Senate Committee backs Do Not Call Register for business

A Senate Committee has backed the Rudd Government’s decision to extend the Do Not Call Register for business, saying the laws strike a balance between those that hate unsolicited telemarketing calls and those companies that rely on telemarketing.

But the Coalition senators on the committee have raised doubts about the Government’s move, slamming a lack of evidence about the ramifications of the scheme for businesses and a lack of clarity around the difference between day-to-day business calls and telemarketing.

The controversial bill has been opposed by the Australian Direct Marketing Association and the Council of Small Business of Australia, which were both concerned that the extension of the DNCR could restrict legitimate business telephone marketing.

But the Senate Committee has largely dismissed these concerns.

“Businesses will still be able to contact other businesses with whom they have a relationship under the current inferred consent provisions or where express consent to receive calls or faxes is given. However, the bill will prevent the use of ‘cold calls’ and marketing faxes to businesses that have opted-in, in instances where the express or inferred consent provisions do not apply,” the committee’s report says.

And in an agreement that might puzzle the direct marketing sector, the Committee has also argued that the introduction of the DNCR for businesses could actually make life easier for telemarketers.

“By including themselves on the DNC Register, businesses that do not wish to receive unsolicited telemarketing calls will decrease the size of the pool of businesses which could be contacted,” the committee says.

“Consequently, the number of businesses in that pool which are likely to respond favourably to unsolicited telemarketing calls will increase, which is likely to lead to a increase in the success rate of those engaged in telemarketing.”

But in something of a win for the opponents of the Bill, the committee has recommended a three year registration period for numbers on the DNCR, rather than a permanent registration.

But comments from the Coalition Senators on the committee indicate there is far from unanimous approval for the extension of the DNCR to business numbers.

In a special section of the report, the Coalition Senators outline concerns about the compliance burden associated with the DNCR and the restrictions placed on legitimate business-to-business dealings.

“The Government’s figures grossly underestimate the financial impact of the bill on businesses,” the Coalition senators said.

“This is in part because Government figures are based on the existing “Do Not Call” regime, which imposes obligations to businesses which place calls to private numbers, and assumes those trends can be transferred to this Bill, which potentially imposes obligations on all businesses for ‘every day’ business calls. This is particularly evident when unquantifiable costs associated with a reduction in competition, information and innovation; unemployment due to reduced telemarketing business.

“Businesses contact each other for a multitude of reasons, in the course of day-to-day operations. Coalition Senators believe that the Bill would “over-reach”, hindering the ability of businesses to conduct “routine” business, and to establish and maintain commercial relationships.”

ADMA was unavailable for comment prior to publication.