As of March 7, 2024, the FTC has put an update to the telemarketing sales rules in place. This update imposes additional record-keeping and prior-express-written consent requirements. These updates include new rules for the DNC registry. They ban almost all telemarketing robo calls to consumers. Important; the TSR prohibits robocalls that use voice cloning technology.
More about the TSR
In 1985, the FTC (Federal Trade Commission) put the TSR (Telemarketing Sales Rules) in place. The FTC enforces this regulation. It safeguards consumers from abusive telemarketing practices.
The rules have been updated due to the fact that; unwanted telemarketing calls have steadily increased and are a real annoyance for many people. The FTC recognized the need to protect individuals from the potential for these calls to lead to fraud.These updates represent an important step forward in consumer privacy and stopping unwanted telemarketing calls.
Click here to see the FTC’s amended rule
What the changes mean
Take a look below to review the amendments to the FTC’s telemarketing rules put in place to safeguard consumers.
Restrictions on Robocalls
One of the most important changes is stricter regulation on robocalls. Telemarketers must have specific recorded consent from consumers before they call. This is an effective way to make sure consumers have agreed to any contact. This cuts down on the number of unsolicited calls as well as reduces the risk of fraudulent calls reaching the individual.
Do Not Call Registry
With the added regulations, the protection the National Do Not Call Registry provides is even greater than before. This gives consumers a choice to opt out of receiving unwanted, telemarketing calls. As before, telemarketers must comply with this registry and cannot call numbers on the DNC registry. Although now, they can contact individuals who have given consent or are exempt.
Transparency
When a telemarketer places a call, they must let the recipient know who they are and why they are calling immediately. This allows the consumer to decide if they want to continue the conversation or to end it.
Penalties
In an effort to ensure compliance with updated regulations, the FTC has strengthened it’s enforcement of penalties for unlawful practices. Anyone who violates the laws will face penalties that include substantial fines. The FTC will hold anyone who is non compliant accountable for their actions. The TCPA is very clear on the fines and penalties for anyone who contacts a consumer on the DNC registry.
Agents
These regulatory changes may be a challenge if you use telemarketers as a lead source. It is important to use only lead companies that comply with all state and federal regulations. Anytime the lead company violates the rules, the agent can end up paying a hefty fine. This is because the person who hires the marketing service is held responsible for any non compliant acts.
It is imperative that all telemarketers obtain consent from the person they are calling.
Agents & agencies who offer Medicare coverage to clients must retain scopes of appointment as well as recorded voice enrollments for a period of 10 years. Click here to read the full CMS communications guide.
Learn what agents need to know before a Medicare phone sale – watch our Youtube video.
Telemarketing regulations
The TSR applies to all telemarketers who make outbound calls from within the United States as well as from overseas.
All records including call scripts, vendor contracts and promotional materials must be kept for a period of 5 years.
Any consent to contact record must include name, phone number and a copy of the request. The reason for the request as well as the consent and date it was provided.
If the call requires prior written consent, the consent must include the legal name of the person/seller who will receive the consent as well as the brand name of the product being offered. This ensures the consumer is aware who they are delaing with and for what reason.
Starting on October 15, 2024, telemarketers must keep call records with all call details. Click here to see the details. Section 310.5 (a)(2)
Summary
Telemarketing sales rule updates take a step further to prohibit deceptive or abusive practices. This includes, making false claims or misrepresenting material information to obatian payment for goods or services. TSR also prohibits telemarketers from making unsolicited calls that may be coercive or abusive. It restricts the times marketers can make calls to consumers. Telemarketers must clearly disclose the reason for the call.