Senate Committee backs Do Not Call Register for business

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A Senate Committee has backed the Rudd Government's decision to extend the Do Not Call Register for business, saying the laws strike a balance between those that hate unsolicited telemarketing calls and those companies that rely on telemarketing.

But the Coalition senators on the committee have raised doubts about the Government's move, slamming a lack of evidence about the ramifications of the scheme for businesses and a lack of clarity around the difference between day-to-day business calls and telemarketing.

The controversial bill has been opposed by the Australian Direct Marketing Association and the Council of Small Business of Australia, which were both concerned that the extension of the DNCR could restrict legitimate business telephone marketing.

But the Senate Committee has largely dismissed these concerns.

"Businesses will still be able to contact other businesses with whom they have a relationship under the current inferred consent provisions or where express consent to receive calls or faxes is given. However, the bill will prevent the use of 'cold calls' and marketing faxes to businesses that have opted-in, in instances where the express or inferred consent provisions do not apply," the committee's report says.

And in an agreement that might puzzle the direct marketing sector, the Committee has also argued that the introduction of the DNCR for businesses could actually make life easier for telemarketers.

"By including themselves on the DNC Register, businesses that do not wish to receive unsolicited telemarketing calls will decrease the size of the pool of businesses which could be contacted," the committee says.

"Consequently, the number of businesses in that pool which are likely to respond favourably to unsolicited telemarketing calls will increase, which is likely to lead to a increase in the success rate of those engaged in telemarketing."

But in something of a win for the opponents of the Bill, the committee has recommended a three year registration period for numbers on the DNCR, rather than a permanent registration.

But comments from the Coalition Senators on the committee indicate there is far from unanimous approval for the extension of the DNCR to business numbers.

In a special section of the report, the Coalition Senators outline concerns about the compliance burden associated with the DNCR and the restrictions placed on legitimate business-to-business dealings.

"The Government's figures grossly underestimate the financial impact of the bill on businesses," the Coalition senators said.

"This is in part because Government figures are based on the existing "Do Not Call" regime, which imposes obligations to businesses which place calls to private numbers, and assumes those trends can be transferred to this Bill, which potentially imposes obligations on all businesses for 'every day' business calls. This is particularly evident when unquantifiable costs associated with a reduction in competition, information and innovation; unemployment due to reduced telemarketing business.

"Businesses contact each other for a multitude of reasons, in the course of day-to-day operations. Coalition Senators believe that the Bill would "over-reach", hindering the ability of businesses to conduct "routine" business, and to establish and maintain commercial relationships."

ADMA was unavailable for comment prior to publication.

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Comments (4)
christo
...
written by christo, February 26, 2010
ADMA would be unavailable because of they'd be embarassed I'd say. The way they dumped on any of their membership who advertise by fax or are fax broadcasters is stunning. Who'd be a member of a mob that doesn't bother even giving a passing thought to their membership. Disgraceful!

This will all depend on how the independents vote, if the Bill is reintroduced at all. The Greens surely can't be for an increase in junk mail - all those dead trees.

dejay
...
written by dejay, February 26, 2010
Isn't it a shame that we have to legislate to be able to assert our right to say who we want to ring us, or in this case not. We used to have the option of silent numbers if we didn't want someone to call and harass us. Are we now suggesting that businesses don't have the right to stop harrasing phone calls?
Telemarketing will soon be a thing of the past, it holds little value to the consumer except for nuisance value. The staff conducting the telemarketing typically turnover quickly because they don't like the work and because of the emotional drain of rejection. Let it go marketing companies, Let it go!
Leightonj
...
written by Leightonj, March 01, 2010
This piece of legislation will have a major impact on business - large and small.

Already major companies have over-reacted to the privacy guidelines to the point where they do not send emails to companies. In a similar vein this will raise the burden on business and not help in the drive to raise the country's productivity - how?

Imagine Company A has a product that will reduce the cost of building a widget by 50%.

Company A knows that Company B builds widgets and would get benefit from it. But company A cannot contact company B as they are on the DNCR. If the Production manager at Company B hears about the product and wants to know more - but leaves a switchboard number and not his mobile number - his call may not be returned as they are on the DNCR.

Company B goes out of business? Or does Company A risk the law and push ahead?

We would all like to get off the call list of hotel loyalty cards, but we don't want to lose our business because of it!
christo
...
written by christo, March 04, 2010
Let me get this right DEJAY - you're in business and you want a silent number? Interesting strategy. Perhaps you're not aware that a residential DNCR already exists and we're all talking about B2B and are unaware of the fundamental difference between B2B and B2C marketing. In any case, this legislation strikes at the core of the ability of business to be able to do business. In the UK it decimated the small and micro business sector. It that what the Feds want to do. Creeping socialism and the nanny State, takes me back to the 70's it does.

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