69–006 

110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 110–485 

DO-NOT-CALL REGISTRY FEE EXTENSION ACT OF 2007 

DECEMBER 11, 2007.—Ordered to be printed 

Mr. DINGELL, from the Committee on Energy and Commerce, 

submitted the following 

R E P O R T 

[To accompany H.R. 2601] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Energy and Commerce, to whom was referred 

the bill (H.R. 2601) to extend the authority of the Federal Trade 

Commission to collect fees to administer and enforce the provisions 

relating to the ‘‘Do-not-call’’ registry of the Telemarketing Sales 

Rule, having considered the same, report favorably thereon with an 

amendment and recommend that the bill as amended do pass. 

CONTENTS 

Page 

Amendment .............................................................................................................. 1 

Purpose and Summary ............................................................................................ 3 

Background and Need for Legislation .................................................................... 3 

Hearings ................................................................................................................... 5 

Committee Consideration ........................................................................................ 5 

Committee Votes ...................................................................................................... 6 

Committee Oversight Findings ............................................................................... 6 

Statement of General Performance Goals and Objectives .................................... 6 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 6 

Earmarks and Tax and Tariff Benefits .................................................................. 6 

Committee Cost Estimate ....................................................................................... 6 

Congressional Budget Office Estimate ................................................................... 6 

Federal Mandates Statement ................................................................................. 8 

Advisory Committee Statement .............................................................................. 8 

Constitutional Authority Statement ...................................................................... 8 

Applicability to Legislative Branch ........................................................................ 9 

Section-by-Section Analysis of the Legislation ...................................................... 9 

Changes in Existing Law Made by the Bill, as Reported ..................................... 11 

AMENDMENT

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 


bajohnson on PROD1PC69 with REPORTS
2 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Do-Not-Call Registry Fee Extension Act of 2007’’. 

SEC. 2. FEES FOR ACCESS TO REGISTRY. 

Section 2, of the Do-Not-Call Implementation Act (15 U.S.C. 6101 note) is amended to read as follows: 

‘‘SEC. 2. TELEMARKETING SALES RULE; DO-NOT-CALL REGISTRY FEES. 

‘‘(a) IN GENERAL.—The Federal Trade Commission shall assess and collect an annual fee pursuant to this section in order to implement and enforce the ‘do-not-call’ registry as provided for in section 310.4(b)(1)(iii) of title 16, Code of Federal Regulations, or any other regulation issued by the Commission under section 3 of the Telemarketing and Consumer Fraud and Abuse Prevention Act (15 U.S.C. 6102). ‘‘(b) ANNUAL FEES.— ‘‘(1) IN GENERAL.—The Commission shall charge each person who accesses the ‘do-not-call’ registry an annual fee that is equal to the lesser of— ‘‘(A) $54 for each area code of data accessed from the registry; or 

‘‘(B) $14,850 for access to every area code of data contained in the registry. ‘‘(2) EXCEPTION.—The Commission shall not charge a fee to any person— ‘‘(A) for accessing the first 5 area codes of data; or 

‘‘(B) for accessing area codes of data in the registry if the person is permitted to access, but is not required to access, the ‘do-not-call’ registry 

under section 310 of title 16, Code of Federal Regulations, section 64.1200 

of title 47, Code of Federal Regulations, or any other Federal regulation or 

law. ‘‘(3) DURATION OF ACCESS.— ‘‘(A) IN GENERAL.—The Commission shall allow each person who pays the 

annual fee described in paragraph (1), each person excepted under paragraph (2) from paying the annual fee, and each person excepted from paying an annual fee under section 310.4(b)(1)(iii)(B) of title 16, Code of Federal Regulations, to access the area codes of data in the ‘do-not-call’ registry 

for which the person has paid during that person’s annual period. ‘‘(B) ANNUAL PERIOD.—In this paragraph, the term ‘annual period’ means the 12-month period beginning on the first day of the month in which a person pays the fee described in paragraph (1). ‘‘(c) ADDITIONAL FEES.— ‘‘(1) IN GENERAL.—The Commission shall charge a person required to pay an 

annual fee under subsection (b) an additional fee for each additional area code 

of data the person wishes to access during that person’s annual period. ‘‘(2) RATES.—For each additional area code of data to be accessed during the 

person’s annual period, the Commission shall charge— ‘‘(A) $54 for access to such data if access to the area code of data is first 

requested during the first 6 months of the person’s annual period; or 

‘‘(B) $27 for access to such data if access to the area code of data is first 

requested after the first 6 months of the person’s annual period. 

‘‘(d) ADJUSTMENT OF FEES.—

‘‘(1) IN GENERAL.—

‘‘(A) FISCAL YEAR 2009.—The dollar amount described in subsection (b) or 

(c) is the amount to be charged for fiscal year 2009. 

