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Show Law cracks down on telemarketing era! throughout the country and permit state law enforcement officials offi-cials to enforce Federal Trade Commission rules in federal court, explained Kris Steinmann, a spokeswoman for the office of Utah Attorney General Paul Van Dam. However, the attorneys general were able to point out the need for states to act quickly to stop the movement of fraudulent telemarketers in all states with the new law. "Passage of effective telemarketing fraud legislation is essential for the protection of consumers con-sumers and a key priority of the National Association of Attorneys General," stated a letter to the ABA from the National Association of Attorneys General. Approximately $10 billion per i year is spent on fraudulent telemarketing dealings money, the NAAG said, which could have been spent with legitimate businesses. By filing cases against fraudulent telemarketers in federal court and subjecting them to uniform rules and appellate review, the NAAG explained, interpretations and rul- SEE FRAUD ON A-4 i By JENNIFER PETERSON Staff Writer A federal law which would crack down on the $10 billion telemarketing fraud problem was passed by the United States Senate last week after heated debate. The discussion began when the Antitrust Section of the American Bar Association expressed its opposition oppo-sition to a direct enforcement role for states based on a concern about "inconsistent enforcement efforts." House Bills 3371 and 3302, if passed in the U.S. House of Representatives, Rep-resentatives, will create a networking network-ing system for the 50 attorneys gen- I Kathie Schwab of the Utah office of the Consumer Protection Agency said she believed the law would be a step iii the right direction. "It sounds really good, if it works. We still have a number of people calling in and making complaints com-plaints who are very upset by (telemarketing fraud) Schwab said. Fraud CONTINUED FROM A-l ings would be more consistent. The networking system will also . create a strategy for communication between state officials. ' Thi s way , ' S teinmann explained, ex-plained, "if a telemarketing company com-pany is caught in Utah and tries to move to another state, the other states will already know about it.' Currently, fraudulent telemarketing companies are able to pick up and move, in many cases literally overnight, to other states which may have less stringent laws. With the new Jaw spanning all 50 states and attorneys general gaining enforcement power, dishonest companies com-panies would be able to find no place for respite. "This law gives enforcement power to the attorneys general and adds stiffer penalties for telemarketing fraud, Steinmann said. The ABA's Antitrust Section had b proposed to the ABA House of Delegates the adoption of a report and recommendation in support of deputization of state officials. The process, which has caused months of delay for Federal Bureau of Investigation In-vestigation checks in other fields, was voted down, however, by the delegates. Fraudulent telemarketers will cost American consumers more than $1 billion this year, according to an informational pamphlet printed by Federal Trade Commission Commis-sion and Utah Attorney General's office. The peddlers sell everything from water purifiers, to vitamins to "free vacations." |