GAO Finds $9.4M DNC Funding Shortfall

Share this article:
Fees collected from telemarketers to fund the national no-call list fell short by $9.4 million in federal fiscal year 2003, and the gap was not closed in fiscal 2004, according to a General Accountability Office report issued Friday.

The Federal Trade Commission spent $14.6 million on the no-call list in fiscal 2003, which ended Sept. 30, 2003, but collected only $5.2 million in fees, according to the GAO report. In fiscal 2004, the FTC collected $14 million in fees from telemarketers, just enough to cover its expenses for the year.

The money to cover the shortfall has come out of the Treasury. Whether the costs will be passed on to telemarketers is unclear.

An FTC spokesman did not return a phone call at deadline late Friday afternoon. According to the report, the FTC has filed 10 lawsuits under the no-call list while the Federal Communications Commission has issued 16 citations and entered into two consent decrees.

The FTC has conducted two surveys to gauge whether the no-call list has been effective in blocking telemarketing calls, the GAO said. One found that 90 percent reported a decrease in telemarketing calls while the other found 87 percent.

One survey showed an 80 percent reduction in telemarketing among consumers who registered for the list. However, the GAO called the survey suspect because it relied on respondents' memories of how many telemarketing calls they had received at least three months before taking the survey.

Scott Hovanyetz covers telemarketing, production and printing and direct response TV marketing for DM News and To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting

Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

Hawk Search Widens its Global Reach

Hawk Search Widens its Global Reach

Hawk Search's solution offers support for more than twice as many languages as other site search providers, according to the company.

Candidates Offer Change In The Form of Targeting

Candidates Offer Change In The Form of Targeting

A campaign for Ben Carson raised $2.8 million despite his lack of cooperation.

Target Names Retail Veteran Brian Cornell as CEO

Target Names Retail Veteran Brian Cornell as CEO

He leaves the top job at PepsiCo Foods to take the spot vacated by Greg Steinhafel in the aftermath of the data breach.

Copyright © 2014 Haymarket Media, Inc. All Rights Reserved
This material may not be published, broadcast, rewritten or redistributed in any form without prior authorization.
Your use of this website constitutes acceptance of Haymarket Media's Privacy Policy and Terms & Conditions.