No-call phone listings increase MBNA opposes state-based efforts

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AUGUSTA – It seems as certain as death and taxes – the dinner hour telemarketing call that seeks to sell you something. But in a growing number of states, telemarketers are being forced to honor do-not-call lists or be faced with heavy fines.

“I hope they can do something, but I am not sure it will work,” said Ron Cuddy of Calais. “I don’t like those calls, one after another after dinner, any more than anybody else.”

Cuddy was upset enough to write a couple of letters to local newspapers complaining about the telemarketing calls. He said neighbors and friends also have complained about the phone ringing and intruding on their home life.

“I think all the calling has fundamentally changed the way people use the telephone,” said Tom Welch, chairman of the Maine Public Utilities Commission. “It has changed the way I use mine.”

While the PUC regulates phone companies, the agency has no jurisdiction over telemarketing. Welch said that fact has not stopped Mainers from raising the issue at public forums he has attended. He shares with those raising the issue his personal response to the seemingly incessant telemarketing calls. He always looks at his caller ID box before answering his phone.

“It is amazing the number of times I don’t recognize the number, and no message is left on my answering machine,” Welch said.

Mainers can request a telemarketer take their name off the firm’s call list. If the company fails to comply, an individual can ask the state Attorney General’s Office to take the company to court.

Maine residents have access to a national do-not-call list that allows consumers to block all commercial telemarketing calls, but the Direct Marketing Association, the same group that has lobbied against state-controlled lists, operates it. The Secretary of State’s Office has a page on its Web site explaining how to get a copy of the DMA form and file it with the New York-based group.

“From talking with other states, I think we ought to consider having a state list,” said Maine Secretary of State Dan Gwadosky. “I will be discussing with legislative leaders to see if there is interest in bringing this before the legislature this January.”

Gwadosky said he has not drafted legislation, but he believes the only way to approach the matter is to “phase in” a state-based do-not-call list. He said Maine simply couldn’t afford to develop a list that allows the wide range of sign-up options available in other states.

“But I think we ought to start the process maybe by using a form on the Web site to start,” he said. “That will hold down the administrative costs.”

The Direct Marketing Association indicated nearly 27,000 Mainers have filled out the form necessary to be placed on the national do-not-call list the organization maintains. That is far fewer than the numbers of citizens in other states taking advantage of state-established do-not-call lists. For example, Missouri established a list earlier this year and Attorney General Jay Nixon said about one in three households in that state has signed up. On a percentage basis, fewer than 5 percent of Maine households have asked not to be called by telemarketers.

“The 2 million Missourians on the no-call list are reporting a drastic reduction in the telemarketing calls they are receiving,” Nixon said. “We are working feverishly to prosecute those telemarketers who violate the law.”

By the end of last month, Nixon said he had instituted more than 50 legal actions against telemarketers in violation of Missouri law. So far, that action has resulted in more than $430,000 in fines.

Jerry Cerasale, DMA senior vice president for government affairs, said the state-operated lists have been well-publicized and have used tools like toll-free telephone numbers to make it easy for consumers to sign up.

“Maine, Wyoming and Connecticut use our list,” he said, “but only Connecticut spends anything to promote the list or make it easier for consumers to sign up.”

Cerasale said his organization has opposed state-based lists as unnecessary and expensive to operate. He said more than 4 million Americans are on the DMA-maintained nationwide do-not-call list.

“It costs us a million [dollars] a year to maintain this list,” he said. “It does not cost the states anything.”

One of Maine’s largest employers, credit card banker MBNA, also opposes state-based do-not-call lists. Shane Flynn, vice chairman of MBNA-America, said Mainers who do not want to be called already have the option of using the DMA-maintained list.

“This sort of legislation is a major restraint to this industry,” he said. “Given people’s concern with mail et cetera, I think this is a very bad time to be thinking about these things.”

Flynn said MBNA would oppose any legislation in Maine to establish a state do-not-call list. He said the proliferation of the state-based lists is making it more expensive for telemarketers to operate.

“Financial services have been a target area for this state to try and attract,” he said. “This type of legislation would be a major barrier to that.”

But supporters of state-sponsored lists argue there needs to be an active campaign to inform consumers that they have the right not to be bothered by telemarketing calls. The DMA does not advertise its list.

Wisconsin state Sen. Jon Erpenbach drafted that state’s law, which became effective last summer. He said it has been very popular with consumers.

“People can register online or through a toll-free number,” he said. “And twice a year a telemarketing company will get a list of people who have signed up, and once you are on the list you are on it for two years.”

But even if you get on a list, it will not eliminate telemarketing calls. Nonprofit organizations and charitable groups are exempt from do-not-call lists. They also are not subject to federal laws that limit the hours when calls can be made.

Erpenbach said in Wisconsin there are fines if people are called who have requested they not be called. Licensing fees on the telemarketing firms and the fees they pay to buy the do-not-call list from the state fund the program.

Other states have adopted that approach, but some require consumers to pay a fee to be placed on the list. Whatever the funding mechanism, the lists appear to be very popular with consumers and not popular with telemarketers.