Read anything interesting or outrageous from our wonderful friends in the telemarketing industry?  E-mail it to us! It may be our next "Quote Of The Week!"

July 13, 2008

"Although compliance with the National Registry has been high, the FTC actively investigates and prosecutes violators. National Registry enforcement protects the success of the National Registry in safeguarding consumer privacy. The FTC also works with its enforcement partners at the U.S. Department of Justice (“DOJ”), the FCC, and the states to enforce the National Registry rules.

"Violating the National Registry subjects telemarketers to civil penalties of up to $11,000 per violation. Civil penalty actions are filed by the DOJ on behalf of the FTC. Some violators of the National Registry also engage in fraud or other law violations. In these fraud cases, the Commission seeks equitable relief in federal court, such as injunctions against future violations, consumer redress, and disgorgement of profits.

"As of September 30, 2007, the FTC had filed 25 cases alleging violations of the National Registry and had reached settlements in 22 of these cases, obtaining injunctive relief in all 22 cases. In 13 of the resolved cases, defendants paid civil penalties totaling more than $8.7 million. In the remaining resolved cases, defendants paid redress and/or disgorgement for other violations, totaling more than $8.4 million."

From the Annual Report to Congress for FY 2007 by the Federal Trade Commission (FTC), author unknown.  A copy of the report can be downloaded by clicking here.  The FTC Office of Public Affairs can be reached at: (202) 326-2180.

CATS Comment:  Figures lie and liars figure.  While we commend the FTC for publishing the report, there has never been one telemarketer that has paid a fine of $11,000.00 per violation.

The fact of the matter is that the FTC often settles for pennies on the dollar, or more accurately, fractions of pennies on the dollar.   While Corporate America has, for the most part, stopped calling people at home, many unscrupulous business persons still continue to do so, and even if they are caught, they most likely will pay a minimum fine in order to settle the case.

Is it any wonder that we, here at CATS, get more and more reports that rouge telemarketers (who often fail to identify themselves) call people constantly?

Simply put, enforcement works!

Congress should resolve the problem by allowing private citizens a private right of action for violations.  Then you and I could sue the violators and get some satisfaction.  From our experience, here at CATS, that usually works.

Simply put, if the Government can't protect us from unwanted telephone solicitations, then give private citizens the tools to enforce the law themselves.

July 6, 2008

"It was a fluke, but telemarketers are responsible for my career.  When the phone rang I jumped up hoping it was a client, but nine of ten times it was a telemarketer."

Tom Mabe, the Louisville, KY comedian whose six-episode "Mabe in America" makes its debut on July 4, 2008 Country Music Television (CMT) cable.

So Tom started recording the callers with a little routine of his own.  When the telemarketer called him by name and said he had been selected to receive something for free, Mabe would pretend to be a police detective at the scene of Mabe's murder. The routine goes something like this:

"Let me ask you something. Did you know Tom Mabe? Was he a friend of yours?  What's the nature of the business you had with Tom Mabe. (The telemarketer tries to hang up.) "Hang on, this call has already been traced and we may need you to come in for further questioning."

That bit propelled him into a recording deal, a crusade against such calls and the national spotlight.

If you miss the 10:30 p.m. premiere on July 4th  you can see "Mabe in America" 16 other times on the CMT schedule before the second episode next Friday.  The schedule is posted on www.tommabe.com as well.

From the Louisville Courier-Journal's web site, Making fun of telemarketers is comic Mabe's calling, July 3, 2008.  Mr. Mabe can be reached, via e-mail, at: TomMabe3@aol.com.

June 29, 2008

"Even the most sophisticated firms have compliance issues.  Constant vigilance to know the requirements and ongoing diligence to verify that your firm meets those requirements is crucial in avoiding potential mistakes.”

Tim Searcy, CEO of the American Teleservices Association (ATA), commenting about complying with telemarketing regulations.

The article goes on with various methods and strategies to comply with the various laws that regulate the telemarketing industry.

From TMCnet.com's (formerly telemarketing magazine) web site, Tips on Regulatory Compliance, June 28, 2008.  Mr. Searcy can be reached, toll free at: (866) 500-4272 x103.

CATS Comment:  OK, let's say that the ATA really wants compliance from its members.  Then the ATA should know and tell its members about the regulation that every telemarketer must have a written "Do-Not-Call" policy that is "available upon demand."

So here's our challenge to you, Mr. Searcy.  Tell us what a "Do-Not-Call" policy must contain, at the very minimum, according to the FCC.  We bet you don't even know.  Prove us wrong.  Send the information to us.

We shall be waiting.

CATS Note:  We left a message on Searcy's voice mail, and send a certified e-mail to the ATA asking the same question.  So far, no response has been received.

June 22, 2008

"Recently, Wanda June got a telemarketing call from a representative who wanted to sell her a new casket. The saleswoman said she could give her a better deal than the local funeral homes. Wanda June is always up for a good bargain, but she passed on that one. It just didn’t seem right.

"Telemarketing is a great form of advertising. So are signs out front of small restaurants and sidewalk markets that let people see what they can expect inside. But &ldots; sometimes it’s just too much information"

Beth Beggs, a writer for the Graham (Texas) Leader, commenting about various kinds of advertising she has recently been exposed to.

Ms. Beggs goes on to say that commercials are so ingrained into our lifestyles that we actually “trust” companies who advertise more.  She goes on to suggest that  when traveling out of town, we’re more likely to buy a burger in a name-brand squat-and-gobble restaurant than we are the joint on the corner.

From The Graham Leader Online, Beth Beggs - Too much truth in advertising, June 20, 2008.  Ms. Beggs can be reached, via the Graham Leader, at: 940-549-7800.

CATS Comment:  Hold the phone Ms. Beggs.  Telemarketing is a great form of advertising?  If that is so, then why did over 150 million Americans put their numbers on the National Do-Not-Call List?

Unlike signs on stores, telemarketing uses your property (your phone that you pay for), intrudes into your home at their convenience (not yours), fails to respect your privacy, and is the most intrusive form of marketing.

Telemarketing as a great form of advertising?  We, here at CATS have to disagree with you on that one, however we do have one small request.

