With much fanfare and public attention the National Do-Not-Call Registry was launched this June. The Federal Communications Commission (FCC) has also recently updated its rules implementing the Telephone Consumer Protection Act of 1991 (TCPA). The Federal Trade Commission (FTC) established the registry in coordination with the FCC. Consumers can now place their residential phone numbers on the registry either by phone or on the Internet. The registry will become effective on October 1, 2003. On September 1, 2003 an Internet site will become available for businesses to obtain the registry. Businesses will be able to register on this website and down load either the complete registry or by area code. The first five area codes will be free and each additional area code will be $29 annually. The entire list can be purchased for $7,250 annually. Both the FTC and the FCC will use the registry. The FTC will use the registry to enforce the do-not-call provisions of the Telemarketing Sales Rule (TSR) and the FCC will use it to enforce the do-not-call provisions of the TCPA. The FTC’s and FCC’s regulations are different in scope and application. While there is only one registry, there will be two federal agencies that will use it to enforce different regulations. The FTC’s do-not-call regulations only covers telemarketing calls that are placed state-to-state. The FCC’s do-not-call regulations covers all commercial telephone calls (in-state and state-to-state). This registry must be obtained and checked before certain types of calls are made to residential phone numbers. The purpose of the registry is to reduce the number of unwanted telemarketing calls to consumers. A memorandum of understanding is currently being prepared by the FTC and FCC to coordinate enforcement actions. Also be aware that over half the states have their own laws and regulations on telemarketing, including do-not-call lists. The FCC’s regulation is intended to supercede all state do-not-call laws and regulations that are less restrictive. The FCC regulation is supposed to be the minimum requirement or floor. States may enforce or impose more restrictive measures than the FCC. Both agencies regulations will apply to direct selling companies in the same way it will to individual direct sellers. If direct selling companies are placing calls to individuals who are not their distributors they should look at both regulations. Calls from the companies to their distributors will not be covered because it is a business to business call. Please review this information from the perspective of your individual direct sellers and any company telephonic activity. Here is a brief description of what the new FCC do-not-call regulations requires. Will Direct Sellers have to comply with the federal do-not-call registry? DSA has always maintained and firmly believes that direct sellers are not “telemarketers” and that regulations on telemarketing should not apply to direct selling activities. However, depending on how individual companies and their direct sellers use the telephone they could be required to follow some or all of the requirements of the FCC’s regulations. This brief analysis will help you determine if you or your direct sellers’ activities may fall under the scope of the regulation. Types of Calls Covered The FCC’s do-not-call regulations cover in-state and state-to-state telephone solicitations. The regulation defines telephone solicitation as the initiation of a telephone call or message for the purpose of encouraging the purchase or rental of, or investment in, property, goods, or services, which is transmitted to any person. In their written comments, the FCC indicates that this includes calls to set up later face-to-face meeting and referral calls. Regardless of the exemptions, if someone ask you to stop calling them you must honor that request. This is required by the company specific do-not-call requirement of the FCC’s regulations. TCPA National Do-Not-Call Registry Exemptions There are three exemptions to the FCC do-not-call regulation. 1. There is an established business relationship exemption. If you have an established business relationship with the consumer then you can call them even if they are on the registry. The FCC defines established business relationship as a prior or existing relationship formed by a voluntary two-way communication between a person or entity and a residential subscriber with or without an exchange of consideration, on the basis of the subscriber’s purchase or transaction with the entity within the eighteen (18) months immediately preceding the date of the telephone call or on the basis of the subscriber’s inquiry or application regarding products or services offered by the entity within the three months immediately preceding the date of the call, which relationship has not been previously terminated by either party. 2. You can call th