A sweeping Utah Supreme Court ruling issued Tuesday says federal do-not-call laws can't shield companies from even-tougher state regulations.
Utah Division of Consumer Protection Executive Director Francine Giani hailed the ruling as an exciting win for consumers and states' rights. The decision marks the first of its kind in the nation.
"It says that out-of-state telemarketers can't thumb their nose at us, and that we do in fact have the authority to pursue those folks," said Giani.
The division has routinely fined out-of-state telemarketers who flout Utah law, Giani said. But Integrated Credit Solutions of Florida was the first to fight the watchdog agency in court, after it was fined for using an automatic dialer to solicit two Utah residents.
Utah's do-not-call laws mirror federal ones, prohibiting telemarketers from calling phone numbers on a registry list. But state laws go further and ban companies from using automatic dialers to call residences.
The division fined Integrated Credit $2,000 for using an automatic dialer and failing to register with the state. The company appealed, arguing Utah couldn't trump federal laws.
The justices unanimously rejected the argument Tuesday. The high court said it saw "no reason" why telemarketers couldn't comply with both state and federal laws. Federal lawmakers don't have an exclusive interest when it comes to protecting consumers, they said.
Attorney Jeff Gross, who represented the company in the appeal, declined comment as he had not yet seen the opinion.
Assistant Attorney General Jeff Buckner, who represented the state in the appeal, said Tuesday's ruling ensures Giani's division can swiftly prosecute companies. Using federal laws is a more cumbersome process, he said.
"This gives us an immediate kind of ability to issue an out-of-state telemarketer a citation they have to respond to," he said.


