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  • 15
    Feb
    2012
    5:05pm, EST

    US cracking down on dinner-interrupting marketing robocalls

    By M. Alex Johnson, NBC News

    Follow M. Alex Johnson on Twitter and Facebook

    Updated at 9:30 p.m. Feb. 16: The Federal Communications Commission said Wednesday it's going after those annoying automated marketing calls that always seem to come right as you're sitting down to dinner.

    The commission unanimously adopted new rules to crack down on what are known as robocalls. That's when a company sets up its computers to call thousands of numbers in sequence, hoping one or two of them will be answered by someone who'll listen to a pitch for whatever they're selling.

    "Unwanted telemarketing calls and texts were consistently in the top three consumer complaint categories at the FCC in 2011," the commission said. "Robocalls invade consumers' privacy, and can, in the case of calls to wireless numbers, use up their minutes."

    Jerry Cerasale, senior vice president of the Direct Marketing Association, told msnbc.com on Thursday that the association applauded the ruling and called on the commission to put "significant resources into enforcement."

    "When a marketer places a marketing robocall to a consumer who has not given written permission to receive such calls, not only is the consumer bothered by the illegal call, but also legitimate, law-abiding marketers are harmed," Cerasale said. 


    In the past, the industry has vigorously opposed government restrictions on whom it may call. Several groups sued to stop enforcement of the National Do-Not-Call Registry when it was created in 2003, a case that went all the way to the Supreme Court, which ruled against them.


    Hanging up on telemarketers

    The FCC said its new rules will:

    • Require telemarketers to obtain prior express written consent from consumers, including by electronic means such as a website form, before placing a robocall to a consumer.

    • Eliminate the "established business relationship" exemption to the requirement that telemarketing robocalls to residential wireline phones occur only with prior express consent from the consumer.

    • Require telemarketers to provide an automated, interactive "opt-out" mechanism during each robocall so that consumers can immediately tell the telemarketer to stop calling.

    • Strictly limit the number of abandoned or "dead air" calls that telemarketers can make within each calling campaign.

    Source: Federal Communications Commission


    Wednesday, FCC Chairman Julius Genachowski said it had become clear that the current rules, which the FCC enforces along with the Federal Trade Commission, weren't working.

    "Too many telemarketers, aided by autodialers and prerecorded messages, have continued to call consumers who don't want to hear from them," he said in a statement. And "consumers by the thousands have complained to us."

    The problem is that the current rules include several loopholes that telemarketers — scrupulous and unscrupulous alike — can drive their calls through.

    For one thing, a company currently can claim it's exempt from leaving you alone if it can show an "established business relationship" with you. That can include any previous communication between you and the company, including "communications" as minor as a small purchase you might have made at a store owned by a subsidiary of the company a year and a half ago.

    Saying its data show consumers are especially frustrated by that loophole, the FCC eliminated the exemption Wednesday. 

    Read the full announcement (.pdf) 

    And previously, the only way you could stop those kinds of calls was to contact the company and ask to opt out. The new rules require telemarketers to obtain "prior express written consent" from you. 

    In other words, what used to be an "opt-out" system is now an "opt-in" system. Companies can't call you unless you tell them in writing ahead of time that it's OK.

    Two other rules are also intended to limit or stop unwanted calls at home:

    • Telemarketers must include an automated way for you to opt out immediately during any robocall.

    • They have to stop calling a number completely after a few calls go unanswered or you hang up on a call.

    Robert McDowell, a member of the commission, said in a statement that the rules were narrowly targeted to exempt charities and political organizations, along with institutions providing needed information, like school systems that use the calls to alert parents when schools are closed.

    Most of the displeasure is over commercial telemarketers, he said, adding, "Sometimes it seems like there's no escape."

    Watch Tom Costello's report for "NBC Nightly News":

    The Federal Communications Commission announced new robocall requirements, but nonprofits and political campaigns are still able to place the automated phone calls. NBC's Tom Costello reports.

     

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    404 comments

    The ones that piss me off the most are ones I receive on my cellphone, and the number is blocked. Usually at work.

