May, 2003

FTC
The Federal Trade Commission has obtained a stipulated final court order assessing more than $100,000 in restitution and penalties against telemarketers with regard to alleged violations in the sales of credit card loss protection and debt consolidation services. The order bars the defendants from making future false or misleading statements such as that they are affiliated with any credit card issuer.

The Federal Trade Commission has announced a settlement with a telemarketer resolving allegations of marketing non-existent advance fee, low interest credit cards. The settlement requires payment of $525,000 and prohibits misrepresentations of affiliations with any bank or material information regarding the goods or services offered.

The FTC has filed suit against several marketers of "pay as you go" credit cards. The suit involves allegations of misrepresentations concerning "up sells" and failure to honor refund requests.

AT&T
The FCC has announced that AT&T leads the nation in "do-not-call" complaints. Ironically AT &T has been designated to administer the National "Do-Not-Call" List.

ARKANSAS
The State of Arkansas has passed a law which prohibits displaying fictitious or misleading names on telephone identification systems.

COLORADO
Colorado has passed a law which adds cellular telephone subscribers to the Colorado "do-not-call" list. Federal law already prohibits unsolicited telephone calls to any number for which the subscriber is charged for the call.

ILLINOIS
The State of Illinois has filed suit against a telemarketer alleging false representations of "free" paging services. The suit seeks a permanent injunction against illegal practices.

The State of Illinois has proposed regulations implementing its state "do-not-call" list. The registry will be available to telemarketers for a fee not to exceed $1,000 annually and will be updated quarterly. Consumers will be charged an initial enrollment fee not to exceed $5 for a registration period of five years.

INDIANA
The Indiana Attorney General has adopted rules setting forth the definition of "existing debt or contract" for purposes of the exemption to the telemarketing "do-not-call" list. The definition specifically excludes contracts with a person other than the telephone solicitor or the person who hired the telephone solicitor making the call. It remains to be seen if this is a direct attack on cross marketing campaigns.

KANSAS
Kansas has settled with at least four companies regarding allegations of violations of its "do-not-call" law.

MAINE
A bill has been introduced in the Senate in Maine which would prohibit telemarketers from blocking Caller ID systems.

MISSISSIPPI
Mississippi's governor has signed a law creating a "do-not-call" list to be administered by the Mississippi Public Service Commission. The law includes thirteen exempted categories and modifies the Federal Calling Curfew by banning calls on Sunday and after 8:00pm.

MISSOURI
Missouri has obtained a $60,000 settlement with an auto glass company resolving allegations of violations of the Missouri "do-not-call" list and blocking Caller ID systems.

NEW HAMPSHIRE
A bill has been proposed in the New Hampshire House of Representatives which would require subscription to the Federal Trade Commission's "Do-Not-Call" Registry and require that a telemarketer immediately disclose the caller's identity, the business under whose behalf he or she is soliciting and the consumer goods or services being offered or sold.

NEW HAMPSHIRE
New Mexico has passed a law enacting a "do-not-call" list. The law designates the Federal Trade Commission's list as the state "do-not-call" list. It provides for private causes of action with damages of $500 for each proven violation. The law also prohibits misrepresentation of telephone solicitations as "courtesy calls" or "public service information calls" if the primary purpose of the call is telephone solicitation. The law also prohibits requesting credit card numbers before a prospective purchaser expresses the desire to use a credit card to pay for the purchase.

NEW YORK
The State of New York has adopted a regulation increasing the fee for the state's "do-not-call" registry from $500 to $800.

NORTH DAKOTA
North Dakota has passed a law creating a state "do- not-call" list. The law allows the Attorney General to designate the National "Do-Not-Call" Registry, established by the Federal Trade Commission, as the state do-not-call" list. The law also allows private enforcement by individuals for actual damages or damages up to $2,000 for each violation, plus reasonable attorney's fees. The bill also prohibits using recorded or synthesized voice messages without the knowing consent of the recipient to the calls.

OREGON
The State of Oregon has announced seven settlements under its "do-not-call" law involving a total of nearly $80,000 in fines.