The National Do Not Call Registry

1. The National Do Not Call Registry • The Federal Trade Commission’s National Do Not Call Registry has been accepting registrations from consumers who choose not to receiving telemarketing sales calls since June 27, 2003. Consumer registrations are valid for five years, or until the consumer asks to be taken off the National Registry or the number is disconnected. This means that all household members who share a number will stop receiving most telemarketing calls after the number is registered. Consumers may register both their residential “land line” telephone numbers and their wireless telephone numbers. • http://www.ftc.gov/bcp/conline/pubs/alerts/dncalrt.htm

2. Who manages the National Do Not Call Registry? • The National Do Not Call Registry is managed by the FTC, the nation’s consumer protection agency. It is enforced by the FTC, the Federal Communications Commission (FCC), and state law enforcement officials. • http://www.ftc.gov/bcp/conline/pubs/alerts/dncalrt.htm

3. The Numbers Add Up • As of December 28, 2004, here’s how many local phone numbers were listed in the National Do Not Call Registry, by area code: • 281 556,845 • 409 107,071 • 713 373,066 • 832 134,392 • 979 100,768 • http://www.dncsentry.com/re/rules.htm

4. Violators Beware!! • With only limited exceptions, real estate agents are prohibited from calling any consumer whose number is in the database. Violators will be subject to civil penalties of up to $11,000 per violation, as well as injunctive remedies. • http://www.ftc.gov/bcp/conline/pubs/buspubs/tsrcomp.htm

5. What Calls are Prohibited? • Agents cannot make a call to someone who has instructed anyone at GK not to call them.  The only way around this one is to secure subsequent written permission to call. • Agents may not call to solicit business from a consumer whose number appears in the National Do-Not-Call registry. • http://www.dncsentry.com/re/rules.htm

6. There are three exceptions: • Agents may call if a personal (non-business) relationship exists between the party called and the person calling • Agents may call if a business relationship exists between the parties.  A business relationship is either of the following: • A contract or transaction between the parties occurred within the preceding 18 months • The consumer initiated a request for information from GK within the preceding 3 months • Agents may call if the consumer has given GK written permission to contact them by telephone. • http://www.dncsentry.com/re/rules.htm

7. Real Estate Examples • Keep in mind, that the law just took effect by federal court order on October 7, 2003, and the various provisions have not been tested in the courts to see exactly where the lines between permitted and prohibited may be drawn.  • In each of these examples, let's assume the target phone number is NOT on GK's Do-Not-Call list, but DOES appear on the National Do-Not-Call Registry, and GK does not have on file written permission to call. • http://www.dncsentry.com/re/rules.htm

8. Calling FSBO's: • If a FSBO’s phone number is on the list, agents may make a call to that FSBO if the agent is representing a specific buyer for the FSBO’s home, because the FSBO is soliciting calls from buyers by virtue of their advertising or yard sign.  Agents may not, however, call this FSBO to solicit a listing, or request payment of a commission, because that is an attempt to sell your services. • http://www.dncsentry.com/re/rules.htm

9. Calling Expireds: •  Agents may not call expireds to solicit listings if the expired’s phone number is on the list.  Agents can still knock on their door or send them mail. • http://www.dncsentry.com/re/rules.htm

10. Calling in Response to an Inquiry: • Agents may call a consumer whose number is on the list, but only within 3 months of the consumer's request for information.  Qualifying requests can come from any source, including email and GK’s website. • http://www.dncsentry.com/re/rules.htm

11. Following Up on a Referral: • If you receive a referral from another agent, a friend, or past client, and the consumer is on the national Do-Not-Call registry, can you call them?  A literal reading of the law says you cannot, because the consumer has not inquired of you directly.  Common sense, however, suggests that if they have asked for your assistance through the other party, and they are expecting to hear from you, then they want your help and would probably not file a complaint.  Be very careful in this common situation! • http://www.dncsentry.com/re/rules.htm

12. Calling In Your Farm Area: • Agents may not make unsolicited calls seeking business if the consumer's phone number is on the Do Not Call list. • http://www.dncsentry.com/re/rules.htm

13. Calling Your Past Clients: • Agents may call consumers who are on the list, seeking to sell their services, if GK has had past business (a listing, representation agreement, contract, etc.) with the consumer in the past 18 months, provided the consumer hasn't asked anyone at GK not to call. • http://www.dncsentry.com/re/rules.htm

14. Safe Harbor Provisions • If GK can establish that, as a part of our routine business practice, we meet the following requirements, we will not be subject to civil penalties or sanctions for erroneously calling a consumer who has asked not to be called, or for calling a number on the National Registry. • Written Procedures - GK has established and implemented written procedures to comply with the national do-not-call rules. • Training of Personnel - GK has trained its agents and staff in these procedures. • Records - GK maintains and records a company Do Not Call list. • Give Agents the Tools -GK uses a process to prevent telephone solicitations to any number on the company and national do-not-call lists; GK employs a version of the national list that is not more than three months old; and GK maintains records documenting this process. • Purchase the National Do Not Call Registry – GK must register with and (if applicable) purchase access to the list from the government agency maintaining it (the FTC).  • Monitor and Enforce Compliance - GK monitors and enforces compliance with GK’s written Do Not Call procedures • Only Legitimate Errors Forgiven - The call in question must be the result of error and not a willful violation. • http://www.dncsentry.com/re/rules.htm

15. Whencan a consumer file a do not call complaint? • If a consumer’s number has been on the National Do Not Call Registry for at least 31 days (starting January 1, 2005) and the consumer receives a call from a telemarketer that the consumer believes is covered by the National Do Not Call Registry, he or she can file a complaint at the registry’s website at www.donotcall.gov or by calling the registry’s toll-free number at 1-888-382-1222. To file a complaint, the consumer must know either the name or telephone number of the company that called, and the date the company called. • http://www.ftc.gov/bcp/conline/pubs/alerts/dncalrt.htm

16. How does a consumer file a do not call complaint? • A consumer can file a complaint on the registry’s website, www.donotcall.gov, using the File a Complaint page. The consumer must know either the name or the phone number of the company that called. The consumer must also provide the date that the company called and his/her registered phone number. The consumer also may call the registry’s toll-free number at (1-888-382-1222) to file a complaint. • http://www.ftc.gov/bcp/conline/pubs/alerts/dncalrt.htm

17. What happens to a consumer complaint? • Do not call complaints are entered into the FTC’s Consumer Sentinel system, a secure, online database available to more than 1,000 civil and criminal law enforcement agencies. While the FTC does not resolve individual consumer problems, a consumer’s complaint will help the FTC investigate the company and could lead to law enforcement action. • http://www.ftc.gov/bcp/conline/pubs/alerts/dncalrt.htm

18. GK now subscribes to the TAR-sponsored, web-based service Do Not Call Sentry . This service will help all of us comply with the Do Not Call rules. • Access this service via the legal page on GK’s intranet site, or via www.dncsentry.com, logging in by company name “GRE3”. Your password is initially set as your TREC license number.

19. Big Brother is Watching • Remember the “Safe Harbor” provisions! GK is required to track each of our agents’ individual records with DNC Sentry to make sure that: • You have completed the training program (it’s very quick and easy!) • You are using the program to check phone numbers. We all want to avoid the risks associated with violating the Do Not Call rules.