1. Direct from the FTC and FCC:
Hear a Unique Perspective from Recent Keynote
Presentations on Contact Center Regulations
Compliance Webinar
October 26, 2011

2. Compliance Webinar
Joseph Sanscrainte 212-626-6934
Law Office of jws@sanscrainte.com
Joseph W. Sanscrainte
Ryan Thurman 866-362-5478 ext. 116
Director of Sales & Marketing Ryan@dnc.com

3. Agenda
How the FTC and FCC view liability
Summary of recent enforcement actions
What are the rules re: making political pre-recorded calls?
Do debt collectors need to worry about cell phone prohibitions?
What to expect if you face an investigation and what industries are under the most
scrutiny
How to keep updated with compliance regulations
How the FTC and FCC consider industry comments
How the FTC and FCC are responding to new technologies/modernizations.
International Compliance Update

4. FTC Update with Lois Greisman from the Federal Trade Commission
Associate Director Div. of Marketing Practices
Bureau of Consumer Protection
Lois Greisman heads the Division of Marketing Practices in the FTC's Bureau of Consumer Protection. Under Ms. Greisman's
management, Marketing Practices leads the FTC's law enforcement initiatives tackling telemarketing fraud (including Do Not Call
enforcement), business opportunity fraud, illegal spam, and Internet frauds, with particular focus on challenges posed by
technologies and convergence issues.
New Do Not Call List Coordinator
Primary Goal: Protect consumers from fraud and privacy issues
New staff report on privacy (“Privacy by Design”, simpler and ,pre streamlined
data privacy around consumers data, recommended measures)
Protect businesses with enforcing anti-trust regulations
Enforcement mechanisms
Civil enforcement
Shut down businesses
Freeze assets
Institute consumer redress
Assume operations of a company

5. FTC Update
Current Fraud examples:
Job scams
Credit/Debt Negotiation and credit repair
Homeowner relief
Timeshare resale offers, Medical discount cards, Investments, Government Grants
Recent enforcement summary
Google Buzz
Dish Network/Echostar
9/28: Reebok to Pay $25 Million in Customer Refunds To Settle FTC Charges of Deceptive
Advertising of EasyTone and RunTone Shoes
10/4: At FTC’s Request, Court Shuts Down Deceptive Mortgage and Debt Relief Operation
10/13: FTC Charges Credit Repair Operators With Misleading Credit Bureaus and Charging
Consumers Illegal Up-Front Fees
10/19: FTC Stops Nationwide Federal Jobs Scam-Defendants Who Sold Information Consumers
Could Get for Free Settle FTC Charges
10/20: Court Finds Defendant in Contempt for Violating Prior Court Order That Prohibited Him
from Making Credit Repair Pitches to Consumers

6. FTC Update
FTC Consumer Complaint Call Center
Handled 1.4 million complaints last year
Total of 2.2 million complaints last fiscal year
Still receiving the bulk of complaints against pre-recorded “robocalls”
Separate complaint process now in effect for Robocalls
1st half of 2011: Number of complaints on Robocalls exceeds all of
2010 (800,000 Complaints)
Asked the industry for help with Robocall issue
FTC pursuing dialing platforms, resellers/brokers and uses of
illegal robocall applications
Overall historical enforcement
FTC has brought 79 DNC cases with $40 million in fines
Over $500 million in awards

