Impact of the Do-Not-Call Registry (USA) on Telemarketers

Details

Case Code : CLMC-001
Publication date : 2005
Subject : Marketing Communications
Industry : Telemarketing
Length : 04 Pages
Price : Rs. 100

To download this case click on the button below, and select the case from the list of available cases:

» Marketing Communications
Short Case Studies
» Marketing Case Studies**
» Case Studies Collection
» View Detailed Pricing Info

Key words:

US, Federal Law, Telemarketing, Do-Not-Call (DNC), Registry, Database, Florida, Missouri, India, Business Process Outsourcing (BPO), Call Center, NASSCOM, American Teleservices Association.

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

The caselet details the Do-Not-Call (DNC) registry introduced by the USA to protect its residents from unsolicited calls made by the telemarketers. The economic impact of the DNC registry on the Indian Business Process Outsourcing (BPO) companies is also discussed. Finally, the case takes a look at the misuse of mobile phones for marketing purposes in India.

Issues:   » Impact of regulatory environment on marketing communication strategy   » Compliance responsibility of client and telemarketer   » Role of self-regulatory institutions in educating telemarketers   » Public interest litigation to curb telemarketing in India Introduction Mr. James was at the dinner table when his telephone rang. When he answered the phone, he found to his annoyance that it was not a friend or a relative but - a telemarketer trying to sell a product. Irritated, Mr. James banged the receiver down.

Telemarketing calls are a major cause of worry for people in the US. On an average, about 104 million calls are made by telemarketers to American households and businesses every day. The telemarketers get a database of customers from a variety of public and private sources -- like the telephone directory, yellow pages, customer database of another organization, and so on. Apart from the telemarketers, charitable organizations, political bodies, airlines, banks and credit unions, insurance companies, non-profit organizations, and welfare associations also make unsolicited calls to consumers. Due to mounting pressure from the people and local bodies, the US government introduced the ‘Do-Not-Call’ (DNC) Register on October 1, 2003, and passed a legislation that the telemarketers should not call and disturb the people who enrolled in this register...

Questions for Discussion:

1. What is outbound telemarketing? Discuss the effect of DNC on Indian telemarketing firms that deal with the US customers.

2. Some states like Florida and Missouri in the US have introduced bills that will allow businesses to include their phone numbers in Do-Not-Call lists. What would be the economic ramifications on small businesses and marketers in the US if this bill is brought under the federal legislation?