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Telemarketing

What is Telemarketing?

Telemarketing involves situations in which companies call consumers to sell their goods or services, or consumers call companies to make purchases in response to mailings or other forms of advertising. Telemarketing also includes sales solicitations via fax, the Internet and mail, if the consumer is encouraged to respond via the telephone, fax or Internet.

Although a large number of legitimate businesses use telemarketing to reach consumers, this method of conducting business can be easily abused by con artists looking to take advantage of unsuspecting individuals. Telemarketing fraud robs consumers of approximately $40 billion every year.

Fraudulent telemarketers ignore the law and continue to defraud people until they are caught.

For more important information about telemarketing fraud visit the Federal Trade Commission's and AARP's web sites.

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Warning Signs

Warning signs - be suspicious if a telemarketer tries to convince you...
Telemarketing sales pitches or charitable solicitations may be fraudulent if a telemarketer:
Is it a real charity or a sounds-like, look-a-like fake?

Watch out for scammers who use the actual names or similar sounding names of real businesses or charities when soliciting charitable contributions. They are purposely trying to confuse you. When in doubt, check it out before contributing. Ask your caller to send you the information in the mail for your review. Then, if you're not sure, call the Attorney General's Office to inquire if they are registered solicitors, or a registered charitable organization as required by law

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How to Say "No" to a Telemarketer

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Automatic Debit Scams:

Telemarketers can withdraw money from your checking account without permission if you have given them your checking account number and the RTN (routing & transit number) at the bottom left of your check. This means that money can be electronically withdrawn from your bank account and deposited into the telemarketer's account without using paper or having your signature!

Beware of these lines:
Always check your monthly statement.
Alert your bank immediately if you believe your checking account:

You can report the incident to the National Consumers League's National Fraud Information Center at (800) 876-7060 or file your complaint online.

For more information about automatic debit scams, read the FTC's Automatic Debit Scams Consumer Alert.

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Magazine Scams:

Telemarketing is an easy way for a magazine seller to contact customers. Before you agree to purchase a subscription through a promotional mail/telephone order, stop and carefully review the solicitation. Compare the price you have been offered with what it actually costs to purchase a subscription for the entire year directly from the publisher. Often the annual rate is provided in fine print located in the first few pages of a magazine, or, a telephone number is provided for that information. The annual subscription rate is less than the newsstand rate and is usually much less than the mail/telephone monthly rates offers you may receive. And, check inside the magazine where you may find an introductory offer card that reduces the subscription rate further. BE WARY of a " trial offer". An automatic subscription may follow unless you immediately cancel by written notification. Read the fine print carefully! Monthly rates sound appealing but you may discover that the total cost for the year can run hundreds of dollars more than the annual subscription rate.

If you decide to make a purchase as a result of a telephonic solicitation, carefully review the sales contract and the fine print before you sign it.

Keep records of all contacts between you and the seller.

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Negative Option Scam:

While frequently a mail order practice, telemarketers may also use a negative option marketing plan. This means "we'll keep sending you our product until you tell us to stop". It becomes the responsibility of the consumer to cancel the order. When you agree to a free or "trial" product, (magazine, pantyhose, food item, etc.,) you may be committing yourself to a binding contract with the company that requires you to buy a specified amount of merchandise within a limited period of time. Read and understand the fine print of the purchase agreement you receive before signing it.

If you enter into an agreement that involves a negative option plan, pay attention to all the mail you receive from that company. Keep a record of all the orders you place and all the bills you pay. When you decide to cancel a contract after you have complied with all the terms of the agreement, contact the company in writing to cancel future orders. If possible, send your notification by certified mail. Return unwanted shipments and keep records of dates, how the merchandise was returned and copies of all correspondence.

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Office Supply Scams:

According to the Federal Trade Commission, the typical office supply scam involves goods or services that you routinely order: copier paper, toner and maintenance supplies, equipment maintenance contracts, or classifed advertising. When fraudulent telemarketers call, they often lie to get you to pay for items you didn't order, or get you to pay more than you agreed to, by falsely claiming to be your regular supplier or by telling you that the offer is "special" or "good for a limited time only." Con artists take advantage of holes in your organization's purchasing procedures or of unsuspecting employees who may not be aware of office practices. The supplies peddled by these bogus firms are often overpriced and of poor quality; the services usually are worthless. The Federal Trade Commission suggests that you buy from people you know and trust. Authorized employees should be skeptical of unsolicited calls and feel comfortable saying "no" to high pressure sales tactics. Legitimate companies don't pressure you to make a snap decision. Finally, consider asking new suppliers to send a catalog first for your review so that you can compare prices without being pressured.

Protect yourself and your business by learning to recognize the scams before you become a target. Read the FTC's publication - Avoiding Office Supply Scams.

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Telemarketing Travel Fraud:

Telemarketing Travel Fraud Information from the Federal Trade Commission: http://www.ftc.gov/bcp/conline/pubs/tmarkg/trvlfrd.htm

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National Fraud Information Center's Telemarketing Tips:

The National Fraud Information Center (NFIC) was originally established in 1992 by the National Consumer League, the oldest nonprofit consumer organization in the United States, to fight the growing menace of telemarketing fraud by improving prevention and enforcement.

Click here to view the NFIC Telemarketing Tip Menu

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National Fraud Information Center's
Scams Against Businesses Page:

The National Fraud Information Center (NFIC) was originally established in 1992 by the National Consumer League, the oldest nonprofit consumer organization in the United States, to fight the growing menace of telemarketing fraud by improving prevention and enforcement.

Click here to view the NFIC Scams Against Businesses page.

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National Do Not Call Registry:

Registering your phone number with this registry is free. You can register online at www.donotcall.gov or call 1-888-382-1222, TTY 1-866-290-4236, from the phone number you wish to register. Your number will stay registered for five years or until the number is disconnected or you remove the listing. Over 20 million consumers across the country have registered in the first few weeks of the registry's existence.