Could we have a small sample of what you were smoking when you wrote that?  After all, we are from California.

June 15, 2008

"This is something the people wanted done, and it's one of the number one complaints we get as far as trying to stop these calls from coming in at these unwanted times, from these unwanted callers."

Lynn Posey, Mississippi Central District Commissioner, Mississippi Central District Public Service Commissioner and is also Vice-Chairman of the Commission commenting on a new, tougher telemarketing law in Mississippi.

With the passage of the No-Call Law reform this week, telemarketers must now register every telephone number they plan to use for telemarketing.

Businesses who use telemarketing will no longer be able to block their number from your caller ID. They also must sign an affidavit pledging under oath not to block their phone numbers

From WTOK's (Channel 11, Meridian Mississippi) web site, New Law Seeks to Protect Consumers, June 11, 2008.  Commissioner Posey can be reached, at his office, at: (601) 961-5430.

CATS Comment:  Way to go, Commish!  Let's hope that you vigorously enforce the new law.  Oddly enough, the number one complaint that we, here at CATS, receive is failure of telemarketers to send a valid ID as well.  Go get 'em!

June 8, 2008

"This is the first addition to Wisconsin’s “Do Not Call” law since its enactment in January 1, 2003. Including cellular phones is a significant improvement to this popular public consumer service.  In addition, the increase of the maximum fines will allow for better prosecution of violators.  Finally, codifying federal and state rule to allow people to verbally tell any telemarketers, even those exempt from the list, to not call them again is another big consumer benefit.”

"I wanted businesses to be able to have the option to be on the ‘Do Not Call’ list.  I heard that it was important to them, but in the end it was what was holding up the bill.  Having the ability for all types of phones to be able to sign up for the “Do Not Call” list is a huge deal and I am very hopeful that the Assembly will take swift action to schedule SB 99 for the floor since an additional public hearing is not necessary,"

Wisconsin State Senator, Jon Erpenbach (D-Madison) commenting on Wisconsin Senate bill 99 which would add cell phone numbers to the State's "Do-Not-Call" list.

The Wisconsin Department of Agriculture, Trade, and Consumer Protection estimates that there are now 2 cell phones for every residential land line in Wisconsin.  The update he has authored would allow people to put their cell phone numbers on the Wisconsin Do Not Call List.  The only option Wisconsin residents currently have is to put their cell phone numbers on the federal No Call List, which is substantially weaker than Wisconsin’s law.  This bill would also allow small businesses, who are increasingly subjected to telemarketing calls, to add their numbers to the list as well.

From a press release on Erpenbach's web site, Cellular Phones on “No Call” List Passes State Senate, Erpenbach Bill Adds Cellular Phones, Increases Penalties, Businesses Out in Compromise, February 19, 2008.  Erpenbach can be reached, via his office, at: (608)266-6670,

CATS Comment:  If Erpenbach is the sheriff in Wisconsin, then telemarketers better not call a 'cheesehead.'  You rock, Jon!  Go get 'em!

June 1, 2008

"They totally took advantage of her.  We had to sit my mom down and tell her you can't tell the good guys from the bad guys anymore.  We had to take away her checking account and credit card.  We felt like we were robbing her of some of her dignity and humanity, but we also needed to protect her."

Betty Bruni, a private citizen, testifying on behalf of victims before the  Federal Trade Commission (FTC) regarding Operation TelePHONEY, the largest crackdown on telemarketing scams in the agency's history.

Bruni said a for-profit group, Handicapped & Disabled Workshops Inc., of Arizona, charged her mother $398.95 for light bulbs she doesn't remember ordering in December 2006.

Her mother, Elva Silliman, 96, of North Dakota, was charged for the light bulbs despite sending them back, Bruni said. The same company had targeted Silliman a year earlier, Bruni said, and kept her name on file.

When Bruni tried to get a refund for her mother, the company told her the payment counted as a donation rather than a payment for a product.  It took a dozen phone calls, letters and e-mails - and help from the state attorney general's office - before the company sent a refund to Ms. Silliman,

The FTC filed a lawsuit against Handicapped & Disabled Workshops Inc. seeking to bar the company from telemarketing and seeking restitution for consumers. The agency claims the company aggressively solicited elderly customers with calls seeking "support" or "donations" for handicapped or disabled employees. The company also violated the Do-Not-Call Registry.

From Syracuse.com, A voice against phone scams, Syracuse woman travels to D.C. to tell story of how her mother was victimized,  May 31, 2008.   Ms. Bruni can be reached, via Syracuse.com, at: (315) 251-1810.

CATS Comment:  There is only one word that we here at CATS have for scammers like the ones that scammed Ms. Silliman.  The word is - telescum!

Telemarketers have often been the bottom feeders of the sales industry.  Just when we didn't think that the industry couldn't get any lower, stories like this surface.  Our advice for the elderly, to coin the words of Nancy Regan, is: 'Just say no.'

May 26, 2008

"The sheer breadth of ‘Operation Tele-PHONEY’ is a testament to the ability of law enforcement agencies at all levels to work together effectively to help protect consumers both in the United States and abroad,  I’d like to personally thank all of our partners in this sweep for helping to eradicate the scourge of telemarketing fraud.”

Federal Trade Commission (FTC) Chairman William E. Kovacic commenting about Operation Tele-PHONEY, which had more than 180 actions brought by the FTC and Its law enforcement partners.

Through “Operation Tele-PHONEY,” the FTC has filed federal district court complaints against 13 allegedly deceptive telemarketing operations. Combined with the actions brought by other enforcement agencies, the sweep encompasses more than 180 cases that include both civil and criminal actions in the U.S. and Canada. In many of the FTC actions announced today, federal courts have temporarily frozen defendants’ assets and suspended defendants’ operations.

Operation Tele-PHONEY includes the new FTC cases announced today, developments in several other FTC telemarketing cases, more than 80 state law enforcement actions, criminal actions against more than 90 defendants, and eight cross-border telemarketing fraud actions brought by Canada’s Competition Bureau and the British Columbia Business Practices and Consumer Protection Authority. According to the FTC, in the 13 actions it is announcing today, more than 500,000 consumers were defrauded by unscrupulous telemarketers, resulting in losses of more than $100 million. The Commission estimates that as a result of the law enforcement actions consumers will save approximately $30 million over the next year.

