Last month the President signed H.R. 3541, which extends the time period that an individual’s telephone number stays on the National Do Not Call Registry from 5 years to forever. This event is a good opportunity to highlight the requirements of the federal Do Not Call laws. read more
On August 19, 2008, the FTC announced changes to the Telemarketing Sales Rule (TSR). One major change includes prohibiting prerecorded message calls unless the customer has previously agreed to accept the calls from the seller. read more
"Card Check" & What it Means for Your Business:
With the election of Senator Obama as our next president, it seems clear that the "Employee Free Choice Act" will be a top agenda item for both the unions and the Obama administration. Campaign statements by union leaders as well as then-candidate Senator Obama make this fight imminent and inevitable. What does this proposed legislation do? read more
Helen Mac Murray Featured in Home & Family Finance Magazine:
Helen Mac Murrays article "After-Market Service Contracts: Buyers Beware" is featured in the magazine Home & Family Finance. Mac Murray, Cook, Petersen & Shust represents the Automobile Warranty & Service Contract Association.
Commercial E-Mail Advertisers: Know the Name of the Game:
The Federal Trade Commission ("FTC") has identified combating "spam" as one of its top priorities. Recently, 19 international spam enforcement agencies from 15 countries rolled out an "action plan" for combating spam. The plan calls for increased investigative training, establishment of agency contact points who can respond quickly and effectively to enforcement inquiries, as well as the creation of an international working group on spam enforcement. read more
The Dos and Donts of Sweepstakes Promotions:
Many companies seek to generate interest in their products through the use of
sweepstakes promotions. If your company is one of these companies it is important to
know what regulations apply and the specific dos and don’ts associated with
sweepstakes. read more
Prescreened Offers of Credit:
Last month the Federal Trade Commission (“FTC”) issued its final regulation regarding prescreened offers for credit or insurance. The rule mandates certain notices be provided to consumers, which among other things, inform consumers about their right to opt out of receiving future prescreened offers. read more
Yes it’s true; the U.S. Treasury Department has abolished a tax law that will likely result in multimillion-dollar refunds for business users. The abolished tax is the federal excise tax of 3% on all long-distance calls. The tax was originally implemented in 1898 as a luxury tax on wealthy Americans who owned telephones. read more
California Residents: Their Consent Now Required:
If you are operating in a one-party consent (i.e. your consent) state but conducting business in California, you are now clearly subject to California law with regard to the recording of telephone conversations made to or received from California. This law applies to inbound and outbound calls, consumer and business to business calls, for-profit and nonprofit calls. read more
An Affiliates Customers Are Not Always Your Customers:
In a recent action against affiliate companies, the FTC has once again shown that violations of Do Not Call (DNC) provisions can be costly. Peoples Benefit Services, Inc. (PBS), a seller of prescription drug discount cards, dental discount cards, health-related discount cards, and an online medical referral service to consumers, and its telemarketer, Malvern Marketing, LLC, d/b/a Phase One Marketing (POM) must pay a combined $350,000 in civil penalties for violating the DNC provisions of the Telemarketing Sales Rule. read more
The Current Uncertainty Surrounding Arbitration Clauses:
Two recent contradictory Ohio appellate court decisions have caused uncertainty about the enforceability of arbitration clauses in automobile sales contract. The first case originated from Cuyahoga County. The Common Pleas Court determined that an arbitration clause contained in a dealership’s sales contract was not enforceable. On appeal the decision was reversed with a finding that the arbitration clause was enforceable. read more
Credit Reports: Keep Them Private:
Recently I have been contacted by several dealerships that have run into problems withinformation being disclosed from credit reports they had pulled for potential sales --resulting in very angry consumers.read more
Rules of the Road for Charitable Festivals in Ohio:
In 1976, voters passed a constitutional amendment permitting charitable gaming in Ohio. Since then, charitable organizations have been permitted to conduct games of chance at festivals. However, the exploding popularity of poker tournaments has caused law enforcement officials to take a closer look at what constitutes a festival under Ohio law. read more
The New Fax Laws Take Effect:
In April 2006, the Federal Communications Commission (FCC) implemented changes to the facsimile (fax) advertising rules of the Telephone Consumer Protection Act of 1991 (TCPA). The rules provide that it is unlawful to send a business or consumer an unsolicited fax, without the recipient’s prior express permission. However, under the amended rules, fax advertisements may be sent to recipients with whom the sender has an EBR, as long as the fax number was provided voluntarily by the recipient. read more
Do Not Call Registry Fee Increase Proposed by the FTC:
The Federal Trade Commission (FTC) issued a Notice of Proposed Rulemaking to amend the Telemarketing Sales Rule to revise the fees charged for industry access to the National Do-Not-Call Registry. The FTC is accepting comments on the proposed fee changes. read more
Internet Privacy Policies: A Common Sense Approach:
If you browse the web sites of the Federal Trade Commission or many state attorneys general, you will notice several press releases about enforcement actions for violation of consumer privacy laws. As a result, it is important to ensure that your privacy policies are up to muster. What follows is a common sense approach to reviewing the content of your web site privacy policy. read more
FTC Settles Its 9th Data Breach Case:
In the largest known compromise of financial data to date, CardSystems Solutions, Inc. and its successor, Solidus Networks, Inc., doing business as Pay By Touch Solutions, have agreed to settle Federal Trade Commission charges that CardSystems failure to take appropriate security measures to protect the confidential information of tens of millions of consumers. read more
Protecting Your Customers (and Your Business) Interests:
