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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.
Prohibited Conduct by Telemarketers
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:
o
the total purchase price of the product being sold;
o
any restrictions or conditions on purchase;
o
any material term or condition regarding refund, cancellation,
or exchange policies;
o
any material condition relating to a prize offering;
o
any material aspect of an investment opportunity being offered;
o
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.
Other Requirements
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.
Remedy and Penalties
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
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