by Bill Cates (bio)
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This 3 part report by Bill Cates covers the No Call List in great detail as well as how it will affect your rent to own business. The article is a treasure trove of tips on how to maximize your customer referrals.

While many rent to own salespeople and business owners are panicking about the National Do Not Call Registry, you can be seizing the opportunity! Over half of our nation’s households have sent business a strong message, “Do not call us cold at home! Period! End of discussion!” It’s not how they want to meet you. So, it’s not how you’re going to meet them.

The opportunity is that you now get to focus all or most of your marketing efforts on meeting people the way they want to meet you – through an introduction. Not just a “referred lead” but an honest to goodness introduction. Stop wringing your hands with worry – like your competitors – and build a complete referral-based business. By complete, I mean – not just asking for referrals (which is still very important) – but a business that takes advantage of all the ways one can generate referrals.

In this report, I will give you a brief overview of the National Do Not Call Regulations and how they affect you. Very brief – you’ve probably seen this before. Then, I’ll give you a template for building your complete referral-based business. Are you ready for the abundance? If you follow the 4 competencies I lay out in this report, you will create a steady flow of high-quality clients/customers – through Do Not Call Safe methods.

National Do Not Call Regulations – An Overview On July 3, 2003, the Federal Communications Commission (FCC) made public its “Do-Not-Call” telemarketing rule pursuant to its authority under the Telephone Consumer Protection Act. The FCC Rule is a major overhaul of federal telemarketing rules. It is similar to, but broader than, the “Do-Not-Call” telemarketing rule published by the Federal Trade Commission (FTC) earlier this year. The FTC and FCC have now formed a combined National Do-Not-Call Registry.

The FCC Rule, unlike the FTC rule, apply all industries wishing to contact consumers in their homes or on their cell phones or by fax (with a very few exceptions). Salespeople (and their companies) are obligated to follow these new rules even in states that may have exempted them from their do-not-call rules. Compliance with the do-not-call list will be required on October 1, 2003. On January 29, 2004, your identity cannot be blocked by Caller ID. On January 1, 2005, you cannot send unsolicited faxes.

Below are some details as to how the registry will be applied. This report is intended to provide general information and guidance on this new rule. It is not intended to provide specific legal advice. For legal advice, please check with your company’s legal department, or an attorney knowledgeable in this area of the law.

The National Do-Not-Call List
The FTC has established a database whereby people can now register their home and wireless phone numbers if they do not wish to receive telemarketing calls. The FCC Rule makes use of the do-not-call list established by the FTC and sets forth the ways that telemarketers must check the list to ensure compliance. (For purposes of this report, the term “telemarketer” refers to any person or entity – including a salesperson or small business owner – making a telephone solicitation.)

Exceptions to Do-Not-Call Rule

1. Business Phone Numbers Business phone numbers may not be placed on the do-not-call list. As a result, the do-notcall rule does not prohibit or affect any telephone solicitations made to business phone numbers.

2. Established Business Relationship Calls to consumers with whom a business already has an established relationship are exempt from the do-not-call rule. An established business relationship exists when the consumer has made a purchase or entered into another transaction with the business within the 18-month period prior to the call or when the consumer has made an inquiry or application to the business within three months before the call. A consumer inquiry must have been sufficient to create an expectation by the consumer that the business will call. For example, simply calling to inquire about the location or hours of operation of a business likely would not be sufficient to bring a call to that consumer within the exemption to the FCC Rule. A request for information about specific products or services that would be appropriate for the consumer, however, likely would be sufficient for this purpose. A consumer can terminate his or her established relationship with a business for purposes of this exemption by requesting that his or her number be placed on the business’ do-not-call list.

In some situations, the established business relationship exemption can extend to affiliate companies. The exemption will extend to affiliates only if, in light of the nature and type of the goods or services offered and the identity of the affiliate, the consumer would reasonably expect the affiliate to be included within that business relationship. The FCC provides very little guidance on this standard and what would be sufficient to create such a reasonable expectation. It is likely though that given the nature of the rule, the FCC will only allow established business relationships to extend to affiliates in limited circumstances. In fact, if the consumer complains about the call, it may create a presumption by the FCC that there was not a sufficient reasonable expectation.  

