fraudulent telemarketing activity, but it has little or no relevance to the proposed do not call
registry requirements, which primarily are aimed at protecting consumer privacy.
48
Because the do not call requirements primarily are concerned with privacy as opposed to
fraud, an established business relationship exemption limited to the do not call provisions should
have little or no effect on the Commission's ability to prosecute fraudulent telemarketing. Calls
to existing customers would remain fully subject to the TSR's current provisions prohibiting
misrepresentations
49
and requiring affirmative disclosure of the material terms of telemarketing
transactions.
50
The proposed do not call requirements would do little or nothing to advance the FTC's
interest in reducing telemarketing fraud, but would significantly burden ongoing business
relationships by requiring sellers to obtain express verifiable authorization before
communicating with customers whose telephone numbers appeared in the national registry.
Therefore, the fourth and final factor whether the burdens on legitimate businesses outweigh
the risk that an established business relationship exemption could be exploited by fraudulent
telemarketers strongly supports granting such an exemption.
B.
The FTC Should Adopt The FCC's Definition of an Established Business
Relationship for Purposes of Implementing Any National Do Not Call Requirements.
To avoid potential conflicts with parallel telemarketing laws and regulations administered
by the FCC, Cox urges the Commission to adopt an exemption that is coextensive with the
established business relationship exception defined under the TCPA:
The term established business relationship means a prior or
existing relationship formed by a voluntary two way
48
Id.
at 4517.
49
Proposed Rule 310.3(a)(2).
50
Id.
at 310.3(a)(1).
19