Singing Loudly: The Do Not Call List is a good thing for Telemarketers

Singing Loudly

Wednesday, September 08, 2004

The Do Not Call List is a good thing for Telemarketers

My knowledge of economics is very minimal. I've recently picked up a copy of Naked Economics, so that I will be able to get a clearer grasp. However, I'm going to go out on a limb on this one.

The FTC was sued by four telemarketing companies for the creation of the Do Not Call List (DNCL). Basically the list allows private individuals with a telephone to opt-in to a list. Then the telemarketers must purchase copies of phones they cannot call from the FTC and FCC. Those lists are distributed by telephone numbers. If a telemarketer has an established business relationship with a consumer they can still contact that person despite their possible inclusion on the DNCL.

It is clear that the burden is placed almost entirely on the telemarketers. These four sued arguing in large part that the DNCL is unconstitutional due to the First Amendment. I think that it was silly to sue.

First, it is illegal to use deceptive or abusive tactics in telemarketing. Let us assume that the telemarketers will not do this regardless of the existence of a DNCL. Therefore, it seems like having a copy of homes that will not be interested in what they have to offer is better than having to call those people and hear, "I'm not interested."

As a matter of economics, it seems more efficient for the companies to be able to hire fewer people and make more directed calls towards the phone numbers that might reach a willing consumer. The chances are greatly increased that they'll find a buyer when the FTC cuts out people who are unwilling.

One counterargument would be that even those who want to be included on the DNCL might change their mind for certain offers. I think this can be dismissed as too miniscule of a chance for any true economic impact.

Why did the telemarkers care? They were basically given a list of phone numbers who needn't be called because it would be a waste of time.
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