3. Nonprofits, Political Organizations, Charities, Surveys The FCC Rule includes exemptions for tax-exempt nonprofit organizations, political organizations, solicitation calls on behalf of charities and calls to conduct surveys. The exemption for tax-exempt nonprofit organizations includes professional telemarketing businesses that make calls on behalf of nonprofits. This exemption applies to all tax-exempt nonprofits and is not limited to any particular type of nonprofit. In fact, nonprofits can hire professional fundraisers to run their telemarketing campaigns and maintain the exemption for those calls. If, however, the call includes a for-profit commercial message, then it will not be exempt. For example, a call requesting that a consumer purchase a magazine is not exempt even if a portion of the funds for purchasing the magazine are donated to a nonprofit.

4. Written Permission If a telemarketer receives a signed, written agreement from a consumer stating that the consumer agrees to be called by that telemarketer and includes the telephone number that can be called, then the telemarketer can make calls to that number regardless of whether it is registered on the do-not-call list. To be effective, the written agreement must be completed prior to the telemarketing call to the consumer. Telemarketers cannot call numbers on the do-not-call list in order to ask consumers whether they are willing to sign an agreement giving the telemarketer permission to call.

5. Family Members, Friends, Acquaintances Telemarketers also may call family members, friends and acquaintances even if the telephone numbers of those individuals are registered on the do-not-call list. The FCC has made it clear that it will not allow this exception to lead to abuse of the rule and will consider a consumer’s assertion that he or she is not a family member, friend or acquaintance of the telemarketer as strong evidence that the exception does not apply. “Referrals” or “referred leads” are not an exemption to these rules. To call someone at home or on their cell phone, you must have written permission – therefore – you must be introduced to the prospect in some way - more on this later.

6. Safe Harbor Rule Finally, the FCC Rule provides a safe harbor for telemarketers who call a number registered on the do-not-call list under certain circumstances. A telemarketer is not liable for calling a registered number if as part of its routine business practice: · It has implemented written procedures to comply with the do-not-call list; · It has trained its personnel in its compliance procedures; · It has maintained a list of numbers that it may not contact; · It uses a process to prevent telephone solicitations to numbers on the do not- call list using a version of the list that is no more than three months old at the time of the call; and · It does not sell or otherwise use the do-not-call database for any purpose other than its own compliance and it purchases the list only from the administrator of the national list and not from any third party or through any cost-sharing arrangement.

Following these compliance steps acts as a safe harbor to shield telemarketers from liability for calling numbers registered in the do-not-call database.

How to Access the National Do-Not-Call List
Telemarketers will be able to access the do-not-call list on an area code by area code basis. The FTC has proposed a charge of $25 per area code accessed per year with a maximum annual charge of $7,375. The proposal also provides, however, that telemarketers requesting five or fewer area codes per year will not be charged. The FTC will also maintain an Internet page through which telemarketers can look up a single number at a time free of charge. Due to the time and effort involved, this option will likely be impractical for telemarketers that make any significant volume of calls. To access the list, telemarketers will be required to provide their name, address, a contact person and the phone number and address of the contact person. https://telemarketing.donotcall.gov/

Company-Specific Do-Not-Call Lists
Each business that makes telephone solicitations must maintain a company-specific do-not-call list. This list applies to residential and wireless telephone numbers and must include the telephone number of every person who asks to be put on the company’s do-not call list. Businesses must process and honor requests to be placed on their do-not-call lists within thirty days. Records of these requests must be maintained and the requests must be honored for five years. Tax-exempt nonprofits are exempt from these requirements, but if they hire a for-profit telemarketer to make calls on their behalf, then that telemarketer must maintain a company-specific list.

Not only must businesses maintain a company-specific do-not-call list, but they must do so consistent with a written policy and make that policy available to consumers upon request. Businesses must train their employees on the use of the list. A business hiring a company dedicated to telemarketing may have that company maintain its list, but the business remains liable for any violations by the telemarketing company. Anyone making telemarketing calls also must provide the called party with the name of the individual calling, the name of the business on whose behalf the call is made and a telephone number or address at which the business may be contacted.

Limitations on Fax Solicitations
pplies to Nonprofits: No Pre-existing Business Relationship Exception The FCC Rule does not allow anyone to send an unsolicited fax advertisement – even if the recipient of the fax has a pre-existing business relationship with the sender (such as through the purchase of a life insurance policy or membership in a trade association). This prohibition, unlike the do-not-call rules, applies to tax-exempt nonprofit organizations. Fax advertisements can only be sent if the sender first receives a written, signed statement from the recipient giving the sender permission to send fax advertisements and noting the fax numbers to which such advertisements may be sent.

