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I recently learned of a new law which came into effect on 31 May 2007 here in Australia which goes pretty far to eliminate what is, in my view, a practice operated only by the more sharkish businesses: cold calling.

This Act has been around since last year, however, its provisions are now fully effective…

So, what does it do?

The Do Not Call Register Act (henceforth referred to as DNCRA) 2006 does essentially what it says on the tin – provides a register upon which people may place their telephone numbers to request that telemarketers not call them.

 What telemarketing behaviour is covered by the Act?

Any company who calls offering, promoting or advertising business services, products, land and/or investment opportunities (in other words, cold calling) will be in breach of the Act.

What happens to a business which breaches the Act?

The minimum fine for breaking  DNCRA 2006 is AUS$11,000 – the maximum is AUS$1,100,000. It remains to be seen how much of a disincentive this turns out to be.

The drafters of the Act have also attempted to avoid potential loop-holes by stating that contracting out telemarketing to overseas companies and internet telephony systems are also covered by the Act.

A Step in the Right Direction?

As my title suggests, I feel this is a step in the right direction. There are similar laws in several US states which go slightly further – for example, in at least one jurisdiction any telemarketer must be able to prove express permission to call or the presumption will be that there was none.

This register (DNCRA 2006) balances the competing interests involved quite well, however,the onus is still on the individual consumer to take preventative action (i.e. adding his or her telephone number to the register) rather than the business to obtain permission to call before making telemarketing calls. I would prefer to see a blanket ban on cold calling: where if it’s cold, its illegal, but that is unlikely.

Another potential failure of this Act is the fact that it does not address the highly lucrative text message and mobile phone “services”markets. I would estimate that millions of dollars (AUS and US), pounds sterling and Euros are taken each year from mobile phone users who have been sent text messages or mobile phone services for which they never asked or subscribed. Where do I base this assumption? It happened to me. I tried for two months to reclaim this money, but eventually gave up – over £80 worth of pointless messages about “doggers meeting in your area” (etc) had been charged to my mobile phone over just 2 months. I phoned the company who sent them and they confirmed that I had never subscribed. They offered to send me a cheque, and even took my address. Alas, the cheque never came. This, upon asking around, is a common occurrence. The company in question made over £100 million after tax in 2006.

The success or failure of the Do Not Call Register lies in popular usage. People need to be told about it; and how to get one’s phone number onto it. Perhaps an ethical telco could place all its customers onto the register unless they ask to be removed? Perhaps all phone numbers should go onto the Register unless one asks to be taken off?

In the mean time, spread the word, you don’t have to take calls from people trying to sell you something any more. Get on the Do Not Call Register now (at least if you are an Australian!) and enjoy a quiet evening for once…

GET ON THE REGISTER BY CLICKING HERE!!