American Teleservices Association

The American Teleservices Association (ATA) is a trade association with more than 2,000 member organizations in 15 countries. It states that while its membership includes companies like Pacific Bell, AT&T, Wells Fargo and IBM, it also includes less obvious users of teleservices, such as the American Cancer Society, Blue Cross of California, the Metropolitan Opera, ALSAC/St. Judes Children's Research Hospital and the Industrial Development Board of Northern Ireland.

ATA states that it is committed to encouraging legitimate and honest telemarketing programs. It has established a Code of Ethics designed to educate ATA members, the public and public officials concerning the legal and ethical behavior for telemarketing. The Code is posted on the ATA website at www.ataconnect.org.

ATA asserts that the Commission in proposing a zero error rate has neglected the clear mandate of the Legislature, that "the Commission shall establish an acceptable error rate." (Pub. Util. Code § 2875.5(b).) ATA states:

If it was the intent of the legislature to simply establish a zero percent abandonment rate and prohibit the use of automatic dialing equipment for which no person, acting as an agent or telemarketer, is available for the person called, then there would be no need for subsection (b). The language found in Pub. Util. Code sec 2875.5(a) would have been all that was needed to achieve such a result. Yet, the legislature went further and specifically mandated the creation of an acceptable error rate. (ATA Comments, at 4.)

ATA contends that the proposed zero abandonment rate will cause irreparable harm to California consumers and legitimate businesses. It points to a December 1999 study by the State of Oregon describing the number of states that use predictive dialer technology to increase the efficiency of government services. The study reports that autodialing technology has allowed state revenue departments to increase the efficiency in which they collect delinquent tax dollars. The study reports that autodialing contributed to a 49% increase in collection of defaulted student loans by the Oregon State Scholarship Commission. ATA contends that if the benefits of autodialer technology are sufficient for government use, there is nothing inherently different or more disturbing about their use by private industry.

ATA contests the characterization of this proceeding as a quasi-legislative one that does not require a hearing. In fact, according to ATA, due process requires hearings if the decision in this proceeding will establish substantial harm to the affected parties. ATA states that the Commission's proposed rule contains little if any factual support for its 0% error rate. It cites Pub. Util. Code § 1708 for the proposition that hearings are required when the Commission rescinds, alters or amends any prior order or decision. ATA argues that the issues in this proceeding make it clear that the Commission intends to alter its past orders and decisions with regard to automatic dialing devices.

ATA states that there are material disputed facts in this proceeding, including the Commission's authority to establish a 0% error rate, the impact of such a rate on the various parties, and the definition of hang-up calls. At hearing, ATA states that it will introduce statistical data showing the increased efficiency and benefits afforded business and consumers through the use of autodialing technology, and the number of jobs at risk if a 0% error rate is adopted. ATA suggests that if hearings were scheduled in early May, the Commission would have time to issue its decision by July 1, 2002, as required by the Legislature.