PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE Compliance Officers Forum PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

Compliance Officers Forum – Live Reid Houser, Chair of the Compliance Officers Forum; Head of Global Compliance, Sitel Nick Whisler, Partner, Mac Murray & Shuster Michele Shuster, Partner, Mac Murray & Shuster Rebekah Johnson, President, Gloria-Mac Consulting PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE Today’s Agenda State Updates Federal Updates The Calling Ecosystem Has Changed Questions PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE State Updates PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE Enacted Legislation New York Call recording disclosure for telemarketing calls Indiana Liability for sellers on whose behalf calls are made Disclose name of telemarketer (in addition to seller) Florida Phone numbers stay on state DNC list permanently PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE Enacted Legislation Tennessee Caller ID rules (largely mirror Truth in Caller ID Act) Vermont Caller ID rules (largely mirror FTC and FCC telemarketing rules) Oregon Task force on anonymous text message services PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE Other State Issues California Call Recording Law Maghen v. Quicken Loans– prior notice of call recording in customer agreement, email and previous calls sufficient to establish consent Calling During a Declared State of Emergency PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE Federal Updates PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE FTC Updates DNC Registry Fees $62 per area code (was $61) Max of $17,021 (was $16,714) Call Blocking Filed comments supporting FCC call blocking initiatives Daily release of phone numbers tied to consumer complaints (to carriers and call blocking vendors) Soundboard Technology Litigation PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE FTC Updates Dish Network Lawsuit $280 million judgment ($168M to FTC) + injunctive relief Largest civil penalty under FTC Act Alleged violations of TSR, TCPA and state laws Vicarious liability Active Enforcement Against “Robocallers” Process Reforms Streamline CID information requests Improve transparency in investigations PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE CFPB Updates CFPB Arbitration Rule Invalidates class action waivers in pre-dispute arbitration agreements Must affirmatively disclose in pre-dispute arbitration agreement that the consumer can bring a class action If using pre-dispute arbitration agreement, must submit arbitral and court records to the CFPB (which will post online) 9/18/17 effective date; must comply by 3/19/18 * Attempt to repeal Rule is currently pending in Congress PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE TCPA Case Law ATDS Definition Capacity to dial without human intervention still key Segregation of ATDS and non-ATDS important (hardware/software) Text platforms: 7th Circuit opinion in Blow v. Bijora, Inc. Many cases stayed pending appeal of 2015 FCC Ruling PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE TCPA Case Law Written Consent Online lead forms (Sullivan v. All Web Leads) Consumer contracts (Katz v. American Honda) Inbound texts Winner v. Kohl’s Dep’t Stores Larson v. Harman Mgmt. Corp PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE TCPA Case Law Revocation of Consent Non-conforming SMS opt-out ineffective (Winner v. Kohl’s Dep’t Stores) Partial revocation permitted (Schweitzer v. Comenity Bank)- 9th Cir. Consent obtained via bargained-for bilateral contract not revocable (Reyes v. Lincoln Auto. Fin. Servs.)- 2nd Cir. Fax sent to affiliated company not reasonable revocation method (Martinez v. TD Bank USA, N.A.) Letter sent to debt collector’s registered agent is reasonable revocation method (Huffman v. Branch Banking & Trust Co.) PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE TCPA Case Law Vicarious Liability United States of America et al v. Dish Network, LLC Krakauer v. Dish Network, LLC Jones v. Royal Admin. Servs. (9th Cir.) PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE TCPA Case Law Faxes Bais Yaakov of Spring Valley v. FCC (D.C. Cir.)- FCC Ruling on solicited faxes is invalid Physicians Healthsource, Inc. v. Allscripts Health Sols. Inc.– Bais Yaakov not binding on N.D. Illinois due to 7th Circuit precedent Sandusky Wellness Ctr. v. Co. V. (6th Cir.)- Bais Yaakov binding outside D.C. Circuit because it was “sole forum” for addressing validity of FCC Ruling on solicited faxes PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE FCC Updates Commissioners Chairman Pai; Commissioner O’Rielly; Commissioner Carr (R) Commissioner Clyburn; Commissioner Rosenworcel (D) Increased Enforcement Marketing Strategy Leaders– $120 million Best Insurance Contracts– $82 million Dialing Services– $2.88 million PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE FCC Updates Appeal of 2015 Order Petitions/Notices Prior express consent definition* 10 year rule review* Call authentication (Shaken & Stir)* Call blocking* Reassigned number database* Ringless Voicemail (withdrawn) * PACE has filed comments in response to these petitions/notices PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

The Calling Ecosystem Has Changed Rebekah Johnson, President/CEO Gloria-Mac PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

FCC Robocall Strike Force On October 26, 2016, the Industry Robocall Strike Force issued a report describing progress made during the first sixty days and outlining a process for continuing the work necessary to develop an industry solution to the robocall problem. The industry committed to continue to work together and to issue another status report in six months. ACT, ATIS, CTIA and USTelecom, who count among their members many Strike Force members, agreed to facilitate that process and work together toward long term goals. Many industry leaders in robocall mitigation have concluded that there is no “silver bullet” to solve the problem. However, to mitigate the problem of illegal robocalls, the industry is implementing a diverse multitude of evolving mitigation tools and efforts so that it becomes too costly for illegal robocalling campaigns to overcome the industry’s dynamic mitigation techniques. The organizations focused on continuing work in the same areas identified by the Industry Strike Force during the first sixty days: - Authentication -Empowering Consumer Choice - Detection, Assessment, Traceback and Mitigation -Regulatory Support PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

Robocall Blocking and Call Labeling Consumer Blocking Customers Customers Customers Customers Call Blocking/ Labeling Analytics Analytics Analytics Analytics No visibility into call labeling or blocking Industries (Healthcare, Utility, Commercial, Financial, etc. PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE Labeling Your Calls PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE

PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE Questions PACE WASHINGTON SUMMIT | SEPTEMBER 17-19, 2017 | #17PACE