AI Robocalls Increasing in China

It is always interesting to look at news from other countries that provides insight into telemarketing technologies and trends around the globe. A recent article highlights the increase in the usage of artificial intelligence to make telemarketing calls in China. One company that produces "bots" to make these calls expresses high levels of confidence that their technology can out-perform human phone agents. "The company’s official website also characterizes [humans] as irrational, emotionally unstable, and prone to making mistakes that could cause sales companies to lose customers. A bot, on the other hand, doesn’t need training, never complains about the work, and carries out its job efficiently and dispassionately."

While many Chinese lawyers are arguing that this technology violates the country's privacy laws, that hasn't stopped the technology from increasing drastically over the last few years. If this technology ever starts to be used frequently to make calls into the United States, it would be interesting to see how regulators would react. Regulators have traditionally frowned upon technologies that are designed to increase calling efficiency and effectiveness, such as Avatar and more recently Ringless Voicemail Drops. Until there is a real change in the law regarding the definition of pre-recorded messages, you will want to be very careful using any such Artificial Intelligence for marketing or other purposes without first having express written consent. Contact us if you are interested in using similar technology. Learn more about robocall laws, telemarketing compliance, autodialer laws, avatar telemarketing laws, and cell phone do not call laws. 

FCC Reporting Modernization Act

Senator Jerry Moran (R-Kan.) has introduced the FCC Reporting Modernization Act to Congress. This Bill has implications regarding the TCPA because it would, "Update current [FCC] reporting requirements to include all Telephone Consumer Protection Act complaints and enforcement actions regarding robocalls and spoofed phone calls. These updated reports to Congress would provide a clearer analysis of the robocall and spoofing problem and identify patterns of these harmful practices impacting consumers." While this bill wouldn't directly impose any new rules on businesses, it would require increased communication between the FCC and Congress, which could lead to changes in the TCPA in the long run. Read more here. Contact a telemarketing lawyer or TCPA attorney if you need to ensure you are in full telemarketing compliance by performing a telemarketing compliance audit. 

FCC Seeks Comments on Definition of "Sender" as it Relates to Faxes

The FCC is seeking comments on a petition that was recently filed with the agency regarding the definition of the "Sender" of a fax. Specifically, the request for comments states, "With this Public Notice, we seek comment on a petition for expedited clarification or declaratory ruling filed by Akin Gump Strauss & Feld LLP (Akin Gump). Akin Gump asks the Federal Communications Commission to clarify the definition of 'sender' under the facsimile advertising provisions of the Telephone Consumer Protection Act of 1991 (TCPA). Specifically, Akin Gump requests that the Commission clarify that 'a fax broadcaster is the sole liable ‘sender,’ when it both commits TCPA violations and engages in deception or fraud against the advertiser (or blatantly violates its contract with the advertiser) such that the advertiser cannot control the fax campaign or prevent TCPA violations.'" Comments are due April 8th. You may want to consider commenting on this petition if your business uses faxes as an advertising tool.

FCC Rule Requiring Opt-Out Messages on Solicited Faxes Officially Ends

In a win for the industry, the FCC has eliminated a rule requiring opt-out messages on solicited fax messages. Now, if a business wants to send a marketing fax to someone who has consented to receive it, no opt-out language is necessary on the message. This change was announced several weeks ago but just became effective this week. Read more here. Learn more about telemarketing rules and telemarketing regulations, such as telemarketing license requirements and telemarketing bond requirements.

Late Night Host John Oliver Criticizes Lack of Action on Robocalls

In a recent late night television segment, popular host John Oliver criticized the FCC for failing to prevent illegal robocalls. While there is some humor in the segment, Oliver's arguments about robocalls really missed the mark. Oliver claims that the leading robocallers in the U.S. are large, nationwide businesses like Wells Fargo. While companies like this do use prerecorded voice messages, many of those calls are made to legitimately communicate with their customers. Oliver fails to grasp the real issue at hand, which is that illegal robocalls made without consent are what really generate the complaints. Those who are in touch with the industry understand the dilemma that the FCC is facing. How can the agency reduce illegal robocalls while still allowing legitimate businesses to communicate with their customers? Oliver's tone indicates that he thinks all prerecorded voice messages in every context should be banned, which would obviously be a lose-lose for both businesses and the consumers who rely on those types of efficient communication. It's unfortunate to see someone with such a large following fail to do the proper research before publicly speaking out on the issue. Click here to watch the full segment. This segment could have been much more informative if Oliver had done his research regarding robocall laws, telemarketing compliance, autodialer laws, telemarketing license requirements, and do not call laws.

Washington State Senate Passes Privacy Regulation Mirroring GDPR

The Washington State Senate has passed a new, strict data protection bill. The bill passed by a vote of 46-1, and now the bill will move to the State's House of Representatives for their consideration. The text of this bill is very similar to the European Union’s GDPR that took effect last year. Under this bill, Washington residents would have the right to contact any company that has their personal data on record and access the data in electronic format, have the data deleted or corrected, and opt-out of having any future personal data stored by that company. This will most likely become one of the strictest data privacy regulations in the United States. Other states will likely pass similar bills in the near future, so be sure that your data privacy practices are safe and compliant. Read the full text of the bill here.

Facebook Challenges Constitutionality of TCPA

In Duguid v. Facebook Inc., social media giant Facebook is currently involved in a TCPA lawsuit over allegations that the company sent unsolicited "Happy Birthday" text messages to users. The plaintiffs in the case are arguing that those text messages were marketing in nature and that Facebook did not have consent to send them, therefore violating the TCPA. As part of its defense, Facebook is hoping that the U.S. Court of Appeals for the Ninth Circuit will find that the TCPA is unconstitutional, as it violates the first amendment in restricting calls on the basis of content. Read more about this story here. While a ruling like this would be great for the industry, it is unlikely that the court would rule that the TCPA violates the first amendment. This argument has been made many times in courts all over the country without any success.
If you are unsure about your business's telemarketing compliance practices, be sure to consult with a telemarketing lawyer, telemarketing law firm, or telemarketing attorney.

