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Sept 24 — A federal judge has ruled that the Federal Trade Commission overstepped its authority in creating a national do-not-call list against telemarketers. The ruling came in a lawsuit brought by telemarketers who challenged the list, comprised of names of people who do not want to receive business solicitation calls. The immediate impact of Tuesday’s ruling was not clear.
THE LIST WAS to go into effect Oct. 1.
U.S. District Judge Lee R. West sided in favor of the plaintiffs, U.S. Security, Chartered Benefit Services Inc., Global Contact Services Inc., InfoCision Management Corp. and Direct Marketing Association Inc.
The telemarketing industry estimates that the do-not-call list could cut its business in half, costing it up to $50 billion in sales each year.
More than a dozen state with do-not-call lists plan to add their lists to the national registry this summer, the FTC said.
Telemarketers would have to check the list every three months to see who doesn’t want to be called. Those who call listed people could be fined up to $11,000 for each violation.
In reaction to the ruling, the chairman and ranking Democrat on the House Commerce committee, which authorized the list, expressed their unhappiness with the ruling.
“We were disappointed to learn that a federal district court has invalidated the Federal Trade Commission’s national do-not-call registry. We are confident this ruling will be overturned and the nearly 50 million Americans who have signed up for the do-not-call list will remain free from unwanted telemarketing calls in the privacy of their own homes,” Billy Tauzin, R-LA., and John Dingell, D-MI., said in a statement.
THE LIST WAS to go into effect Oct. 1.
U.S. District Judge Lee R. West sided in favor of the plaintiffs, U.S. Security, Chartered Benefit Services Inc., Global Contact Services Inc., InfoCision Management Corp. and Direct Marketing Association Inc.
The telemarketing industry estimates that the do-not-call list could cut its business in half, costing it up to $50 billion in sales each year.
More than a dozen state with do-not-call lists plan to add their lists to the national registry this summer, the FTC said.
Telemarketers would have to check the list every three months to see who doesn’t want to be called. Those who call listed people could be fined up to $11,000 for each violation.
In reaction to the ruling, the chairman and ranking Democrat on the House Commerce committee, which authorized the list, expressed their unhappiness with the ruling.
“We were disappointed to learn that a federal district court has invalidated the Federal Trade Commission’s national do-not-call registry. We are confident this ruling will be overturned and the nearly 50 million Americans who have signed up for the do-not-call list will remain free from unwanted telemarketing calls in the privacy of their own homes,” Billy Tauzin, R-LA., and John Dingell, D-MI., said in a statement.
