PrintDo-Not-Spam List Not Feasible at This Time: FTC
By Sarah Borchersen-Keto, CCH Washington Staff Writer
Federal Trade Commission (FTC) Chairman Timothy Muris told the House Judiciary Committee's Antitrust Task Force on July 24, 2003, that a congressionally mandated do-not-spam list is an "intriguing idea," but proceeding with such a project at this time "would not be a useful expenditure of anyone's money."
Muris noted that with the recently instituted, and highly popular, do-not-call list "we can assure Americans that if you're on the list you're going to receive a lot fewer calls. That's just not true with do-not-spam." Muris described spam as the "toughest consumer protection problem that I've seen. . .these guys are very hard to find."
Do-Not-Call Database Open for Business
The FTC approved a final rule on the telemarketing do-not-call database last December, and got approval from Congress to fund it in March. Under the new law, the FTC funds the database by fees on telemarketers. Those who do not wish to be contacted by telemarketers can place their name in the database, which telemarketers will have to check every three months for updates. Calling the name of a person on the list will be a violation of the FTC's Telemarketing Sales Rule, which can involve fines of up to $11,000 per violation.
The new law gives the FTC the right to assess fees on telemarketers to fund the database for five years, at which time Congress will need to reauthorize the FTC's authority. The law also requires the Federal Communications Commission to work with the FTC on a similar database, to include industries not covered by the FTC (the FCC has already begun work on this). Industries exempt from the FTC include banks (many bank subsidiaries are covered however), telephone companies, airlines, insurance companies, and credit unions. In addition, calls made within state are not covered by the FTC, but over half of all states have their own do-not-call lists for in-state calls.
Individuals with an active e-mail address can register online at www.donotcall.gov. Also, you can call toll-free, 1-888-382-1222 (TTY 1-866-290-4236), from the number you wish to register. Registration is free. The Federal Trade Commission, the Federal Communications Commission, and the states will begin enforcing the National Do Not Call Registry on October 1, 2003. So far, more than 28 million telephone numbers have been registered.
Stopping Spam Is Different
Muris said there are three issues involved in the spam problem:
- How can spammers be found?
- Can they be punished?
- What are the standards by which legitimate businesses can extend unsolicited commercial e-mail?
He added that most of the legislation put forward so far has addressed the third issue because of the difficulties inherent in addressing the first two.
Muris noted that the House Judiciary Committee has proposed criminal enforcement for spammers, adding, "I do think that would help us both find them and punish them better." However, even without such legislation in place the FTC is currently working with U.S. attorneys on criminal prosecution of spammers, Muris noted.
More Time To Fight Spam
Muris also told lawmakers that with the significant recent decline in merger activity, the FTC has been able to restore the historical balance of enforcement efforts in both merger and nonmerger areas. Since the peak in merger activity in 2000, when the agency opened only 25 nonmerger investigations, the FTC has worked to reinvigorate its nonmerger enforcement program, he said. In 2001 the agency opened 56 new nonmerger investigations, and in 2002 the agency opened another 59 nonmerger investigations. The results of this renewed investment in non-merger enforcement are now emerging, Muris said, pointing to a total of 16 non-merger enforcement actions taken thus far in fiscal 2003, more than any year since 1980.
R. Hewitt Pate, assistant attorney general for the Justice Department's Antitrust Division, told the hearing that the merger wave of recent years "has subsided from its dizzying heights." So far this fiscal year the department has received over 800 pre-merger filings, compared with 1,187 for fiscal 2002 and over 4,500 in both fiscal years 2000 and 2001. Pate said that despite the slowdown there are still many mergers that require careful review, "and we are working hard to ensure that those transactions are receiving appropriate levels of scrutiny."
