The Federal Communications Commission (FCC), the Federal Trade Commission (FTC), and State Authorities have enforced various laws surrounding telemarketing to protect consumers from fraud and provide privacy against intrusive telemarketers. Therefore, if your company practices telemarketing, it is essential to ensure complete compliance with all applicable telemarketing laws, as even the slightest violation may lead to heavy penalties. To help ensure you never find yourself on the wrong side of the law, in this post we cover some of the most prominent laws that regulate outbound telemarketing in the US. Let’s take a closer look.
Telephone Consumer Protection Act (TCPA), 1991
- The Telephone Consumer Protection Act (TCPA) enacts specific rules for telemarketing businesses that make outbound calls to individual prospects.
- Federal Law specifies that such businesses can contact residential customers only between 8:00 a.m. and 9:00 p.m.
- Calls are not supposed to be made to prospects who have registered themselves with the National and 12 Statewide Do Not Call (DNC) lists.
- If your business markets its products and services via telephone, you must mention the name of the business and caller/agent name when a customer asks for the information.
- Some companies and organizations are exempt from the National DNC list. These exceptions can be found on the Federal Communication Commission (FCC) website.
Telemarketing Consumer Fraud & Abuse Prevention Act
According to the Telemarketing Consumer Fraud and Abuse Prevention Act, companies selling products and services should clearly communicate the details of their products and services to prospective consumers and also the specific terms of any such offers. Telemarketers, in any circumstances, should not deceive call recipients by fabricating their offer. They need to clarify the quantity and cost of the product, conditions of the offer, and limitations on the purchase of the product, refund, and cancellation policies. The US states have the right to file a civil lawsuit on behalf of residents of that state against any company that violates the Telemarketing Consumer Fraud and Abuse Prevention Act.
The Telephone Sales Rule (TSR)
The Federal Trade Commission or FTC enforces the Telephone Sales Rule (TSR) as a federal statute to keep a check on telemarketing calls in the country. According to this rule, telemarketers cannot call their prospective customers if their numbers are listed on the National DNC created by the FTC. Besides, companies also need to obtain written permission from prospective customers before making any automated outbound solicitation calls.
Possible Penalties
Companies making outbound calls can have access to the National DNC for a minimum of five area codes without paying any fees. They can view up to a minimum of ten phone numbers at one time. According to the Bureau of Consumer Protection, companies that don’t comply with the DNC call list need to shell out heavy fines. Based on the regulations enforced by The Federal Trade Commission or FTC, the penalty per violation can go up to $16,000.
Conclusion
Telemarketers that make outbound calls to their consumers should comply with the mentioned telemarketing laws. This is why you need a custom list for your business with detailed and updated customer information to generate quality leads, but without breaking the law. If you want to get some more information about the appropriate ways of contacting prospective customers without the risk of fines or penalties, contact a telemarketing attorney. You can reach us at 1-888-981-3099/1-972-713-6622 for basic questions or information on obtaining lists.
