News

U.S. do-not-call list puts Canada's to shame

While Canada's do-not-call list has proven to be expensive and ineffective when it comes to collecting fines, a similar system in the U.S. has collected over $22 million from telemarketers and shut down several fraudulent operations.

Collected $22M in fines so far versus $250 in Canada

While Canada's do-not-call list has proven to be expensive and ineffective when it comes to collecting fines, a similar system in the U.S. has collected over $22 million from telemarketers and shut down several fraudulent operations.

Last week, Canadian Senator Percy Downe revealed that only $250 in fines had been paid in the two years since the list was initiated.

A report issued to Industry Minister Tony Clement last year revealed that the do-not-call system had cost Canadians more than $15 million as of March 31, 2009.

'We are not giving interviews on the … [do-not-call list] at the moment.' —CRTC spokesperson

Of 23 fines issued since 2009, CBC could find no record of any being paid. The fines range from $2,500 to $10,000. Decisions listed on the CRTC website show enforcement actions have been largely ignored.

After repeated requests for an interview, a spokesperson for the CRTC, which operates the system, stated, "we are not giving interviews on the D.N.C. at the moment."

U.S. violators pay hefty fines

Meantime. a spokesman for the Federal Trade Commission in the U.S., which operates that country's do-not-call list, told CBC News that of 60 complaints that led to legal action, all but one has been settled.

In some cases, the settlements led to consumers being repaid money that was lost through telemarketing fraud.

The spokesman said that while the FTC does not have authority to levy fines on its own, an agreement with the U.S. Justice Department gives the commission the teeth to pursue violators, collect on the fines issued and shut down unwanted activity.

The U.S. list has existed since 2003.

According to a report to Congress, "the FTC brings actions seeking preliminary relief to immediately halt deceptive telemarketing, violations of do-not-call requirements and other legal conduct.

"Such actions generally result in a final judgment that includes a permanent injunction against misconduct by the defendants, an award of equitable monetary relief, including consumer redress.

"If the subject of a forfeiture order fails to pay, the FCC may ask the DOJ [Department of Justice] to collect the forfeiture through a trial de novo [new trial in the legal system] in Federal District Court."

The largest fine issued for do-not-call violations in the U.S. was $5.3 million against DirectTV.