From a press release on  the FTC's web site, FTC Announces ‘Operation Tele-PHONEY,’ Agency’s Largest Telemarketing Sweep, May 20, 2008.  Chairman Kovacic can be reached, via the FTC at: (202) 326-2100

CATS Comment:  While we commend the FTC for their actions, the problem with unlawful telemarketing is getting worse.

Unless Congress changes the Telephone Sales Rule (TSR) to allow private citizens a private right of action (the right to sue) telemarketers will continue to use spoofed caller-id's and confusing names to avoid detection.

The problem will have to get much worse before Congress acts.

We, here at CATS, suggest that you memorize your local member of Congress's phone number and give that number out when companies ask you for your number.  Perhaps that will solve the problem.

May 18, 2008

"It's a practice known as 'Caller ID spoofing' and a man who runs a telemarketing business in Oregon told KATU News that it is one of the tools telemarketers use to mask their identity.

"The practice is illegal, but Web sites exist that sell software that let anyone mask their caller ID identity.

"The telemarketing owner declined to be identified or go on camera but said he doesn't have a home phone anymore - because he was sick of getting telemarketing calls."

Dan Tilkin, a TV reporter for KATU TV in Portland Oregon, commenting about how telemarketers dodge caller-ID rules and send fake caller-ID's to mask their identity.

Two local residents, James Johnson of Tigard and Sheryl Juber of Portland, said they were getting calls on their cell phones from telemarketers even though they are listed on the "Do Not Call" list.

Typically, telemarketers abide by the list, but some work very hard to circumvent it.  A fine for a violation runs into the tens of thousands of dollars.

Juber said she tried to get the name of the business calling her but the telemarketer hung up on her after using an expletive.

Officials say people receiving bogus calls should document the calls in any way possible.  A complaint can only be filed and an investigation begun if a legitimate business name and number is listed in the complaint paperwork.

Most likely, the telemarketers are well aware of the stipulations, so if they are acting illegally, they will try to spoof the caller-ID to avoid detection.

From KATU's web site, Telemarketers dodge Do Not Call list with mystery numbers, May, 16, 2008.  Mr. Tilkin can be reached, via KATU, at (503) 231-4222.

CATS Comment:  So what's a consumer to do?

We here at CATS recommend that you try to "play along" with the caller and try to find out what they are selling and who they are.  Remember, they are trying to sell you something, and as such, will reveal that information.  Plus, you get the added bonus of wasting the telemarketer's time.

After the call, document the information and send it to the FTC for processing.  If enough people gather information then we can find out who these people are, and the Government can go after them.

To file a complaint with the FTC, click here.

May 11, 2008

"I called the Nacogdoches [Texas] chamber and they have nothing but positive things to say about ETECH.  And they’re pay scale is pretty good.”

Angela Raiborn, the Mayor of Rusk, Texas commenting about the Rusk City Council's decision to bring ETECH, Inc., a telemarketing company, to downtown Rusk.

The telemarketing company, which services AT&T cell phone customers, XM Radio subscribers and Capital One credit card users, is set to open a branch in the building on the corner of Fifth and Henderson streets on the square in Rusk.

Rusk council members approved a loan of $50,500 of 4A EDC monies for the purchase of furniture for the site — the first portion of an estimated $250,000 incentives package to the company — during a special meeting held Friday afternoon, upon the recommendation of Chamber Executive Director Bob Goldsberry.

The package offers the company loans and grants for initial start-up and other incentives based on performance and staffing in the future.

The company’s starting pay is reported to be about about $25,000.  The company also offers insurance, retirement benefits and a tuition package to its employees

From The Jacksonville Daily Progress, Telemarketing company moving to Rusk, May 10, 2008.  Mayor Raiborn can be reached, via the City of Rusk at: (903) 683-2213,

CATS Comment:  With the air so full of political stories these days, isn't it nice to know that in Texas, your taxpayer dollars are being well spent.

Don't worry, Rusk is not the only city that does this.  Your tax dollars are probably being used to do this as well.

May 4, 2008

"The Competition Bureau is committed to taking action and seeking significant sentences against scammers who harm businesses and consumers through deceptive telemarketing schemes."

Andrea Rosen, Acting Deputy Commissioner of Competition, Competition Bureau, Canada, commenting about an Ajax, Ontario man that received a two-year conditional jail sentence for his involvement in a business directories telemarketing scam that defrauded businesses of an estimated $150 million over a 10-year period.

Paul Barnard, 56, a senior manager of DataCom Marketing Inc., pleaded guilty to six criminal charges under the deceptive telemarketing provisions of the Competition Act.

In addition to the conditional jail sentence, Madam Justice Marion E. Lane of the Ontario Court of Justice ordered Mr. Barnard to complete community service. Mr. Barnard is also prohibited from engaging in any form of telemarketing for life.

The Competition Bureau is an independent law enforcement agency that contributes to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

From a press release by the Competition Bureau, Jail Sentence for Deceptive Telemarketer, April 29, 2008.  Ms. Rosen can be contacted, via the Competition Bureau at: (819) 997-1231.

CATS Comment:  You go girl!  Right on Ms. Rosen!

The Canadians have the right idea.  Rather than calling it illegal telemarketing, they call it unfair competition.  By doing that, Canada makes the telemarketer an outcast in his industry since the telemarketer is taking unfair advantage of his fellow telemarketers as well as consumers.

The ATA (American Teleservices Association) here in the USA could sure learn a lesson from that concept!

April 27, 2008

"It makes me feel like a fool for one thing because I trusted them."

"It just seems like it's just a scam, you know."  

Wilene Sanders of Hayward California commenting about the fact that she became a victim of what is now being called the Wal-Mart Shopping Spree Scam.  She lost $298.

The suspected scam gets its name because a telemarketer tempts consumers with heavily discounted gift cards for major retailers and other businesses.  Now the Federal Trade Commission is moving to shut the telemarketing company down.

