When you think of cold calling, the Telephone Consumer Protection Act (TCPA) and the Telemarketing Sales Rule (TSR) may come to mind. These restrictions are in place to protect consumers from unwanted and intrusive telephone calls.
Telemarketing sales is one of the most heavily regulated industries. The businesses following it must comply with numerous complex regulations. In this blog, we will discuss the most important part of these regulations which is The Telemarketing Sales Rule.
Let’s understand the sales rule and how businesses can navigate this complex regulation.
What Is the Telemarketing Sales Rule?
However, for the uninitiated, the Telemarketing Sales Rule (TSR) is a regulation issued by the Federal Trade Commission (FTC) that requires businesses that use telemarketing to follow specific regulations.
The TSR regulates telephone solicitations, telephone calls used to offer, solicit, or complete a sale of goods and services. The rule applies equally to inbound and outbound calls. It affects companies that make sales calls, telemarketers, sales agents, and more. The rule requires that businesses obtain prior express written consent from consumers, maintain a “No-Call” list, and abide by the “do-not-call” rules.
One of the regulations included in the TSR is the Do Not Call list, which requires telemarketers to maintain a list of consumers that have asked not to be contacted for telemarketing purposes.
Cases of Exemptions to the Do Not Call List
The Do Not Call list does not apply to all calls. Exemptions to the Do Not Call list include certain types of calls, such as those made in response to a specific request, those related to existing debt or contract, and those from businesses with an established business relationship with the customer.
For example, banks and insurance companies are subject to the TSR. However, they are exempted from the Do Not Call list if they comply with the rules outlined in their industry’s specific regulations. Banks and insurance companies should still comply with the TSR and TCPA to avoid potential violations and penalties. This includes ensuring that telephone calls are made within the legal time frames, not calling numbers on the do not call list, and providing customers with a way to opt-out.
The TSR does not apply to B2B (business-to-business) telemarketing. This means businesses can contact other businesses for telemarketing purposes without adhering to the TSR regulations.
This exemption is meant to reduce the burden of telemarketing regulations on businesses while also protecting consumers from unwanted calls by telemarketers.
What Does This Mean for Telemarketing Service Providers?
Telemarketing services focus on B2B (business-to-business) services as their primary target market can benefit from this exemption. This opens a larger market for these companies to target and is thriving. They are because consumers are not the target in most of these cases, as the focus is on businesses.
B2B telemarketers must still, however, remain compliant with the Telephone Consumer Protection Act (TCPA). This act, among other requirements, forbids the sending of unwanted text messages and emails and protects the privacy of consumers’ cell phone numbers.
What does compliance with the Telemarketing Sales Rule look like?
Cold calling services are still a viable way to acquire new customers, and organizations must establish consumer choice plans to adhere to the TSR.
Consumer Choice Plans allow businesses to collect information on customer preferences. The preferences must encompass demographics, locations, and previous interactions with products and services, allowing more targeted marketing efforts.
Additionally, they should allow customers to opt-out of any communications they do not wish to receive and provide a “do not call” list. This list should be kept up-to-date, and organizations should never call numbers that are on it.
What are the common misconceptions?
However, there is a common misconception that telemarketing companies can call anyone anytime. That is not true. Companies still need to abide by the Telephone Consumer Protection Act, which mandates not calling before 8:00 AM and after 9:00 PM. They also need to have a do not call list and allow customers to opt out of any communications they do not wish to receive
Additionally, organizations should be aware that any B2B calls made to any numbers on the National Do Not Call Registry will be investigated and might carry penalties. Telemarketing companies need to understand the regulations to remain compliant and ensure their interactions are welcomed and appreciated by their customers.
Wrapping Up
The B2B exemption to the Telemarketing Sales Rule provides an excellent opportunity for businesses to grow their client base. It allows for more targeted marketing efforts and reduces the burden of regulation for businesses. However, it is essential to remember that compliance with the Telephone Consumer Protection Act is still necessary to protect consumers from unwanted communications. Companies must be aware of the rules and regulations to remain compliant with the same.