7. Electric Mobility Corporation Settlement 4/21/2011
Maker of Rascal Scooters to Pay $100,000 for Violating FTC’s Do Not Call Rules
Called Consumers on Registry Using Phone Numbers Gathered From Sweepstakes Entry Forms
The manufacturer of Rascal Scooters, used by disabled and senior consumers with limited mobility, will
pay $100,000 to settle Federal Trade Commission charges that it illegally called millions of consumers
who had chosen to avoid unwanted telemarketing calls by listing their phone numbers on the national Do
Not Call Registry. The FTC alleges the firm illegally used phone numbers gathered from sweepstakes
entry forms to contact consumers whose numbers are on the Registry.
The FTC’s complaint charges scooter manufacturer Electric Mobility Corporation and its owner Michael
Flowers with making more than three million illegal sales calls since 2003 to consumers on the Do Not
Call Registry who had entered the company’s “Win a Free Rascal” sweepstakes. According to the FTC,
in small print under the part of the sweepstakes form provided for the entrant’s phone number, EMC
reminded consumers to list their numbers so the company could contact them if they were “the next
lucky winner.”
EMC encourages consumers to enter its sweepstakes through direct mailing, newspapers, and
television advertisements. The FTC charged that its conduct violated both the FTC Act and the Do Not
Call provisions of the Telemarketing Sales Rule.
The FTC’s Telemarketing Sales Rule allows a company to call a consumer on the Do Not Call Registry
for up to 18 months if it has an “established business relationship” with the consumer and he or she has
not asked the firm to stop calling. However, under the Rule, a company may not rely on a completed
sweepstakes entry form to establish a business relationship with a consumer. In fact, the FTC
consistently has said that simply obtaining a consumer’s phone number – as EMC did with its
sweepstakes – does not establish a relationship that would exempt it from the Do Not Call rules.

8. FTC Update
Feature Films for Families, Inc 5/9/2011
FTC Charges Utah Operation with Deceptive and Abusive Telemarketing
Defendants Allegedly Made 16 Million Calls to Numbers on the Do Not Call Registry;
Misrepresented How Funds Would Be Used
At the request of the Federal Trade Commission, the Department of Justice today filed a complaint that
charges three Utah-based firms and their owner with waging deceptive and illegal telemarketing
campaigns pitching movies and soliciting for donations, including calls to more than 16 million phone
numbers on the National Do Not Call Registry.
The FTC charged that the companies and their owner, Forrest S. Baker III, committed multiple violations
of the FTC Act and the Telemarketing Sales Rule, and deceived customers about where the proceeds
from their purchases and their donations would go.
In addition, the complaint charges that the defendants violated the Telemarketing Sales Rule by:
-calling consumers who have previously asked that the defendants stop calling them;
-failing to provide the name of the telemarketer or seller making the call to Caller ID devices and,
instead, providing names such as “CUSTOMER SVC,” “FAMILY VALUE CB” or “VELVETEEN”;
-failing to orally identify the seller, the purpose of the call, and the nature of the goods or services when
making telemarketing calls; and
-abandoning calls to consumers by failing to connect consumers to live representatives when they
answer the phone. In many cases, such abandoned calls lead to the recipients listening to “dead air”
when they answer the call.

9. FTC National DNC Registry Data Book FY 2010
201 million numbers on the registry
1.6 million complaints
Down from previous two years
40% of complaints are for prerecorded calls
2006 2007 2008 2009 2010
Entities who paid 6,824 6,242 4,618 3,923 3,383
5 or fewer area codes 58,816 59,337 46,559 40,406 34,206
Exempt entities 845 801 1,107 1,002 680

11. Jim Kohlenberger, Executive Director, Jobs for America
• Worked in Clinton and Obama White Houses
• IT drove 85% of job growth in the 90’s
• US behind the curve on use of broadband – 100 million people
without access to broadband
• The “plan”:
• Connect America through smart grids and infrastructure
• Obama has created a broadband strategy and the nation’s first
“technology officer”
• FCC proposes $5 billion fund for broadband – goal is to reduce telecom
costs, including VoIP
• Executive order to make 4G wireless available to 98% of Americans
• New investments in R&D – get back to 3% of GDP
• Change how government does business – more openness – make
smarter use of technology
• Washington’s top priority is jobs, and telemarketing has created 4000 jobs a
month for past two years

12. Julius Genachowski, Chairman, FCC
• FCC applauds Jobs4America’s goal of 100,000 new US
jobs in the contact center industry via broadband
• Job creation and the telemarketing industry
• Onshore call center jobs making more and more sense
• Home-based agents change the cost equation
• Fusion of email, chat, talk requires better quality agents
• Telephone service is “universal” – the same should apply to
broadband
• “Connect America” program – billions of $ aimed at making
broadband universal
• May require re-allocating spectrum from older uses