Starting on October 1, 2003, telemarketers will have to purchase the do-not-call list from the FTC, and they will have to delete from their calling lists the phone numbers from the registry. Violators of the do-not-call provisions could be subject to penalties of $11,000 per call.

Having your number on the federal do-no-call list will not stop all unwanted solicitations. There are several exemptions to the law. For instance, if there is a "preexisting business relationship," a telemarketer can call a consumer for a period of up to 18 months after the consumer's last transaction with the seller. Also, if the call is for the purpose of conducting a survey, or is a political solicitation, or is a solicitation for a charitable organization, the Do Not Call Registry is not applicable.

Under the FTC's rules, consumers who don't want to register for the National Do Not Call Registry can still tell telemarketers that they don't wish to receive solicitations. Businesses are required to maintain lists of consumers who have made a do-not-call request, and it is a violation to call a consumer who has asked to be placed on the company's do-not-call list. This company-specific request takes precedence over the "preexisting business relationship" exemption. In other words, even if you have made a recent purchase from a company, if you tell the company you do not want to be solicited by phone, the company is required to comply with that request. Similarly, you can use the company-specific option to ask a paid fundraiser for a charitable organization to stop soliciting you by phone.

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Alaska's Do Not Call Law:

Update on Alaska's Do Not Call laws: Repeal of the "Black Dot" Law

In 1996, Alaska enacted a state do not call law commonly referred to as the "Black Dot" law. This law prohibited telemarketers from soliciting consumers whose phone numbers had a black dot next to them in the telephone directory. Consumers who wanted this designation had to contact their phone company and purchase a black dot listing. The fee for this service ranged from $5.00 in Anchorage to $35.00 in Fairbanks. Telemarketers wishing to conduct business in Alaska had to contact the phone companies in the areas where they wanted to conduct solicitations, purchase the black dot lists for those areas, and delete the numbers from their call lists.

In 2003, the Federal Trade Commission established a national Do Not Call Registry. The registry is free for consumers. Telemarketers pay an annual fee (the first five area codes are free, and then the fee is $62 per area code up to a maximum of $17,050 for the entire US) and they have to check the registry at least every 31 days to include any new numbers added to the registry. As of November 2005, over 107 million numbers nationwide have been placed on the Do Not Call registry. As of August 18, 2006, 175,836 Alaskan phone numbers are on the registry. The Consumer Protection Unit encourages Alaskans to sign up for the registry.

In 2004, the Alaska legislature made changes to laws relating to telephone solicitations, including making it a violation of Alaska's Consumer Protection Act for a telemarketer to 1) call an consumer in Alaska whose phone number is registered with the national Do Not Call registry, and 2) call a consumer in Alaska who has previously communicated to the telemarketer that the consumer does not wish to receive telephone solicitations. The amended law also provided for the repeal of the "Black Dot" law once the national DNC registry was "established and enforced."

Although the DNC registry has been in place since 2003, pending court cases could have affected the registry';s viability, and the "Black Dot" law was not repealed until those cases were resolved. Th "Black Dot" law was officially repealed on August 16, 2006.

The Consumer Protection Unit encourages Alaskan consumers to file complaints if they receive telephone solicitations and their phone number is on the national registry, or they have told a telemarketer that they do not wish to receive telephone solicitations yet that telemarketer has called again. Read about the complaint process and download a complaint form online.

For more information, including how to register, visit the National Do Not Call Registry website.

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Where to complain about unwanted calls:

You can file complaints about unwanted telephone calls with the FTC at www.donotcall.gov, with the FCC at www.fcc.gov, and with the Consumer Protection Unit of the Alaska Attorney General's Office. Read about the complaint process and download a complaint form or call (907) 269-5200 or toll free at 866-576-2529.

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Telemarketing Laws:

The Federal Trade Commission (FTC) has adopted strict rules that offer protection against telemarketing fraud. These rules require that certain information be given to consumers and prohibit telemarketers from engaging is certain actions:

Additionally, Alaska laws AS 45.63.010 - AS 45.63.100 and 9 AAC 14.010 - 9 AAC 14.900 requires the telemarketers to be registered with the Alaska Department of Law prior to engaging in telemarketing in the State; and

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Telephonic Solicitation Registration Requirements:

Alaska law requires telephonic sellers to register with the Alaska Department of Law at least 30 days prior to commencing any telephonic sales. To register a person must file with the Department of Law the registration form proscribed by regulation. Copies of the registration form may be downloaded from this web page, or you may request the registration form from the Department at the address listed below. The completed form should be returned to the following address:

State of Alaska
Department of Law
Attorney General's Office
1031 West 4th Avenue, Suite 200
Anchorage, Alaska 99501


Note:

Registration is not complete, and telephonic sales may not begin, until after the telephonic seller receives an acknowledgment from the Department of Law that the seller has met all registration requirements.

Certain telephonic solicitations are exempt from registration requirements. Be sure to read the statutes and regulations AS 45.63.010 - AS 45.63.100 and 9AAC 14.010- 9AAC 14.900 to be sure you are not exempt from registration and to insure that you comply with all legal requirements relating to telephonic sales.

Failure to register with the Department of Law prior to commencing telephonic sales, or soliciting, or receiving, payment for a purchase before receiving the written contract required by law (AS 45.63.020), is a class C felony, and subjects the person to civil penalties under the Alaska Consumer Protection Act (AS 45.50.471 - AS 45.50.561) of up to $5,000 per violation.

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Registered Telemarketer's List:

List of Telemarketers Registered with the
Alaska Department of Law - PDF(14KB). (Requires Adobe Reader to view)

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