CONSUMER ALERT

MIKE COX

ATTORNEY GENERAL

The Attorney General provides Consumer Alerts to inform the public of unfair, misleading, or deceptive business practices, and to provide information and guidance on other issues of concern.

NEW MICHIGAN TELEMARKETING LAWS

DO-NOT-CALL LIST

Home Solicitation Sales Act

Consumer Protection Act (new sections 3(gg), 9a)

Consumers get ammunition for fighting back against telemarketers!

In December 2002, the Michigan Legislature passed new laws that give consumers greater rights against telemarketers. To reduce the number of unwanted calls from telemarketers, Michigan has joined the federal do-not-call list. To combat telemarketing fraud, certain unfair or deceptive practices are now expressly prohibited.

This consumer alert provides an overview of these new provisions of Michigan law.  Information regarding federal do-not-call law is available at the Federal Trade Commission (FTC) website, www.donotcall.gov, and the Federal Communications Commission (FCC) website, www.fcc.gov/cgb/policy/telemarketing.html.

Do-Not-Call List

By amendment to the Michigan Home Solicitation Sales Act, consumers who do not want to receive telemarketing calls may sign up on a do-not-call list. Subject to certain exemptions,* telephone solicitations to numbers on the list are prohibited. The new law provides that if the federal government establishes a do-not-call list, the Michigan Public Service Commission (MPSC) must designate the federal list as Michigan’s list. This is significant for Michigan consumers in that it will save them the $5.00 registration fee required to be on a state list.

On March 11, 2003, federal legislation created a national do-not-call registry that will be administered by the Federal Trade Commission (FTC). The MPSC, at its April 17, 2003, meeting, issued Order No. U-13753 (copy available at: http://www.cis.state.mi.us/mpsc/orders/comm/2003/u-13753.pdf) designating the FTC’s national do-not-call registry as the Michigan do-not-call list.

How To Register

Michigan consumers who have access to an e-mail address are able to sign up, at no cost, on the national registry online (www.donotcall.gov).  Phone registration for Michigan residents began July 7, 2003. The toll-free number to call for registration is 1-888-382-1222.

When Will My Telemarketing Calls Decrease?

In September, telemarketers will have access to the list. If you register by August 31, 2003, you should start receiving fewer telemarketing calls by October 1, 2003. If you register after September 1, 2003, telemarketers covered by the National Do-Not-Call Registry will have up to three months from the date you register to stop calling you. Additional information about the registry and how to sign on is available at the FTC’s website: www.donotcall.gov 

*Exemptions

Not all calls and callers are covered by the Michigan law. Exemptions include:

• Calls that do not encourage the purchase, rental, or investment in goods or services, such as calls conducting a survey or seeking a donation or contribution.

• Calls from most charitable organizations (any organization subject to Michigan's Charitable Organizations and Solicitations Act, MCL 400.271 to 400.294).

• Calls on behalf of a public safety organization (such as police or fire).

• Calls on behalf of political organizations (such as candidates or political parties).

• Calls made with the recipient’s prior consent.

• Calls to an existing customer of the caller, unless the customer has specifically requested that he or she not receive calls from that company.

• Calls that request a face-to-face meeting but do not encourage purchases during the call.  While this is an exemption under Michigan law, these calls are a violation of federal law. 

The registry only applies to unwanted telephone solicitations, and not to solicitations over the Internet ("spamming"), door-to-door contacts, or mail solicitations.

The amendments to the Michigan Home Solicitation Sales Act also establish a telemarketers "code of conduct." Telephone solicitors may not:

• Misrepresent or fail to clearly disclose:

• the total purchase price of the product being sold;

• any restrictions or conditions on purchase;

• any material term or condition regarding refund, cancellation, or exchange policies;

• any material condition relating to a prize offering;

• any material aspect of an investment opportunity being offered;

• the quantity, any material aspect of the quantity, or characteristics of the product being sold;

• Make a false or misleading statement to induce payment for goods or services;

• Request payment or submit a credit card charge before receiving express verifiable authorization showing that the consumer has agreed to purchase;

• Call a consumer who has requested that he or she not receive calls from the seller on whose behalf the call is made;

• Intentionally block or interfere with the caller ID function on a consumer’s phone;

• Make a call that consists in whole or in part of a recorded message;

• Make a telephone solicitation to a telephone subscriber whose number is on the do-not-call list.

At the beginning of a telemarketing call, the telemarketer must state his or her name and the full name of the business they are calling for.  A telephone number for the business must be provided on request, and a live person must be available to answer that telephone number and give information describing the business itself and the offer being pitched.

Persons who suffer loss as a result of a violation of the law may bring a private lawsuit to recover actual damages or $250.00, whichever is greater, and reasonable attorney fees.

Violators are also subject to penalties provided by the Michigan Consumer Protection Act, as a violation of the new law also constitutes a violation of the Consumer Protection Act.  The Attorney General, a county prosecutor, or individual consumer may bring a lawsuit under the Consumer Protection Act.

Additionally, certain violations are punishable as a misdemeanor, by imprisonment for not more than six months or a fine of not more than $500.00, or both. (This penalty applies to commission of acts that are defined as being unfair or deceptive by the act, such as certain misrepresentations by telephone solicitors. It does not apply to violations of the do-not-call provisions.)

Beginning October 2003, complaints for violations of the no-call law may be filed with the Federal Trade Commission, www.donotcall.gov, the Federal Communications Commission, fccinfo@fcc.gov, and with the Attorney General's Consumer Protection Division.  For your assistance in filing with the Attorney General, a complaint form may be found on the Attorney General’s website: www.michigan.gov/ag.  Mail complaints to:

Department of Attorney General
Consumer Protection Division
PO Box 30213
Lansing, MI 48909
Toll Free: 1-877-765-8388
Fax: 517-241-3771