Ban on Auto-Dial Phone Ads Stands

A federal ban on automated, tape-recorded telephone sales pitches was upheld Monday by a federal appeals court, which said Congress accurately identified commercial auto-dialing as a threat to privacy.

The ban was blocked in December, 1992, two days before it was to take effect, by U.S. District Judge James Redden of Portland, Ore. He said it was too broad and did little to protect residents from unsolicited calls, the majority of which are made by live callers.

But the U.S. 9th Circuit Court of Appeals ruled 3 to 0 that the law was a valid response to a problem identified by Congress and did not unduly restrict advertisers’ freedom of expression.

“Congress accurately identified automated telemarketing calls as a threat to privacy,” the court said. “Congress may reduce the volume of intrusive telephone calls without completely eliminating the calls.”

The ruling allows nationwide enforcement of a law prohibiting use of automatic dialing machines to reach homes unless the consumer has consented to such calls or the message is introduced by a live operator.

The court said 41 states and the District of Columbia have laws banning or restricting automated commercial calls, but those laws do not limit interstate calls.

One law, in Oregon, was struck down under the state constitution in 1993. Another, in New Jersey, was ruled unconstitutional by a federal judge the same year.

Charles Hinkle, lawyer for the Salem, Ore.-based National Assn. of Telecomputer Operators, which challenged the ban, said the law was discriminatory because it allowed the Federal Communications Commission to exempt charities and other nonprofit organizations. His challenge to the FCC’s regulations that created the exemption is pending before the appeals court.

Hinkle said no decision has been made on whether to appeal the ruling.