DMA Condemns Illegal Release of Telephone Records

Washington, DC, January 31, 2006 – The Direct Marketing Association announced today that it supports strong penalties and increased enforcement resources to identify and prosecute individuals and companies that illegally sell or obtain customer proprietary network information (CPNI).

There has been increased attention in recent weeks to instances in which consumer telephone records are illegally obtained and sold without the consumer’s knowledge or authorization. It appears that some individuals and companies are circumventing the law and illegally obtaining consumers’ telephone records (1) by employees of the telephone companies who accept money to release information; (2) by pretexting (e.g., an employee of one of the data brokers calls a telephone company pretending to be the consumer and obtains confidential information; and/or (3) by obtaining access to customer records online. These companies then sell consumer telephone records for a modest fee.

The DMA strongly condemns such practices, which in addition to being illegal, violate DMA’s Guidelines for Ethical Business Practice," said Patricia Kachura, DMA’s senior vice president for ethics and consumer affairs. "We strongly encourage companies that handle consumers’ personal data to implement sound security procedures and be vigilant in making certain that employees are complying with the law."

While there are already a number of laws in place that prohibit the sale or purchase of illegal telephone records, the Federal government and Congress have announced additional actions in recent weeks. The FTC and FCC are cooperating on investigations, and several bills have been introduced in Congress that would impose criminal penalties for releasing or fraudulently obtaining certain telephone records. Similar legislation has also been introduced in several states, and major wireless carriers have sued the companies primarily responsible for providing access to telephone numbers.

DMA fully supports stronger penalties for data criminals and increased resources for law enforcement officials to identify and prosecute offenders. And because such criminals often work beyond US borders, DMA continues to support increased "cross-border" authority for the Federal Trade Commission to pursue cooperative efforts with international regulatory and law enforcement officials.

###

The Direct Marketing Association (www.the-dma.org) is the leading global trade association of business and nonprofit organizations using and supporting direct marketing tools and techniques. DMA advocates industry standards for responsible marketing, promotes relevance as the key to reaching consumers with desirable offers, and provides cutting-edge research, education, and networking opportunities to improve results throughout the entire direct marketing process. Founded in 1917, DMA today has more than 4,800 corporate, affiliate, and chapter members from the US and 46 other nations, including 55 companies listed on the Fortune 100.

In 2005, companies will spend more than $161 billion on direct marketing in the United States. Measured against total US sales, these advertising expenditures are expected to generate $1.85 trillion in increased sales in 2005, or 7% of the $26 trillion in total sales in the US economy (which includes intermediate sales). All together, direct marketing will account for 10.3% of total US GDP in 2005.