Supreme Court Deals Blow to Telemarketers

Share this content:
The U.S. Supreme Court has ruled that states can pursue telemarketers on fraud charges in some cases when they fail to disclose in their fundraising solicitations how much of the money they collect goes to charity, the Associated Press reported today.

The unanimous ruling allows the Illinois attorney general's office to press its suit against Telemarketing Associates, a company that kept 85 percent of the money it raised for Vietnam veterans charity Vietnow. The landmark ruling in the case, Madigan v. Telemarketing Associates, appears to contradict previous case law that barred states from requiring telemarketers to disclose how much fundraising money goes to the nonprofits for which they solicit donations.

Though the ruling falls short of requiring telemarketers to disclose this information, it sends the message that keeping quiet about high fundraising costs can fall into the realm of fraud when combined with deceptive language, according to the AP.

"While bare failure to disclose that information directly to potential donors does not suffice to establish fraud, when nondisclosure is accompanied by intentionally misleading statements designed to deceive the listener, the First Amendment leaves room for a fraud claim," Justice Ruth Bader Ginsburg wrote for the court, according to the AP.


Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above