SENATE, No. 445

STATE OF NEW JERSEY

210th LEGISLATURE

PRE-FILED FOR INTRODUCTION IN THE 2002 SESSION

Sponsored by:

Senator SHIRLEY K. TURNER

District 15 (Mercer)

Senator RICHARD J. CODEY

District 27 (Essex)

Co-Sponsored by:

Senators Buono, Bennett, Adler, Coniglio, Palaia, Sweeney, Gill, Bucco, B.Smith, Matheussen, Furnari and Singer

SYNOPSIS

    Prohibits unsolicited telemarketing sales calls to certain customers.

CURRENT VERSION OF TEXT

    Introduced Pending Technical Review by Legislative Counsel.

(Sponsorship Updated As Of: 9/27/2002)

An Act prohibiting unsolicited telemarketing sales calls to certain customers, and supplementing chapter 17B of Title 52 of the Revised Statutes.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. As used in this act:

    "Customer" means an individual who is a resident of this State and and a prospective recipient of consumer goods and services offered through telemarketing.

    "Division" means the Division of Consumer Affairs in the Department of Law and Public Safety.

    "Doing business in this State" means conducting telephone sales calls: from a location in this State; or from a location outside of this State to customers residing in this State.

    "Goods and services" means any goods and services and shall include, but not be limited to, any real property, any tangible personal property, or services of any kind.

    "Local exchange telephone company" means a telecommunications carrier authorized by the Board of Public Utilities to provide local telecommunications services.

    "No telemarketing call list" or "no call list" means a list of customers in this State who do not desire to receive unsolicited sales calls.

    "Telemarketer" means any person who, for financial profit or commercial purposes in connection with telemarketing, makes telemarketing sales calls to a customer when the customer is in this State or any person who directly controls or supervises the conduct of a telemarketer. For the purposes of this section, "commercial purposes" means the sale or offer for sale of goods or services.

    "Telemarketing" means any plan, program or campaign which is conducted to induce payment, or the exchange of any other consideration, for any goods or services by use of one or more telephones and which involves more than one telephone call by a telemarketer in which the customer is located within the State at the time of the call, but does not include the solicitation of sales through media other than a telephone call.

    "Telemarketing sales call" means a telephone call made by a telemarketer to a customer for the purpose of inducing payment or the exchange of any other consideration for any goods or services.

    "Unsolicited telemarketing sales call" means any telemarketing sales call other than a call made:

    a. in response to an express written or verbal request of the customer called;

    b. in connection with an established business relationship, which has not been terminated by either party;

    c. to an existing customer, unless the customer has stated to the telemarketer that the customer no longer desires to receive the telemarketing sales calls of the telemarketer; or

    d. in which the sale of goods and services is not completed, and payment or authorization of payment is not required until after a sales presentation made in person by the telemarketer or a meeting between the telemarketer and the customer.

    2. The division shall establish and maintain a no telemarketing call list. The division may contract with a private vendor to establish and maintain the no call list, provided the private vendor has maintained a no call list for another state for more than two years and the contract requires the vendor to provide the list in a printed hard copy format, and in any other format, as prescribed by the division.

    3. No telemarketer may make or cause to be made any unsolicited telemarketing sales call to any customer more than 30 days after the customer's name and telephone number appear on the then current quarterly no telemarketing call list established pursuant to section 2 of this act.

    4. a. A customer who desires to be included on the no telemarketing call list shall notify the division by calling a toll-free number provided by the division, or in any other manner and at a time prescribed by the division. A customer who is included on the no call list shall be removed from the no call list upon the customer's written request. The division shall update the no call list not less than quarterly and shall make the no call list available to telemarketers for a fee as the division shall prescribe.

    b. A local exchange telephone company shall include, in every telephone directory published after the effective date of this act, notice concerning the provisions of this act as those provisions relate to the rights of customers with respect to telemarketers and the no telemarketing call list. A local exchange telephone company shall also enclose, at least annually, in every telephone bill, a notice concerning the provisions of this act as those provisions relate to the rights of customers with respect to telemarketers and the no telemarketing call list.

    5. a. After a person has been afforded an opportunity for a hearing pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) and the division determines that the person has violated one or more provisions of this act, that person shall be liable to a civil administrative penalty not to exceed $2,000 for each violation.

    b. Nothing in this section shall be construed to restrict any right which a person may have under any other statute or at common law.

    6. A person may not be held liable for violating this act if:

    a. the person has obtained a copy of, and updated quarterly , the no call list and has established and implemented written policies and procedures related to the requirements of this section;

    b. the person has trained telemarketers in the person's employ in the requirements of this act;

    c. the person maintains records demonstrating compliance with subsections a. and b. of this section and the requirements of this act; and

    d. any subsequent unsolicited telemarketing sales call is the result of error.

    7. There is hereby established in the General Fund a special dedicated, non-lapsing fund to be known as the "Consumer Protection Fund," which shall be administered by the State Treasurer. The State Treasurer shall deposit into the "Consumer Protection Fund" all fees and penalties collected pursuant to this act.

    The Legislature shall annually appropriate from the fund monies to the division for the payment of costs of producing and distributing educational materials and conducting educational activities relating to the promotion of the no telemarketing call list and all related costs and expenditures incurred in the administration of this act.

    8. The division, pursuant to the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall promulgate rules and regulations necessary to implement this act, which shall include, but not be limited to:

    a. provisions governing the availability and distribution of the no call list established in section 2 of this act; and

    b. any other matters relating to the no call list established in section 2 of this act that the division deems necessary.

    9. This act shall take effect immediately.

STATEMENT

    This bill requires the Division of Consumer Affairs in the Department of Law and Public Safety to establish a no telemarketing call list. This list shall contain the names of customers in this State who do not desire to receive unsolicited sales calls. The division may contract with a private vendor to establish and maintain the no call list, provided the private vendor has maintained a no call list for another state for more than two years and the contract requires the vendor to provide the list in a printed hard copy format, and in any other format as prescribed by the division.

    The bill prohibits unsolicited telemarketing sales calls to any customer more than 30 days after the customer's name and telephone number appear on the then current quarterly no telemarketing call list.

    The bill requires local exchange telephone companies to include in every telephone directory, notice concerning the provisions of the bill, as those provisions relate to the rights of customers with respect to telemarketers and the no telemarketing call list. Local exchange telephone companies are also required to enclose, at least annually, in every telephone bill, a notice concerning the provisions of this act as those provisions relate to the rights of customers with respect to telemarketers and the no telemarketing call list.

    A telemarketer who violates one or more of the provisions of this bill is liable for a civil administrative penalty not to exceed $2,000 for each violation.

    The bill establishes a special dedicated, non-lapsing fund to be known as the "Consumer Protection Fund." All fees and penalties collected pursuant to this bill are to be deposited into the "Consumer Protection Fund." This money is to be used by the Division of Consumer Affairs for the payment of costs of producing and distributing educational materials and conducting educational activities relating to the promotion of the no telemarketing call list and all related costs and expenditures incurred in the administration of the bill.