This document summarizes the top 10 outbound and inbound compliance issues discussed in a webinar. The issues included the FTC DNC registry data, new FCC rules on prerecorded messages and predictive dialers, safe harbor provisions, myths about inbound calling, preview dialing, a proposed public safety DNC list, and enforcement trends. The webinar provided an overview of the issues and took polls of participants to gauge use of different dialing strategies and perspectives on related compliance topics.

1. Top 10 Outbound and Inbound
Compliance Issues Webinar
August 21, 2012

2. Top 10 Outbound and Inbound Issues
Ryan Thurman 866-362-5478 ext. 116
Director of Sales & Marketing Ryan@dnc.com
Joseph Sanscrainte 212-626-6934
Law Office of jws@sanscrainte.com
Joseph W. Sanscrainte
David van Everen 925-201-2014
VP, Online Marketing dvaneveren@five9.com

3. Session Objectives: Top 10 Issues
Issue 1: FTC DNC Registry Data Book
Issue 2: Latest numbers and stats on wireless usage in U.S.
Issue 3: What “safe harbor” means for DNC compliance
Issue 4: New FCC rules on prerecorded messages
Issue 5: New FCC rules on predictive dialers
Issue 6: New FCC rules on automated opt-outs
Issue 7: Inbound calling myths . . . BUSTED!
Issue 8: Preview dialing: what’s up with that?
Issue 9: New FCC NPRM on PSA DNC List
Issue 10: Enforcement trends
Webinar recording will be available on DNC.com

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 calls
Poll: What type of dialers or calling strategies are in use today?
Hosted or cloud based?

5. DNC and Wireless Overview
Demise of the Outbound Call Center?
FTC Registrations Over Last 5 Years
2006 2007 2008 2009 2010
Entities who paid 6,824 6,242 4,618 3,923 3,383
5 or fewer area codes 58,816 59,337 46,559 40,406 34,206
Exempt entities 845 801 1,107 1,002 680

6. Issue 2: Latest numbers and stats
on wireless usage in U.S
Poll: Fines for Calling Wireless Numbers?

7. Issue 3: To qualify for safe harbor, a seller must
demonstrate that as part of its routine business
practice 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. 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. 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. • 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. 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. 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. 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. 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. 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. ISSUE 8: PREVIEW DIALING
POLL: 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. 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. 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. Questions ?
Ryan Thurman
Special Offers: 866-362-5478 ext. 116
Free Wireless Number Report DNC.COM
Free Compliance Report Ryan@dnc.com
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