For the record, Wal-Mart is NOT involved with this scam.

The Consumer Rewards Network near Los Angeles promised her a $500 shopping spree and discounts to entertainment venues like Six Flags.  All this for just a $4.95 shipping and handling fee payable by check or debit.  Sanders says that once the company got her checking account information, it electronically debited money from her account without permission. She is still waiting for her “shopping spree.”

The Better Business Bureau says the Consumer Rewards Network is also known by many other names including Mega Movie Club, Star Network and Health Network USA.

From KGO-TV’s (ABC-TV San Francisco, California) web site, Consumers Duped By Shopping Spree Scam, April 6, 2008.  KGO-TV, can be contacted, toll free, at: (877) 222-7777.

CATS Comment:  The telephone scammers are at it again!  The best advice that we here at CATS can give you is the same advice that we always give you: simply never buy from a telemarketer no matter how good the offer seems to be.  Often, it is just a scam, and even if it is a legitimate offer, you probably could get it cheaper via the net.

So, as Nancy Regan says, “Just say NO!”

And if you are in a sporting mood, why not try and waste as much of the telemarketer’s time as possible?  If we all waste one minute of a telemarketer’s time it will limit them to 60 calls per hour.  Telemarketers need to talk to about 100 people an hour to be profitable.  By limiting them to 60 calls per hour, it will bring the industry to a screeching halt.

Wouldn’t that be nice?

April 20, 2008

"We regret that the situation occurred. We took this situation very seriously and took aggressive steps to correct the processes related to the situation.  We're confident that the changes we've implemented will help protect consumers."

Christy Phillips Brown, a spokesperson for Wachovia Bank, commenting on the bank's involvement with alleged telemarketing fraudsters that apparently lead banking giant Wachovia to pay "restitution," according to the company. 

For several years, the North Carolina-based bank reportedly honored thousands of fraudulent transactions for more than $140 million from telemarketing scammers. Wachovia is said to have collected millions of dollars in fees, and despite numerous warnings from inside and outside of the bank, apparently never looked into the sources of the fraudulent transactions.

Wachovia, the nation's fourth-largest bank, previously said its executives were unaware of the fraudulent transactions. But documents released in a recent court case reportedly show otherwise.

"YIKES!!!!!" was how one Wachovia executive reportedly reacted in a 2005 e-mail to colleagues, after learning the bank had received thousands of complaints over two months due to activity from a single account.

From ABC TV News, Wachovia Facing Fines Over Fraud Fiasco - Involvement With Alleged Telemarketing Fraudsters Behind Potential Fines, April 16, 2008.  Ms. Brown can be reaced, via Wachovia's Corporate Communications department at (704) 374-2138.

CATS Comment:  Isn't it amazing that not one Wachovia executive is facing some jail time?  Another example of lax enforcement of the laws designed to protect the citizen.

April 13, 2008

"Abdullah's former boss later took the stand saying Abdullah was a bright and well spoken young man when he started work at her telemarketing company, but over time, she and other employees noticed changes."

Amy Allen, a television reporter for KGPE, Channel 47, CBS in Fresno, California commenting on the testimony in the trial of Ramadan Abdullah, accused of shooting a Sheriff's Deputy to death. 

His father and his former supervisor each took the witness stand to describe watching Ramadan Abdullah slowly deteriorate, suffering from delusions and uncontrollable emotions.  His father, Mahdi Abdullah, told jurors they consulted religious leaders and even tried alternative therapies.

From KGPE's web site, Defense Continues in Abdullah Murder Trial, April 9, 2008.  Ms Allen can be reached via KGPE, at: (559) 222-2411.

CATS Comment:  Remember the "Twinkie defense?"  The dictionary at Law.com defines it as: A claim by a criminal defendant that at the time of the crime, he/she was of diminished mental capacity due to intake of too much sugar, as from eating "Twinkies," sugar-rich snacks.

Belive it or not, the defense actually worked!

So, we here at CATS wonder why some enterprising California lawyer doesn't come up with the "Telemarketing defense."  The "Telemarketing defense" would go something like this:  A claim by a criminal defendant that at the time of the crime he/she was of a diminished mental capacity due to the frustration of constant rejection by the people that he called to sell them something.

In Abdullah's case, this would be the perfect defense.  Only in California would somethng like this work.  Ya gotta love our lawyers.

April 6, 2008

[The Telemarketing scheme was based on]  "misdirection, misimpression and misunderstanding,"

Assistant US Attorney Bruce Reppert from the Southern District of Illinois. commenting about his prosecution of a fraudulent telemarketing scheme that took about $40 million from more than 325,000 people who were misled to believe they would get credit cards.

Kyle Kimoto, a Las Vegas resident whose business, Assail Inc., was based in Utah, was indicted by a grand jury in June on one count of conspiracy to commit mail fraud, wire fraud and money laundering, one count of mail fraud and 12 counts of wire fraud. Authorities allege residents of 34 Southern Illinois counties were among victims of the alleged fraud, resulting in the case being held in East St. Louis.

Reppert said Kimoto and co-conspirators had telemarketers call a consumer whose applications for a credit card had recently been denied, imply that they represented the financial institution that had denied credit, ask several questions and then tell them they would receive a VISA or MasterCard.

Instead of credit cards, those who responded to the pitch and paid fees of $159 or more got an application for a debit card, along with a package of what was, in essence, junk mail.

From the St. Louis Post-Dispatch, Prosecutor alleges $40 million telemarketing fraud, April 1, 2008.  Mr. Reppert, can be reached via the US Attorney's office for the Southern District of Illinois, at: (618) 628-3700.

CATS Comment:  The telemarketing industry preys on the less fortunate and desperate.  In this example, banks rented names and phone numbers of people who were rejected for credit cards, and the telemarketers attacked them like vultures.

While the telemarketers were eventually prosecuted, don't the banks (that provided the information) bear some responsibility?

March 30, 2008

"This [telemarketing] is something that we have not done in the past.  It's really a little bit out of the box for us to do this.

"We don't get the majority [of donations], but we're not doing the work either.

