FRONT LINES: Federal no-call rules
Staying on the line
Your phone isn’t out of the prospecting picture yet.
BY ROBERT FREEDMAN
Which prospects do the rules apply to?
When do the rules go into effect?
My state telemarketing rules include an exemption for real estate practitioners.
How do we access the list?
Is NAR trying to get its members’ concerns addressed?
In the meantime, what calls can I make?
What happens if I call someone on the registry who doesn’t fit under one of these six exceptions?
Rules nix faxes, too
The no-call rules published in early July by the Federal Communications Commission pull the plug on unsolicited in-state telemarketing calls to households who’ve registered their name with the federal government.
But don’t hang up the phone yet. The new rules allow you some leeway in calling potential clients. And the National Association of REALTORS® is taking steps to put several issues back on the discussion table. REALTOR® Magazine asked NAR legal and regulatory analysts to answer questions about what the new no-call registry means to you.
Which prospects do the rules apply to?
You’re prohibited from calling any prospect, within your state or out of state, who’s listed in the Federal Trade Commission’s National Do Not Call Registry. An FTC spokesperson says millions of consumers have already registered. There’s an exception for clients and customers you’ve recently done business with.
When do the rules go into effect?
Businesses that intend to make cold calls to prospects must comply with the no-call restrictions starting Oct. 1.
My state telemarketing rules include an exemption for real estate practitioners. Does that mean I don’t have to worry about the federal list?
No. The FCC rules, which cover in-state calls, pre-empt less restrictive state no-call rules. In passing the rules, the FCC aligned its policy with those of the FTC, which launched the National Do Not Call Registry earlier this year. The FTC regulates calls made across state lines.
Twenty-three states with no-call laws make an exemption for real estate practitioners, but those exemptions will no longer apply as a result of the FCC action.
How do we access the list?
Under the rules, telemarketers must obtain a new FTC registry every three months and compare their call list against the numbers on the updated FTC list to avoid making unsolicited calls to listed phone numbers. Businesses can receive the list of numbers in up to five area codes for free; for lists of numbers in more than five area codes, there’s a fee, up to a maximum of $7,200. Watch for ordering information to be posted at www.telemarketing.donotcall.gov this fall.
Is NAR trying to get its members’ concerns addressed?
NAR recognizes that the move to restrict telemarketing calls has the overwhelming support of consumers and that the FTC and FCC, therefore, wanted to make the rules as broad as possible—and issue them as quickly as possible.
However, it’s the association’s position that the federal rules shouldn’t pre-empt established state rules, including those that make an exception for real estate practitioners. What’s more, the association has concerns about the applicability of the restrictions on certain types of calls, including those from practitioners contacting FSBOs and sellers with expired listing agreements.
FSBOs. By virtue of their posting a for-sale sign outside their property, FSBOs can be said to be soliciting calls by practitioners.
Expireds. Their property may remain on the market after the listing contract expires.
Given that so many unsolicited calls from real estate practitioners are to these two classes of sellers, clarification that these types of calls are permissible would go a long way to making the FCC rules less restrictive.
NAR has met with FCC officials and is laying the groundwork to clarify these issues. The association is also reviewing its options for addressing the state pre-emption matter.
“NAR is engaging in a multifaceted campaign to address this move by the FCC,” says David Lereah, NAR senior vice president for regulatory and industry relations.
In the meantime, what calls can I make?
You’re in compliance if you make unsolicited calls to those who aren’t in the registry. For those in the registry, you can still make calls to those who:
- Are friends, family, and acquaintances. As a rule of thumb, an acquaintance is someone you know who wouldn’t be surprised at, or object to, receiving a call from you.
- Consent to your call. Consent must be granted prior to your call and in writing.
- Have established business relationships with you. You can make calls to these households for up to 18 months after a business transaction and up to three months after a consumer inquiry or application. This exception terminates if consumers ask that you not call them any more.
You can also make calls regarding: - Charitable donations. The purpose of your call must be related to a charitable matter—for example, if you are soliciting donations to an affordable housing cause.
- Surveys. The purpose of your call must be related to a survey you’re conducting. Be careful that your survey isn’t a thinly veiled sales call. A note at the National Do Not Call Registry says: “Callers purporting to take a survey but also offering to sell goods or services must comply with the National Do Not Call Registry.”
- Political organizations. The purpose of your call must be related to a political matter, such as fundraising for a party or candidate.
What happens if I call someone on the registry who doesn’t fit under one of these six exceptions?
Assuming the recipient of the call files a complaint, you can be found liable for violating the rules and fined up to $11,000 per call. However, you won’t be found liable if you can demonstrate that the call was made in error. That requires you to show that as a regular business practice you take certain safeguards, including maintaining written procedures for compliance and updated lists of numbers.
Rules nix faxes, too
As a result of the new no-call rules, real estate practitioners and other marketers must obtain written consent from the recipient before they can send faxes that advertise products, services, or events.
REALTOR® associations can still fax members on official matters, such as internal elections. But the restrictions would apply to faxes advertising a convention or trade show. And faxes that contain both official business and advertising are restricted.
The rule took effect in early August. NAR is communicating its concerns to the FCC and may seek to stay that date to allow businesses and associations time to obtain the appropriate written approval.
ONLINE EXCLUSIVES
For more on FCC no-call rules, click the links below.
FCC no-call rules
FCC restrictions against unsolicited faxes