‘‘(B) FISCAL YEARS AFTER 2009.—For each fiscal year beginning after fiscal 

year 2009, each dollar amount in subsection (b)(1) and (c)(2) shall be increased by an amount equal to—

‘‘(i) the dollar amount in paragraph (b)(1) or (c)(2), whichever is applicable, multiplied by 

‘‘(ii) the percentage (if any) by which the CPI for the most recently 

ended 12-month period ending on June 30 exceeds the baseline CPI. 

‘‘(2) ROUNDING.—Any increase under subparagraph (B) shall be rounded to 

the nearest dollar. 

‘‘(3) CHANGES LESS THAN 1 PERCENT.—The Commission shall not adjust the 

fees under this section if the change in the CPI is less than 1 percent. 

‘‘(4) PUBLICATION.—Not later than September 1 of each year the Commission 

shall publish in the Federal Register the adjustments to the applicable fees, if 

any, made under this subsection. 

‘‘(5) DEFINITIONS.—In this subsection: 

‘‘(A) CPI.—The term ‘CPI’ means the average of the monthly consumer 

price index (for all urban consumers published by the Department of 

Labor). 

‘‘(B) BASELINE CPI.—The term ‘baseline CPI’ means the CPI for the 12- 

month period ending June 30, 2008. 


bajohnson on PROD1PC69 with REPORTS
3 

‘‘(e) PROHIBITION AGAINST FEE SHARING.—No person may enter into or participate 

in an arrangement (as such term is used in section 310.8(c) of the Commission’s regulations (16 C.F.R. 310.8(c))) to share any fee required by subsection (b) or (c), including any arrangement to divide the costs to access the registry among various 

clients of a telemarketer or service provider. ‘‘(f) HANDLING OF FEES.— ‘‘(1) IN GENERAL.—The commission shall deposit and credit as offsetting collections any fee collected under this section in the account ‘Federal Trade Commission—Salaries and Expenses’, and such sums shall remain available until 

expended. ‘‘(2) LIMITATION.—No amount shall be collected as a fee under this section for 

any fiscal year except to the extent provided in advance by appropriations 

Acts.’’. 

SEC. 3. REPORT. 

Section 4 of the Do-Not-Call Implementation Act (15 U.S.C. 6101 note) is amended to read as follows: 

‘‘SEC. 4. REPORTING REQUIREMENTS. 

‘‘(a) BIENNIAL REPORTS.—Not later than December 31, 2009, and biennially thereafter, the Federal Trade Commission, in consultation with the Federal Communications Commission, shall transmit a report to the Senate Committee on Commerce, 

Science, and Transportation and the House of Representatives Committee on Energy and Commerce that includes— ‘‘(1) the number of consumers who have placed their telephone numbers on 

the registry; ‘‘(2) the number of persons paying fees for access to the registry and the 

amount of such fees; ‘‘(3) the impact on the ‘do-not-call’ registry of— ‘‘(A) the 5-year reregistration requirement; 

‘‘(B) new telecommunications technology; and 

‘‘(C) number portability and abandoned telephone numbers; and ‘‘(4) the impact of the established business relationship exception on businesses and consumers. ‘‘(b) ADDITIONAL REPORT.—Not later than December 31, 2009, the Federal Trade 

Commission, in consultation with the Federal Communications Commission, shall 

transmit a report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Energy and Commerce that 

includes—

‘‘(1) the effectiveness of do-not-call outreach and enforcement efforts with regard to senior citizens and immigrant communities; ‘‘(2) the impact of the exceptions to the do-not-call registry on businesses and 

consumers, including an analysis of the effectiveness of the registry and consumer perceptions of the registry’s effectiveness; and ‘‘(3) the impact of abandoned calls made by predictive dialing devices on donot-call enforcement.’’. 

SEC. 4. RULEMAKING. 

The Federal Trade Commission may issue rules, in accordance with section 553 

of title 5, United States Code, as necessary and appropriate to carry out the amendments to the Do-Not-Call Implementation Act (15 U.S.C. 6101 note) made by this 

Act. 

PURPOSE AND SUMMARY

The purpose of H.R. 2601, the Do-Not-Call Registry Fee Extension Act of 2007, is to authorize the Federal Trade Commission 

(FTC) to continue to collect and spend fees to operate and enforce 

the National Do-Not-Call Registry (Registry), contingent on approval of the fees in annual appropriations acts. The authority to 

collect those fees expired at the end of fiscal year 2007. The bill 

also would require the FTC to prepare two reports about the use 

and effectiveness of the Registry. 

