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Proposed FTC Changes Hurt Entry-Level And Minority Jobs
Washington is Blind to Face of Teleservices Industry
NEW YORK, June 4, 2002 – The Direct Marketing Association (The DMA) today released results from its "Face of the Teleservices Industry 2002 Survey" showing the potentially devastating impact of proposed Federal Trade Commission (FTC) over-regulation of the teleservices industry. Additional federal regulation would disproportionately affect the ability of women, minorities and students to find well-paid, steady employment, survey results demonstrated. The DMA will report its complete findings at the FTC's upcoming Telemarketing Sales Rule (TSR) workshops on June 5 - 7.
"Regulators in Washington are not taking into account the human cost of their overly broad and superfluous proposed regulations," said H. Robert Wientzen, president & CEO, The DMA. "This study provided conclusive evidence that the proposed changes would especially hurt employment opportunities for minorities and women," Wientzen said.
THE HUMAN FACES OF TELESERVICES
The DMA survey shows that any adverse impact on the teleservices industry would disproportionately affect women, minorities, students, working mothers, and part-time employees.
"The FTC wants to re-create the wheel and roll it over the backs of the millions who depend on flexible, well-paid, steady teleservices employment," said Wientzen. "The reality is that the true faces of the teleservices industry are those who are most in need of the government's support," Wientzen added.
"The truth is that The DMA has had a national do-not-call list since the mid-1980's – long before the states or federal government came up with the idea. For marketers, it has always made good business sense to respect consumers' marketing preferences – something that can easily be done without a new government bureaucracy."
"Any new government regulation of this already heavily regulated industry must take into account that millions of jobs and the futures of thousands of companies are at stake," said Wientzen.
In 1999, nonprofits generated the largest portion of their revenues from telephone solicitation – almost 42 percent of total contributions or $43 billion. A recent DMA study showed that nonprofit organizations would have to spend an additional $5.9 billion to maintain the same level of fundraising if a restrictive regime such as a federalized do-not-call list is established.
In 2001, the teleservices industry, directly and indirectly, employed more than six million Americans. And, American consumers purchased more than $270 billion worth of goods and services from outbound telemarketing. The Business-to-Business telephone marketing sector, which is typically supported by shared Business-to-Consumer teleservices operations, accounted for an additional $390 billion in sales in 2001.
The DMA is the leading trade association for businesses interested in interactive and database marketing, with nearly 4,700 member companies from the United States and 53 other nations. Founded in 1917, its members include direct marketers from every business segment as well as the nonprofit and electronic marketing sectors. Included are catalogers, Internet retailers and service providers, financial services providers, book and magazine publishers, book and music clubs, retail stores, industrial manufacturers and a host of other vertical segments, including the service industries that support them. According to a DMA-commissioned study, direct and interactive marketing sales in the United States exceeded $1.86 trillion in 2001, including $118 billion in catalog sales and $30 billion in sales generated by the Internet. The DMA's Web site iswww.the-dma.org, and its consumer Web site is www.shopthenet.org.
Results of The DMA's The Face of Teleservices Industry 2002 Survey can be found at: http://www.the-dma.org/cgi/dispannouncements?article=190.
Media Contact: Natalie Greaves 212.790.1507 Ngreaves@the-dma.org