Wily ways companies circumvent do-not-call

NEW YORK -- Even though Mike Heinemann had signed up for the National Do Not Call Registry, he's still getting calls from telemarketers.

Only this time, the calls are from businesses telling him they're exempt from the new rules. For example, the 23-year-old Plano, Texas, resident said he received prerecorded messages from a so-called "charitable nonprofit organization" selling debt-consolidation services and an unidentified caller pitching a mortgage.

"It's annoying," he said.

Since the National Do Not Call Registry went into effect last summer, the nearly 60 million Americans who have signed up have found dramatic relief from telephone solicitations.

But some companies are trying to skirt the registry rules -- which grew out of the Federal Trade Commission's review of the Telemarketing Sales Rule -- by claiming that the rules don't apply to them. Certain groups are exempt: charities, survey companies, political groups, companies with whom individuals already have a business relationship and companies that you have given written permission to call you. As a result, people like Heinemann are finding that some unwanted calls are still sneaking through.

Compliance by most businesses and marketers is "high," according to the Federal Trade Commission, which manages the registry. But it pays to be cautious about giving out your phone number and to report any suspicious calls to the FTC, which has so far received more than 300,000 complaints.

Last month, the FTC shut down National Consumer Council, a debt- consolidation agency posing as a nonprofit group which had called consumers on the Do Not Call list.

The California Attorney General's Office is suing L.M.A. Marketing Inc. of New Smyrna Beach, Fla., for violating registry rules because it placed automated calls to California consumers under the guise of conducting a "survey."

In a prerecorded message, the company -- doing business as Mortgage Concepts -- asked whether the consumer was interested in refinancing. If the consumer presses the correct buttons, a salesman calls back to pitch a refinancing service.

Other things that should put you on alert include sweepstakes entries or postcards that some firms use to try to establish a business relationship, said Lois Greisman, the FTC's associate director of planning and information. Under an "existing business relationship," companies and their affiliates are allowed to contact consumers who bought something from them in the past 18 months or who have made an inquiry about a product within the past three months.

The Privacy Rights Clearinghouse, a San Diego-based nonprofit, first got wind of this type of scheme last fall, said spokeswoman Jordana Beebe.

One example was a postcard mailed to consumers that offered a complimentary 12-pack of cola to those who mailed the postcard back with their name, address and telephone number. The fine print noted: "By completing this form you agree that sponsors and co-sponsors of this offer may telephone you even if your number is found on a do not call registry or list."

The reality is that accepting a gift or entering into a sweepstakes or prize promotion doesn't constitute a product purchase or inquiry, Greisman said.

The Direct Marketing Association recently issued alerts to its members on the proper use of prerecorded messages and the use of established business relationships after hearing about some of the questionable practices.

"There was a small percentage of marketers not following the rules," said Patricia Kachura, vice president of the DMA's Ethics & Consumer Affairs division.

"If you have any doubt about the propriety of a call, file a complaint," Greisman said. Be sure to get the name of the company that called you and the number that they called you from. Both the FTC and the Federal Communications Commission can fine telemarketers up to $11,000 per violation.

In addition, you can always request to be put on the company's do- not-call list. If you are contacted by an affiliate of a business with which you have an existing relationship, they should also comply with your request to be put on their own do-not-call list.

Under the Telemarketing Sales Rule, telemarketers are required to tell you their identity and disclose all material information about the goods or services they are offering and the terms of the sale. And as of Jan. 29, telemarketers have been prohibited from blocking their calling numbers, which must now be displayed on Caller ID devices.

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