Paul Sanchez
The Telephone Consumer Protection Act (TCPA) and the National Do Not Call Registry are in place to protect consumers from unwanted telemarketing calls. While the TCPA defines telemarketing and outlines rules for cold calls, prerecorded sales calls, and the use of autodialers, the National Do Not Call Registry is a list that tells registered telemarketers which numbers not to call. Consumers can register their phone numbers on the National Do Not Call Registry, and telemarketers are prohibited from calling those numbers. However, certain businesses are exempt from these rules, including insurance companies in some states.
| Characteristics | Values |
|---|---|
| Purpose | To stop unwanted sales calls from legitimate telemarketers |
| Registration | Free to register residential, wireless, or cell phone numbers |
| Applicability | Applies to robocalls and live calls |
| Exemptions | Tax-exempt non-profit organizations, political organizations, pollsters, religious organizations, and telemarketers with prior written consent |
| Enforcement | FTC and other law enforcement agencies analyze reports and take action against illegal callers; fines of up to $50,120 per call |
| Exceptions | Business-to-business calls, consumer-consented calls, consumer-initiated calls, and existing business relationships |
| Consent | Oral or written consent required for autodialed, prerecorded, or artificial voice calls; written consent required for telemarketing robocalls |
| Caller Requirements | Provide caller name, company name, and location; obtain consent for robocalls; include opt-out mechanism |
| Non-applicability | Does not block calls from scammers or illegal callers |
| State Variations | State-specific laws and registries may apply, such as in Texas and Michigan |
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What You'll Learn
Exemptions to do-not-call rules
Existing Business Relationship (EBR)
If a consumer has made a purchase or transaction with a business within the last 18 months, the business can contact that consumer, even if their number is listed on the DNC Registry. An inquiry exemption is valid for three months under the federal rules. However, if a consumer requests to stop receiving calls, businesses must comply immediately.
Licensed Agents
Licensed agents are exempt from the do-not-call rules as long as the final sale takes place face-to-face and not over the phone.
Business-to-Business (B2B) Calls
The DNC Registry primarily applies to consumer telemarketing calls, meaning B2B calls are generally exempt. Businesses can make telemarketing calls to other companies without violating DNC rules as long as they are contacting business phone numbers.
Non-profit Organizations
Tax-exempt non-profit organizations are exempt from the TSR and can legally contact numbers on the DNC Registry to solicit donations or support.
Referrals
If a prospect asks you to call, you can respond to that request by phone, although you may not have documentation of that request in writing.
Other Exemptions
Other exemptions to the do-not-call rules include calls that are not made for a commercial purpose, calls delivering purely "informational" pre-recorded messages, and calls that are not considered "unsolicited" when placed by consumers in response to a mailed catalog or prerecorded call.
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Consumer consent
The Telephone Consumer Protection Act (TCPA) and related FCC regulations protect consumers from unwanted telemarketing. The TCPA defines telemarketing as the initiation of a telephone call or fax for the purpose of encouraging the purchase or investment in property, goods, or services, which is transmitted to any prospective customer at a residence. The TCPA governs cold calls, prerecorded sales calls, and the use of autodialers, fax machines, and other telemarketing strategies.
Federal law has carved out a number of exceptions to the anti-cold-calling rules, including for business-to-business calls, consumer-consented calls, and consumer-initiated calls. In addition, the existing business relationship exception (EBR) allows sales professionals to make telephone solicitation calls to a consumer for up to 18 months after the consumer's last purchase, delivery, or payment.
It is important to note that federal do-not-call rules prohibit calling anyone on the national do-not-call list unless written permission has been provided. While there are exceptions for friends, family members, and acquaintances, it is generally advisable to obtain written permission before making a call to ensure compliance with the regulations.
In the context of consumer reports, which may include medical information, insurance companies must obtain the consumer's consent before accessing such information. This is in accordance with the Fair Credit Reporting Act (FCRA), which is designed to protect the privacy of consumer report information. When taking adverse actions, such as denying insurance or increasing rates based on information in a consumer report, insurance companies must provide a notice to the consumer.
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Telemarketing laws
In 2003, President Bush signed legislation authorizing a national do-not-call registry. This registry is designed to prohibit telemarketers from calling the registrants' homes. Consumers can register their phone numbers on the national do-not-call list, which is maintained by the Federal Trade Commission (FTC) and the Federal Communications Commission (FCC). Legitimate telemarketers are expected to consult this list and refrain from calling the listed numbers.
The do-not-call registry, however, does not block calls. It is a list that informs telemarketers of the numbers they should not call. As a result, it does not prevent scammers from making illegal calls. To reduce the number of unwanted calls, individuals can explore call-blocking and call-labeling services.
