CRTC backs down on tough telemarketing rules

(May 21, 2004) The CRTC has decided not to implement a national “do not call” registry as a way to deal with unwanted telemarketers. The issue was a concern among advisors who use cold calling as a way of reaching new clients.

The U.S. established a “do not call” registry earlier this year and it has already attracted nearly 60-million consumers.

In a decision released today, the federal communications regulator said that while such a national list has “considerable merit,” the program cannot be effectively implemented without a number of accompanying measures, such as the appointment of a list administrator, adequate start-up funding, the ability to charge fees to cover ongoing expenses and the power to impose penalties on those violating the rules.

In response, the Canadian Marketing Association expressed disappointment with the CRTC’s decision, noting that it has already offered to set up and operate a national do not call service that would be mandatory for all telemarketers,

“The CRTC has had more than three years to study this issue since calling for comments and proposals,” said CMA president John Gustavson. “In view of its decision not to take action, it is now up to parliament to move as quickly as possible to mandate the establishment of a national do not call service.”

The CMA also criticized the CRTC for failing to establish restricted calling hours for telemarketers.

Current telemarketing rules require firms to maintain do not call lists for consumers who ask not to be called. The CRTC today strengthened those rules, requiring telemarketers to identify themselves and their firm at the beginning of a call, before they ask to speak to a consumer.

Although cold calling is still used in the financial services industry, surveys suggest its popularity is waning. In the second Annual Dollars & Sense Survey conducted by The ADVISOR group, only 10% of advisors cited cold calling or telemarketing as their primary source of generating new business, down from 16% the previous year. Cold calling lags well behind other business-building techniques, such as referrals, networking and centres of influence.

Filed by Doug Watt, Advisor.ca, doug.watt@advisor.rogers.com