Will the nation hang up on telemarketers?

By Philippa Hore.

Key Points:
How a Do Not Call Register will work in practice is still unclear, and we'll know more when the Government releases a Bill.

Starting from 2007, telemarketers in Australia or overseas telemarketers who represent Australian companies will have to abide by a national Do Not Call Register, with penalties for calling people listed on it.

Based on overseas experience, the Government has predicted that there will be one million registrations within a week of the Register being established and four million registrations within the first year. The introduction of a similar register in the US for example was the most popular action by the Federal Trade Commission in recent years.

Currently details are sketchy and we'll know more once the Bill is released, which could be as early as next month. What we do know is that:

• the Register will be backed up by warnings, fines, formal directions and financial penalties for telemarketers who call people on it
• there will be minimum standards for telemarketers, such as when calls can be made, what information must be given over the phone, and termination of calls
• commercial telemarketers must comply with the Register
• there will be some exemptions, such as charities, social research bodies and businesses with pre-existing business relationships with the persons being called, (although they must still comply with the minimum standards above); and
• registering will be free for individuals and small businesses, and the cost of the Register will be borne by telemarketers who must pay to access it.

What we still don't know is what activity is covered by the Bill. If it is like the Spam Act (which we looked at here), it could potentially cover a very wide range of phone calls made by everyday business. We'll keep you informed on the Bill once a copy is available.

For further information, please contact Philippa Hore.