    Show more
    Explore related topics: fcc, marketing, do-not-call, featured, robocalls
  • 12
    Jan
    2012
    2:55pm, EST

    Inside the secret industry of inmate-staffed call centers

    By msnbc.com staff and NBC News

    WNYT-TV

    Inmates at Greene Correctional Institution in Coxsackie, N.Y., staff a state Department of Motor Vehicles call center.

    When you call a company or government agency for help, there's a good chance the person on the other end of the line is a prison inmate.

    The federal government calls it "the best-kept secret in outsourcing" — providing inmates to staff call centers and other services in both the private and public sectors.

    The U.S. government, through a 75-year-old program called Federal Prison Industries, makes about $750 million a year providing prison labor, federal records show. The great majority of those contracts are with other federal agencies for services as diverse as laundry, construction, data conversion and manufacture of emergency equipment.

    But the program also markets itself to businesses under a different name, Unicor, providing commercial market and product-related services. Unicor made about $10 million from "other agencies and customers" in the first six months of fiscal year 2011 (the most recent period for which official figures are available), according to an msnbc.com analysis of its sales records.


    The Justice Department and the U.S. Bureau of Prisons don't break down which companies they do business with. But Unicor said inmates provide private call center service, including data review and sales lead generation, for "some of the top companies in America" under a federal mandate to help companies repatriate jobs they have outsourced overseas.

    In a fact sheet, Unicor asserts that prisoners in the program are less likely to re-offend and are better trained for full-time work upon release. All revenue goes back into the program, which "operates at no cost to the taxpayer," it says.

    The idea has filtered down to some of the states, among them Georgia, Arizona and New York.

    When New York residents call the Department of Motor Vehicles, for example, they might get an inmate at Greene Correctional Institution in Coxsackie, near Albany, or at Bedford Hills Correctional Facility for Women near White Plains, on the border with Connecticut.

    "Obviously, it saves taxpayer dollars," Brian Fischer, commissioner of the state Corrections and Community Supervision Department, told NBC station WNYT of Albany. "Number two, it provides what we call a transferable skill."

    Besides saving the state money, said Elizabeth Glazer, the state's deputy secretary for public safety, the program is "an investment in our state's overall safety."

    "When we help offenders build the workforce skills necessary to find viable employment after incarceration, we lessen the chances they will reoffend and end up back in the state's prison system," she said.

    The corrections department acknowledged that callers aren't told they're talking to a state prisoner. But they stressed that callers are protected — no personal information is displayed to the prisoners, who don't have access to computers, officials said.

    In the private sector, states usually partner with business-to-business firms to run the services — the companies provide the equipment and facilities, and the state provides the labor. One such firm is Televerde, a Phoenix company that partners with the Arizona prison system to provide marketing services for major companies that have included Hitachi and Microsoft.

    In a marketing paper, Microsoft says companies like Televerde "can reduce the burden on corporate marketing and local marketing teams can have more meaningful interactions with their customers." (Msnbc.com is a joint venture of Microsoft and NBC News.)

    For inmates, the appeal isn't the pay, which can be as low as 50 cents an hour. It's the training and the opportunity: "A lot of times, we need to feel like we are appreciated, and it builds self-esteem," John Howard of Brooklyn, N.Y., an inmate at Greene, told WNYT.

    "It allows me the opportunity to speak to different people of different nationalities, regardless of what ethnicity, and it makes me feel like 'Wow, I can do better,'" he said.

    Read the original story at WNYT.com

    But Danny Donohue president of the New York Civil Service Employees Association, criticized the program for prioritizing marketable skills for prisoners over providing jobs to "law-abiding citizens."

    It's "a bad idea generally and even worse considering the current economy," Donohue said.

    By M. Alex Johnson of msnbc.com and Bill Lambdin of WNYT-TV in Albany, N.Y. Follow M. Alex Johnson on Twitter and Facebook.

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    98 comments

    at least you should get someone who speaks english...

    Show more
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M. Alex Johnson

M. Alex Johnson is a reporter for NBC News specializing in national affairs, technology and data analysis. He joined NBC News in 1999 from The Washington Post.

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