Company Pays to Settle Suit Under Contested Prerecord Law

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A company that conducted a prerecorded call campaign for political purposes last year paid $20,000 to settle a suit under a challenged North Dakota law, the state attorney general's office said yesterday.


CcAdvertising, Herndon, VA, violated a North Dakota law that bans all unsolicited prerecorded messages without exemption. The company appealed to the Federal Communications Commission last year to override the state law on the grounds that it differs from federal law.


The North Dakota attorney general's office sued ccAdvertising over the prerecorded calling campaign shortly after the company filed the appeal. A state judge later ruled against ccAdvertising, which then agreed to pay $10,000 in penalties and $10,000 for costs and fees.


The company's appeal with the FCC to override the North Dakota law is still pending. Industry groups including the Consumer Bankers Association and the American Teleservices Association have petitioned the FCC to preempt telemarketing laws in other states, and the FCC has said it will decide in the coming months.


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