BACKGROUND AND NEED FOR LEGISLATION

In 1994, Congress enhanced the enforcement arsenal of the FTC 

by enacting the Telemarketing and Consumer Fraud and Abuse 


bajohnson on PROD1PC69 with REPORTS
4 

Prevention Act (the Telemarketing Act), 15 U.S.C. secs. 6101–6108. 

This legislation directed the FTC to issue a trade regulation rule 

defining and prohibiting deceptive or abusive telemarketing acts or 

practices. The FTC promulgated the Telemarketing Sales Rule 

(TSR) in 1995. The Telemarketing Act mandated that the TSR include prohibitions against any pattern of unsolicited telemarketing 

calls ‘‘which the reasonable consumer would consider coercive or 

abusive of such consumer’s right to privacy,’’ as well as restrictions 

on the hours that unsolicited telephone calls may be made to consumers. 

In 2003, the FTC amended its TSR to, among other things, establish the Registry. The Registry, which allows consumers to express 

their wish not to receive telemarketing calls by entering their numbers in the Registry, currently includes more than 145 million telephone numbers and enjoys a reputation of being one of the most 

popular Federal programs in history. 

Pursuant to this program, consumers can register their telephone 

numbers by calling a toll-free number from the telephone number 

that they wish to register, or over the Internet. Telemarketers and 

sellers can access registered telephone numbers through an Internet web site dedicated to that purpose, in order to remove those 

numbers from their call lists, and to pay the applicable fees for 

such access. Consumers who receive unwanted telemarketing calls 

can register a complaint via either a toll-free telephone number or 

the Internet. To conduct investigations, law enforcement officials 

also can access data in the Registry, including consumer registration information, telemarketer access information, and consumer 

complaints. Such access is provided through Consumer Sentinel, a 

secure Internet web site maintained by the FTC, to the law enforcement community throughout the United States, Canada, and 

Australia. 

The Do-Not-Call Implementation Act, passed by Congress in 

2003, gave the FTC specific authority to ‘‘promulgate regulations 

establishing fees sufficient to implement and enforce the provisions 

relating to the ‘Do-Not-Call’ Registry of the TSR.’’ The Implementation Act further stated that ‘‘[f]ees may be collected pursuant to 

this section for fiscal years 2003 through 2007, and shall be deposited and credited as offsetting collections to the account, Federal 

Trade Commission—Salaries and Expenses, and shall remain 

available until expended.’’ It also provided that ‘‘[n]o amounts shall 

be collected as fees pursuant to this section for such fiscal years except to the extent provided in advance in appropriations Acts. Such 

amounts shall be available . . . to offset the costs of activities and 

services related to the implementation and enforcement of the 

[TSR], and other activities resulting from such implementation and 

enforcement.’’ Pursuant to the Implementation Act and appropriations Acts, the FTC has conducted annual rulemaking proceedings 

to establish the appropriate level of fees to charge telemarketers 

for access to the Registry. 

The fees collected are intended to offset costs in three areas. 

First, funds are required for direct operation of the Registry. Second, funds are required for law enforcement efforts, including identifying targets, coordinating domestic and international initiatives, 

challenging alleged violators, and engaging in consumer and business education efforts, which are critical to securing compliance 


bajohnson on PROD1PC69 with REPORTS
5 

with the TSR. The FTC testified in October 2007 that, to date, it 

had initiated 27 cases alleging Do Not Call violations, that have resulted in orders totaling $8.8 million in civil penalties and $8.6 million in redress or disgorgement. Third, funds are required to cover 

ongoing FTC costs associated with the operation and enforcement 

of the Registry, including substantial investments in technology 

and infrastructure in response to the significantly increased capacity required by the Registry. 

Under the current fee structure, telemarketers are charged $62 

per area code of data, starting with the sixth area code, up to a 

maximum of $17,050 for the entire Registry. Telemarketers receive 

the first five area codes of data at no cost. The FTC allows such 

free access to limit the burden on small businesses that only require access to a small portion of the Registry. The Registry also 

allows organizations exempt from the Registry requirements to access the Registry voluntarily at no cost in order to avoid calling 

consumers who have expressed a preference not to receive telemarketing calls. These organizations include entities that make 

telephone calls to consumers to induce charitable contributions, for 

political fund raising, or to conduct surveys. They also include entities making calls to persons with whom they have an established 

business relationship or from whom they have obtained express 

written consent, as defined by the TSR, and who do not access the 

Registry for any other purpose. While the Committee is aware of 

consumer complaints regarding alleged abuses by this latter group, 

see e.g., ‘‘Marketers Use Trickery To Evade No-Call Lists,’’ Wall 

Street Journal, Friday, October 26, 2007, it intends to address 

these matters separately after an appropriate inquiry. 

