Outbound Cold Calling Laws for Business

Telemarketing has been an effective marketing tool for many businesses. It is a way of reaching out to potential customers, promoting products and services, generating leads and ultimately winning that sale or client.

However, with the increasing number of increasing spam calls, robo dialers and many consumers have become wary of cold-calling businesses. Now, various laws and regulations which include the TCPA have been put in place to govern the outbound calling industry.

So before you put your sales scripts, and follow-ups to work, there are a few final checks you may want to do to keep yourself on the compliment end of the law. Knowing these few simple tweaks will help you sleep better at night knowing you are less likely to receive a demand letter. 

In this article, we will provide a brief guide to outbound telemarketing laws and how to stay compliant. We will discuss the National Do Not Call Registry, the Telephone Consumer Protection Act (TCPA), the Federal Trade Commission (FTC) Telemarketing Sales Rule, and state telemarketing laws.

This guide does not substitute as legal advice, consult a law professional in your country or state

Quick Start Checklist

By following this TCPA checklist, you can ensure that you are in compliance with the TCPA and avoid costly penalties and litigation. It is important to consult with a legal professional if you have any questions about TCPA compliance or if you are facing a TCPA lawsuit.

• Scrub against the National Do Not Call Registry: Before making any calls, it is important to scrub your call list against the National Do Not Call Registry (DNCR) to ensure that you are not calling any numbers on the list. The DNCR is a national registry of consumers who have opted out of receiving telemarketing calls.
  • the DNCR doesn’t cover all your bases, fortunately, services like TCPA Shield offer that additional peace of mind that removes you from calling “professional TCPA victims” who are known to take advantage of the laws and normally settle out of court for large sums of money.
• Obtain prior express written consent: If you plan to make telemarketing calls to consumers, you must obtain prior express written consent. This means that consumers must provide their consent in writing, which can be done electronically. The consent must be clear and conspicuous and must include certain disclosures, such as the purpose of the calls and the consumer’s right to revoke consent.
  • A great idea is to first send a personalised email about something you would like to show them, like a free report, a video audit and etc, reciprocity is the carrying factor of making this method successful. 
• Provide proper identification: When making telemarketing calls, you must identify yourself, your company, and the purpose of the call at the beginning of the conversation.
• Maintain an internal do-not-call list: In addition to the National Do Not Call Registry, you must maintain your own internal do-not-call list. This means that if a consumer requests that you not call them again, you must add their number to your internal list and refrain from calling them again.
• Limit the number of calls: You are limited in the number of telemarketing calls you can make to a particular consumer. Specifically, you may not make more than one telemarketing call per day to a particular consumer, and you may not make more than three telemarketing calls to a particular consumer in a seven-day period.
• Provide an opt-out mechanism: You must provide consumers with an easy way to opt out of receiving future telemarketing calls. This can be done by providing a toll-free number that consumers can call to opt-out or by providing an automated opt-out mechanism during the call.
• Keep records: You must keep records of your telemarketing activities, including the date and time of each call, the number called, the name of the person making the call, and the nature of the call. These records should be kept for at least two years.
  • Having a good business CRM can help you with all your record keeping on the time and dates of your call campaigns. 

What is TCPA infringement?

The Telephone Consumer Protection Act (TCPA) is a federal law that was passed in 1991 to regulate telemarketing calls. The TCPA applies to both voice calls and text messages.

The TCPA prohibits telemarketers from making calls to consumers who have not given their prior express written consent to receive such calls. Marketers are required to obtain written consent from consumers before making any telemarketing calls.

The TCPA also requires telemarketers to provide certain information during telemarketing calls, such as the identity of the caller and a phone number or address where the caller can be reached.

Penalties for violating TCPA regulations can be severe. The TCPA allows consumers to sue telemarketers for up to $500 per violation. This amount can be tripled for willful violations.

Avoid Calling from the “Do Not Call Registry”

If you are looking for clues on who not to call then The National Do Not Call Registry is a database maintained by the Federal Trade Commission (FTC) that contains the phone numbers of consumers who have indicated that they do not wish to receive telemarketing calls. Telemarketers are required to consult this registry before making telemarketing calls.

The National Do Not Call Registry applies to all telemarketers, including those who operate as non-profit organizations. Telemarketers are required to purchase and download the list of phone numbers that are on the National Do Not Call Registry every 31 days. Failure to comply with this requirement can result in penalties.

Telemarketers are also required to maintain their own internal do-not-call list. Consumers who request to be added to this list should be removed from the telemarketer’s calling list within 31 days.

Penalties for violating the National Do Not Call Registry rules can be severe. The FTC can impose penalties of up to $43,280 per violation. State attorneys general can also bring lawsuits on behalf of consumers, which can result in significant fines.

Don’t Call Professional TCPA Victims

Professional TCPA victims are individuals or organizations who actively seek out violations of the Telephone Consumer Protection Act (TCPA) and file lawsuits against companies that violate the law. These individuals or organizations can include attorneys who are often well-versed in the nuances of the law, consumer advocacy groups, or individuals who have been victimized by illegal telemarketing practices. 

There are entire Facebook Groups with thousands of members of regular people who are now taking advantage of these loopholes, sharing their stories of conquests.

In some cases, professional TCPA victims may file multiple lawsuits against companies that violate the TCPA, either individually or as part of a class-action lawsuit. They may also work with other individuals or organizations to bring a lawsuit against a company that has engaged in illegal telemarketing practices.

While some may view professional TCPA victims as opportunistic or looking to profit from lawsuits, they play an important role in enforcing the TCPA and holding companies accountable for their actions. By bringing lawsuits against companies that violate the TCPA, professional TCPA victims can help deter future violations and ensure that consumers are protected from illegal telemarketing practices.

Federal Trade Commission (FTC) Telemarketing Sales Rule

The Federal Trade Commission (FTC) Telemarketing Sales Rule is a federal regulation that applies to telemarketing calls. The rule applies to all telemarketers, including those who operate as non-profit organizations.

The FTC Telemarketing Sales Rule requires telemarketers to disclose certain information during telemarketing calls. This information includes the identity of the caller, the purpose of the call, and the nature of the goods or services being offered.

Telemarketers are also required to obtain the consumer’s express agreement to purchase the goods or services being offered before charging the consumer’s credit card or bank account.

Penalties for violating FTC Telemarketing Sales Rule regulations can be severe. The FTC can impose penalties of up to $43,280 per violation.

State Telemarketing Laws

In addition to federal laws and regulations, telemarketers are also subject to state telemarketing laws. These laws vary by state and may impose additional requirements and restrictions on telemarketing activities.

For example, some states require telemarketers to obtain a license before conducting telemarketing activities. Other states have restrictions on the times when telemarketing calls can be made.

It is important for telemarketers to be aware of the state laws that apply to their activities. Failure to comply with state telemarketing laws can result in penalties and damage to a telemarketer’s reputation.

Conclusion

Outbound telemarketing is an effective marketing tool for businesses to cold call and follows up on leads on potential clients. However, it is important for your business to comply with the various laws and regulations of your cold-calling activities.

Don’t let the script be flipped on you as it can result in costly out-of-court settlements and penalties from the government. Use the brief guide to audit your cold-calling activities to see if there is anything that needs attention before launching your campaign, consult a TCPA professional to get questions answered about your particular cold calling activities.

Avoid resorting to Robocalls and stick to the personalised approach to get the best result for your business.