The Hindu Business Line : Telemarketing: Hefty fines likely on unwanted calls

Telemarketing companies would be forced to cough up as much as Rs 10,000 fine every time they call a mobile subscriber who has put his number in the do-not-call registry.

New Delhi March 23 Unwanted telemarketing calls could soon be a thing of the past, with the Telecom Regulatory Authority of India (TRAI) planning to bring in stringent regulation to counter the menace.

As part of the proposals being worked out by the telecom regulator, telemarketing companies would be forced to cough up as much as Rs 10,000 fine every time they call a mobile subscriber who has put his number in the do-not-call registry.

That apart, telephone lines of telemarketing companies found to be violating the norms, to be prescribed by TRAI, will be disconnected by the service providers.

The telecom regulator is roping in the National Informatics Centre to manage the do-not-call (DNC) registry for all the operators.

New software

The DNC will be available to telemarketing companies online and NIC will also develop software that will enable the companies to know whether a number is in the DNC registry or not.

TRAI will also make it mandatory for all telemarketing companies to register with the Department of Telecom.

The telecom operators and banks, which are the biggest users of telemarketing services, will fund the entire exercise through a fixed charge.

Nodal agency

The Department of Information Technology or Department of Telecom is likely to be the nodal Government agency, which will administer the regulation.

The telecom regulator's proposals will be in the form of recommendations to the Government, which will be the final decision maker in this regard.

While the move will bring cheer to mobile consumers, it could sound a warning to domestic business process outsourcing companies and banks selling financial products such as credit cards and home loans over the telephone.

Earlier, the Supreme Court had directed the Government to safeguard consumer interest based on a public interest litigation filed by lawyer Dr Harsh Pathak, against telemarketing calls.

While operators such as Hutch had introduced the DNC registry, it was not binding on telemarketers.

A number of mobile subscribers have gone to court seeking relief from such unwanted calls.

Recently, the Monopolistic Restrictive Trade Practice Commission had sent a notice to one of the operators because an employee of British Airways was getting calls from telemarketers after a stressful day of work.

Potent weapon

If the TRAI proposals come through, it would offer a potent weapon in the hands of consumers to counter the menace.

TRAI is also sending an affidavit to the courts, where different cases against operators are pending, to inform of the proposed regulation.

A number of countries such as the US and Australia have already introduced legislation to bar telemarketers from calling mobile subscribers.