There are two important things to note about this rule. First, it only applies to advertisements. In other words, the fax is only problematic if it discusses a product or service and is intended to get the recipient to pay for that product or service. Informational faxes that do not relate to offerings of products and services are not covered by the rule. Second, the rule will be enforced when the recipient of a fax either files a lawsuit or files a complaint with the FCC.

The Interaction Between the FCC Rules and Other Telemarketing Rules
Each state will have access to the national do-not-call list to aid enforcement of its own telemarketing rules, but only if the state, in turn, includes on the national list all of the numbers that are on the state’s do-not-call list. The FCC encourages states to download their do-not-call lists into the national database with the goal of creating a single, national database that businesses can check. Some states currently have laws that prohibit this type of sharing of their do-not-call lists. The FCC has adopted an 18-month transition period to allow the states to overcome such obstacles to sharing their lists.

Having a national database does not mean that there will be a single set of do-not-call rules to follow in every state. According to the FTC’s website, 36 states have passed “donot- call” statutes. Of the 36, 10 do not wish to consolidate their lists with the national donot- call registry. The states that are not planning to transfer their numbers are: Georgia, Idaho, Indiana, Louisiana, Missouri, Tennessee, Texas, Vermont, Wisconsin and Wyoming.

Interstate calls are completely governed by the FCC rule, and all state provisions are preempted. Intrastate calls, however, may still be subject to state rules – state rules that are less restrictive than the national rules are preempted; state rules that are more restrictive may still apply.

Some state do-not-call rules contain exemptions that may apply to insurance agents. In states where insurance agents are exempted from the state rules, the agents will only need to check and comply with the national do-not-call list for intrastate calls. Businesses should carefully review the do-not-call rules of their state regarding intrastate calls

Other Calling Rules
The FCC Rule creates a number of other limitations on telephone calls that have general application but are likely to be more relevant to businesses that engage in a significant volume of telemarketing calls. For example, no one may use an automatic or predictive dialer to call an emergency phone number (e.g., 911), a hospital room, a paging service or a wireless phone. Automatic and predictive dialer calls also may not be disconnected prior to fifteen seconds or four rings.

The FCC Rule also sets a maximum rate of call abandonment for telemarketers that use predictive dialers. The maximum rate is three percent as measured over a 30-day period. All abandoned calls must include a prerecorded message telling the consumer the business that called and that the call was for telemarketing purposes. Predictive dialers also must switch calls to a sales representative within 2 seconds of the time the consumer answers the phone.

The FCC Rule also prohibits calling a residential telephone with a prerecorded message. The exceptions to this prohibition are where the call is made: due to an emergency; to someone with whom there is an established business relationship; is made by or on behalf of a tax-exempt nonprofit; or the call is not made for a commercial purpose or does not include an advertisement or solicitation. Any prerecorded message must identify the business or individual calling and its telephone number.

Telemarketers also cannot block their caller identification information. In fact, the caller identification transmitted must be a number that would allow the consumer to make a company-specific do-not-call request during normal business hours. Where possible, the caller identification transmitted also must include the name of the telemarketer. In addition, the FCC Rule maintains the current prohibition on making any telemarketing calls other than between the hours of 8am and 9pm.

Enforcement
The FCC Rule provides for two types of enforcement mechanisms - complaints to regulators (the FCC and FTC) and private litigation. The FCC and FTC plan to coordinate their enforcement efforts to achieve efficient and effective enforcement. The agencies plan to enter into a Memorandum of Understanding to help achieve that goal. It is likely that the FCC will enforce its Rule against entities that are exempt from the FTC rule and on intrastate calls (which are exempt from the FTC rule), but the FCC cautions that it will not limit itself to enforcement of FTC-exempt calls.

The FCC Rule also provides for a private right of action. Aggrieved consumers can sue immediately for violations of the rules relating to automatic and predictive dialers, prerecorded messages and fax advertisements. The Telephone Consumer Protection Act - which provides the statutory authority for the FCC Rule - allows consumers to sue if they receive two calls in violation of the regulations by or on behalf of the same company within a twelve month period.

Conclusion
Build a complete referral-based business where prospects are calling you and every prospect you call is Do-Not-Call Safe.

The Do Not Call Solution Build a Complete Referral-Based Business The Unlimited Referrals Marketing System® A complete referral based business has four competencies. Get good at any one of these competencies and you’re on your way to more referrals. Get good at all four competencies, and you’ll create Unlimited Referrals® and a complete referral-based business.

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