"Basically, they're making a cold call.  Whatever we make off them we didn't have before."

Officer Rich Wilson, Port St. Lucie, FL Police Athletic League (PAL) executive director, commenting on the league's use of telemarketing.   Citing a faltering economy and a possible negative impact from property tax reforms, the police department's Police Athletic League has turned to a telemarketing fundraising campaign to help generate revenue.

PAL has hired Public Safety Advocates of Louisiana, whose offices are in Port St. Lucie, to call area small businesses to solicit funds. Public Safety Advocates has been working since February and the firm is calling businesses, not private citizens.

Public Safety Advocates of Louisiana began in Florida, moved to Louisiana and relocated back to Florida after Hurricane Katrina.  He said the group has a history of working with nonprofit law enforcement agencies.

From the Scripps Treasure Coast Newspaper, Police Athletic League in PSL turns to telemarketing to raise funds, March 25, 2008.  Officer Wilson can be reached, via PAL, at:  (772) 398-9436.

CATS Comment:  Here is another example of "police telemarketing" at work.  We have heard of one California resident who jokingly told the telemarketer that he was a drug dealer and would not contribute to the cops!  The telemarketer then called the police and told them about the conversation, and the local sheriff was dispatched to the house to check it out.

It turns out that the alleged "drug dealer" was, in reality, an officer with another law enforcement agency!

Perhaps the law enforcement community should spend its time catching criminals, and not bothering businesses and residents with telephonic requests for donations to a charity.

March 23, 2008

"1.1.1. ATA members commit to uphold the highest standards of conduct in their inbound and outbound telephone communications with consumers, consistent with the following principles:

"1.1.1. Be fair, responsible and honest, and follow the standards set forth herein as well as applicable federal and state laws and regulations.

"1.1.2. Treat consumers with courtesy, dignity and respect.

"1.1.3. Provide accurate information in a clear and understandable manner in all communications with consumers.

"1.1.4. Not engage in undue sales pressure or unfair, deceptive or abusive tactics.

"1.1.5. Respect consumers' privacy and protect their information in a secure manner.

"1.1.6. Provide prompt, high-quality customer service designed to respond to consumers' changing needs and expectations. "

The American Teleservices Association's (ATA) "Teleservices Consumer Bill of Rights." as posted on their web site.  The ATA's Chief Executive Officer, Tim Searcy, can be reached toll free at: (866) 500-4272 x103.

CATS Comment:  Every time we ask an ATA member (or most telemarketers for that matter) for a copy of their written 'Do-Not-Call' policy we are cheerfully ignored, even though it is required by law, and they can be civilly sued for non-compliance.

Therefore, we here at CATS humbly suggest a small addition to the ATA's "Teleservices Consumer Bill of Rights."

1.1.7. Maintain and enforce a written "Do-Not-Call" policy that meet the expected standards of the FCC, and provide it to anyone upon demand as required by law.  The policy shall also be conspicuously posted on the organization's web site, (if the organization has a web site.)

Well Mr. Searcy?  We shall await your answer.

March 16, 2008

"May we have your phone number?

"It will enable us to provide you with a higher level of service and to improve our communication with you.  We respect  your privacy, and are committed to protecting it, and will not use it for any telemarketing."

Sign in a Burlington Coat Factory store near Seattle, Washington.  To view the complete sign, click here.

Picture was taken in the last 60 days.  The sign is current.

Burlington Coat Factory can be contacted, via their spokesperson, Ms. Audrey Shapiro at: (609) 387-7800 x2826

CATS Comment:  Burlington Coat Factory (BCF) claims that they will not use the number for telemarketing.  Let's take a look at that claim, shall we?

On the sign they say: "Be the 1st to hear about special events - savings opportunities - exciting new fashions."  We suspect that BCF will call you (via a robo call) to tell you this.  Simply put, those calls ARE telemarketing calls!

The sign also says:  "For a complete privacy statement, please visit www.burlingtoncoatfactory.com."

We went to the web site and reviewed their privacy policy.  (To review it click here.)  The privacy policy does not even mention telephone calls, and, in fact, does not even have the words 'telephone' or 'phone' in it.  As a result, their privacy policy is not a Do-Not-Call policy as defined and required by the FCC.

The policy does indicate how BCF "respects your privacy" by sharing your information with "affiliated companies, carefully selected vendors, business partners and other organizations to provide better service to you."

The policy goes on to say that they also share your personal information with: "specially chosen companies that help us with marketing functions (such as manage our Internet business, maintain and manage our customer information, as well as market our products and services). And at times we may share information with other companies that have a product or service that we believe will be of interest to you and/or may help them serve you better."

Feel better now?

Finally, for the record, we did contact Ms. Shapiro, via e-mail and asked for BCF's written Do-Not-Call policy.  She e-mailed us a link to the privacy policy.  When we pointed out that we wanted the Do-Not-Call policy, not the privacy policy, our request was cheerfully ignored.

March 9, 2008

"As a second-generation direct marketer, (my father, Murray Roman is recognized as the founder of the telemarketing industry), sadly, I cannot say that the quality of the telephone customer experience has improved significantly over the past 30 years. Speaking as a consumer who is either placing plaintive calls to customer service centers or receiving the usual dinner time calls, it is not a wonderful experience."

Ernan Roman, president of Ernan Roman Direct Marketing, commenting about telemarketing in an article written by him for DM News.

In his article, Mr. Roman suggests that companies should not view customer service call centers as cost centers.  Companies must consider the financial ramifications of losing customers due to poor post-sale experiences.  Mr. Roman accurately points out that it's seven to 10 times more expensive to acquire a new customer than it is to sell to an existing one.  If companies measured the amount of lost revenue resulting from these self-inflicted customer losses, they would wake up to the importance of delivering high-quality call center experiences.

Companies should also increase expenditures for training, quality control procedures and development of call center personnel.  They should focus on the quality of the customer's experience with their call centers, regardless of where they are located.  Plenty of horror stories were reported regarding in-house, US call centers as well as outsourced centers.  Telephone interaction is first and foremost about people interacting with people.

