Regulatory Compliance

The Federal Communications Commission ("FCC") and the Federal Trade Commission regulate the direct marketing arena, and Data Warehouse is committed to maintain strict regulatory compliance. The telemarketing industry is heavily regulated, mainly under the Telephone Consumer Protection Act ("TCPA") and the Telemarketing Sales Rule ("TSR"). The marketing rules fall into several broad categories:

1. a national do-not-call list ("DNC list")
2. wireless DNC lists
3. state and company-specific DNC lists
4. predictive dialers
5. caller-ID
6. direct mail disclosures

These telemarketing rules create various DNC lists and impose certain restrictions on call handling and consumer disclosures. Data Warehouse is committed to complying with all applicable laws, and to helping our clients remain compliant. Additionally, we will continue to remain compliant with state regulations regarding data and direct marketing.

The following is a brief summary of procedures Data Warehouse has implemented to ensure compliance:

• Written procedures of our compliance with the federal and state Do Not Call rules.
• Train our personnel in these procedures.
• Request company-specific Do Not Call lists from all our clients.
• Scrub clients' prospect lists against their company specific Do Not Call lists for a fee.
• Synchronize our lists with an updated version of the federal Do Not Call List. Currently we download the federal Do Not Call list daily and scrub relevant files against it before supplying data containing residential telephone numbers to our clients. All data files carry an expiration date indicating when the data will expire for telemarketing. Please be certain to check your data file's federal expiration date since it changes daily. Effective January 1, 2005, the FCC requires that all numbers called have been scrubbed against an FTC DNC file downloaded within the last 31 days.
• Scrub against state Do Not Call lists as they are issued, thus maintaining the most current data possible for our clients. (Please note: Data Warehouse does not scrub against the state DNC files for Louisiana and Mississippi).
• Assist clients to scrub prospect lists against the Ported Wireless list as an optional service. This scrub is only good for 15 days, so it must be repeated frequently.
• Require all clients to provide us with their federal DNC registry account number (SAN) and area codes before we will provide them with data or telemarketing services. We verify account number's and area code federal subscriptions.
• Maintain tight data security rules and procedures to protect private consumer information.
• Implement dialer settings to ensure compliance with guidelines for Caller ID and telephone # transmission, connection times to a live representative or an automated message, call abandon rates, number of rings and/or seconds after dialing, capture and transmission of consumer requests to be removed from a specific company's list, and other technical telemarketing specifics.
• Review all direct mail pieces and telemarketing scripts for compliance with applicable regulations, including the FCRA.
• Maintain all required reports and documentation of our compliance procedures and audits.

A dedicated compliance team manages these procedures and policies, and we are confident that no stone is left unturned. Additionally, we regularly work with our legal counsel to review the laws and make sure we are doing everything possible to meet new standards.

We recommend strongly that you consult with your own legal counsel to determine the procedures your firm may be required to put in place.