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Top 10 Inbound And Outbound Calling Compliance Issues

Compliance Webinar update on FCC, FTC, and State issues related to telephone contact

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Top 10 Inbound And Outbound Calling Compliance Issues

  1. 1. Top 10 Outbound and Inbound Compliance Issues Webinar August 21, 2012
  2. 2. Top 10 Outbound and Inbound Issues Ryan Thurman 866-362-5478 ext. 116 Director of Sales & Marketing Ryan@dnc.comJoseph Sanscrainte 212-626-6934Law Office of jws@sanscrainte.comJoseph W. Sanscrainte David van Everen 925-201-2014 VP, Online Marketing dvaneveren@five9.com
  3. 3. Session Objectives: Top 10 IssuesIssue 1: FTC DNC Registry Data BookIssue 2: Latest numbers and stats on wireless usage in U.S.Issue 3: What “safe harbor” means for DNC complianceIssue 4: New FCC rules on prerecorded messagesIssue 5: New FCC rules on predictive dialersIssue 6: New FCC rules on automated opt-outsIssue 7: Inbound calling myths . . . BUSTED!Issue 8: Preview dialing: what’s up with that?Issue 9: New FCC NPRM on PSA DNC ListIssue 10: Enforcement trends Webinar recording will be available on DNC.com
  4. 4. DNC and Wireless Overview Issue 1: FTC National DNC Registry Data 207,264,658 million numbers on the registry Over 300 million cell phones. 50% of US has a smart phone. 13 States still holding out: 4.5 million unique State DNC numbers 3,537,200 ported cell phone numbers 1.6 million complaints. 40% of complaints are for pre-recorded callsPoll: What type of dialers or calling strategies are in use today? Hosted or cloud based?
  5. 5. DNC and Wireless OverviewDemise of the Outbound Call Center?FTC Registrations Over Last 5 Years 2006 2007 2008 2009 2010Entities who paid 6,824 6,242 4,618 3,923 3,3835 or fewer area codes 58,816 59,337 46,559 40,406 34,206Exempt entities 845 801 1,107 1,002 680
  6. 6. Issue 2: Latest numbers and statson wireless usage in U.SPoll: Fines for Calling Wireless Numbers?
  7. 7. Issue 3: To qualify for safe harbor, a seller mustdemonstrate that as part of its routine businesspractice it has: Established and written procedures to comply with the DNC rules Trained personnel in compliance procedures (including 3rd parties) Maintains and records a company specific DNC list Uses a process to employ the National DNC list Uses a process to prevent telemarketing to any DNC number Maintains records that document the compliance process Monitors and enforces compliance across the organization Follows 15 Day Update Rule for Wireless Follows 31 Day Update Rule for National DNC
  8. 8. 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 8
  9. 9. ISSUE 4: PRED DIAL/PREREC CALLS TO CELL PHONES• Old rule: no pred dial/prerec calls to cell phones w/out prior express consent• New rule: FCC creates two categories: – Category 1: telemarketing pred dial/prerec calls to cell phones – Category 2: all other pred dial/prerec 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 – prior express consent (i.e., no writing) sufficient – HIPAA calls• Category 2 – “catch-all” – All pred dial/prerec calls to cells OTHER than above – consent only – Informational, non-telemarketing calls 9
  10. 10. • Market leader in cloud- Predictive Dialer based contact center Vendor Checklist software• Founded 2001 Established, Proven• 1500+ customers Takes Compliance Seriously• 2 billion calls annually Has Compliance Partners• 100+ engineers Provides Essential Features: Abandonment• Member of PACE Safe Harbor Association Company DNC List• Multiple partners for State Regulations compliance services Compliance Reporting Phone Types Time of Day
  11. 11. ISSUE 4: PREREC CALLS TO RESIDENTIAL LINES• Old rule: you need prior express consent to deliver prerec telemarketing call to residential line – UNLESS you have an EBR – then no consent required – FTC removed EBR exemption in August, 2008 AND required express written consent• New rule: FCC follows FTC rule – You can not rely on EBR when delivering a prerec telemarketing call to a residential line – must obtain express written consent for ANY such call – FCC makes clear this ONLY applies to telemarketing, and NOT informational and non-telemarketing calls – New rule does not apply to HIPAA calls 11