From DM News, Take steps to mend telemarketing, February 25, 2008.  Mr. Roman can be reached at (718) 225-4151 x 10.

CATS Comment:  Telemarketing is, by far, the most hated method of direct marketing.  We commend Mr. Roman for admitting that his father was the founder to the telemarketing industry.

Too bad that telemarketing, because of its very invasive nature, will never be mended.  Perhaps that is why more people are on the National "Do-Not-Call" list than voted in the last presidential election.

March 2, 2008

"The TCPA requires each company, with the exception of those making nonprofit solicitations, to maintain a list of those people who do not wish to be contacted by phone and to develop a written policy implementing this "Do not call" list-keeping requirement. These written procedures must be made available to anyone on demand.

"'Do not call' lists must be maintained for a period of 10 years and cannot be sold, or in any way shared (except with a subsidiary or affiliate company), without the consumer's expressed consent.

"Any employee engaged in any aspect of the telemarketing process must be fully trained in the above-mentioned procedures. Service agencies must make sure they are in compliance and their clients fully understand and agree to follow the procedures for maintaining "Do not call" data, as the clients will ultimately be held liable.

"A word of warning: If you feel this 'Do not call' provision does not apply to you because you have an existing relationship with the individuals you call, think again. Although the federal statute creates an exemption for 'established business relationships,' the FCC requires that the 'Do not call' requests of established customers be honored. In effect, once an established customer requests not to be called, the 'established business relationship' exemption ceases to apply. "

From a web page on the American Teleservices Association's (ATA) web site.  (The American Teleservices Association used to be the American Telemarketing Association.)  Author unknown.  The ATA can be reached, toll free, at (866) 500-4272.

CATS Comment:  The ATA correctly points out that the law states that: "Any employee engaged in any aspect of the telemarketing process must be fully trained in the above-mentioned procedures."

Let's take a closer look at this, shall we?

Modern telemarketing is done with numerous people with various skill sets.  Here is a typical example:

You go out to buy a big screen TV at your local "Big Buy" electronics store.  The salesman sells you the TV, writes the order up, and gets your address and phone number for the installer.  He asks you if you want an extended warranty, and you decline his offer.  In fact, you tell him not to call you and offer you one later, (in other words, "Put me on your Do-Not-Call list.")

The data (your name and phone number) is sent to Big Buy's data center, where various information technology people key your information into the Big Buy database.

Later that year, using that database, a telemarketer calls you at  home and again offers you an "extended warranty."  So much for your "Do-Not-Call" request.

According to the law "Any employee engaged in any aspect of the telemarketing process must know the law.  So you go back to Big Buy and complain to the salesman who says something like 'I'm not a telemarketer, so why should I know that?'

We, here at CATS have argued (and collected against) companies that break this law.  Our compelling argument goes something like this:

We believe that the salesman on the floor is a part of the telemarketing process; in fact, CATS would argue that the salesman is the MOST IMPORTANT part of the telemarketing process since it is the salesman who collected our unlisted number, without which, no telemarketing could happen,

Next time you go into any store that has credit cards, ask a saleman about the telemarketing practices of his company.  If you expect an intelligent, concise answer, you probably won't get it.

Case closed!

February 24, 2008

"Earlier this week, the co-owners and seven office managers of telemarketing firm Gecko Communications Inc. were sentenced to federal prison for defrauding 83,000 consumers of $15.7 million in a seemingly unrelated advanced-fee credit-card scheme.

"According to prosecutors, Gecko falsely offered people with bad credit pre-approved credit cards if they agreed to debit their bank accounts for between $159.95 and $229.95. But rather than cards and improved credit, all consumers got for their money was an application, according to officials."

Ken Magill, a communist with Direct Magazine, commenting about the sentencing of several managers and co-owners of Gecko Communications.

Christopher L. Carlson, 37, of Glenwood, IA, and Jason R. Spencer, 27, of Osceola, IA were sentenced to two years in federal prison without parole. Steven T. Rice, 45, of Kansas City, MO, was sentenced to two years and 11 months in federal prison without parole.

Also, Zachery T. Whitehill, 30, of Sahuarita, AZ, was ordered to serve 11 years and three months in federal prison without parole. Jaime E. Cook, 31, of Kansas City, MO, was sentenced to five years in federal prison without parole. Bradley L. Lovstad, 45, of Muscantine, IA and Monty E. Wanless, 31, of Kansas City, MO were sentenced to eight years and one month in federal prison without parole.

All were also ordered to serve three years of supervised release after their jail terms and to pay $6,048 in restitution each

From Direct Magazine, Court Shutters Advance-Fee Card Fulfillment Firm, December 22, 2006.  Mr. Magill can be reached at: (212) 204-4219.

CATS Comment:  With the Academy Awards (the Oscars) happening this week, we here at CATS would like to point out that, according to Customer Inter@ction Magazine (formerly Telemarketing Magazine) Gecko Communications was declared number 49 in the Sixteenth-Annual Top 50 Outbound Teleservices Agencies by the magazine back in 2001.

It just doesn't get any better than this!

February 17, 2008

"Idahoans were contacted under the premise that they had been specially selected to win a prize.  The reality was that United Publishers purchased lists of consumers’ telephone numbers from data brokers and then randomly selected numbers to call in an attempt to sell magazine subscriptions.  If a phone solicitor asks that you make a purchase to win a ‘free’ prize, the prize is not free."

Idaho Attorney General Lawrence W. Wasden announcing a settlement under which Atlanta-based telemarketer United Publishers of America Inc. will not be allowed to make telephone solicitations in Idaho.

The settlement resolves allegations that the company’s local operations violated the Idaho Telephone Solicitation Act and the state Consumer Protection Act.

Under the guise of selling magazine subscriptions, United Publishers employees were allegedly asking consumers whether they had a credit card and that they would receive a free watch and free magazines.

To receive the free merchandise, consumers had to purchase magazine subscriptions that could not be immediately canceled.  Before it can resume soliciting in Idaho, the settlement requires United Publishers to register with the Attorney General’s Consumer Protection Division as a telephone solicitor.