As discussed above, the FTC’s Do-Not-Call fee-setting authority 

expired on September 30, 2007. The Committee believes that it is 

imperative that this authority be reauthorized in order to continue 

protecting consumers from unwanted intrusions into the privacy of 

their homes. To that end, this legislation will make permanent the 

authority of the FTC to collect fees in an amount sufficient to enable the FTC to adequately implement and enforce the TSR on an 

ongoing basis. 

HEARINGS

The Subcommittee on Commerce, Trade, and Consumer Protection held a hearing on Tuesday, October 23, 2007, entitled ‘‘Enhancing FTC Consumer Protection in Financial Dealings, with 

Telemarketers, and on the Internet,’’ which examined 3 bills: H.R. 

2601, H.R. 3461, and H.R. 3526. Testimony was received from Ms. 

Lydia B. Parnes, Director, Bureau of Consumer Protection, U.S. 

Federal Trade Commission. 

COMMITTEE CONSIDERATION

On Tuesday, October 23, 2007, the Subcommittee on Commerce, 

Trade, and Consumer Protection met in open markup session and 

favorably forwarded H.R. 2601, amended, to the full Committee for 

consideration, by a voice vote. On Tuesday, October 30, 2007, the 

full Committee met in open markup session and ordered H.R. 2601 

favorably reported to the House, as amended by the Subcommittee, 


bajohnson on PROD1PC69 with REPORTS
6 

by a voice vote. No amendments were adopted during full Committee consideration. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. There were no 

record votes taken on amendments or in connection with ordering 

H.R. 2601 reported. A motion by Mr. Dingell to order H.R. 2601 favorably reported to the House, amended, was agreed to by a voice 

vote. 

COMMITTEE OVERSIGHT FINDINGS

Regarding clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the oversight findings of the Committee on H.R. 

2601 are reflected in this report. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

The purpose of H.R. 2601 is to reduce the harm to individuals 

from telemarketing fraud and abuse by authorizing the FTC to continue to collect fees to enable the agency to operate and enforce the 

popular ‘‘do-not-call’’ registry. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

Regarding compliance with clause 3(c)(2) of rule XXI of the Rules 

of the House of Representatives, the Committee finds that H.R. 

2601 would result in no new or increased budget authority, entitlement authority, or tax expenditures or revenues. 

EARMARKS AND TAX AND TARIFF BENEFITS

Regarding compliance with clause 9 of rule XXI of the Rules of 

the House of Representatives, H.R. 2601 does not contain any Congressional earmarks, limited tax benefits, or limited tariff benefits 

as defined in clause 9(d), 9(e), or 9(f) of rule XXI. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate on H.R. 2601 

prepared by the Director of the Congressional Budget Office pursuant to section 402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATE

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate on H.R. 2601 

provided by the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974: 


bajohnson on PROD1PC69 with REPORTS
7 

NOVEMBER 28, 2007. 

Hon. JOHN D. DINGELL, 

Chairman, Committee on Energy and Commerce, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 2601, the Do-Not-Call 

Registry Fee Extension Act of 2007. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Susan Willie. 

Sincerely, 

PETER R. ORSZAG. 

Enclosure. 

H.R. 2601—Do-Not-Call Registry Fee Extension Act of 2007 

Summary: H.R. 2601 would authorize the Federal Trade Commission (FTC) to continue to collect and spend fees to operate and 

enforce the ‘‘do-not-call’’ registry. The registry contains a list of consumers whom telemarketers are prohibited from calling. The bill 

also would require FTC to prepare two reports for the Congress 

about the use and effectiveness of the registry. 

Based on information from the FTC, CBO estimates that the 

agency would collect a total of $107 million under the bill over the 

2008–2012 period and spend $105 million over that period, assuming appropriation actions consistent with the bill. Over the fiveyear period, CBO estimates that implementing H.R. 2601 would decrease net spending subject to appropriation by $2 million. Enacting H.R. 2601 would not affect direct spending or revenues. 

H.R. 2601 contains no intergovernmental mandates as defined in 

the Unfunded Mandates Reform Act (UMRA) and would not affect 

the budgets of state, local, or tribal governments. 

H.R. 2601 would impose a private-sector mandate, as defined in 

UMRA, by making permanent the authority of the FTC to collect 

fees from telemarketers. CBO expects that the cost of that mandate 

would fall below the annual threshold established in UMRA for private-sector mandates ($131 million, adjusted annually for inflation). 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 2601 is shown in the following table. The costs 

of this legislation fall within budget function 370 (commerce and 

housing credit). 

