[September 24, 2003]

Federal Oklahoma Court Blocks National Do Not Call List

WASHINGTON (Reuters) - A federal court in Oklahoma has blocked the national "do not call" list that would allow consumers to stop most unwanted telephone sales calls, one week before it was due to take effect.

The U.S. District Court in Oklahoma City said the Federal Trade Commission overstepped its authority when it set up the popular anti-telemarketing measure, according to a court decision filed late on Tuesday.

The FTC has signed up some 50 million phone numbers for the list, which was due to take effect on Oct. 1. Telemarketers would face fines of up to $11,000 per call if they called numbers on the list.

The Direct Marketing Association and several telemarketing firms sued to block the measure shortly after Congress approved it in January, saying it would violate free-speech laws and discriminate against an industry that provides millions of jobs.

In its decision, the court said the FTC has authority to curb abusive telemarketing practices under existing law, but that any national do-not-call list must be handled by the Federal Communications Commission.

The central issue raised by lawsuit is "whether the FTC had the authority to promulgate a national do-not-call registry. The court finds it did not," the court said.

The court upheld several other new rules limiting how telemarketers can use automatic-dialing software and trade customer lists.

An FTC official declined to comment until the agency had a chance to examine the ruling.

"We're received it, and we're reviewing it," FTC spokeswoman Cathy MacFarlane said.

An FCC official was not immediately available for comment.

The DMA welcomed the decision in a statement and said consumers could sign up for its own, voluntary do-not-call list.

Lawmakers were quick to criticize the court's decision, arguing that they had given the FTC the authority to implement the list.

"We are confident this ruling will be overturned and the nearly 50 million Americans who have signed up for the do-not-call list will remain free from unwanted telemarketing calls in the privacy of their own homes," Reps. Billy Tauzin and John Dingell said in a statement.

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