Under FTC regulation changes, scheduled to go into effect September 1, 2009, calls that deliver pre-recorded messages, or “robocalls”, will be heavily regulated. Here’s how.

Telemarketing Sales Rule

The changes were made to the FTC Telemarketing Sales Rule (“TSR”) and were announced on August 18, 2008. As you may know, the TSR prevents a business from calling a number on the FTC’s Do Not Call list unless there is an established business relationship (“EBR”). An EBR can be based on the consumer’s last purchase, receipt of delivery, or payment within 18 months or within three months if a consumer makes an inquiry or submits an application. 

The amendment announced by the FTC eliminates the EBR exemptions for, and makes impermissible, calls delivering a pre-recorded message to “induce the purchase of any good or service” unless the business has received an express agreement from the recipient.

Information Calls

Since it is limited to calls to sell goods or services, the new amendment does not affect “information” calls such as reminders of service appointments. Consequently, if your dealership robocalls to confirm service or sales appointments, express permission will not be required. However, if you combine that with a fresh attempt to sell something, that will not be permitted without express permission.

Sales Calls

If you have express permission to make sales calls with prerecorded messages to sell a product or service, please be aware that there are very specific requirements for the calls.

• The call must ring for at least 15 seconds before being terminated.
• The message must begin within two seconds after the recipient answers.
• At the onset there must be a disclosure that the recipient may request listing on the caller’s company specific Do Not Call list at any time during the call.
• Effective December 31, 2009, the call must provide:
  • an automated interactive opt-out message to allow the recipient to be added to the caller’s Do Not Call list immediately and to then end the call; and
  • an opt-out message if the recipient’s voice mail answers.

Express Permission

Under the new rule, the express permission to receive pre-recorded sales calls (1) must be clear and conspicuous, (2) may not be obtained as a condition to buying a product or service, (3) must evidence the willingness to receive the calls, and (4) must include the person’s telephone number and signature. Consequently, the permission to receive pre-recorded calls must not be hidden in other documents. It must be clear, conspicuous and voluntary.

Under FTC regulation changes, scheduled to go into effect September 1, 2009, calls that deliver pre-recorded messages, or “robocalls”, will be heavily regulated. Here’s how.

Telemarketing Sales Rule

The changes were made to the FTC Telemarketing Sales Rule (“TSR”) and were announced on August 18, 2008. As you may know, the TSR prevents a business from calling a number on the FTC’s Do Not Call list unless there is an established business relationship (“EBR”). An EBR can be based on the consumer’s last purchase, receipt of delivery, or payment within 18 months or within three months if a consumer makes an inquiry or submits an application. 

The amendment announced by the FTC eliminates the EBR exemptions for, and makes impermissible, calls delivering a pre-recorded message to “induce the purchase of any good or service” unless the business has received an express agreement from the recipient.

Information Calls

Since it is limited to calls to sell goods or services, the new amendment does not affect “information” calls such as reminders of service appointments. Consequently, if your dealership robocalls to confirm service or sales appointments, express permission will not be required. However, if you combine that with a fresh attempt to sell something, that will not be permitted without express permission.

Sales Calls

If you have express permission to make sales calls with prerecorded messages to sell a product or service, please be aware that there are very specific requirements for the calls.

• The call must ring for at least 15 seconds before being terminated.
• The message must begin within two seconds after the recipient answers.
• At the onset there must be a disclosure that the recipient may request listing on the caller’s company specific Do Not Call list at any time during the call.
• Effective December 31, 2009, the call must provide:
  • an automated interactive opt-out message to allow the recipient to be added to the caller’s Do Not Call list immediately and to then end the call; and
  • an opt-out message if the recipient’s voice mail answers.

Express Permission

Under the new rule, the express permission to receive pre-recorded sales calls (1) must be clear and conspicuous, (2) may not be obtained as a condition to buying a product or service, (3) must evidence the willingness to receive the calls, and (4) must include the person’s telephone number and signature. Consequently, the permission to receive pre-recorded calls must not be hidden in other documents. It must be clear, conspicuous and voluntary.