Telephone Consumer Protection Act Policy
“Residential Subscriber” An individual who has contracted
Policy Background
with a common carrier to provide telephone exchange service
The Federal Communications Commission (FCC) has issued
at a personal residence.
regulations that establish a national “Do-Not-Call” registry
“Seller” The person or entity on whose behalf a telephone call
and other modifications to the Telephone Consumer Protection
or message is initiated for the purpose of encouraging
Action of 1991 (TCPA)1. The FCC regulations impose
purchase or rental of, or investment in, property, goods, or
financial penalties on all commercial telemarketers for calling
services, which is transmitted to any person.
phone numbers on the “Do-Not-Call” registry. For those
numbers not on the registry, the regulations set a maximum
“Telemarketer” The person or entity that initiates a telephone
rate on the number of abandoned calls and require
call or message for the purpose of encouraging the purchase or
telemarketers to transmit caller ID information. The
rental of, or investment in, property, goods, or services, which
regulations also modify the FCC’s unsolicited facsimile
is transmitted to any person.
advertising requirements, which in turn were modified by
the Junk Fax Prevention Act of 2005 and became effective on
“Telemarketing” The initiation of a telephone call or
July 9, 2005. The FCC regulations were, generally, effective
message for the purpose of encouraging the purchase or rental
as of October 1, 2003.
of, or investment in, property, goods, or services, which is
transmitted to any person.
The FCC regulation expanded coverage of the national “Do-
Not-Call”2 registry by including banks, insurance companies,
“Telephone Solicitation” The initiation of a telephone call or
credit unions, and savings associations. The Federal Trade
message for the purpose of encouraging the purchase or rental
Commission’s (FTC) telemarketing regulations parallel the
of, or investment in, property, goods, or services, which is
FCC regulations3 and apply to all other business entities,
transmitted to any person. Telephone solicitation does not
including third parties acting as agent or on behalf of a
include a call or message to any person with that person’s
Company.
permission, to any person with whom the caller has an
established business relationship, or on behalf of a tax-exempt
Key Definitions:
nonprofit organization.
“Abandoned Call” A telephone call that is not transferred to
a live sales agent within two seconds of the recipient’s
“Unsolicited Advertisement” Any material that advertises
completed greeting.
the commercial availability or quality of any property, goods,
or services, which is transmitted to any person without that
“Automatic Telephone Dialing System and Autodialer”
person’s prior express invitation or permission.
Equipment that has the capacity to store or produce telephone
numbers to be called using a random or sequential number
Policy
generator and the capability to dial such numbers.
“Established Business Relationship” A prior or existing
Direct Offer, Inc. (the “Company”) follows the written
procedures set forth in the checklist below. The Company
relationship between a person or entity and a residential
subscriber based on the subscriber’s purchase or transaction
trains its personnel regarding such checklist, maintains a
list of telephone numbers excluded from contact, at all
with the entity within the 18 months immediately preceding
the date of the telephone call or on the basis of the subscriber’s
times uses a version of the national “Do-Not-Call”
registry no more than three months old, and does not sell,
inquiry or application regarding products or services offered
by the entity within the three months immediately preceding
rent, lease, purchase, or use the do-not-call database in any
manner except in compliance with regulations. [47 CFR
the date of the call, and neither party has previously terminated
the relationship. An individual may reasonably expect that an
64.1200(c)(2)(i)]
affiliate is included in an established business relationship
based on products offered or the identity of the affiliate.
1
47 USC 227; The Federal Communications Commission final regulations
were published in the Federal Register on July 25, 2003 (68 FR 44144).
2 The Federal Trade Commission (FTC) maintains the registry adopted by
the FCC.
