Sparks will introduce bill to regulate telemarketing verification firms

Published 12:00 am Friday, July 25, 2003

Albert Lea’s state senator is getting involved in legislation aimed at reforming oversight rules questioned recently in the cases of State Auditor Pat Awada and Gov. Tim Pawlenty.

Sen. Dan Sparks, DFL-Austin, joined with Rep. Joe Atkins, DFL-Inver Grove Heights, Thursday to announce plans for legislation to regulate telemarketing verification firms in the 2004 legislative session.

&uot;Recent news reports of telemarketer abuses and the involvement of various state public officials is disturbing,&uot; Sparks said in a written statement. &uot;It is clear there is a lack of accountability by public officials as well as a loophole in telemarketing regulation. Although we’ve passed do-not-call legislation, it is obvious we need further work in this area.&uot;

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Under the rules of the Federal Communications Commission, a telemarketer of telecommunications services must retain an independent company to contact their customers and verify that a true sale occurred. In spite of these rules, State Auditor Patricia Awada created a verifier company, Capitol Communications, which press reports indicate was financed by Elam Baer. Baer owned a network of telemarketing firms that utilized Awada’s firm as an &uot;independent verifier.&uot; According to news reports, Awada’s company was located in one of Baer’s offices.

The Atkins/Sparks legislation will be modeled after a law in Massachusetts which directly regulates verifier companies. The bill will require that the verifier be truly independent of the telemarketing company. It will prohibit the verifier from having an office in the same location as the telemarketer and will forbid compensation to the verifier based upon the number of sales, the statement said.