Challenges to New Jersey's Do Not Call Law

Two petitions have been filed against New Jersey's Do Not Call Law seeking to
pre-empt it:

In September 2004, the American Teleservices Association ("ATA") filed a Petition for a Declaratory Ruling with the Federal Communications Commission seeking to have certain portions of New Jersey's DNC law preempted because of alleged conflicts with the FCC's rules. Among other things, the petition challenged the DNC law's treatment of "established customer" and "existing customer" (compared with the FCC's "established business relationship"), mandated disclosures and lack of exemption for personal relationships and affiliates. Similar petitions have been filed by other groups seeking to preempt laws of other states, including North Dakota, Indiana, Wisconsin and Florida.

In addition, a group of 33 organizations (including the ATA) filed a petition seeking to have the FCC declare it has exclusive jurisdiction over interstate telemarketing (the "Joint Petition"). The FCC has now opened the Comment period on this Joint petition, with comments due on or before July 29, 2005, and reply comments due on or before August 18, 2005.

At the same time, the FCC has reopened the comment period on the ATA petition (along with the five other petitions filed against other state laws), also with comments due on or before July 29, 2005, and reply comments due on or before August 18, 2005.

The FCC has explained that it wants a "more complete administrative record that encompasses and reflects relevant developments" in the area of alleged conflicts between state and federal requirements. The developments include the filing of the Joint Petition and certain court opinions applying state laws to interstate telemarketing.