3 The Federal Trade Commission final regulations were published in the
Federal Register on January 29, 2003. (68 FR 4580)
Telephone Consumer Protection Act Policy
General Rules
Examination Procedures
The Company must maintain company-specific do-not-
1. Determine whether or not TCPA is applicable.
call lists reflecting the names of customers with
2. Determining whether the Company or a third-party
established business relationships who have requested to
telemarketing firm engages in any form of telephone
be excluded from telemarketing. Such requests must be
solicitation.
honored for five years. [47 CFR 64.1200(d)(6)]
Telemarketing calls can only be made between the hours
Stop here if the Company itself does not engage directly
of 8 a.m. and 9 p.m. (local time at the called party’s
(or indirectly through a third-party telemarketing firm) in
location). [47 CFR 64.1200(c)(1)]
any form of telephone solicitation via telephone or
facsimile machine. The Company is not subject to TCPA,
All telemarketers must transmit caller ID information,
and no further examination for TCPA is necessary.
when available, and must refrain from blocking any such
transmission(s) to the consumer. [47 CFR 64.1601(e)]
3.
If TCPA is applicable, proceed as follows:
Any calls that were made using artificial or prerecorded
Assign to a specific person responsibility for the
voice messages to a residential telephone number met the
Company’s compliance with TCPA (the highest
requirements in 47 CFR 64.1200(a)(6)(i).
ranking officer shall be such person if no assignment
All prerecorded messages, whether delivered by automated
has been made); such responsible person shall ensure
dialing equipment or not, must identify the name of the
that relevant parties are trained regarding the
entity responsible for initiating the call, along with the
following and the Company’s compliance with the
telephone number of that entity that can be used during
following:
normal business hours to ask not to be called again. [47
a. Recording a telephone subscriber’s request not to
CFR 64.1200(b)]
receive calls from a particular Company and the
The name, telephone number, and purpose of the call were
maintenance of those recordings for five years.
provided to the subscriber if the call was abandoned. [47
b. Placement of the telephone subscriber’s name,
CFR 64.1200(a)(6)]
if given, and telephone number on the
All telemarketers must comply with limits on “abandoned
Company’s do-not-call list.
calls” and employ other consumer-friendly practices when
c. Maintenance of the list of telephone numbers
using automated telephone-dialing equipment. A
that the Company may not contact.
telemarketer must abandon no more than 3 percent of calls
answered by a person and must deliver a prerecorded
d. Compliance with the national do-not-call rules.
identification message when abandoning a call. Two or
more telephone lines of a multi-line business are not to be
Review complaints and compliance generally. Note
called simultaneously. Telemarketers must not disconnect
deficiencies, their causes, and corrective actions to be
an unanswered telemarketing call prior to at least 15
taken.
seconds or four rings. All businesses that use auto-dialers to
sell services must maintain records documenting
compliance with call abandonment rules. [47 CFR
64.1200(a)(4, 5 and 6)]
The Company or its third-party vendor maintains
appropriate documentation of abandoned calls, sufficient to
determine whether they exceed the 3 percent limit in the
30-day period reviewed. [47 CFR 64.1200(a)(6)]
The Company or its third-party vendor transmits caller
identification information. [47 CFR 64.1601(e)]
Telephone Consumer Protection Act Policy
Examination Worksheet—Telephone Consumer Protection Act
Yes
No
X
1. Does the Company or any third party vendor engage in telemarketing activities on the Company’s behalf?
If No, stop here. If Yes, continue to question #2.
For the questions below, every “No” answer indicates a potential violation of the regulation and/or an internal control
deficiency that must be explained fully in the work papers.
Delivery Restrictions (47 CFR 64.1200))
2. The Company engaged in telemarketing is registered on the FTC’s Web site as a seller.
3. Each Company affiliate engaged in telemarketing also is registered on the FTC’s Web site and does not rely
on the Company’s registration.
4. The Company (or third-party engaged in making telemarketing calls on the Company’s behalf)
refrains from initiating any telephone call using an automatic telephone dialing system or an
artificial or prerecorded voice:
a) To any emergency telephone line, including any 911 line and any emergency line of a hospital,
medical physician or service office, health care facility, poison control center, or fire protection or
law enforcement agency;
b) To the telephone line of any guest room or patient room of a hospital, health care facility, elderly
home, or similar establishment; or ABC
c) To any telephone number assigned to a paging service, cellular telephone service, specialized
mobile radio service, or other radio common carrier service, or any service for which the called
party is charged for the call.
