Express written consent required for prerecorded telemarketing calls to residential lines. Established business relationship no longer relieves robocallers of .. software, has the capacity to store or produce numbers and dial . The 'do not call' list is a registry of phone numbers that telemarketers are prohibited In the case of a pre-existing relationship, a company can call you for up to 18 (EA) software collects data on how a person communicates verbally and. The hardware, when paired with certain software, has the capacity to store or produce The TCPA Rule also prohibits making a telemarketing call to a residential of the called party, unless the caller has an established business relationship.
Both negative option and continuity plans are structured to give consumers the opportunity to buy a series of products over time. The cost of the plan as a whole is determined by the number and type of items the consumer decides to accept in the series, and at the time of the initial sales offer, neither the seller nor the consumer necessarily knows how much product the consumer will purchase, or the total cost of the products.
To comply with the TSR, a seller or telemarketer offering a negative option or a continuity plan must disclose the total costs and quantity of goods or services that are part of the initial offer; the total quantity of additional goods or services that a consumer must purchase over the duration of the plan; and the cost, or range of costs, to purchase each additional good or service separately.
If sellers and telemarketers are offering credit products subject to the Truth in Lending Act TILA or Regulation Z, compliance with the credit disclosure requirements and the timing of the disclosures mandated by TILA or Regulation Z constitute compliance with the total cost and quantity disclosure requirements of the TSR with respect to the credit instrument.
Nevertheless, the cost and quantity of any goods or services purchased with that credit also must be disclosed. Material Restrictions, Limitations, or Conditions The TSR requires sellers and telemarketers to disclose all material restrictions, limitations, or conditions to purchase, receive, or use goods or services that they are offering to the consumer. Material information is information that a consumer needs to make an informed purchasing decision.
A material restriction, limitation, or condition is one that, if known to the consumer, would likely affect the decision to purchase the goods or services offered; to purchase them at the offered price; to purchase them from that particular seller; or to make a charitable contribution.
Examples of material information that must be disclosed include: Sellers and telemarketers may disclose orally or in writing information about material restrictions, limitations, or conditions to purchase, receive, or use the goods or services being offered, as long as the information is clear and conspicuous and disclosed before the consumer pays.
You may give this information to consumers orally or in writing, as long as the information is clear and conspicuous. Prize Promotions A prize promotion includes any sweepstakes or other game of chance, and any representation that someone has won, has been selected to receive, or may be eligible to receive a prize or purported prize.
A prize is anything offered and given to a consumer by chance. For the element of chance to be present, all that is necessary under the TSR is that if the consumer is guaranteed to receive an item, at the time of the offer the telemarketer does not identify the specific item that the person will receive.
For example, say you send a solicitation promising recipients that they will receive one of four or five listed items but you do not tell recipients which of the listed items they will receive.
In that case, any item the consumer receives is a prize, and the solicitation is a prize promotion.
Complying with the Telemarketing Sales Rule | Federal Trade Commission
A seller or telemarketer that offers a prize promotion must provide consumers with several items of information before the consumer pays for any goods or services being offered. This information may be given to consumers orally or in writing, as long as the information is clear and conspicuous. You must tell consumers: When offering a prize promotion in outbound calls, you must disclose this information orally and promptly.
A legitimate prize promotion does not require any purchase or payment of money for a consumer to participate or win. If a purchase or payment of money is required for eligibility for a prize, it is not a prize promotion; it is a lottery, which is generally unlawful under federal and state lottery laws.
Other types of negative option features include continuity plans and other arrangements where consumers automatically receive and incur charges for shipments in an ongoing series unless they take affirmative action to stop the shipment. Under the TSR, any seller or telemarketer whose offer of a product or service involves a negative option feature must truthfully, clearly, and conspicuously disclose three pieces of information: As for disclosing how the consumer can avoid charges, it is not sufficient under the TSR to say that a consumer would have to call a toll-free number to cancel without giving the number.
That includes reducing the balance, interest rates or fees a person owes. Under the TSR, any seller or telemarketer of a debt relief service must truthfully, clearly, and conspicuously disclose five pieces of information: The TSR requires that a telemarketer making an outbound sales call promptly disclose, before any sales pitch is given, the following four items of information truthfully, clearly, and conspicuously: The identity of the seller.
The seller is the entity that provides goods or services to the consumer in exchange for payment. The identity of the telemarketer, or person making the call, need not be disclosed if it is different from the identity of the seller.
That the purpose of the call is to sell goods or services. The TSR requires that the purpose of the call be disclosed truthfully and promptly to consumers. How you describe or explain the purpose of the call is up to you, as long as your description is not likely to mislead consumers. The nature of the goods or services being offered. This is a brief description of items you are offering for sale.