All companies that collect consumer information are required to follow security safeguards rule that previously are applied to financial institutions through the Graham-Leach-Bliley Act. The rule, commonly called “The Safeguards Rule” requires financial institutions to take reasonable measures to safeguard confidential consumer information. read more
Medicare Pard D: What You Dont Know Could Cost You:
You may have heard about Medicare’s new prescription drug coverage, and wondered how it will affect you or a retired family member. Starting January 1, 2006, new Medicare prescription drug coverage (“Part D”) will be available to everyone with Medicare. The coverage will be provided by private insurance companies. People with Medicare can enroll in a Part D plan from November 15, 2005 through May 15, 2006. All Part D plans will provide at least a standard level of coverage set by Medicare. Some plans might also offer more coverage for a higher monthly premium. read more
Privacy Breaches and the Lessons Learned:
Over the last year, it has been difficult to pick up a newspaper or turn on the news without hearing about another breach of private consumer information. As a result, 2005 will go down in history as the "Year of the Data Breach." Consumers’ identity theft fears have escalated and regulators are reacting. read more
New Fax Law Developments:
Last week, the House passed a bill that mirrors the "Junk Fax Prevention Act" recently passed by the Senate. Both bills prohibit commercial faxes from being sent to consumers or businesses unless there is either an established business relationship (EBR) or written consent from the consumer or business. The bills reflect a compromise that allows marketers to continue sending such faxes when there is an EBR. read more
2005: Year of the Data Breach:
2005 will probably go down in history as the “Data Breach Year” which may lead to 2006 being the “Privacy Protection Year.” On the heels of story after story about companies losing their customers’ or employees’ personal information via hackers or other lapses in security measures, the federal and state governments are taking a close look at how they can increase the regulation of personal and financial information. Currently, regulations are being drafted to hold companies more accountable for failing to secure the data they collect and store about their employees and customers. read more
Voice-Over-Internet Protocol:
VoIP has been receiving increased attention and usage because businesses that use the Internet and Internet protocol (“IP”) networks to deliver voice communications have the potential to reduce costs, support innovation, and improve access to communications services around the world. However, this new technology poses a challenge for regulators, because it does not fit neatly within the traditional regulatory model, which treats voice and data services differently. read more
Shred-it!:
Do you obtain information about your customers or employees from a credit report? If so, as of June 1, 2005, you must ensure that any information you obtain is properly disposed of, which includes "shredding, burning, smashing or wiping.” read more
Privacy: Make it an Organizational Priority:
Whether it is state or federal legislation, businesses that collect and maintain personal information can be assured that in the near future a government entity will be placing greater security and privacy requirements on procedures associated with the collection and storage of personal information. State and federal regulations in this area generally share three common points. read more
U.S. Senate Committee Approves Junk Fax Bill:
The U.S. Senate Committee on Commerce, Science and Transportation recently approved by unanimous consent the "Junk Fax Prevention Act of 2005" (Senate Bill 714). The bill would create an exemption for the sending of unsolicited faxes to parties with whom the sender has an "established business relationship," but would also require such faxes to include opt-out disclosures. SB 714 would also give the FCC authority to limit the duration of the established business relationship exemption as it deems appropriate. read more
Your California Customer Privacy Rights:
California has once again taken the lead in enacting yet another tough privacy law. If you do business with anyone in California, pay attention! On January 1, 2005, Senate Bill 27 (“S.B. 27”) took affect. S.B. 27 is a significant addition to privacy law in this country. It affects companies that have customers in California or even just market to California. read more
What You Need to Know About Firm Offers of Credit Under the Fair Credit Reporting Act:
A few of my clients have recently made inquires to made about the requirements of the Fair Credit Reporting Act (“FCRA”) and in particular “firm offers of credit.” For that reason I thought a primer in this issue of the National Regulatory Newsletter was warranted. read more
Perhaps no recent action by the Federal Communications Commission (FCC) has caused so many outcries from the business sector as the 2003 amendment to the Telephone Consumer Protection Act (TCPA) that imposed a complete ban on all unsolicited facsimile advertisements. The outcry was so great that the FCC issued an order placing a moratorium on the enforcement of the new rule until January 1, 2005. read more
National Regulatory Affairs:
FTC Grants a 15-day Grace Period for Certain Telemarketing Calls Made to Cell Phones
On the one year anniversary of the implementation of the National Do Not Call Registry (“Registry”), the FTC is reporting that the Registry has proven to be a “consumer protection triumph.” Approximately 65 million telephone numbers have been registered with 428,000 complaints being filed with the FTC. At this one year point, it is a good opportunity to take a look at where telemarketing has evolved. read more
California Privacy Law:
The California Legislature recently passed the California Online Privacy Protection Act of 2003 (OPPA), a consumer privacy law which became effective July 1, 2004. Under the new law, companies conducting business in California must post a conspicuous privacy policy on their web site and disclose the kinds of personally identifiable data that they collect and share with third parties. Companies must also clearly display their privacy statements, follow their privacy policies, allow consumers to opt-out of future email solicitations, and publish the date the policy is effective. read more
An Ounce of Prevention:
Many businesses are surprised to find out about the far reaching boundaries of the state and federal consumer protection laws and the corpulent jurisdiction under those laws of the state Attorneys General and federal enforcement agencies such as the Federal Trade Commission. Unfortunately for many, this realization comes too late. read more
