New FTC Restrictions on Automated Telemarketing Calls

New FTC Restrictions on Automated Telemarketing Calls

NADA is reminding dealers that in 2008, the FTC adopted an amendment to the Telemarketing Sales Rule (TSR) that, among other things, prohibits prerecorded telemarketing calls without a consumers express written agreement to receive such calls.

As of Dec. 1, 2008, sellers and telemarketers (including dealers that make such calls) are required to provide a keypress or voice-activated opt-out mechanism promptly at the outset of any prerecorded message call.This requirement applies to calls delivering prerecorded messages, whether answered by the recipient in person, or answered by an answering machine or voicemail service, and requires that any prerecorded message call promptly disclose at the outset a toll-free number that a consumer may use to assert a request not to receive such calls.The rule also requires that automated calls allow the telephone to ring for at least fifteen seconds or four rings before disconnecting an unanswered call.

Under the new rule, sellers and telemarketers may, for the time being, continue to place calls that deliver prerecorded messages to consumers based on an existing business relationship (EBR) with that customer — provided they do so in compliance with the new requirement that prerecorded message calls include an automated interactive keypress or voice-activated opt-out mechanism.

However, as of Sept. 1, 2009, sellers and telemarketers may not make such prerecorded calls unless they have a prior written agreement from the recipient to receive such calls.That written agreement: (1) cannot be required of customers as a condition of purchasing any good or service; (2) must evidence the willingness of the recipient to receive such calls; and (3) must include the recipients telephone number and signature (although such signature may be electronic in compliance with ESIGN).

Note that this amendment differs in some respects from current FCC restrictions regarding prerecorded telemarketing calls. If you have any questions about the FCC restrictions, consult nada.org or contact John ODonnell at (202) 237-7200, jod@wanada.org. The amendment to the TSR is available at http://www.ftc.gov/os/2008/08/R411001tsrfrn.pdf.