business or personal relationship. 

13

  New York's telemarketing registry law similarly exempts 

 telephone calls pertaining to a renewal or continuation of an existing or prior contractual 

relationship or the continuation of an established business relationship between a customer and 

any telemarketer, provided that the telemarketer discloses any material changes in the terms and 

conditions of the prior contract. 

14

   As explained below, the FCC has adopted an even broader 

 established business relationship exemption  to the telemarketing regulations that it 

administers.  Cox urges the FTC to create a parallel exemption, which is warranted by each of 

the four considerations the FTC traditionally uses to justify exemptions under the Rule.

15

A. 

An Established Business Relationship Exemption from the Proposed Do Not 

Call Requirements is Warranted by Each of the Four Factors the FTC Uses to Determine 

Whether to Exempt Certain Telemarketing Conduct from Coverage of the TSR. 

The Commission proposes to retain exemptions from the Rule for several types of 

telemarketing activities, including exemptions for calls subject to the FTC's Pay Per Call and 

Franchise Rules,

16

 calls soliciting transactions that would be completed only after face to  face 

meetings,

17

 and inbound calls that do not result from any solicitation or that are initiated in 

response to general media advertising or most direct mail notices.

18

  The Commission explains 

that these exemptions are designed to ensure that legitimate businesses are not unduly burdened 

13

 Mo. Rev. Stat.   407.1095(3)(b). 

14

 New York General Business Law   399, McKinney's Consolidated Laws of New York Annotated, Chapter 20, 

Article 26. 

15

 The Commission explained in the NPRM that the existing exemptions it has created under the TSR are supported 

by one or more of the following considerations: (1) whether Congress intended a particular activity to be exempt 

from the Rule; (2) whether the conduct or business in question is already the subject of extensive federal or State 

regulation; (3) whether the conduct at issue lends itself easily to the forms of abuse or deception the Telemarketing 

Act was intended to address; and (4) whether the risk that fraudulent sellers or telemarketers would avail themselves 

of the exemption outweigh the burden to legitimate industry of compliance with the Rule.  

NPRM

 at 4528. 

16

 Proposed Rule    310.6(a) and (b). 

17

Id.

 at   310.6(c). 

18

Id.

 at    310.6(d) (f). 

12