  12. 12. ISSUE 5: 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 12
  13. 13. ISSUE 6: 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 13
  14. 14. 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 prerec telemarketing calls and abandoned messages – 12-month period for phasing out EBR exemption for prerec telemarketing calls to residential lines – 12-month period for implementing rule that prior express consetn be in writing for predictive dialer calls to cell phones 14
  15. 15. ISSUE 7: MYTHS REGARDING INBOUND CALLING• MYTH: “I don’t have to worry about state telemarketer registration rules if I only do inbound calls.”• FACTS: – 33 states require registration by telemarketers – 25 of these states apply their rules to INBOUND calls – Many exemptions apply, but many inbound programs need to register• MYTH: FTC TSR does NOT apply to inbound calls• FACTS: – Section 5(a) of the FTC Act gives FTC ability to enforce against “unfair” and/or “deceptive” practices – TSR may cover inbound calls based on type of offer being made – TSR may cover inbound calls based on how calls are generated – TSR covers “upsells” 15
  16. 16. ISSUE 8: PREVIEW DIALINGPOLL: Preview Dialing falls under TCPA?• 1991: TCPA is passed – “no person or entity may initiate any call [to a cell number] . . . using an automated telephone dialing system (ATDS).”• 2003: FCC decides that a predictive dialer is an ATDS.• So . . . “preview mode” in a dialer = ATDS? Devil is in the details . . .• In 2003, FCC determined that any equipment that: 1) has the “capacity to dial numbers without human intervention”; and, 2) that can “dial thousands of numbers in a short period of time” is an ATDS.• Last time I checked: 1) Preview mode requires human intervention; and 2) Preview mode has no abandoned calls – 1 to 1 calling and no “thousands of numbers being called in short period.”
  17. 17. ISSUE 9: PUBLIC SAFETY DNC?• Your government at work: as part of “Middle Class Tax Relief and Job Creation Act of 2012” the FCC has to . . . create a Do Not Call list for “public safety answering points” (PSAPs)• DNC list ONLY for automatic dialing/robocalls to PSAPs (facilities designated to receive emergency “911” calls)• There are 6100 PSAPs in the US (as per the National Emergency Number Association)• NPRM requests information regarding . . . EVERYTHING: – No legislative history for Section 6507 of Middle Class Tax Relief Act – FCC asks: “uh, aren’t there already rules prohibiting such calls?” – FCC asks: “Seriously, a list for a few thousand numbers?” – FCC asks: “Isn’t there ALREADY a list of such numbers?” – FCC asks: “Can’t we just piggyback on the FTC’s DNC list?” – FCC asks: “Do we REALLY want to widely disseminate a list of ALL emergency numbers in the United States? REALLY?” 17
  18. 18. ISSUE 10: ENFORCEMENT TRENDS• Forwarding calls from land line to wireless line: who’s responsible?• A word on political calling . . .• A few rules to live by regarding bill collecting: – DO: make sure the people actually owe money – DON’T: pretend that you’re with law enforcement – DON’T: (and I can’t stress this enough) threaten to take away a consumer’s children if they don’t pay a debt!• Business Opportunities: – Front and center for both FTC (new biz opp rule) and the states• Taking advantage of people in financial distress – Stay away from: 1) offering small, short-term loans; and 2) not revealing high cost fees and interest rates – Watch out for programs charging up-front for lowering car payments
  19. 19. Questions ? Ryan ThurmanSpecial Offers: 866-362-5478 ext. 116 Free Wireless Number Report DNC.COM Free Compliance Report Ryan@dnc.com Contact Center Compliance Solutions DNC Scrub Training Master Compliance Guide Data Enhancement
  20. 20. • Cloud-based Compliance Industry Leader• DNC.com- All in one Compliance Guide and DNC Scrub Compliance• Federal, State, and Wireless Rules & Regulations• DNC and Wireless scrubbing to be integrated with Five9• Perfect Compliance Record: 100% of Clients fine Free

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