ARIZONA STATE SENATE
Phoenix, Arizona
Purpose:
Modifies definitions pertaining to telephone solicitation and prohibits a seller from initiating a telephone call for the purpose of solicitation between the hours of 9:00pm and 8:00am.
In response to growing concerns raised by consumers and businesses relating to unsolicited telephone solicitations, the United States Congress enacted the Telephone Consumer Protection Act (TCPA) on December 20, 1991 and the Telemarketing and Consumer Fraud and Abuse Prevention Act (TCFAP) in August 1994. The Federal Trade Commission implemented the TCFAP under the Telemarketing Sales Rule (Rule), effective December 31, 1995, to restrict the number of times a consumer may be called and payment amounts for certain types of goods and services, prohibit misrepresentations and the calling of a consumer who has requested not to be called and require a two year bookkeeping practice. While the FTC, the states and any private person may bring a civil suit to federal court based on these legislative actions, the rule is not intended to affect any state or local telemarketing law and is only applicable to telemarketing sellers whose business crosses state lines.
In Arizona, telemarketing
sellers are required to submit a full or limited registration with the
Secretary of State. They are currently prohibited from using caller
identification blocking devices, artificial or prerecorded voices and
unsolicited telephone calls to any mobile or telephone paging system and are
required to maintain a Ano call Alist of consumers who have
previously stated a desire to not receive outbound calls from, or on behalf of,
the seller. The Ano-call” list requirement
conforms to the TCFAP and FTC requirements and can be used to bring a civil
suit in court.
According to the Secretary of State’s Office, the definition of seller as interpreted by some telemarketing sellers exempted them from these requirements and restrictions. SB1254 clarifies and simplifies the definition of seller to include all telemarketing sellers.
Currently, federal restrictions prohibit
telemarketing sellers from initiating outbound calls between the hours of
9:00pm and 8:00am, but these restrictions only apply to telemarketing sellers
whose businesses cross state lines. SB1254 would apply these same time
restrictions to telemarketing sellers making calls from Arizona to Arizona
locations.
There is no estimated fiscal impact to the state general fund associated with this measure.
1. Prohibits a seller from making any outbound calls between the hours of 9:00pm and 8:00am.
2. Eliminates from the definition of “seller” the circumstances under which a person may attempt to sell something over the telephone and defines “seller” as someone who initiates or receives telephone calls to provide goods or services to consumers in exchange for payment.
3. Stipulates that the Director of the Department of Insurance must include in the list of those licensed sellers required to register the name and address of an agent who is authorized to receive service of process on the sellers behalf in Arizona.
4. Eliminates the definition of “telephone solicitation sale.”
5. Makes technical and conforming changes.
6. Provides for a general effective date.
Prepared by Senate Staff
February 5, 2001