Time for a commonsense approach to the Telephone Consumer Protection Act

[Commentary] The Telephone Consumer Protection Act (TCPA) was enacted in 1991 to protect Americans from unwanted and intrusive telemarketing calls. Since then, the law has become more of a sword than a shield, slicing businesses of all sizes for the slightest of mistakes. It has become the vehicle of choice for ambitious plaintiffs' attorneys seeking to cash in on companies that have good intentions but are noncompliant in calling their customers. Class-action lawsuits brought under the TCPA have been fueled by a statutory penalty of $500 per violation. Although this penalty does not have any relation to any actual harm, the damages for even the smallest number of violations can easily balloon to near-bankruptcy levels. This sets up a system ripe for abuse as evidenced by lawyers trolling for clients who want to sue deep pocketed companies.

As the stakes on TCPA litigation continue to rise, we need to smooth the path for companies who want to demonstrate their commitment to responsible communication practices. Compliance programs that are recognized and protected in the law would move us closer to the intersection of consumer protection and corporate responsibility and alleviate costly litigation which hurts corporations and consumers alike.

[Hoffman is chairman of Business in the Public Interest and author of "Doing Good: The New Rules of Corporate Responsibility, Conscience and Character."]