By fiscal year, in millions of dollars— 

2008 2009 2010 2011 2012 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

FTC Spending for the Do-Not-Call Registry: 

Estimated Authorization Level ............................................................. 21 21 21 22 22 

Estimated Outlays ................................................................................ 19 21 21 22 22 

Offsetting Collections from Telemarketers: 

Estimated Authorization Level ............................................................. ¥21 ¥21 ¥21 ¥22 ¥22 

Estimated Outlays ................................................................................ ¥21 ¥21 ¥21 ¥22 ¥22 

Net Changes to FTC Spending: 

Estimated Authorization Level ............................................................. 0 0 0 0 0 

Estimated Outlays ................................................................................ ¥2 0 0 0 0 

Basis of estimate: H.R. 2601 would authorize the FTC to collect 

fees sufficient to operate and enforce the ‘‘do-not-call’’ registry, conVerDate Aug 31 2005 06:40 Dec 12, 2007 Jkt 069006 PO 00000 Frm 00007 Fmt 6659 Sfmt 6602 E:\HR\OC\HR485.XXX HR485

bajohnson on PROD1PC69 with REPORTS
8 

tingent on approval of the fees in annual appropriation acts. For 

this estimate, CBO assumes that H.R. 2601 and the necessary appropriation provisions will be enacted near the beginning of fiscal 

year 2008. In fiscal year 2007, the FTC incurred costs of about $25 

million and collected fees of approximately $22 million to operate 

and enforce the ‘‘do-not-call’’ registry. 

The bill would set fees for firms that subscribe to the registry at 

rates lower than the FTC is currently charging. Based on information from the commission, CBO expects that the lower fees authorized by the bill would still be sufficient to cover the costs of operating the registry. CBO estimates that the FTC would collect $107 

million and spend $105 million over the 2008–2012 period, assuming the necessary appropriation actions. Thus, over the five-year 

period, implementing H.R. 2601 would result in a reduction of $2 

million in net spending subject to appropriation. 

CBO estimates that the cost of preparing two reports for the 

Congress regarding the effectiveness of the registry would be less 

than $500,000, subject to the availability of appropriated funds. 

Estimated impact on state, local, and tribal governments: H.R. 

2601 contains no intergovernmental mandates as defined in UMRA 

and would not affect the budgets of state, local, or tribal governments. 

Estimated impact on the private sector: The requirement that 

telemarketers pay fees to use the ‘‘do-not-call’’ registry would constitute a private-sector mandate as defined in UMRA. CBO estimates that those fees would amount to $107 million over the next 

five years. Consequently, the cost of the mandate would fall below 

the annual threshold established in UMRA ($131 million, adjusted 

annually for inflation). 

Previous CBO estimate: On September 27, 2007, CBO transmitted an estimate for S. 781, the Do-Not-Call Registry Fee Extension Act of 2007, as ordered reported by the Senate Committee on 

Commerce, Science, and Transportation on August 2, 2007. H.R. 

2601 and S. 781 are identical, as are the cost estimates. 

Estimate prepared by: Federal costs: Susan Willie; Impact on 

state, local, and tribal governments: Elizabeth Cove; Impact on the 

private sector: MarDestinee Perez. 

Estimate approved by: Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates regarding H.R. 2601 prepared by the Director of the Congressional Budget Office pursuant to section 423 of the Unfunded Mandates Reform Act. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by H.R. 2601. 

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee finds that the Constitutional authority for this legislation is provided in Article I, section 8, clause 


bajohnson on PROD1PC69 with REPORTS
9 

3, which grants Congress the power to regulate commerce with foreign nations, among the several States, and with the Indian tribes, 

and in the provisions of Article I, section 8, clause 1, that relate 

to expending funds to provide for the general welfare of the United 

States. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act of 1995. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

Section 1 establishes the short title of the bill as the ‘‘Do-NotCall Registry Fee Extension Act of 2007’’. 

Section 2. Fees for access to registry 

Section 2(a) provides that the Federal Trade Commission shall 

assess and collect an annual fee pursuant to this section in order 

to implement and enforce the Registry. 

Section 2(b) mandates that the FTC charge each person who accesses the Registry an annual fee that is equal to the lesser of (A) 

$54 for each area code of data accessed from the Registry, or (B) 

$14,850 for access to every area code of data contained in the Registry. 

Additionally, Section 2(b) contains two exceptions from this requirement. The FTC may not charge a fee to any person for accessing the first five area codes of data. The FTC also may not charge 

a fee to any person for accessing area codes of data in the Registry 

if the person is permitted access, but is not required to access, the 

Registry. This maintains the current treatment for small businesses and for charitable, political, and other organizations expressly exempted from the Registry. Section 2(b) would require the 

FTC to allow each person who pays the annual fee and each person 

excepted from paying the annual fee either under paragraph (2) of 

this subsection or under section 310.4(b)(1)(iii)(B) of title 16, Code 

of Federal Regulations, to access the area codes of data in the Registry for which the person has paid during that person’s annual period. The term ‘‘annual period’’ means the 12-month period beginning on the first day of the month in which a person pays the fee 

described above. 

