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DON'T KEEP THOSE CARDS & LETTERS
(AND PHONE CALLS) COMING
By Bob Hunt

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Many firms and individuals in the real estate business - particularly those on the mortgage lending side - make use of direct marketing methods such as mass mailing and telemarketing. Regrettably, more than a few people on the receiving end of such marketing efforts are not altogether fond of them. This is particularly true with respect to telemarketing - at least the mail marketing doesn't arrive while you are having dinner.

For consumers who do not wish to be the recipients of these types of offers and solicitations there is at least some faint light at the end of the tunnel.

On March 25, 2003, the FTC (Federal Trade Commission) announced its calendar for implementation of the national 'do not call' registry.

  • In July consumers may begin registering for free either online or by calling a toll-free number. Actually, phone registration will begin earlier, phased in on a region-by-region basis. The FTC is expecting an enormous volume of registrations.
  • In September, telemarketers will have access to the registry. They will subsequently be required to 'scrub' their call lists every three months.
  • In October the FTC and the states will start to enforce the provisions of the FTC's telemarketing sales rules. Violators will be subject to fines of up to $11,000 per violation.

A registered number stays on the list for five years, or until the registrant removes the number. Registering one's number should stop most telemarketing calls, but not all. The FTC rules only cover interstate calls, and also, some businesses are exempt. More information can be obtained at the web site www.ftc.gov/donotcall.

Many states, California among them, have adopted do-not-call legislation. In October of 2001 the governor signed Senate Bill 771 (Figueroa), which created California's version of the federal rules. The bill's provisions are found in section 17590, and following, of the Business and Professions Code. Although it originally intended that the Attorney General's office have a do-not-call list established by January of this year, that deadline has been postponed a bit. Nonetheless, Attorney General Lockyer has just recently provided a web site that allows for Californians to begin registering on the national list. The web address is http://nocall.doj.state.ca.us/.

The California law also contains exemptions. Small businesses (no more than five employees) and independent contractors calling within a fifty-mile radius of the business are exempted. While this might seem to provide many real estate firms with an exemption, it must be noted that the call must be made by the businessperson or independent contractor himself He cannot hire someone to do it for him.

The prospect of eliminating direct mail marketing is somewhat dimmer. There are no laws on the books except for certain postal regulations regarding pornographic material. There is, however, a private association, the Direct Marketing Association, that maintains do-not-call and do-not-mail lists that provide that members of the association will remove registered names from their lists. Not all such marketers belong to the DMA, but many do. Registration on the DMA lists costs $5. Their web site is www.dmaconsumer.org.

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Bob Hunt is a director of the National Association of Realtors®, and is manager at the San Clemente office of RE/MAX Real Estate Services. His e-mail address is scbhunt@aol.com.