Efforts to bolster telemarketing regulations in Michigan are underway, with a set of bipartisan bills presented to the state Senate Finance, Insurance, and Consumer Protection Committee. These legislative efforts aim to curb the intrusion of unwanted telemarketing communications by imposing stricter rules.
Key Provisions of the Proposed Legislation
The bipartisan bill package seeks to restrict telemarketers from contacting individuals on the federal do-not-call list without prior consent. Additionally, it aims to curtail the use of automated technologies for calls and texts directed at these individuals.
Mary Cavanagh (D-Redford), a state senator and sponsor of the package, noted that there are exceptions, such as business subscription messages. She emphasized the importance of obtaining preauthorization: “Customers can say, ‘Yes, you can reach out to us.’ ‘Yes, we want to be a loyal customer.’ Just know that you need to get that preauthorization,” she stated after the committee meeting.
The bills also propose requirements for telemarketers to disclose their identities immediately and establish quiet hours during which calls are prohibited.
Addressing Current Legal Shortcomings
Kathy Fitzgerald from the Michigan Attorney General’s office highlighted the inadequacy of existing telemarketing laws, such as the Home Solicitation Sales Act, which do not encompass scam calls or texts. She explained that the new act would tackle the persistent issues of unwanted robocalls and texts, offering a more robust regulatory framework for telephone solicitations in Michigan.
The proposed legislation empowers victims and the state Attorney General’s office to file lawsuits against violators. Fitzgerald explained that the bills also target out-of-state and international telemarketers by potentially holding VoIP providers accountable, thereby preventing unwanted calls from reaching Michigan phones.
Business Concerns and Legal Implications
Despite its intentions, the proposal faces opposition from business groups. Concerns were raised about potential litigation, drawing parallels to the federal Telephone Consumer Protection Act, which has led to numerous lawsuits, as noted by several legal actions.
Former Federal Communications Commissioner Michael O’Rielly criticized the bills for potentially encouraging “shakedown lawsuits” due to the private right of action and statutory damages of $1,500 per violation. He also recommended clearer definitions and tighter restrictions on what constitutes an automatic dialing system, referencing the U.S. Supreme Court’s involvement in the Facebook, Inc. v. Duguid case.
David Carter, President of the Ecommerce Innovation Alliance, echoed these concerns, warning that varying standards might lead to frivolous lawsuits. O’Rielly further suggested that intent to violate the law should be clarified in the legislation.
Despite these criticisms, proponents of the bill assert that recent amendments address most issues, ensuring protections for businesses and safeguarding free speech rights. The package, still under committee review, is a continuation of previous efforts that stalled in the last legislative term.
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