In the case of a prize promotion, that no purchase or payment is necessary to participate or win, and that a purchase or payment does not increase the chances of winning. If the consumer asks, you must disclose — without delay — instructions on how to enter the prize promotion without paying any money or purchasing any goods or services.
These same disclosures must be made in an upselling transaction if any of the information in these disclosures is different from the initial disclosures if the initial transaction was an outbound call subject to the TSR or if no disclosures were required in the initial transaction, like a non-sales customer service call.
For example, in an external upsell, where the second transaction in a single telephone call involves a second seller, you must tell the consumer the identity of the second seller — the one on whose behalf the upsell offer is being made. Prompt Oral Disclosures in Outbound Calls to Solicit Charitable Contributions Telefunders must make two clear and conspicuous oral disclosures promptly before any charitable solicitation is made: The identity of the charitable organization on whose behalf the solicitation is being made.
The charitable organization is the entity on whose behalf a charitable contribution is sought. The identity of the telemarketer, or person making the call, need not be disclosed.
That the purpose of the call is to solicit a charitable contribution. The TSR requires that the purpose of the call be disclosed promptly to consumers. How the purpose of the call is described or explained is up to you, as long as your description or explanation is not likely to mislead consumers. How does a for-profit company that telemarkets for a non-profit organization make the required oral disclosures?
When a for-profit company makes interstate calls to solicit charitable contributions for a non-profit organization, the for-profit telemarketer must make the required prompt disclosures for charitable solicitation calls.
The company must identify the entity on behalf of which the charitable solicitation is made, and state that the purpose of the call is to solicit a charitable contribution. However, if a for-profit company solicits charitable contributions on behalf of a charity and offers goods or services that are of more than nominal value — a book, magazine subscription, or perhaps a membership — to induce donations, the required oral disclosures for both sales and charitable contributions must be made.
In a situation where the goods or services offered are of nominal value, stating the name of the non-profit organization on whose behalf the call is being made is sufficient. Commercial telemarketers are not allowed to call a number that is on the registry, subject to certain exceptions. Organizations not covered by the law include nonprofit organizations, political campaigns and companies that have an existing business relationship with a call recipient.
The goal is to eliminate cold calls for all those who chose to "opt-out" of telemarketing, it is not designed to keep companies from calling their customers for repeat sales. As of earlythe FTC reported having close to 65 million numbers in the do-not-call registry with an additionaladded monthly.
Under the law, telemarketers are required to purchase a copy of the list for the area codes they wish to call and then remove from their call lists all numbers that appear on the FTC list. Those companies that fail to comply with this law face the imposition of heavy fines.
In latethe largest fine to-date was imposed on the satellite television company, DirectTV.
Complying with the Telemarketing Sales Rule
The underlying complaint named as defendants DirectTV, five firms that telemarketed on its behalf and six principals of those telemarketing firms. Sellers are on the hook for calls placed on their behalf," said FTC chairman Deborah Platt Majoras in an article in the magazine Brandweek. Although solid numbers are hard to find, one commonly accepted estimate is that the do-not-call regulation had cut the number of telemarketing calls by half during the first two years in effect.
Telemarketing firms report seeing their lists cut from 35 to 55 percent. The industry is still adjusting to the new reality that has been created by the do-not-call registry. They will continue to search for ways in which to generate new telephone lists that include potential clients that are not on the do-not-call list or clients who by virtue of signing up for a sweepstakes event have created for themselves a "relationship" with the seller.
Companies with whom a person has done business or with whom a person has signed up for a drawing are allowed to call that individual whether or not his or her phone number is on the do-not-call list. Consequently, companies that use telemarketing are researching ways to go about rebuilding their calling lists.
Although much reduced during the first years of the 21st Century, telemarketing is still an option for some types of businesses. In particular, business-to-business telemarketing is still a useful tool within a larger marketing strategy for companies that sell to other companies. Selling Telemarketing can either supplement or replace face-to-face selling to existing accounts. It can complement the field sales effort by reaching new customer bases or geographic markets at relatively low cost.
It can also be used to sell goods and services independently, with no field sales force in place. This method often is used for repetitive supply purchases or readily identifiable products, though it can be effectively applied to other products as well.
The inside sales force can be used to replace direct contact for marginally profitable customers. A general rule of thumb in business says that 20 percent of customers account for 80 percent of sales, so conversely the remaining 80 percent of customers generate just 20 percent of sales. But businesses must keep in mind that marginal does not necessarily mean unprofitable.
And the existing customer base is perhaps the most important asset in any business; increases in sales most often come from current accounts, and it generally is less costly to maintain current customers than to search out new business, particularly with the reduction of access resulting from the FTC do-not-call list. