October 5, 1989
TO: DIRECT MARKETING COMMITTEE NO. 30-89
SHAREHOLDER COMMUNICATIONS COMMITTEE NO. 25-89
STATE LIAISON COMMITTEE NO. 16-89
UNIT INVESTMENT TRUST COMMITTEE NO. 68-89
CLOSED-END FUND MEMBERS NO. 48-89
CONTRACTUAL PLANS COMMITTEE NO. 3-89
RE: STATE ACTIONS TO REGULATE TELEMARKETING ACTIVITIES
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It has come to the attention of the Institute that as a
result of the recent publicity regarding boiler room and other
marketing operations, some states are currently proposing
legislation to regulate telephone solicitors, particularly those
using automated dialing systems. Most legislation introduced
thus far contains provisions requiring registration of telephone
solicitors with a state agency and prohibition of certain acts
and practices.
In order that we may determine the appropriate course of
action in the states that are considering this type of
legislation, the Institute needs information regarding (1) the
method by which "cold calls" are made, i.e., live voice or
automated dialing systems (if automated dialing systems are used,
how frequently and whether or not they are used in conjunction
with other marketing programs) and (2) how telephone numbers or
individuals to be contacted are determined -- randomly selected
or incrementally sequential calls, a master list or commercially
purchased list.
Please submit this information to the Institute by October
30, 1989.
Patricia Louie
Assistant General Counsel