US Marketer Charged with Do-Not-Call Violation

02 September 2004

The US Federal Trade Commission has charged a telemarketing company with violating the federal do-not-call registry by making over 300,000 unwelcome calls to listed consumers.

It is the first case since the introduction of the registry last October that seeks civil penalties for a company breaching the rules. The 'don't call' service has cut the number of US households accepting telemarketing calls by 25%-50% estimates the Direct Marketing Association.

The Las Vegas-based Braglia Marketing Group, owned by husband and wife team Frank and Kate Braglia, is also alleged to have made more than 10,000 calls to various numbers without paying the annual fee to access no-call lists for those area codes.

In order to obtain regional lists, companies are required to pay the recently revised fee of $40 (€33; £22) per area code or $11,000 for the national list of 63 million numbers.

The FTC also claims Braglia broke rules governing the use of automated dialers by failing to connect calls to a representative within two seconds of consumers answering the phone.

Since enforcement of the do-not-call list began last October, the FTC has received about 500,000 violation complaints. Says associate director for marketing practices Eileen Harrington: "Our goal is to make sure that when consumers say, 'I don't want to receive calls', that legal right is respected … we think compliance has been quite good."

Data sourced from: USA Today; additional content by WARC staff