Direct Marketing - Laws About Outbound Cold Calling
Saturday, November 23, 2013
Direct marketing activities are used by many businesses to find and secure new customers. One of the most efficient types of direct marketing is making unsolicited phone calls to prospects, also known as cold calling telemarketing. However, telemarketing activities are regulated and restricted by federal law, which is administered and enforced by the Federal Trade Commission.
Telemarketing Sales Rule
The FTC regulations that affect telemarketing, including cold calling, are called The Telemarketing Sales Rule. Cold calls made to a residence can only occur between 8 am and 9 pm. The party called must be told promptly the identity of the business calling, that the purpose of the call is to sell something and the nature of what's being sold. Also, if there is any prize or contest involved, the party called must be told that, by law, no purchase is necessary to win.
Do Not Call
Businesses making cold calls must respect the rules relating to the Do Not Call Registry. A called party may ask the caller to not be called again and that request must be honored by that caller. A consumer can also register their phone number with the FTC to be placed on the DNC Registry list. By law, cold callers must check this list and not to make calls to the phone numbers on it.
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Exemptions From Rules
The TSR and DNC apply to calls made to consumers. Therefore, most business-to-business cold calls are exempt. Also, if the calling business has an existing business relationship with the consumer called, it can call them even if the customer's name is on the national DNC registry. Calls placed for the purposes of securing charitable donations or for political campaign purposes are exempt. Legitimate survey or opinion-taking calls are also exempt. A business can make informational calls, such as announcing a change of business hours or location, without fear of an FTC violation.
Other Provisions
Exemptions to the DNC registry rules are not absolute. For example, the exemption for charity donation solicitation only applies directly to the charity itself and not to any third-party marketers placing such calls. If an informational or survey type of call also includes any kind of inducement to buy anything, it is not exempt.
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Direct Marketing, Marketing, Others
Telemarketing Sales Rule
The FTC regulations that affect telemarketing, including cold calling, are called The Telemarketing Sales Rule. Cold calls made to a residence can only occur between 8 am and 9 pm. The party called must be told promptly the identity of the business calling, that the purpose of the call is to sell something and the nature of what's being sold. Also, if there is any prize or contest involved, the party called must be told that, by law, no purchase is necessary to win.
Do Not Call
Businesses making cold calls must respect the rules relating to the Do Not Call Registry. A called party may ask the caller to not be called again and that request must be honored by that caller. A consumer can also register their phone number with the FTC to be placed on the DNC Registry list. By law, cold callers must check this list and not to make calls to the phone numbers on it.
Sponsored Links Rejection-Proof Telesales See exactly how to place a success- ful sales and prospecting call. www.BusinessByPhone.com
Exemptions From Rules
The TSR and DNC apply to calls made to consumers. Therefore, most business-to-business cold calls are exempt. Also, if the calling business has an existing business relationship with the consumer called, it can call them even if the customer's name is on the national DNC registry. Calls placed for the purposes of securing charitable donations or for political campaign purposes are exempt. Legitimate survey or opinion-taking calls are also exempt. A business can make informational calls, such as announcing a change of business hours or location, without fear of an FTC violation.
Other Provisions
Exemptions to the DNC registry rules are not absolute. For example, the exemption for charity donation solicitation only applies directly to the charity itself and not to any third-party marketers placing such calls. If an informational or survey type of call also includes any kind of inducement to buy anything, it is not exempt.
