HCS HB 192 & 945 -- TELEMARKETING PRACTICES (Davis, 122)

This substitute establishes certain telemarketing practices.
The substitute:

(1)  Requires a telemarketer to provide identifying information
when contacting a consumer, including an address or telephone
number and certain facts about the merchandise or prize
promotions being offered;

(2)  Prohibits certain acts, including requesting a fee to
remove derogatory information from a person's credit history or
record, knowingly calling persons who have previously stated
that they do not want to receive telemarketing calls from that
seller, and misrepresenting material aspects about the
merchandise being offered for sale;

(3)  Prohibits abusive conduct such as the use of obscene
language, intimidation, and harassment;

(4)  Allows a consumer to give certain forms of written or oral
authorization for payment from a consumer's checking or savings
account;

(5)  Requires telemarketers to keep specified records for 24
months from the date the record is produced, such as verifiable
authorizations, brochures, and the names and addresses of
recipients of prizes with a value of $25 or more;

(6)  Allows consumers who have suffered a loss or harm due to
violations of the provisions of the substitute to recover actual
and punitive damages, attorney's fees, court costs, and other
lawful remedies;

(7)  Makes violation of the substitute's provisions a class D
felony;

(8)  Allows the Attorney General to seek actual and punitive
damages on behalf of residents who have suffered a loss or harm
as a result of violations of the provisions of the substitute;

(9)  Exempts the following from the requirements of the
substitute:

(a)  telephone calls where the sale of goods or services is not
completed and payment is not required until after a face-to-face
sales presentation by the telemarketer;

(b)  telephone calls initiated by the customer that are not the
result of any solicitation by a seller or telemarketer, in
response to advertisements, direct mail solicitations, or
catalog mailings; and

(c)  telephone calls or messages to persons who have given
express permission, persons with whom the caller has an
established business relationship, or calls made by a tax-exempt
nonprofit organization; and

(10)  Exempts state-regulated credit unions from current law
prohibiting certain unlawful merchandising practices.  Current
law exempts companies or institutions under the regulation of
the Department of Insurance or the Division of Finance.

FISCAL NOTE:  No impact on state funds.

HCS HB 192 & 945 -- TELEMARKETING PRACTICES

SPONSOR:  Schilling (Davis, 122)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Consumer
Protection and Housing by a vote of 15 to 3.

This substitute establishes certain telemarketing practices.
The substitute:

(1)  Requires a telemarketer to provide certain identifying
information when contacting a consumer as well as certain facts
about the merchandise being offered;

(2)  Prohibits certain acts, including requesting a fee to
remove derogatory information from a person's credit history or
record and knowingly calling persons who have previously stated
that they do not want to receive telemarketing calls from that
seller;

(3)  Prohibits certain abusive conduct such as the use of
obscene language, intimidation, and harassment;

(4)  Allows a consumer to give certain forms of written or oral
authorization for payment from a consumer's checking or savings
account;

(5)  Requires telemarketers to keep certain records for 24
months from the date the record is produced, such as financial
transactions, brochures, and the names and addresses of
recipients of prizes with a value of $25 or more;

(6)  Allows consumers who have suffered a loss or harm due to
violations of the provisions of the substitute to recover actual
and punitive damages, attorney's fees, court costs, and other
lawful remedies;

(7)  Makes violation of the substitute's provisions a class D
felony;

(8)  Allows the Attorney General to seek actual and punitive
damages on behalf of residents who have suffered a loss or harm
as a result of violations of the provisions of the substitute;
and

(9)  Exempts the following:

(a)  telephone calls where the sale of goods or services is not
completed and payment is not required until after a face-to-face
sales presentation by the telemarketer;

(b)  telephone calls initiated by the customer that are not the
result of any solicitation by a seller or telemarketer, in
response to advertisements, direct mail solicitations, or
catalog mailings; and

(c)  telephone calls or messages to persons who have given
express permission, persons with whom the caller has an
established business relationship, or calls made by a tax-exempt
nonprofit organization.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that standards for telemarketers
help to prevent fraud and that codification of Federal Trade
Commission and Federal Communications Commission regulations in
Missouri law would provide consumers the opportunity to take
action in state courts instead of only federal courts.

Testifying for the bill were Representatives Davis (122) and
Relford; Office of the Attorney General; AARP; Missouri
International Brotherhood of Electrical Workers; and Silver
Haired Legislature.

OPPONENTS:  Those who oppose the bill say that there is already
regulation of telemarketers at the federal level and to some
extent by the PSC and do not want certain limits on
authorization for payment.

Testifying against the bill were GTE; MCI Worldcom; Missouri
Retailers Association; AT&T; DeHart and Darr for Direct
Marketers Association; and Missouri Chamber of Commerce.

Donna Schlosser, Legislative Analyst

HB 192 -- Telemarketing Practices

Co-Sponsors:  Davis (122), Relford, McClelland

This bill establishes guidelines for telemarketers.  The bill:

(1)  Requires a telemarketer to provide certain information when
contacting a consumer;

(2)  Requires customer receipt of a written notice of a 3-day
cancellation period before the transaction is considered final;

(3)  Prohibits certain acts, including requesting a fee to
remove derogatory information from a person's credit history or
record;

(4)  Prohibits certain abusive conduct such as the use of
obscene language and intimidation;

(5)  Requires telemarketers to keep records such as financial
transactions, written notices, disclosures, and
acknowledgements, for 24 months from the date the record is
produced;

(6)  Allows consumers who have suffered a loss or harm due to
violations of the provisions of the bill to recover actual and
punitive damages, attorney's fees, court costs, and other lawful
remedies;

(7)  Allows the Attorney General to seek actual and punitive
damages on behalf of residents who have suffered a loss or harm
as a result of violations of the provisions of the bill; and

(8)  Exempts telephone calls in which the sale of goods or
services is not completed and payment is not required until
after a face-to-face sales presentation by the telemarketer and
telephone calls initiated by the customer that are not the
result of any solicitation by a seller or telemarketer.

The bill has penalty provisions.