[Federal Register Volume 68, Number 58 (Wednesday, March 26, 2003)]
[Notices]
[Pages 14659-14660]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-7249]


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FEDERAL TRADE COMMISSION


Notice Concerning Telemarketing Sales Rule

AGENCY: Federal Trade Commission.

ACTION: Notice.

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SUMMARY: In this document, the Federal Trade Commission (``FTC'' or 
``Commission'') announces that in response to petitions from the Direct 
Marketing Association (``DMA'') and the American Teleservices 
Association (``ATA''), the Commission has decided to extend the date by 
which it will require full compliance with Sec.  310.4(b)(4)(iii) of 
the Amended Telemarketing Sales Rule (``TSR'') until October 1, 2003.

DATES: The Commission will require full compliance with Sec.  
310.4(b)(4)(iii) on October 1, 2003.

ADDRESSES: Requests for copies of the Amended Rule and this notice 
should be sent to Public Reference Branch, Room 130, Federal Trade 
Commission, 600 Pennsylvania Avenue, NW., Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Catherine Harrington-McBride, (202) 
326-2452, Karen Leonard, (202) 326-3597, Michael Goodman, (202) 326-
3071, or Carole Danielson, (202) 326-3115, Division of Marketing 
Practices, Bureau of Consumer Protection, Federal Trade Commission, 600 
Pennsylvania Ave., NW., Washington, DC 20580.

SUPPLEMENTARY INFORMATION: On January 29, 2003, the Federal Trade 
Commission published the Amended Telemarketing Sales Rule (``TSR''), 16 
CFR part 310, and its Statement of Basis and Purpose in the Federal 
Register.\1\ The notice stated that the Amended Rule would become 
effective March 31, 2003; that full compliance with Sec.  310.4(a)(7), 
the caller identification transmission provision, would be required by 
January 29, 2004; and that the Commission would announce at a future 
time the date by which full compliance with Sec.  310.4(b)(1)(iii)(B), 
the ``do-not-call'' registry provision, would be required.
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    \1\ 68 FR 4580 (Jan. 29, 2003).
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    By letter dated February 27, 2003, the Direct Marketing Association 
(``DMA'') petitioned the Commission either to ``forebear from enforcing 
the requirements of Sec.  310.4(b)(1)(iv) * * * and Sec.  
310.4(a)(6)(i) of the Telemarketing Sales Rule (TSR) or in the 
alternative, stay the effectiveness of these sections of the rule * * 
*.'' These are the provisions that, respectively, prohibit 
telemarketers from abandoning calls, and require taping of the entire 
telemarketing call in any transaction combining the use of preacquired 
account information and a free-to-pay conversion offer.
    Also on February 27, 2003, the American Teleservices Association 
(``ATA'') petitioned the Commission to stay the effective date of the 
Amended TSR pending resolution of lawsuits initiated by ATA and DMA 
that challenge the validity of certain provisions of the Amended 
Rule.\2\ ATA seeks, in the alternative, postponement of the March 31, 
2003, effective date of the Amended TSR until the FCC has finished its 
review of its regulations under the Telephone Consumer Protection Act 
(``TCPA''), 47 U.S.C. 227.
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    \2\ ATA v. FTC, No. 03-N-0184(MJW)(D. Col. filed Jan. 29, 2003); 
DMA v. FTC, No. CIV 03-122-W (W.D. Okla. filed Jan. 29, 2003).
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    Based on information submitted by the petitions together with 
information obtained from other sources, the Commission has determined 
that full compliance with the recording requirement of the call 
abandonment safe harbor provision (Sec.  310.4(b)(4)(iii)) by March 31, 
2003, many constitute an undue burden on some telemarketers and 
sellers, who may need to reprogram or purchase software for their 
equipment, or replace their current equipment. In some instances, it 
will be very difficult or impossible to accomplish this by the March 
31, 2003,

[[Page 14660]]

effective date. Therefore, the Commission has determined to extend the 
date by which it will require full compliance with Sec.  
310.4(b)(4)(iii) until October 1, 2003. The Commission also stays until 
October 1, 2003, the date by which it will require full compliance with 
the safe harbor record retention requirement, Sec.  310.4(b)(4)(iv), to 
the extent it would require record keeping to document the use of a 
recorded message in instances of call abandonment. The additional six 
months should give industry ample time to make the changes in their 
operations necessary to comply with the recording requirement of the 
call abandonment safe harbor.
    The requirement of full compliance with the prohibition on call 
abandonment (Sec.  310.4(b)(1)(iv)) is not stayed, and the requirement 
of full compliance with the other requirements of the call abandonment 
safe harbor provision (Sec. Sec.  310.4(b)(4)(i), (ii) & (iv)) 
similarly is not stayed.\3\ The Commission determined that these 
provisions are necessary to remedy the abusive practice of call 
abandonment and the related abusive practice of disconnecting the call 
after only one or two rings, before the consumer can reach the 
telephone to answer it.\4\ Nothing the petitioners have submitted 
demonstrates that telemarketers would be unable to comply with these 
call abandonment provisions.
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    \3\ The requirement of full compliance with Section 
310.4(b)(4)(iv) is not stayed to the extent that it requires record 
keeping to document compliance with Sec. Sec.  310.4(b)(4)(i) or 
(ii).
    \4\ See the Commission's discussion of these practices and the 
TSR provisions adopted to remedy them at 68 FR at 4641 (Jan. 29, 
2003).
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    As the Statement of Basis and Purpose indicates, in the future the 
Commission will announce the date by which full compliance with the 
national ``do-not-call'' registry provisions of the amended Rule will 
be required. Full compliance with all other provisions of the amended 
Rule--with the exception of the Caller ID provision (Sec.  
310.4(a)(7))--will be required by the date on which the amended Rule is 
effective, March 31, 2003. Full compliance with the Caller ID 
provisions will be required by January 29, 2004.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 03-7249 Filed 3-25-03; 8:45 am]
BILLING CODE 6750-01-M