NHL Team Facing TCPA Lawsuit

The NHL's Tampa Bay Lightning are facing a TCPA lawsuit over alleged texting violations. According to the complaint, the team used, "['bait and switch'] tactics to convince fans to sign up to enter into prize sweepstakes or otherwise to receive purely informational texts. Once Defendant obtains access to its fans’ cellular telephone numbers, however, Defendant enrolled the consumer into its text message marketing campaign which floods the recipient with nearly daily advertising and telemarketing text messages." Read a copy of the complaint here. If your business sends marketing text messages to consumers, ensure that you have the right levels of consent in order to mitigate the risk of facing litigation like this. Learn how to defend a TCPA lawsuit. However, mitigate your risk of telemarketing lawsuit defense or telemarketing fines by following all telemarketing rules. Make sure you have the proper telemarketing licenses and telemarketing bonds. Contact a telemarketing law firm to determine which telemarketing regulations you need to follow.

All 50 Attorneys General Announce Support of TRACED Act

A letter was sent to the U.S. Senate Committee on Commerce, Science, & Transportation by all 50 state attorneys general announcing their support of the TRACED Act. Read the full letter here. As a reminder, the TRACED Act would do the following:

• Require that telephone service providers implement "an appropriate and effective call authentication framework in the internet protocol networks of voice service providers." 
• Require the FCC to initiate a rule-making initiative to help protect a subscriber from receiving "unwanted calls or texts messages from a caller using an unauthenticated number."
• Creates an inter-agency working group to study government prosecution of telemarketing violations. The group would include representatives from the Department of Justice, Department of Commerce, Department of State, Department of Homeland Security, FCC, FTC, and CFPB.
• Authorize the FCC to impose a fine of up to $10,000 against businesses or individuals that violate the TRACED Act. The FCC already has authority under the TCPA to impose fines of up to $16,000, so this new authority would be giving the agency a second umbrella under which they could impose fines. 

There is a good chance that this bill will pass. The bill does give the FCC more teeth to enforce telemarketing regulations, but it does not impose any new rules for telemarketing businesses. Businesses that are in full compliance with the TCPA have little need to worry about this.
Learn more about robocall laws and autodialer laws. Make sure you understand dnc compliance and cell phone telemarketing laws as well.

Operators of Alleged Sweepstakes Scam to Settle FTC Charges for $30 Million

A business that allegedly targeted senior citizens in a sweepstakes scam has agreed to pay the FTC a $30 million settlement. They have also been banned from participating in any future prize-promotion business. According the the FTC, the defendants, "tricked millions of people—many of them older adults—into paying money to collect prizes that never materialized." Read the FTC's press release here. Be especially cautious when marketing to senior citizens. You should strongly consider having unique policies in place to reduce complaints from seniors, as regulators will generally take them more seriously than others.

FCC Requests Comments on NorthStar Avatar Petition

Last month, NorthStar Alarm Services, LLC filed a petition with the FCC regarding soundboard technology, also known as avatar. Avatar technology functions by allowing a live caller to speak with a call recipient using prerecorded voice snippets. The FCC has sent out a request for comments on this petition. Comments are due on March 15th, and reply comments are due on March 29th. Read the FCC's full request for comments here.
Specifically, NorthStar asked the FCC to rule that: "1) The use of soundboard technology does not constitute the use of an artificial or prerecorded voice that delivers a message under the TCPA; or, in the alternative, 2) The use of soundboard technology on a one-to-one basis, whereby the soundboard agent conducts only one call with one individual at a single time, does not constitute the use of an artificial or prerecorded voice that delivers a message under the TCPA."'

Business owners should consider commenting on this petition to encourage the FCC to provide a positive ruling for the industry. Learn more about avatar telemarketing compliance, telemarketing rules, telemarketing license requirements, and telemarketing compliance. Contact a telemarketing law firm or telemarketing attorney if you need help in any TCPA compliance matter. 

Data Privacy Legislation Introduced in Washington State

A comprehensive data privacy bill has been introduced in Washington State. The text of this bill is very similar to the European Union's GDPR that took effect last year. Under this bill, Washington residents would have the right to contact companies to access their personal data in electronic format, have their data deleted or corrected, and opt-out of having any future personal data stored with that company. If this bill passes, it would be one of the strictest data privacy regulations in the United States. Read the full text of the bill here. If your business stores consumers' personal data, be sure to follow the status of this bill and adjust any of your policies accordingly. This bill represents a trend nationwide and you should make sure to be aware of the individual requirements in each state where you store data.

FTC Brings First Case Challenging Fake Paid Reviews

The FTC has filed a complaint against a retail website for allegedly paying third parties to post false and misleading reviews on Amazon. According to the FTC's press release, "The defendants paid a website, amazonverifiedreviews.com, to create and post Amazon reviews of their product. The FTC contends that Jacobowitz told the website’s operator that his product needed to have an average rating of 4.3 out of 5 stars in order to have sales and to, 'Please make my product … stay a five star.'" If a business uses paid reviews or testimonials to promote their products, they must make clear and conspicuous disclosures that the reviewer was compensated.
If you have any questions about robocall laws, autodialer laws, telemarketing bonds requitements, or cell phone telemarketing regulations, don't hesitate to contact a telemarketing lawyer.