Section 2(c) provides that the FTC shall charge a person required 

to pay an annual fee under subsection (b) an additional fee for each 

additional area code of data that the person wishes to access during that person’s annual period. The rates for each additional area 

code of data to be accessed during the person’s annual period shall be (A) $54 for access to such data if access to the area code of data 

is first requested during the first 6 months of the person’s annual 

period, or (B) $27 for access to such data if access to the area code 

of data is first requested after the first 6 months of the person’s 

annual period. 

Section 2(d) addresses adjustment of the fees. The bill indicates 

that the dollar amount described in subsection (b) or (c) is the 


bajohnson on PROD1PC69 with REPORTS
10 

amount to be charged for fiscal year 2009. For each fiscal year beginning after fiscal year 2009, each dollar amount in subsection 

(b)(1) and (c)(2) shall be increased by an amount equal to the applicable dollar amount multiplied by the percentage, if any, by which 

the consumer price index (CPI) for the most recently ended 12- 

month period ending on June 30 exceeds the baseline CPI. The bill 

provides that any such increase shall be rounded to the nearest 

dollar, and that the FTC shall not adjust the fees under this section if the change in the CPI is less than 1 percent. To foster transparency and accountability, the legislation requires the FTC, not 

later than September 1 of each year, to publish in the Federal Register the adjustments to the applicable fees, if any, made under 

this section. Section 2(d) defines ‘‘CPI’’ as the average of the 

monthly consumer price index for all urban consumers published 

by the Department of Labor. The term ‘‘baseline CPI’’ means the 

CPI for the 12-month period ending June 30, 2008. 

Section 2(e) prohibits fee sharing arrangements, including any 

arrangement to divide the costs to access the Registry among various clients of a telemarketer or service provider. 

Section 2(f) requires the FTC to deposit and credit as offsetting 

collections any fee collected under the section in the account ‘‘Federal Trade Commission—Salaries and Expenses’’, and provides that 

such sums shall remain available until expended. The bill further 

provides that no amount shall be collected as a fee under this section for any fiscal year except to the extent provided in advance by 

appropriations Acts. 

Section 3. Reports 

Section 3 requires the FTC, in consultation with the Federal 

Communications Commission, to submit two reports to Congress 

not later than December 31, 2009, and biennially thereafter. The 

first report shall include (1) the number of consumers who have 

placed their telephone numbers on the registry; (2) the number of 

persons paying fees for access to the registry and the amount of 

such fees; (3) the impact on the Registry of the five-year registration requirement, new telecommunications technology, and number 

portability and abandoned telephone numbers; and (4) the impact 

of the established business relationship exception on businesses 

and consumers. 

The second report shall include (1) the effectiveness of the DoNot-Call outreach and enforcement efforts with regard to senior 

citizens and immigrant communities; (2) the impact of the exceptions to the Registry on businesses and consumers, including an 

analysis of the effectiveness of the Registry and consumer perceptions of the Registry’s effectiveness; and (3) the impact of abandoned calls made by predictive dialing devices on Do-Not-Call enforcement. This report should, among other things, calculate and 

discuss the complaints received from consumers since the inception 

of the Registry. The Committee is concerned about allegations of 

abuses surrounding the exceptions, particularly recent reports regarding so-called ‘‘lead generators’’—unsolicited advertisements 

used to establish business relationships or trick recipients, mostly 

seniors, into waiving their do-not-call rights. State regulators indicate that insurers are using lead generator cards to peddle investments unsuitable for seniors, including living trusts that may proVerDate Aug 31 2005 06:40 Dec 12, 2007 Jkt 069006 PO 00000 Frm 00010 Fmt 6659 Sfmt 6602 E:\HR\OC\HR485.XXX HR485

bajohnson on PROD1PC69 with REPORTS
11 

vide no benefit and come with steep surrender charges and lengthy 

payout deferrals. 

The reports shall include recommendations, if any, for any legislation or regulatory actions necessary for the protection of consumers. 

Section 4. Rulemaking 

Section 4 would authorize the FTC to issue rules, in accordance 

with section 553 of title 5, United States Code, as necessary and 

appropriate to carry out the amendments to the Implementation 

Act (15 U.S.C. 6101 note) made by this Act. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

DO-NOT-CALL IMPLEMENTATION ACT 

* * * * * * * 

øSEC. 2. TELEMARKETING SALES RULE; DO-NOT-CALL REGISTRY FEES. 