The Federal Telephone Consumer Protection Act (TCPA) and related FCC regulations also protect consumers from unwanted telemarketing. The TCPA defines telemarketing as a telephone call or fax that encourages the purchase or investment in goods or services, directed at prospective customers at their residences. The TCPA governs cold calls, prerecorded sales calls, and the use of autodialers, fax machines, and other telemarketing strategies.
The TCPA and FCC rules outline specific requirements for telemarketing calls:
- Calls should only be made between 8 a.m. and 9 p.m. (local time of the recipient)
- The caller's name, company name, and location should be provided
- Telemarketers must maintain and comply with a "do not call" list derived from the federal registry
- Telemarketers must honour a consumer's request to be placed on the "do not call" list
- Telemarketers must obtain prior consent, either oral or written, for autodialed, prerecorded, or artificial voice calls to wireless numbers, except in cases of emergency
- Prerecorded voice message calls must include identification information, such as the name of the calling entity and their telephone number
- Telemarketers must provide an automated opt-out mechanism during prerecorded telemarketing calls, allowing consumers to make a do-not-call request
It is important to note that certain types of calls are exempt from do-not-call requests, including those from tax-exempt, non-profit organizations, political organizations, pollsters, religious organizations, and telemarketers with prior written consent from the recipient.
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Do-not-call registries
The National Do Not Call Registry applies to both residential phone numbers and cell phone numbers. Consumers can register their numbers for free by visiting DoNotCall.gov or by calling a designated phone number. While registration is straightforward, it may take up to 31 days for sales calls to stop after signing up. It is worth noting that certain types of callers are exempt from the registry's restrictions, including tax-exempt non-profit organizations, political organizations, and religious organizations. Additionally, consumers may grant prior written consent to specific telemarketers, allowing them to receive calls even if they are on the registry.
Businesses engaged in the insurance industry have historically been exempt from the National Do Not Call Registry under FTC rules. However, this exemption does not apply to the FCC's registry, creating a discrepancy between the two. In recent years, insurance companies have taken steps to respect consumers' preferences and comply with Federal and State laws regarding unsolicited calls. Many insurance providers have established their own do-not-call policies and instruct their agents to check the National Do-Not-Call Registry before making cold calls.
To further protect consumers from unwanted calls, the Telephone Consumer Protection Act (TCPA) and FCC regulations govern specific telemarketing practices. These rules mandate that telemarketers obtain prior consent, either oral or written, before making autodialed or prerecorded calls to wireless numbers. Additionally, telemarketers are required to provide certain identification information at the beginning of prerecorded messages and include an opt-out mechanism for consumers who wish to stop receiving such calls. While technology has made it challenging to block illegal and spoofed robocalls, the FTC and law enforcement agencies analyze reports and take action against those responsible for illegal calling practices.
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Penalties for violations
The Telephone Consumer Protection Act (TCPA) and related FCC regulations shield consumers from unwanted telemarketing. The TCPA defines telemarketing as the initiation of a telephone call or fax for the purpose of encouraging the purchase or investment in property, goods, or services. It is transmitted to any prospective customer at a residence. The TCPA governs cold calls, prerecorded sales calls, and the use of autodialers, fax machines, and other telemarketing strategies.
Businesses that violate TCPA laws face steep fines ranging between $500 and $1500 per individual violation. A consumer providing sufficient documentation can recover up to $500 for each violation of the National Do Not Call Registry and $1,500 per phone call if the consumer can show that the business violated TCPA laws knowingly and willfully.
The Pallone-Thune Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act became law on December 31, 2019. This legislation expands the authority of the FCC to impose civil penalties of up to $10,000 per call for intentional violations of federal robocall laws.
To avoid penalties, businesses must comply with the Do Not Call requirements. This includes having written procedures to comply with the Do Not Call rules, accessing the Do Not Call Registry no more than 31 days before calling any consumer, and maintaining records documenting this process.
Federal do-not-call rules prohibit calling anyone on the national do-not-call list unless written permission has been provided. There is an exception for friends, family members, and acquaintances, but this should be done carefully as not everyone is considered a friend. If the prospect calls the office, the rules do not apply, and the business can return their call without additional permission within 30 days of their call.
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Frequently asked questions
The National Do Not Call Registry is a list that tells registered telemarketers what phone numbers not to call. It is designed to stop unwanted sales calls from legitimate companies.
Registration is free and can be done online at DoNotCall.gov or by calling 1-888-382-1222.
Calls from tax-exempt, non-profit organizations, political organizations, pollsters and survey takers, religious organizations, and telemarketers with prior written consent are exempt from the registry.
Being on the registry does not block calls, so it is possible to still receive calls from scammers or illegal robocalls. If this occurs, you can hang up and report the call to the FTC.
Yes, insurance companies are required to comply with Federal and State laws regarding do-not-call requests. They must check the National Do-Not-Call Registry before making cold calls and must maintain their own list of prospects and clients who have requested to not be called.
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