5. The Company (or third-party engaged in making telemarketing calls on the Company’s behalf) refrains
from using a telephone facsimile machine, computer, or other device to send an unsolicited
advertisement to a telephone facsimile machine without an established business relationship or express
written permission from the recipient. [47 USC 227 as amended by the Junk Fax Prevention Act of
2005]
6. The Company (or third-party engaged in making telemarketing calls on the Company’s behalf) refrains
from using an automatic telephone dialing system in such a way that two or more telephone lines of a
multi-line business are engaged simultaneously. [47 CFR 64.1200(a)(4)]
7. The Company (or third-party engaged in making telemarketing calls on the Company’s behalf)
refrains from disconnecting an unanswered telemarketing call prior to at least 15 seconds or four
rings. [47 CFR 64.1200(a)(5)]
8. The Company (or third-party engaged in making telemarketing calls on the Company’s behalf)
refrains from abandoning more than 3 percent of all telemarketing calls that are answered live by a
person, measured over a 30-day period. [47 CFR 64.1200(a)(6)]
9. For an abandoned call, the information provided is limited to the name and telephone number of the
business, entity, or individual on whose behalf the call was placed and that the call was made for
“telemarketing purposes.” [47 CFR 64.1200(a)(6)]
10. The Company (or third-party engaged in making telemarketing calls on the Company’s behalf)
refrains from using any technology to dial any telephone number for determining whether the line is
a facsimile or voice line. [47 CFR 64.1200(a)(7)]
11. If the Company (or third-party engaged in making telemarketing calls on the Company’s behalf) uses an
automatic or prerecorded telephone message, determine whether: [47 CFR 64.1200(b)]
Telephone Consumer Protection Act Policy
Examination Worksheet—Telephone Consumer Protection Act
Yes
No
At the beginning of the message, the business, individual, or other entity initiating the call is clearly
identified.
The name of the business responsible for initiating the call is stated.
The name of the business responsible for initiating the call is registered with the appropriate
regulatory authority.
During the message, the telephone number for the business responsible for initiating the call is
provided.
The number provided is available during regular business hours.
12. The Company (or third-party engaged in making telemarketing calls on the Company’s behalf)
initiates all calls to residential subscribers between the hours of 8 a.m. and 9 p.m. (local time of the
called party’s location). [47 CFR 64.1200(c)(1)]
13. Prior to initiating any call, the Company (or third-party engaged in making telemarketing calls on the
Company’s behalf) checks the national “Do-Not Call” registry to verify that the residential telephone
subscriber’s number is not listed. [47 CFR 64.1200(c)(2)]
14. If the Company (or third-party engaged in making telemarketing calls on the Company’s behalf) calls a
subscriber whose number appears on the “Do-Not Call” registry, does it meet one of the following
criteria:
It can demonstrate that the violation is the result of an error and that its routine business practices
meet the minimum standards set forth in the regulation [47 CFR 64.1200(c)(2)(i)]
It has the subscriber’s prior express invitation or permission evidenced by a signed, written
agreement that includes a telephone number to which the calls may be placed. [47 CFR
64.1200(c)(2)(ii)]
It has a personal relationship with the recipient of the call. [47 CFR 64.1200(c)(2)(iii)]
15. The Company (or third-party engaged in making telemarketing calls on the Company’s behalf) has a
process to provide the called party with the following information:
The name of the individual caller.
The name of the person or entity on whose behalf the call is being made.
A telephone number or address at which the entity may be contacted. [47 CFR 64.1200(d)(4)]
16. The Company has a process in place that considers whether an established business relationship should
extend to an affiliate. [47 CFR 64.1200(f)(ii)]
17. The Company (or third-party engaged in making telemarketing calls on the Company’s behalf)
maintains a do-not-call record listing callers’ requests not to receive further telemarketing calls.
[47 CFR 64.1200(d)(6)]
18. The Company (or third-party engaged in making telemarketing calls on the Company’s behalf)
honors a caller’s request not to receive telemarketing calls for five years from the time the request is
made. [47 CFR 64.1200(d)(6)
19. The Company (or third-party engaged in making telemarketing calls on the Company’s behalf) transmits
caller identification information. [47 CFR 64.1601(e)]