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Australian Do Not Call Launched with MR Status Still Unclear
The Australian Minister for Communications, IT and the Arts has given the go-ahead for a national Do Not Call Register similar to that in operation in the US. Senator the Hon Helen Coonan said the scheme would protect consumers from nuisance telemarketing phone calls. 'Legitimate' MR calls will be among a number of exempt categories.
Registration is free, and the Government expects around one million registrations in the first week of operation and four million in the first year. The Register is expected to be up and running in 2007. The Government plans to introduce legislation as soon as possible to establish the Register and create minimum standards for the behaviour of telemarketers.
Market researchers have generally welcomed the announcement, with the expectation that sugging calls, pretending to be market research but actually selling, will be ruled out and give real MR a clear run. However they await clarification of the wording on exemptions.
Senator Coonan said the Register would cost just over $33 million to set up, with the Australian Government committing $17.2m and the remainder of the costs to be met by industry. Telemarketers will contribute to the costs of running the scheme through the payment of subscription fees to access the Register.
The Register will apply to all telemarketers operating in Australia, as well as those overseas telemarketers who represent Australian companies - many of the most irritating calls received by consumers are currently from overseas-based call centres on behalf of Australian companies. A range of enforcement options will include warnings, fines and formal directions. Companies in breach could pay fines of up to AUD $220,000 a day.
The standards will cover permitted calling hours, minimum information requirements and termination of calls, and will apply to all telemarketers, including those specified as exempt from Do Not Call. The latter will be barred from calling homes after 8pm on weekdays and 5pm on weekends.
Exemptions cover 'organisations with underlying public interest objectives to make unsolicited calls' and the Minister's statement gives the examples of 'charity groups and people undertaking social research' - the latter worrying some researchers who have fought hard for market research also to be exempt and now await clarification. Exemptions will also apply to companies with an existing business relationship with an individual, for example with existing accounts or contracts.
A positive response from other bodies has also been tinged with worry. The Australian Consumers Association already says it is concerned about the exemptions and would like consumers to have a choice of opting out of these categories too. The Australian Direct Marketing Association (ADMA) has admitted its own Do Not Call list was not succeeding in stopping some companies harassing consumers, and supports the law but has raised some queries.
ADMA Chief Executive Rob Edwards, while broadly supporting the proposal, for which the Association has been lobbying, nevertheless expressed reservations over the requirement for the direct marketing industry to pay half the $33 million to set it up. He also questioned the Government's decision to include small businesses: 'The intention of setting up a do not call register was to address the issue of consumer protection and provide consumers with the opportunity to opt out of receiving intrusive telemarketing calls at home'. He added that the association would pursue this point 'to ensure that business-to-business marketing in Australia is not jeopardised.'
Some information sourced from The Australian and the Sydney Morning Herald - web sites at www.theaustralian.news.com.au and www.smh.com.au
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