FTC issues ban on prerecorded sales calls

The Federal Trade Commission's ("FTC") rules banning prerecorded sales calls made without a consumer's written consent took effect on Sept. 1, 2009. Additionally, the charge for accessing the federal "Do Not Call" registry will slightly increase on Oct. 1, 2009. Below is a brief summary of the changes.

First, the FTC amended its rules last year to prohibit telemarketing sales calls through prerecorded messages, whether the call is answered by a consumer or by an answering machine, unless the seller has previously obtained the recipient's signed, written agreement to receive such calls. The consumer's permission may be obtained electronically through a lawful e-signature. The rule does not prevent companies from making prerecorded messages that are informational in nature, such as calls that reconfirm appointments or reservations. All prerecorded sales calls must also contain an automated opt out mechanism that is provided at the beginning of a prerecorded message.

Second, the fee for accessing the Registry for specific area codes rises from $54 to $55 and the total cost for the whole Registry increases to $15,058. Last year, the law implementing the Registry linked the Consumer Price Increase index to the access fee cost, and so the access fees will increase as the CPI increases. The new access fees reflect the slight rise in the CPI over the past year.

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