United Publishers admitted no violation of Idaho law. However, they agreed to pay the Attorney General $1,000 in civil penalties and $1,507 in attorney fees and investigation expenses.

From a press release on Attorney General Wasden's web site, Attorney General Stops Telemarketer from Soliciting in Idaho, February 13, 2008.  Attorney General Wasden can be contacted, via his office, at: (208) 334-2400.

CATS Comment:  While we applaud Attorney General Wasen's actions, we here at CATS, wonder just how many phone calls United Publishers made to Idaho citizens.

Simply put, we are curious how much the fine was per illegal call.  Given the nature of the telemarketing industry which makes thousands of call an hour, we suspect that the fine per call was, at best, a cost of doing business.

Let's review, shall we?  The telemarketer paid $1,000 in fines and $1,507 in "attorney fees and investigation costs."

We do not know much about Idaho and Idaho attorneys, but we can't even get a California attorney to sneeze for $1,500!

We here at CATS suspect that the fine, in reality, was a joke and not a real deterrent to the illegal activities often used by the telemarketing industry.

February 10, 2008

"The sheer volume of people who have signed up for the list proves that Americans and New Jersey residents want to be protected from fast-talking salespeople who are looking to make a quick buck.  The President needs to sign this legislation at once."

Assemblywoman Linda Greenstein (D-Middelsex, NJ) recently urging President Bush to come to the aid of consumers all across America and promptly sign federal legislation that would make enrollment on the national "do not call" anti-telemarketing list permanent.

From PolitickerNJ.com, GREENSTEIN URGES PRESIDENT TO SIGN FEDERAL 'DO NOT CALL' LEGISLATION, February 8, 2008.  Assemblywoman Greenstein can be reached at: (609) 395-9911.

CATS Comment:  It's easy to support a law that over 95% of the population wants.  It is harder to get the funds to enforce the law effectively.

The recent enforcement actions by the Federal Trade Commission settling claims for pennies on the dollar will create the very situation that caused the law to be passed in the first place.

The telemarketing lobbyists are surely getting their money's worth.  Let's hope that President Bush signs the law AND provides sufficient funds for enforcement.

February 3, 2008

"People like getting messages, but it has to be a relevant message.  If there's a place where you like shopping, you'll probably want to know when they're having the biggest sale of the year."

Jesse Crowe, president of Voice Mail Broadcasting in Costa Mesa, California commenting to San Francisco Columnist David Lazarus about telemarketing.

The Federal Trade Commission (FTC) recently announced a complaint and proposed consent decree settling charges that Mr. Crowe's business, Voice Mail Broadcasting Corporation (VMBC). a California-based “voice broadcaster,” made over 46 million unlawful telemarketing calls. The proposed court order permanently bars the defendants from violating the FTC’s Telemarketing Sales Rule (TSR) and requires them to pay $180,000 in civil penalties.

According to the complaint filed by the Department of Justice (DOJ), since October 1, 2003, Crowe's company used automated dialers to “blast” consumers with prerecorded telemarketing pitches. The calls pitched products from debt-consolidation services to mortgage brokerage services and other retail and financial services. When VMBC’s telemarketing calls were answered by consumers rather than answering machines or voicemail systems, VMBC either immediately hung up, leaving consumers with “dead air,” or played a prerecorded message. Such calls violate the TSR, which limits telemarketers’ use of prerecorded messages by requiring that calls answered by a person be connected to a sales representative within two seconds. The FTC’s complaint alleges that VMBC, under the direction of its owner, made more than 46 million calls that violated the TSR.

From the San Francisco Chronicle, Lazarus at Large, Do Not Call list imperiled, December 5, 2004.  Mr. Crowe can be contacted, via Voice and Mobile Broadcast Corporation, at: (714) 437-0600.

CATS Comment:  Hi kids!  Its time for another lesson of FTC Math.  Now here's the question:  A bad man made 46 million telemarketing calls and paid a fine of $180,000.  What was the fine per call?

Solution: Divide $180,000 by 46,000,000 calls.  The answer is $.00391, less than half a cent per call!

That's right!  The FTC settled another telemarketing case for pennies on the dollar.  The FTC warns that telemarketers face a fine of $11,000 per call.  Yet here is another example of how the FTC fails to realistically enforce the law.

The FTC's handling of this case is nothing to Crowe about.

January 27, 2008

"This office worked hard to get the Do Not Call registry passed.  Most telemarketers comply, and that has led to a significant reduction in nuisance calls. We will continue to be vigilant, since we know how much this means to Arkansas consumers."

Gabe Holmstrom, spokesman for Arkansas Attorney General Dustin Mc-Daniel, commenting on a settlement of $56,000 from a lawsuit two companies of telemarketing vacations to Arkansans residents on the national Do Not Call registry.

A consent agreement signed by assistant Arkansas attorney general Jean Block and Kelly McNulty, local counsel for Richard King, who owns Berkshire Getaways of Massachusetts and Data King Corp. of New York, was filed Wednesday in federal court in Little Rock.

U. S. District Judge James Moody signed the order Thursday, making it official. 

The attorney general’s office, then led by Mike Beebe, the current governor, filed the lawsuit in November 2006. It alleged that since Jan. 1, 2005, Berkshire had placed more than 100, 000 telephone calls to Arkansas consumers, at least 500 of whom had listed their numbers on the national registry.

Each call to a number on the registry constituted a violation of state and federal consumer laws, the lawsuit charged. 

It said at least 25 Arkansans had filed complaints with the Federal Trade Commission over the unauthorized contacts, which solicited memberships in timeshare resorts.

Under the settlement, King doesn't admit that his businesses have done anything illegal or deceptive. Instead, the defendants are consenting "solely to voluntarily resolve their differences with [the state ] without the necessity of further litigation and to indicate their intent to ensure that their business practices will be in compliance with the law."

The settlement money is to be paid in installments of $ 3, 111 a month for 18 months, with fines of $ 50 to $ 200 per day accruing if any payments are late.

Also, King agreed to pay $ 100, 000 if the agreement is breached. 

