Complaints to the government are up sharply about unwanted phone solicitations, raising questions about how well the federal "do-not-call" registry is working.
WASHINGTON — So much for silence from telemarketers at the cherished dinner hour, or any other hour of the day.
Complaints to the government are up sharply about unwanted phone solicitations, raising questions about how well the federal “do-not-call” registry is working. The biggest category of complaint: those annoying prerecorded pitches called robocalls that hawk everything from lower credit-card interest rates to new windows for your home.
Robert Madison, 43, of Shawnee, Kan., says he gets automated calls almost daily from “Ann, with credit services,” offering to lower his interest rates.
“I am completely fed up,” Madison said. “I’ve repeatedly asked them to take me off their call list.” When he challenges their right to call, the solicitors become combative, he said. “There’s just nothing that they won’t do.”
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Madison, who works for a software company, says his phone number has been on the do-not-call list for years. Since he hasn’t made any progress getting “Ann” to stop calling, Madison has started to file complaints with the Federal Trade Commission (FTC), which oversees the list.
Amid fanfare from consumer advocates, the federal do-not-call list was put in place nearly a decade ago as a tool to limit telemarketing sales calls to people who didn’t want to be bothered. The registry has more than 209 million phone numbers on it. That’s a significant chunk of the country, considering that there are about 84 million residential customers with traditional landline phones and plenty more people with cellphone numbers, which also can be placed on the list.
Telemarketers are supposed to check the list at least every 31 days for numbers they can’t call. But some are calling anyway, and complaints about phone pitches are climbing even as the number of telemarketers checking the registry has dropped dramatically.
Government figures show monthly robocall complaints have climbed from about 65,000 in October 2010 to more than 212,000 this April. More general complaints from people asking a telemarketer to stop calling them also rose during that period, from about 71,000 to 182,000.
At the same time, fewer telemarketers are checking the FTC list to see which numbers are off-limits. In 2007, more than 65,000 telemarketers checked the list. Last year, only about 34,000 did so.
Despite those numbers, the FTC says the registry is doing an effective job fighting unwanted sales calls.
“It’s absolutely working,” Lois Greisman, associate director of the agency’s marketing practices division, said. But, she said, “the proliferation of robocalls creates a challenge for us.”
Robocalls are hard to trace and cheap to make.
With an auto-dialer, millions of calls can be blasted out in a matter of hours, bombarding people in a struggling economy with promises of debt assistance and cheap loans. Even if a consumer does not have a phone number on the do-not-call list, robocalls are illegal. A 2009 rule specifically banned this type of phone sales pitch unless a consumer has given written permission to a company to call.
Political robocalls and automated calls from charities, or informational robocalls, such as an airline calling about a flight delay, are exempt from the ban. But those exemptions are being abused, too, with consumers complaining of getting calls that begin as a legitimate call, say from a charity or survey, but then eventually switch to a telemarketing sales pitch.
Robocalls can be highly annoying to consumers because they’re hard to stop. Many use caller-ID spoofing so that when a person tries to call back the robocaller, he gets a disconnected number or something other than the source of the original call.
The best thing people can do when they get an illegal robocall is to hang up. Do not press “1” to speak to a live operator to get off the call list. If you do, the FTC says, it will probably just lead to more robocalls. The caller will know you’re there and willing to answer, and may continue to call.
The FTC says people can also contact their phone providers to ask them to block the number.
But be sure to ask whether they charge for that. Telemarketers change caller-ID information often, so it might not be worth paying a fee to block a number that will soon change.
The industry says most legitimate telemarketers don’t use robocalls to generate sales.
“They give a bad name to telemarketers and hurt everybody,” says Jerry Cerasale, senior vice president of government affairs at Direct Marketing Association, a trade group.
The FTC has brought cases against about a dozen firms since 2009, including Talbots, DirecTV and Dish Network. The cases have yielded $5.6 million in penalties.
The agency said this month that it was mailing refund checks to more than 4,000 consumers nationwide who were caught up in a scam in which the telemarketer used robocalls from names like “Heather from card services” to pitch worthless credit-card rate-reduction programs for an upfront fee. Checks to consumers range from $31 to $1,300, depending on how much was lost.