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N.J. lawmaker targets telemarketers

By The Associated Press and Freedom Forum Online staff

01.10.01

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TRENTON, N.J. — They have an uncanny knack of knowing when to call, like when you're in the middle of whipping up a delicate white sauce or while a messy diaper needs changing.

Just as people are settling down to dinner, the home security company, the insurance saleswoman, or the guy selling aluminum siding calls.

"I hate telemarketers," said Meredith Murphy, of East Windsor. "My usual response to them is, 'Give me your number so I can call you at home when you want private time for yourself.' They pause like I'm a crazy lady."

The way it is now, aggrieved residents can demand to be removed from a company's call list — but that only works one company at a time. Or customers can ask to be included on industry wide "do-not-call" lists, but that only wards off telemarketers who belong to the professional trade groups compiling the lists.

With the New Year, Connecticut and Idaho have legalized such "call-free" lists and begun fining companies that ignore them. Some 18 other states have similar laws.

Now one New Jersey lawmaker wants to curb the industry even further. Under legislation proposed by Assemblywoman Linda Greenstein, all telemarketers would have to abide by a mandatory do-not-call list, or else face $2,000 fines for each unauthorized call.

Greenstein says she does not foresee a First Amendment problem with her bill, but says she is open to amending the language if the industry balks.

"We're not regulating content or speech, but the process by which it reaches the home," Greenstein said.

But some First Amendment advocates say the measure raises free-speech concerns.

"No matter how [Greenstein] wishes to characterize her bill, this is a prior restraint, and raises First Amendment issues," said Jane Kirtley, Silha Professor of Media Ethics and Law at the University of Minnesota.

"Commercial speech is protected by the First Amendment," Kirtley said. "As long as the speech proposes a legal transaction and is not deceptive, the government is very limited in the controls it can impose."

Kirtley referred to a 1980 U.S. Supreme Court decision, Central Hudson Gas & Elec. Corp. v. Public Service Commission, which established standards for evaluating restrictions on commercial speech. Under the Central Hudson test, "governments must assert a substantial interest to be achieved by the restrictions, the restrictions must directly advance the interest, and the restriction must be narrowly drawn and not more extensive than necessary to serve the interest," Kirtley said.

Protecting privacy seems to be the interest that Greenstein seeks to achieve, Kirtley said. "But is this restriction narrowly drawn and no more extensive than necessary?" she asked. "I would argue that it is neither, especially given its provision to levy $2,000 fines for each call."

Greenstein says she hopes the bill curtails all telemarketers, including those located outside the state.

"Our goal here is very consumer oriented," she said. "It seems to me that consumers should have this right. Now, they're powerless."

Greenstein said she planned to introduce legislation to restrain telemarketers before she was elected because of her own experience with telephone solicitors. "I personally found it very annoying," she said.

Most New Jersey residents who were randomly telephoned at home during the dinner hour — at least those who did not immediately hang up on a reporter — agreed with Greenstein.

"It's a pain," said Robert Parks, of Maurice River Township.

He has a caller ID feature on his telephone that he usually checks before he picks up an unrecognizable number, but it's not foolproof.

"I'd put my name on that list," he said.

Patricia Piazza of Vineland said her elderly mother has been startled by sales calls as early as 8 a.m. and as late as 10 p.m. "I think state government ought to be involved in putting in some regulations. It's not a bad issue," she said.

"We don't want to call people who don't want to be called," said Sharon Harrington, a lobbyist who represents the national Direct Marketing Association in New Jersey.

While the association does not yet have a position on Greenstein's proposal, association spokesman Hernan Hernandez said the industry's voluntary do-not-call policy is an effective tool. His group has more than 5,000 members.

Homes that place their names on the industry do-not-call list can experience a 60% reduction in cold calls, he said.

"We believe that the individual should have the right to opt out and obviously that wish should be respected," he said.

Greenstein said she modeled her bill after one in New York. Hundreds of thousands of New Yorkers have already registered their names on their state's list while regulations are being written, she said.

She says she does not want to hurt the industry's bottom line or threaten jobs.

"For most major reputable businesses, they have lots of other means to do business," she said. "They can contact customers through the mail, which I personally believe is more effective."

Related

Federal appeals panel upholds state's telemarketing curbs
Group had argued Arkansas law violates free speech by forcing solicitors to end pitches if people called express disinterest.  08.04.01

Groups sue Indiana over 'no-call' list
Four nonprofits claim law creating list of phone numbers that are off-limits to telemarketers violates free speech, association.  04.13.02

Telemarketers scramble to comply with states' no-call lists
Texas, Colorado laws go into effect this week despite claims such measures violate free speech.  07.03.02

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