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Tim Searcy Offers Experience in Meeting the Challenges of DNC Legislation
I spent some time in Australia as a guest of our sponsor Noble Systems discussing the state of DNC. I came away from the trip with new friends, and an even higher respect for the work being done in Australia using teleservices. The road towards the final DNC Registry is short, but very rocky.
In situations like the one in Australia, I heartily encourage them to use the remaining time to address the key areas of concern in the new Registry. Specifically, based on my experience I would ask them to work with government to resolve these problems in the legislative mandate before they become regulatory reality: Fortunately, most of the people I met with in Australia were aware of the new DNC Registry that is pending regulatory interpretation. However, the impact of the DNC is far from generally understood in Australia.
Over 121 million telephone numbers have been listed with the U.S. National DNC List since its inception in 2003. The number more than doubled from the end of the first year to the end of the second year, and now represents one-third of all U.S. phone numbers,” states Mr. Searcy. “The impact this has had on the U.S. telemarketing industry has been overwhelming for call centers that were not prepared to meet the regulations. Through July 2006, the Federal Trade Commission has been awarded judgments or settlements of over $11.8 Million dollars ($US), including the largest ever penalty to a single company of $5.3 Million. In addition, companies have paid more than $37 Million in fees to access the DNC Registry. Organizations that have put the right processes and tools in place to manage the guidelines have been able to succeed and to grow by taking advantage of new business opportunities.
The Australian industry is yet to embrace or fully understand the potential impact of DNC legislation. I have listed below the steps to DNC adoption, which are worth repeating for those of us still watching the drama unfold in other markets. THIS IS IN NO WAY AN INDICTMENT ON AUSTRALIA OR THE TRADE ASSOCIATIONS OF THE COUNTRY. Rather, this is a formula we used to our detriment in the U.S. and Canada, and I am watching manifest itself in India, and other countries.
1. Politicians see an opportunity to curry favor with constituents by eliminating "unwanted" telemarketing calls.
2. Politicians look around the world for where DNC work has been done in the past to determine best practices.
3. Politicians take a couple of suggestions from other countries, but mostly disregard lessons learned elsewhere, and design their own scheme.
4. A short, mostly token review of the legislation is considered by industry and the regulators that must implement the intended rules.
5. Industry organizes itself far too late to be effective except for winning small victories and preparing for hand wringing.
6. Rules are implemented far too quickly, and with little consideration for unintended consequences.
7. Some of the industry over reacts by walking away from the teleservices channel for a time, and some of the industry under reacts by ignoring the rules until substantial fines have been imposed and bad press has taken center stage.
8. Industry complies and attempts to save face by re-engaging in the political process with promises of self-regulation and further compliance.
9. Politicians receive feedback from constituents that this kind of legislation is welcome and leads to their re-election.
10. Politicians find a new topic like inbound customer service and repeat the process beginning at number 1.
On a personal note, Australia is a magnificent country with unlimited potential and enthusiasm for our industry. I look forward to my next trip to the area, to again discover the fun in our industry as being experienced by the people downunder.
-- Tim Searcy
(Tim Searcy is the Chief Executive Officer of the American Teleservices Association (ATA). The ATA represents the call centers, trainers, consultants, and equipment suppliers that initiate, facilitate, and generate telephone, Internet, and email sales, service, and support. The ATA represents members' interests by advocating on Capitol Hill and in statehouses nationwide, providing advanced professional education opportunities, defending the teleservices industry in the public realm, and acting as the industry's information clearinghouse.) http://www.ataconnect.org/
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