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DMA STATEMENT ON MARCH 26, 2003 ACTION BY U.S. DISTRICT COURT FOR THE WESTERN DISTRICT OF OKLAHOMA
NEW YORK, March 26, 2003 – The Direct Marketing Association (The DMA) today voiced its disappointment with the U.S. District Court for the Western District of Oklahoma's denial of The DMA's motion for A preliminary injunction (filed on March 10) against portions of the Federal Trade Commission's (FTC) amended Telephone Sales Rule (TSR) that are set to take effect on March 31.
The teleservices industry, as represented by The DMA and four other telephone marketing companies who are parties to a lawsuit against the FTC, will continue to pursue its legal challenge against the federal agency and in its implementation of the amended TSR.
Earlier this month, acting on a petition by The DMA, the FTC agreed to delay enforcement of some parts of its changes to the TSR.
The FTC decided to stay the implementation date by which it will require full compliance with the call recording provision of the abandoned call safe harbor until October 1, 2003.
The FTC also decided to partially stay, until October 1, 2003, the date at which it will require full compliance with record-keeping requirements to document the use of a recorded message in instances of call abandonment.
Today's action deals primarily with delaying the implementation date for the provisions dealing with the "Abandoned Call Rule" and "Free-to-Pay/Preacquired Account Rule." These are the provisions that deal with abandoned calls and taping of any transaction combining the use of preacquired account information and a free-to-pay conversion offer, respectively.
In its lawsuit, The DMA argues that the FTC's proposed government-run do-not-call registry would violate First Amendment rights to advertise freely. Also, The DMA asserts that in creating such a list, the FTC exceeded its statutory authority. In addition, The DMA points out that the FCC is considering a similar proposal, opening the door to potential bureaucratic duplication. The FCC is expected to make its recommendation in a matter of a few months.
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