November 15, 2004
Since the Supreme Court upheld the constitutionality of the government's Do Not Call list, telemarketers have been on the defensive. Now, they're lashing out at a U.S. Postal Service ad that encourages consumers to get on the list.
The ad is designed to combat consumer fraud. It includes a picture of a telemarketer wearing a headset and bears the heading, "You have the right to remain silent. He's hoping you don't."
The ad appeared in several national publications, including USA Today, the AARP magazine and Readers Digest. It warns consumers that telemarketing fraud costs people millions of dollars yearly and that older people are most vulnerable. It presents advice on how consumers can protect themselves, including a toll-free number to call to register for the no-call list, as well as a free DVD.
According to Direct Marketing News, the industry publication for telemarketers and other direct advertisers, some members of the industry are crying foul. They say an anti-fraud ad for the Postal Service should not be urging consumers to register for the Do Not Call list, which many telemarketers see as a threat to their business.
Direct Marketing News said telemarketers generally approved of the postal inspectors' efforts to stop fraud, but they questioned the appropriateness of the U.S. Postal Service endorsing the no-call list, a Federal Trade Commission program. The paper quoted one top executive of a direct marketing company in Akron, Ohio as saying the Do Not Call list has nothing to do with stopping fraud.
Tim Searcy, CEO of the American Teleservices Association, told the publication the postal inspection service failed to draw a distinction between legitimate and fraudulent telemarketing, playing on fears that every telemarketing call is fraudulent.
However, there is evidence that much of the fraudulent pitches to consumers come by telephone. Attorneys general in several states have warned of numerous scams that target their victims by phone, usually from the safety of another country. But Searcy noted to DMN that direct mail competes with telemarketing for marketing dollars. Though the ad mentions the no-call list, it omits mention of the Direct Marketing Association's no-mail list, he said.
The ad is part of an educational campaign dubbed Dialing for Dollars begun last month by the U.S. Postal Inspection Service. According to a postal inspectors press release, the effort was run jointly with the Justice Department, FTC and nonprofit advocacy group Call for Action. It includes a free DVD available to consumers at USPS.com or by calling a toll-free number as well as media and consumer-education events held by Call for Action.
