Using the
Telephone Wisely
ATA is prepared to educate
consumers on their rights, responsibilities and the benefits of doing
business by phone.
Many innocent consumers
are victims of telephone fraud each year. You could be too, if you don't
know the basic guidelines of doing business on the phone.
A survey conducted
by the National Fraud Information Center (NFIC), a project of the National
Consumers League, indicates that scam artists target those least able
to afford the loss or resist their pitch (the very young, the very old,
the disabled, those living on fixed incomes and those with a poor command
of the English language). Of course, anyone can become a victim of telephone
fraud.
ATA is dedicated to
high ethical standards among its members and has made a strong commitment
to protecting the rights of consumers. We are as anxious to stamp
out telephone swindlers as you are - maybe more so - as they undermine
the credibility of legitimate telemarketers and hurt their business. This
section was created to educate you about the ethical standards of telephone
marketing and how to spot, stop and report telephone scams.
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Telemarketing and
telephone fraud are not the same
There was a time when all a company had to do was advertise to get business.
Not any more. Competition intensified on a global scale, and the process
of reaching consumers and meeting their demands became so complex that
new technologies were required.
Enter the telephone,
which, over the past quarter of a century, has emerged as a significant
marketing tool used by "Fortune 500" companies and small businesses
alike. The telephone is both efficient and cost-effective. It instantly
links consumers to goods, services and information, and it can be applied
to everything from order-taking and account management to fundraising
and responding to inquiries about merchandise and services.
Telemarketing is also
a rapidly growing alternative to traditional retail shopping. Calls can
be placed by the consumer (inbound), or by a telemarketer to your residence
or business (outbound). Another prime benefit of telemarketing is customer
relations. A phone call takes less time than a face-to-face sales call,
phone calls can be made more regularly and frequently and you can get
a much faster response to your questions or problems. Telephone fraud,
on the other hand, involves unfair and deceptive trade practices and high-pressure
sales pitches.
Telephone shopping
is here to stay
People everywhere rely on the convenience of the telephone to meet their
individual needs. An estimated 185 million Americans purchase goods or
services by phone each year.
Toll-free numbers
are used to make purchases, ask questions, compare prices or arrange delivery
and service. The telephone is also used to trace bank transactions, find
out your loan or credit card balances and make your travel reservations.
One may receive calls from insurance companies, publishers, political
parties, charities, pollsters and a host of others, both known and unknown
to you.
The basics of doing
business by phone
1. Be sure the calling party is legitimate.
Reputable telemarketers will answer your questions about their organization,
their product/service, the terms of the offer and the price. Don't hesitate
to ask them to call back after you've had time to check them out through
the Better Business Bureau (BBB), your state attorney general's office
or your local consumer protection office (look in the telephone book under
city, county or state government).
2. If you still
have doubts, contact the National Fraud Information Center's (NFIC) Fraud
Hotline: 800/876-7060 or website: www.fraud.org.
To combat the growing menace of fraud and improve regulation, prevention
and enforcement, the NFIC provides information on how to identify possible
fraud and directs your complaint to the appropriate federal regulatory
agency. The Center is also the source of good advice for older Americans
and others who need someone to talk to when they are contacted about "fabulous"
offers and "irresistible" opportunities. Spanish-speaking counselors
are also available for the convenience of the Hispanic population.
3. Understand the
offer being made and the terms and conditions of sale.
Don't be afraid to ask questions, and make sure you keep a record of the
following information before agreeing to the purchase:
- The caller's name,
the name and address or phone number of the individual, business or other
entity on whose behalf the call was made, and the date of the order.
- The total price of
the item(s) or services(s), including taxes, delivery charges and the
expiration date of the offer.
- The delivery date,
and the guarantee, return and cancellation policies. For items to be delivered
over time and billed periodically, find out the total purchase price and
delivery dates.
4. Learn to say "no" to offers that sound too good to be
true.
They usually are. For example, be wary if you're told you've won a prize
but have to buy something, pay a fee or prepay taxes to receive it. While
some legitimate offers may have a time limit, be careful of high-pressure
telephone solicitors who demand that you "send your money today or
the deal is off."
Offers must be stated clearly and honestly, so that you know exactly what
you have committed to and what you will be getting in return before you
place your order. If you do send money, make it a check or money order
- never send cash!
5. Do not give
out personal information - your bank's name, your checking account number,
your credit card number and expiration date, or your social security number
- until you are sure you're dealing with a reputable organization.
Scam artists can use this information to debit your checking account or
charge unauthorized purchases to your credit card. The Telemarketing Sales
Rule permits the use of "demand drafts" and "checking account
debits" only after the consumer has verified the purchase on tape
or in writing.
The solution is
consumer empowerment
The way to shut down telephone fraud is to shop wisely and report your
loss or any suspicious call to the proper authorities as soon as possible.