øThe Federal Trade Commission may promulgate regulations establishing fees sufficient to implement and enforce the provisions 

relating to the ‘‘do-not-call’’ registry of the Telemarketing Sales 

Rule (16 CFR 310.4(b)(1)(iii)), promulgated under the Telemarketing and Consumer Fraud and Abuse Prevention Act (15 

U.S.C. 6101 et seq.). Such regulations shall be promulgated in accordance with section 553 of title 5, United States Code. Fees may 

be collected pursuant to this section for fiscal years 2003 through 

2007, and shall be deposited and credited as offsetting collections 

to the account, Federal Trade Commission—Salaries and Expenses, 

and shall remain available until expended. No amounts shall be 

collected as fees pursuant to this section for such fiscal years except to the extent provided in advance in appropriations Acts. Such 

amounts shall be available for expenditure only to offset the costs 

of activities and services related to the implementation and enforcement of the Telemarketing Sales Rule, and other activities resulting from such implementation and enforcement.¿ 

SEC. 2. TELEMARKETING SALES RULE; DO-NOT-CALL REGISTRY FEES. 

(a) IN GENERAL.—The Federal Trade Commission shall assess 

and collect an annual fee pursuant to this section in order to implement and enforce the ‘‘do-not-call’’ registry as provided for in section 

310.4(b)(1)(iii) of title 16, Code of Federal Regulations, or any other 

regulation issued by the Commission under section 3 of the Telemarketing and Consumer Fraud and Abuse Prevention Act (15 

U.S.C. 6102). 

(b) ANNUAL FEES.—

(1) IN GENERAL.—The Commission shall charge each person 

who accesses the ‘‘do-not-call’’ registry an annual fee that is 

equal to the lesser of—

(A) $54 for each area code of data accessed from the registry; or 


bajohnson on PROD1PC69 with REPORTS
12 

(B) $14,850 for access to every area code of data contained in the registry. 

(2) EXCEPTION.—The Commission shall not charge a fee to 

any person—

(A) for accessing the first 5 area codes of data; or 

(B) for accessing area codes of data in the registry if the 

person is permitted to access, but is not required to access, 

the ‘‘do-not-call’’ registry under section 310 of title 16, Code 

of Federal Regulations, section 64.1200 of title 47, Code of 

Federal Regulations, or any other Federal regulation or 

law. 

(3) DURATION OF ACCESS.—

(A) IN GENERAL.—The Commission shall allow each person who pays the annual fee described in paragraph (1), 

each person excepted under paragraph (2) from paying the 

annual fee, and each person excepted from paying an annual fee under section 310.4(b)(1)(iii)(B) of title 16, Code of 

Federal Regulations, to access the area codes of data in the 

‘‘do-not-call’’ registry for which the person has paid during 

that person’s annual period. 

(B) ANNUAL PERIOD.—In this paragraph, the term ‘‘annual period’’ means the 12-month period beginning on the 

first day of the month in which a person pays the fee described in paragraph (1). 

(c) ADDITIONAL FEES.—

(1) IN GENERAL.—The Commission shall charge a person required to pay an annual fee under subsection (b) an additional 

fee for each additional area code of data the person wishes to 

access during that person’s annual period. 

(2) RATES.—For each additional area code of data to be 

accessed during the person’s annual period, the Commission 

shall charge—

(A) $54 for access to such data if access to the area code 

of data is first requested during the first 6 months of the 

person’s annual period; or 

(B) $27 for access to such data if access to the area code 

of data is first requested after the first 6 months of the person’s annual period. 

(d) ADJUSTMENT OF FEES.—

(1) IN GENERAL.—

(A) FISCAL YEAR 2009.—The dollar amount described in 

subsection (b) or (c) is the amount to be charged for fiscal 

year 2009. 

(B) FISCAL YEARS AFTER 2009.—For each fiscal year beginning after fiscal year 2009, each dollar amount in subsection (b)(1) and (c)(2) shall be increased by an amount 

equal to—

(i) the dollar amount in paragraph (b)(1) or (c)(2), 

whichever is applicable, multiplied by 

(ii) the percentage (if any) by which the CPI for the 

most recently ended 12-month period ending on June 

30 exceeds the baseline CPI. 

(2) ROUNDING.—Any increase under subparagraph (B) shall 

be rounded to the nearest dollar. 


bajohnson on PROD1PC69 with REPORTS
13 

(3) CHANGES LESS THAN 1 PERCENT.—The Commission shall 

not adjust the fees under this section if the change in the CPI 

is less than 1 percent. 

(4) PUBLICATION.—Not later than September 1 of each year 

the Commission shall publish in the Federal Register the adjustments to the applicable fees, if any, made under this subsection. 

