Supreme Court Deals Blow to Telemarketers

Share this article:
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.


Share this article:
close

Next Article in News

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

News Byte: Comcast Expanding Global Ad Delivery Through Partnership

News Byte: Comcast Expanding Global Ad Delivery Through ...

Through a partnership with Adstream , Comcast's AdDelivery Service expands its footprint across the globe.

40 Under 40 2014: Nominations Are Now Open!

40 Under 40 2014: Nominations Are Now Open!

It's time to nominate the 2014 crop of young marketing luminaries for Direct Marketing News's 40 Under 40 Awards. The deadline is Friday, June 6, 2014.

News Byte: MediaCrossing Partners with ASL Marketing on Youth Marketing Tool

News Byte: MediaCrossing Partners with ASL Marketing on ...

The digital media trading firm and marketing database company aim to help marketers target 13 to 34 year olds.