FTC do-not-call plans could give agency one big busy signal

Computerworld - WASHINGTON -- The right to privacy in one's home should include the ability to "opt out" of receiving telemarketing calls, the U.S. Federal Trade Commission said today in announcing plans to create a national do-not-call list.
Now comes the hard part.
The FTC will have to build a system that can handle enormous volumes of requests by people anxious to get off telemarketing lists, a system that can be delivered either via the Web or by an 800-number telephone line. The FTC has already set up a Web site for people who want more information on the do-not-call list, even though the list itself isn't in place yet.
States that have set up do-not-call lists have reported higher-than-expected volumes.
Minnesota, for instance, initiated its do-not-call list on Nov. 4, and in its first day it registered more than 250,000 telephone numbers via the Web and through its automated phone system -- more than double the expected volume.
"My reaction at the time was amazement," said Bruce Gordon, a spokesman for the state's Department of Commerce, who checked the count hour-by-hour that first day. But state officials were also relieved that the system they had put in place held up, though they had to quickly add a server.
Since then, Minnesota has registered 951,000 residential telephone numbers out of 2.2 million. There are estimates that as many as 60 million people may sign up for national do-not-call registry.
Although many of the 28 states with do-not-call lists will give their lists to the federal agency, FTC Commissioner Timothy Muris is nonetheless expecting a huge demand. The FTC plans to roll out sign-ups region by region.
When that will happen depends on how quickly Congress acts on legislation giving the FTC the ability to collect fees from telemarketers to pay for the system. It is seeking to raise $16 million to cover the costs of the new initiative. The FTC will also face possible legal challenges from the Direct Marketing Association in New York and others.
At a news conference today, Muris seemed confident that Congress would act favorably and that the planned national do-not-call list would survive a court challenge. The FTC received 64,000 public comments on the plan, nearly all in support of it.
"We're not banning telemarketing sales calls; we're giving consumers the option to protection if they want the privacy in their own home. I believe the Unites States Constitution gives that right," said Muris.
The telemarketing rule changes will affect about 80% of the calls now made; charities will be exempt. And while the FTC doesn't regulate some business sectors, such as telecommunications, those sectors will nonetheless be affected by the new rules if they use for-profit telemarketing firms.
For IT managers, the creation of a national do-not-call list may benefit them by creating a single point for managing the lists, said Elizabeth Ussher, an analyst at Stamford, Conn.-based Meta Group Inc. "There will be less potential for mistakes," she said.
The telemarketing rules will also have some impact on the technology used to make calls. Predictive dialers, as they are called, automate dialing, allowing the person making the call to work more efficiently. But they also often create annoying "dead air" -- the pause between when a call is answered and when someone at the other end picks up.
The new FTC rule requires that a connection must be completed in two seconds, or a recorded message stating the name and telephone number of the seller must begin playing.