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Published on: 4/7/2003
Last Visited: 4/8/2003
"This isn't a restrictive figure, year to year," said D.J. Cannava, vice president of client services and corporate development and general counsel at Inktel Direct, Miami Lakes, FL.
Third-party telemarketing service providers -- those who sell products for clients and don't sell products on their own -- would not be required to pay a fee for access to the list.Instead, the product merchant would pay the fee, upon which the merchant would be assigned an account number that it could distribute to its telemarketing service providers and list brokers for scrubbing.
So, third-party telemarketing call center providers, who had feared the FTC would "double dip" and charge them as well as their clients for registry access, won't have to pay.However, their clients will pay, and those who don't do high-volume calling will find it harder to justify telemarketing campaigns that don't yield big margins, experts said.
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The policy sends a message to telemarketing client companies that they are just as responsible for compliance as the call center providers who work for them, Cannava said.
"That message is in the Telemarketing Sales Rule," Cannava said."But this is an additional message to folks that compliance is something you will be accountable for."
Though telemarketing agencies will pass the registry's cost on to clients, this likely will heighten client expectations, Cannava said, so service agencies will see indirect operations cost increases in order to meet those demands.
States that maintain their own no-call registries commonly ban the redistribution of do-not-call lists acquired by telemarketers and require a fee to be paid by each individual organization engaged in a telemarketing transaction.The practice has led to industry complaints that no-call registries are a money-making operation for government agencies.
The fee increase reflects a rise in the FTC's estimated cost of starting the national no-call registry.When it announced its intent to create the registry in January 2002, the FTC's original cost estimate was $5 million in the first year and $3 million yearly thereafter.The FTC since has revised its estimate of the first-year cost to $18.1 million.