Telemarketing Surge Renews Bill in Calif.
By LINDA HAUGSTED -- Multichannel News, 9/9/2001 8:00:00 PM
Cable operators in California are girding for the final battle over a telemarketing bill that the industry believes will give its telco competitors a distinct advantage.
The bill, which had languished in the legislature, has been revitalized thanks to an unfortunate flurry of telemarketing calls suffered by state Senate President pro tempore John Burton. Capitol sources said the lawmaker was so irked that he put the bill back on the fast track.
The bill, first introduced in February, would require the state's Department of Consumer Affairs to create a statewide "don't call" list by Jan. 1, 2003. The effort would be funded by charges to telemarketers, who would buy the lists in order to conduct their businesses without contacting consumers who've requested privacy.
After the first three years, the consumers would also pay a $1 annual charge to remain on the list. If the bill passes, California would join 24 other states that have adopted various levels of don't-call protections.
"Frankly, I think stopping it is no longer an option. We must seek amendments," said Dennis Mangers, vice president of government affairs at the California Cable Television Association.
The bill has already been amended several times, but cable operators argue it's still too friendly to incumbent telephone providers. That's because it allows a company to extend its customer relationship to affiliate companies, if they have the same brand name.
In other words, a Verizon Communications telephone customer could continue to get telemarketing calls from Verizon's Internet-service provider unit.
In theory, the state's major telephone companies — such as SBC Communications Inc.'s Pacific Bell and Verizon — could sell a home on bundled services, then urge that household to join the don't-call list. Cable operators then would be barred from making telemarketing offers to that household.
Operators that have introduced win-back programs, such as Charter Communications Inc., would also be curbed. Charter has successfully reconnected customers by contacting recent converts to direct-broadcast satellite service and offering to reimburse the cost of their satellite hardware if they rejoin cable service.
Under the current bill, a company's "relationship" with a consumer would sunset only 21 days after the customer terminates service. Cable executives would like to be able to contact former customers for at least six months.
"On the one hand, they want robust competition in California in telecommunications, and telemarketing is them most effective means to achieve that," said Mangers. "On the other hand, they don't want their constituents bothered by multiple calls. They can't have their cake and eat it, too."
Industry officials also worry the bill would leave them with a litigation target sign on their backs.
The telemarketing ban allows for zero defects: Consumers can take a service provider to court for one erroneous call. That call could cost the telemarketer $500. On a second occurrence, the civil penalty will rise to $1,000.
Cable interests will argue for an amendment that bars attorney fees for that first occurrence, to prevent lawyers from shopping for clients.
Some calls will be exempted, such as debt collection and charity solicitations to past donors.
The attack on the bill is expected to be a "pitched battle," because the current schedule could put the bill before the Senate as soon as this week. It has already passed the California Assembly.
Lobbyists are soliciting Gov. Gray Davis to see which version of the bill he would be likely to sign.
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