From the Arkansas Democrat Gazette, Firms to pay $56,000 to settle calling suit, January 25, 2008.  Mr. Holmstrom can be reached, via the Arkansas Attorney General's office, toll free, at: (800) 482-8982.

CATS Comment:  Hold the phone a minute!  According to the news story the lawsuit was because the telemarketer called Arkansas residences on the National Do Not Call registry.  Why didn't the Federal Trade Commission (FTC) prosecute the telemarketer?  After all, it is the FTC's responsibility to enforce the registry.

As telemarketers learn that the law is not being enforced, and worse yet, when it is, the fines are pennies on the dollar, telemarketing will again rear its ugly head.

We, here at CATS, hear stories every day about illegal calls to residences.  Until Congress authorizes a private right of action in enforcing the National Do Not Call registry,  there is little a consumer can do.

Until that happens, we recommend that you waste as much of the telemarketer's time as possible, ask the telemarketer for a copy of his "Do Not Call Policy" and, if you have the time, take them to court if they fail to provide it.

January 20, 2008

"It's [the law is] just not enforced"

William Raney, attorney for the American Association of Political Consultants commenting to the Los Angeles Times about lack of enforcement of California Public Utilities Code Section 2874.  The law states that an unsolicited, recorded call must be preceded by "an unrecorded, natural voice." In other words, a live human.

The person also has to "state the nature of the call" and seek consent before the message can be played.

There are a few exceptions, including recorded calls from law enforcement agencies and fire departments to warn of an emergency. And businesses can make the recorded calls if they have an established relationship with the person being called.

But there is no blanket exception for political campaigns.

"The California code is very clear," said Barbara O'Connor, of the Institute for the Study of Politics and Media at Cal State Sacramento. Even so, she got numerous recorded calls during recent elections. If these types of calls were preceded by a request to play them, she doesn't think many would get through.

Not surprisingly, California Public Utilities Commission (PUC) officials didn't respond to the LA Times requests for an interview on the law's enforcement.

From The Los Angeles Times, These political calls aren't just annoying, Recorded messages are illegal if not preceded by a live voice. But that law isn't enforced, January 20, 2008.  William Raney can be reached via the law firm of Copilevitz & Canter, LLC, at: (816) 472-9000.

CATS Comment:  We have often attempted to ask the PUC why they do not enforce the law.  Every time we leave a message in this regard, our calls are not returned.

We are not surprised.

January 13, 2008

"Telephone calls frequently at odd hours by a machine somewhere in Virginia or somewhere.  Making a pitch, trashing one person or another... Senator Keller and I agree that those are just an inappropriate form of political campaigning."

Colorado State Representative Bernie Buescher (D-Grand Junction) talking about a bill that he is working on to eliminate annoying political telemarketing calls to Colorado residents.

Buescher, along with Senator Keller are introducing legislation that would ban most forms of automated political telephone calls.  Buescher said this is the issue he gets the most complaints about. He said it's not an easy one to take on because there are first amendment protections.

Attorney General John Suthers contacted Buescher after he introduced this bill.  He told Buescher that telemarketers with political messages is the number one complaint he gets as well.

He had been working on a similar bill.  Rather than having two bills on the same issue, Senator Keller, Buescher and Suthers are working together.  They think these calls are a nuisance for the public

From KJCT, Channel 8 News, State leaders pushing a bill to ban political telemarketing, January 12, 2008.  Representative Buescher can be reached at: (303) 866-2583.

CATS Comment:  Good for you Bernie!  You guys finally get it!  Constituents want to be left alone at election time.

We, here at CATS, think that you have finally figured out that calling voters just angers them.  We know many people who, upon receiving a political call, vote for the caller's opponent.

January 6, 2008

"In honor of National Be Nice to Cold Callers Day, sales professionals, entrepreneurs and business owners throughout the country will be hitting the phones with a vengeance.  Candle light parades are scheduled in major cities throughout the U.S. to honor fallen comrades. Telephones in participating corporations will be kept on low volume."

Wendy Weiss, the self-monikered Queen of Cold Calling, is an author, speaker, sales trainer, and sales coach. She is recognized as one of the leading authorities on lead generation, cold calling and new business development and she helps clients speed up their sales cycle, reach more prospects directly and generate more sales revenue. Her clients include Avon Products, ADP, Sprint and thousands of entrepreneurs throughout the country.

According a press release on Ms. Weiss's Website, she, has proclaimed January 30th to be National Be Nice to Cold Callers Day.

Wendy has been featured in the New York Times, BusinessWeek, Entrepreneur Magazine, Selling Power, Sales & Marketing Management and various other business and sales publications. She is also a featured author in two recently released books, Masters of Sales and Top Dog Sales Secrets.

From  a press release on Ms. Weiss's website, The Queen of Cold Calling Proclaims National Be Nice to Cold Callers Day, date of press release unknown.  To view the press release, click here.  Ms. Weiss can be reached at: (212) 799-4389.

CATS Comment:  Wow! Candle light parades in major cities, telemarketers marching to honor fallen comrades, what a great news story!  Please provide a schedule of locations and dates so we may cover it as a news event.

We will post the schedule information on our website!

We are sure our viewers, many of whom are in the news media, would love to cover the event as well.  We thank you in advance for the information.

We also suspect thousands of ordinary people, many of whom have had their dinner interrupted by telemarketers, would like to attend the events as well, to express their appreciation for the great work that the telemarketing industry does.

 
CATS Note: We left a phone message for Ms. Weiss telling her of our "Quote Of The Week" and asked her to respond and provide us with dates, times, and locations of the candle light parades that (according to her press release) would allegedly happen in major cities in the U.S. 

Ms. Weiss responded by phone 7 days later.  She stated that the "marches" were scheduled for January 30, 2007.  When we asked if she had obtained permits (required by the City of Los Angeles and other cities as well) she responded by saying that the marches were "metaphoric," in other words, symbolic and not done in reality.

Her press release contained an advertisement for one of her classes, thus making the press release an advertising piece.  Under California law, that might have been deemed as deceive by the California Attorney General or a court of law, possibly making Ms. Weiss liable under the law.

God save the queen!  Would you expect any less from a telemarketer?