Attorney General's News Release

April 12, 2002

AGs to FTC: Don't preempt No Call lists; Missouri Attorney General leads group comments

Jefferson City, Mo. — Missouri Attorney General Jay Nixon today led a group of 50 state Attorneys General in telling the Federal Trade Commission that they do not want a proposed national No Call registry to preempt successful state No Call efforts. The comments were submitted to the FTC as that agency considers establishing a national No Call registry as well as making other changes to the federal Telemarketing Sales Rule.

“No Call laws have been a wildly successful endeavor in Missouri and every other state where they are in place,” Nixon said. “Public support has been overwhelming for one simple reason — they work. We welcome the FTC as an ally in helping us protect consumers. We want to ensure, however, that federal actions support and supplement — not undermine and preempt — what we are doing at the state level. In Missouri consumers don't need to call Washington, they only need to call 1-866-NOCALL1. ”

Missouri has been recognized as a national leader for its success in reducing telemarketing calls. More than 938,000 home telephone numbers — representing an estimated 2.3 million Missourians — are on the No Call list maintained by Nixon's office, and Nixon has recovered $540,000 from telemarketing violators of the law in only nine months. No Call registries calls have been established in 15 other states, and another five states presently are implementing such databases.

The Attorneys General said the FTC's proposal should expressly state that a federal registry would not preempt state No Call registries. Leaving this issue as an open question, “would be in stark contrast to earlier Commission statements regarding the complementary relationship the Telemarketing Sales Rule was intended to have with state laws” Nixon said. “Preemption would contrast with those intentions expressed by Congress in granting the Commission authority to promulgate the Rule in the first place.”

In comments to the FTC, the Attorneys General said that past positions of the FTC on telemarketing have emphasized the non-preemption of state efforts and have created a strong partnership among federal and state law enforcement agencies to protect consumers. That partnership, they said, has resulted in numerous, significant cases being brought against telemarketing violators.

States historically have enforced their consumer protection laws within, as well as across, state lines to protect their citizens. That enforcement has included legal action against telemarketers across the country that violated No Call registries. If the FTC doesn't clearly state there is no preemption, consumer protection by the states to enforce No Call laws could be at risk, Nixon said.

A second area of concern for the Attorneys General was the potential for consumer confusion over the coverage of the FTC registry. Some media accounts have referred to a national list as a “one-stop” process to reduce telemarketing calls, a view the Attorneys General believe is inaccurate because the FTC lacks jurisdiction over several industries that use extensive telemarketing as well as over intrastate calls. “It may be one stop shopping for the telemarketers but it is not one stop shopping for the consumers,” Nixon said. “To receive maximum protection, the consumer must also register at the state level.”

The Attorneys General urged the FTC to view the establishment of a national No Call registry as the beginning part of the process to better protect consumers. The comments emphasized the need for the FTC to fully commit to the ongoing steps of implementation, maintenance and enforcement of the law, as well as continual consumer education.

In commenting on other portions of the Telemarketing Sales Rule, Nixon and the other Attorneys General:

• Praised the FTC for suggested changes that would prohibit telemarketers from obtaining consumers' billing information from third parties rather than from the consumers themselves. The transfer and use of consumer billing by multiple vendors — particularly those using “trial offers” which require the consumer to affirmatively cancel an offer to stop charges — have caused significant problems for consumers in the last several years.
• Commended the FTC for proposing to limit the methods that telemarketers can acquire “express verifiable authorization” to make electronic debit withdrawals from consumers' bank accounts. The proposal also expands the scope of when a telemarketer must obtain such authorization.
• Suggested the FTC include specific language in the Telemarketing Sales Rule regarding charitable solicitations so that action could be brought against charitable organizations, as well as professional fundraisers, for violations of the rule. Many states have consumer protection laws that cover both charitable organizations and professional fundraisers.

In addition to Missouri; Alabama, Arkansas, Connecticut, Florida, Georgia, Idaho, Indiana, Kentucky, Maine, New Jersey, New York, Oregon, Tennessee, Texas and Wyoming have No Call lists in effect; California, Colorado, Louisiana, Pennsylvania and Wisconsin presently are implementing lists.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818