Once you've been the victim of a telemarketing scam, you're branded as
an "easy target" and will be called again and again. Scam artists
count on their victims being too embarrassed about being conned to report
it. Unfortunately, even if you do report it, the changes of getting your
money back are slim. When law enforcement agents get close to apprehending
fraudulent telemarketers, they change their names and scams and start
over again somewhere else.
With the passage of
the Telephone Consumer Protection Act (TCPA) of 1991 and the Telemarketing
and Consumer Fraud and Abuse Prevention Act of 1994 (Telemarketing Sales
Rule), Congress safeguarded the rights of consumers and gave state and
federal law enforcement agencies more power to track down and prosecute
scam operators. The ATA supports these two laws, regulated by the Federal
Communications Commission (FCC) and the Federal Trace Commission (FTC)
respectively, which require telemarketers to:
1. Promptly
state in a clear and conspicuous manner their name, the individual business
or other entity on whose behalf the call is being placed, that the purpose
of the call is to sell a good or service, and a method for re-contacting
the seller (address and/or phone number) in case you want to cancel
the order or lodge a complaint.
2. If the caller represents a product or service that you are
sure you will never want or need - or you don't want to be contacted
by phone - just say: "Put me on your 'do not call list.' Under
the TCPA and the Telemarketing Sales Rule, these 'do not call"
lists of people who do not wish to be contacted again must be maintained
by the company whose goods and services are being offered, and a written
policy to this effect must be available upon demand. Failure to do so
or to properly maintain a "do not call" list can result in
legal actions and severe penalties.
3. Both the TCPA and the Telemarketing Sales Rule expressly forbid
calls to private residences before 8:00 a.m. or after 9:00 p.m. in the
local time zone of the person being called, and any exception must be
with the express consent of the called party. State laws may also vary.
4. The TCPA
and the Telemarketing Sales Rule require that all telephone service
representatives be thoroughly trained on "do not call" procedure
or other guidelines.
Any violations of
the TCPA regulations should be submitted in writing to the FCC. Any violations
of the Telemarketing Sales Rule should be submitted in writing to the
FTC or your state attorney general. (See addresses of the FCC and FTC
on the back of this brochure.) Keep detailed records so that you can provide
accurate information when filing a complaint.
Industry and the
consumer - a winning partnership
Telephone fraud is an easily preventable crime. Alert, educated consumers
are the best weapons to fight it. To that end, the ATA, as a member of
the National Consumers League's Alliance Against Fraud in Telemarketing,
a founding member of the FTC Partnership on Consumer Education (for the
Telemarketing Sales Rule), strongly encourages you to report any violations
or telephone fraud incidents to the NFIC Hotline or the FTC at telephone
numbers listed on the back of this brochure.
Answers to commonly
asked questions
How can I tell
a legitimate offer from a fraudulent one?
Some indicators of a potential telephone scam are:
- high pressure tactics,
- refusal to provide
a name and address or phone number for verification,
- the offer of a
valuable prize,
- a request for a
credit card number without your agreement to buy, or
- an unrealistically
low price for the product or service.
What if I don't
want to receive any telemarketing calls from a company?
Under the TCPA and the Telemarketing Sales Rule, you have the right to
ask to be put on the caller's "do not call" list. You can also
send your name, address and telephone number(s) to the Telephone Preference
Service, c/o the Direct Marketing Association, P.O. Box 9014, Farmingdale,
NY 11735-9014. Companies subscribing to this service receive a list of
people who do not want to receive telemarketing calls and then remove
these phone numbers from their calling lists.
What if I'm not
satisfied with the product or service I ordered by phone?
Before making the purchase, check out the return policy. Under the Telemarketing
Sales Rule, telemarketers must inform customers when there is a "no
return" policy. Legitimate companies want your business and will
be happy to resolve your complaint. If you are not satisfied with the
resolution of your complaint, and you purchased by credit card, write
to the credit card company and stop payment within 60 days of purchase.
(See the back of your credit card statement for guidance on problems with
credit card purchases).
If you need further
assistance, contact your local Better Business Bureau, the National Fraud
Information Center, your state attorney general, or your local consumer
protection office and file a formal complaint. (To locate your local consumer
protection office, check for the consumer affairs department under your
city, county, or state government listings in your telephone book).
If you feel a telemarketing
call is being handled rudely or inappropriately, ask to speak to a supervisor.
If you are refused, ask for the company's name and phone number and call
back. A reputable firm will wish to correct the problem.
If you have any questions
that have not been covered in these guidelines, please contact any or
all of the following:
American Teleservices
Association
3815 River Crossing Parkway, Suite 20
Indianapolis, IN 46240
1-877-779-3974
www.ataconnect.org
National Fraud
Information Center
c/o National Consumers League
P.O. Box 65868
Washington, DC 20035
1-800-876-7060
www.fraud.org
Federal Trade Commission
6th & Pennsylvania Avenue, NW
Washington, DC 20580
1-877-FTC-HELP, 202-382-4357
www.ftc.gov
Federal Communications
Commissions
1919 M Street, NW
Washington, DC 20554
1-888-225-5322
www.fcc.gov |