13. Julius Genachowski, Chairman, FCC (con’t)
• Challenges facing the US re: broadband usage
• Spectrum “crunch”
• 20 million people in US have no access
• 100 million do not use available broadband
• “Skills gap” – people lack skills to take advantage
• Information grid and proper deployment and adoption of
technology is the gateway to better jobs and better living

14. Mitch Roth, General Counsel, ATA (Federal Update)
• CallerID issues – NobelBiz wins one for the industry
• FCC seeks comments regarding liability (DISH Network)
• Spike in complaints re: pre-recorded messages – FTC pledges
to vigorously enforce TSR
• Pending pre-recorded ruling by FCC – ATA comments that non-
sales calls should not require express written consent
• FCC considering requiring written consent for calls to cell
phones (not just “express consent”)
• Obama Deficit Reduction Plan would amend TCPA to permit
calls to cell phones to collect debts due the gov’t
• Terry bill would redefine FCC definition of autodialer as ONLY
random/sequential dialing, includes EBR as prior express consent,
and permits info-only calls to cell phones

15. Liability Under the TCPA
Charvat v. Echostar Satellite (US Ct of Appeals, 6th Circ.): Charvat received 30
calls from Echostar (which deliver DISH Network satellite TV). Charvat tracks
calls to several companies: Dish TV Now, Marrick Dish Co., Marketing Guru,
Inc., etc. – all retailers of DISH Network, and all independent contractors.
US v. Dish Network (US Dist Ct, Central Dist of IL): USA, CA, IL, and OH sued
Dish under TCPA alleging violations of DNC, abandoned calls, and prohibited
pre-recorded calls.

16. Liability Under the TCPA
§§ 227(b)(3) and (b)(1)(B): allow a person to bring "an action" against an entity that
"initiate[s]" a phone call using a pre-recorded device
§ 227(c)(5): allows "[a] person who has received more than one call by or on behalf of
the same entity" to sue.
Even though § 227(b) does not contain "on behalf of" language, do both provisions apply
equally to calls placed by agents of the entity sued?
Does § 227(c)(5) create liability for entities on whose behalf calls are made even when
the calls are placed by independent contractors rather than by agents or employees?
And does § 227(c)(5) create liability for entities on whose behalf calls are made even
though the section is labeled only as a private right of action and even though individuals
still must sue for violations of regulations?

17. Liability Under the TCPA
FCC Seeks Comment On:
• 1) Under the TCPA, does a call placed by an entity that markets the seller’s goods
or services qualify as a call made on behalf of, and initiated by, the seller, even if the
seller does not make the telephone call (i.e., physically place the call)?
• 2) What should determine whether a telemarketing call is made “on behalf of” a
seller, thus triggering liability for the seller under the TCPA? Should federal common
law agency principles apply? What, if any, other principles could be used to define
“on behalf of” liability for a seller under the TCPA?
• 3) Additionally, we solicit comments addressing the applicability of federal agency
law and federal joint venture law to the TCPA liability questions presented herein.

18. Global Compliance Map: Do Not Call Lists
Canada
United States Netherlands
United Kingdom
Spain
Mexico
India
Australia
Argentina (Buenos Aires only)

19. International Compliance Update
• Global Do Not Call Overview
• Canadian DNC Update
• International Privacy Update
• Mexico Data Protection Law
• Costa Rica Law
• India Privacy Rules
• French Data Breach Notification
• Singapore
• Resources
• IAPP, LinkedIn Groups, Google.
• California Privacy Update

20. Stay current
– New laws – don’t become the example!
– Compliance Guide
– Industry Newsletters
– LinkedIn Discussion Groups
Contact Center Compliance Officers Forum
– ftc.gov
– Industry Trade Groups (ATA, SOCAP, DMA)

21. Ryan Thurman Joseph Sanscrainte
866-362-5478 ext. 116 212-626-6934
Ryan@dnc.com
jws@sanscrainte.com
Contact Center Compliance Solutions
DNC Scrub
Training Master
Compliance Guide
Data Enhancement