(5) DEFINITIONS.—In this subsection: 

(A) CPI.—The term ‘‘CPI’’ means the average of the 

monthly consumer price index (for all urban consumers 

published by the Department of Labor). 

(B) BASELINE CPI.—The term ‘‘baseline CPI’’ means the 

CPI for the 12-month period ending June 30, 2008. 

(e) PROHIBITION AGAINST FEE SHARING.—No person may enter 

into or participate in an arrangement (as such term is used in section 310.8(c) of the Commission’s regulations (16 C.F.R. 310.8(c))) to 

share any fee required by subsection (b) or (c), including any arrangement to divide the costs to access the registry among various 

clients of a telemarketer or service provider. 

(f) HANDLING OF FEES.—

(1) IN GENERAL.—The commission shall deposit and credit as 

offsetting collections any fee collected under this section in the 

account ‘‘Federal Trade Commission—Salaries and Expenses’’, and such sums shall remain available until expended. 

(2) LIMITATION.—No amount shall be collected as a fee under 

this section for any fiscal year except to the extent provided in 

advance by appropriations Acts. 

* * * * * * * 

øSEC. 4. REPORTING REQUIREMENTS. 

ø(a) REPORT ON REGULATORY COORDINATION.—Within 45 days 

after the promulgation of a final rule by the Federal Communications Commission as required by section 3, the Federal Trade Commission and the Federal Communications Commission shall each 

transmit to the Committee on Energy and Commerce of the House 

of Representatives and the Committee on Commerce, Science, and 

Transportation of the Senate a report which shall include—

ø(1) an analysis of the telemarketing rules promulgated by 

both the Federal Trade Commission and the Federal Communications Commission; 

ø(2) any inconsistencies between the rules promulgated by 

each such Commission and the effect of any such inconsistencies on consumers, and persons paying for access to the registry; and 

ø(3) proposals to remedy any such inconsistencies. 

ø(b) ANNUAL REPORT.—For each of fiscal years 2003 through 

2007, the Federal Trade Commission and the Federal Communications Commission shall each transmit an annual report to the Committee on Energy and Commerce of the House of Representatives 

and the Committee on Commerce, Science, and Transportation of 

the Senate a report which shall include—

ø(1) an analysis of the effectiveness of the ‘‘do-not-call’’ registry as a national registry; 

ø(2) the number of consumers who have placed their telephone numbers on the registry; 


bajohnson on PROD1PC69 with REPORTS
14 

ø(3) the number of persons paying fees for access to the registry and the amount of such fees; 

ø(4) an analysis of the progress of coordinating the operation 

and enforcement of the ‘‘do-not-call’’ registry with similar registries established and maintained by the various States; 

ø(5) an analysis of the progress of coordinating the operation 

and enforcement of the ‘‘do-not-call’’ registry with the enforcement activities of the Federal Communications Commission 

pursuant to the Telephone Consumer Protection Act (47 U.S.C. 

227 et seq.); and 

ø(6) a review of the enforcement proceedings under the Telemarketing Sales Rule (16 CFR 310), in the case of the Federal 

Trade Commission, and under the Telephone Consumer Protection Act (47 U.S.C. 227 et seq.), in the case of the Federal Communications Commission.¿ 

SEC. 4. REPORTING REQUIREMENTS. 

(a) BIENNIAL REPORTS.—Not later than December 31, 2009, and 

biennially thereafter, the Federal Trade Commission, in consultation with the Federal Communications Commission, shall transmit 

a report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Energy 

and Commerce that includes—

(1) the number of consumers who have placed their telephone 

numbers on the registry; 

(2) the number of persons paying fees for access to the registry 

and the amount of such fees; 

(3) the impact on the ‘‘do-not-call’’ registry of—

(A) the 5-year reregistration requirement; 

(B) new telecommunications technology; and 

(C) number portability and abandoned telephone numbers; and 

(4) the impact of the established business relationship exception on businesses and consumers. 

(b) ADDITIONAL REPORT.—Not later than December 31, 2009, the 

Federal Trade Commission, in consultation with the Federal Communications Commission, shall transmit a report to the Senate 

Committee on Commerce, Science, and Transportation and the 

House of Representatives Committee on Energy and Commerce that 

includes—

(1) the effectiveness of do-not-call outreach and enforcement 

efforts with regard to senior citizens and immigrant communities; 

(2) the impact of the exceptions to the do-not-call registry on 

businesses and consumers, including an analysis of the effectiveness of the registry and consumer perceptions of the registry’s effectiveness; and 

(3) the impact of abandoned calls made by predictive dialing 

devices on do-not-call enforcement. 

* * * * * * * 

Æ 


bajohnson on PROD1PC69 with REPORTS