RATEPAYER ADVOCATE URGES FCC TO DISMISS AMERICAN TELESERVICES’ PETITION TO PREEMPT NEW JERSEY LAW PROTECTING RESIDENTS FROM UNSOLICITED TELEMARKETING PHONE CALLS

Newark, NJ – Reacting to a direct affront to New Jersey law shielding consumers from unwanted telemarketing telephone calls, the Ratepayer Advocate Seema M. Singh filed comments today with the Federal Communications Commission (FCC) opposing the American Teleservices Association’s (ATA) petition to eliminate protections afforded New Jersey residents under the NJ Do Not Call law and asking that it be dismissed.

“Since May of 2003, New Jersey has been able to offer its residents unprecedented protections from intrusive sales calls and phone pitches,” said New Jersey Ratepayer Advocate Seema M. Singh. “Now the ATA wants to undercut our state’s efforts simply because the ATA alleges its members will incur more expenses in complying with the laws that protect New Jersey’s citizens,” Singh added.

The ATA filed a Petition for Declaratory Ruling on Preemption of New Jersey Telemarketing Rules. In its petition, the ATA seeks to eliminate certain provisions of the New Jersey Consumer Fraud Act and the New Jersey Administrative Code (“NJ Rules”) implementing Do Not Call laws specifically crafted to offer NJ residents greater protections from intrusive telemarketing calls.

The ATA claims the NJ Rules are inconsistent with the FCC rules in three respects: the established business relationship exemption is more restrictive than the federal rules, there is no personal relationship exemption in the NJ Rules, and the NJ disclosure rules are stricter than the federal rules. The ATA also argues that the NJ Rules apply to interstate calls, not simply intrastate telemarketing.

The Ratepayer Advocate, in its comments, opposed the ATA’s petition on four grounds: (1) The ATA lacks standing to raise these issues; (2) The ATA’s concerns are not ripe; (3) There is no case or controversy; and (4) Section 227(e)(1) of the Act precludes the ATA’s claim of preemption. As a result the Ratepayer Advocate is calling for the dismissal of the ATA’s petition.

“Dismissal of the ATA’s petition is clearly warranted,” stated the Ratepayer Advocate. “ATA has not shown that it or its members have suffered injury, the ATA has not demonstrated that it has the standing to bring a petition on behalf of the telemarketing industry, ATA’s petition is premature because no members have been charged with violating NJ Rules; and the Telecommunications Act of 1996 permits New Jersey to impose more restrictive standards than those established by the FCC,” added Singh.

The ATA has failed to realize that only residents who sign up for NJ Do Not Call protections are entitled to the increased protection offered by the NJ Rules. If a NJ resident only signs up for the federal Do Not Call list, then only federal protections apply. Therefore, the only increased obligations imposed on the ATA members are the responsibility to consult two Do Not Call lists and limit telephone solicitations to comply with the NJ Rules and the federal rules to the NJ residents identified on each list.

“The extra step of consulting two Do Not Call lists places a minimal burden on the ATA’s members. The petition is misplaced and is a veiled attempt to subvert the added protection that New Jersey’s Rules afford its citizens,” noted Singh.

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The Division of the Ratepayer Advocate represents the interests of utility consumers and serves as an active participant in every case when New Jersey utilities seek changes in their rates or services. The Ratepayer Advocate also gives consumers a voice in setting long-range energy, water, and telecommunications policy that will affect the delivery of utility services well into the future. The Ratepayer Advocate web site is http://www.rpa.state.nj.us

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