is 
desperately needed. The FTC has repeatedly reported that the elderly 
are disproportionately represented among victims of telemarketing 
fraud. And, a survey by the American Association of Retired Persons 
(AARP) found that seniors, on the whole, were less familiar with their 
consumer rights than younger people, and they were less suspecting of 
deceptive sales practices. For consumers who know their rights and ask 
to be placed on a do-not-call list, it usually takes three months 
before their request is honored--if at all.
  The issue is neither partisan nor political. Leaders on all sides of 
the political spectrum have joined in the fight to help protect 
consumers against telemarketing fraud. In his national radio address of 
April 17, 1999 President Clinton declared war on telemarketing fraud. 
He said that ``we must fight telemarketing fraud that robs people of 
their life savings and endangers their well-being. Every single year 
illegal telemarketing operations bilk the American people out of an 
estimated $40 billion. More than half of the victims are over 50. 
That's like a fraud tax aimed directly at senior citizens.'' And, in a 
speech declaring the first week of May in Texas as Telemarketing Fraud 
Prevention Awareness Week, Governor George W. Bush said, ``Armed with 
the right information, elderly Texans can take steps to avoid becoming 
a victim of telemarketing fraud.''
  I urge my colleagues to join me in the fight against telemarketing 
fraud.

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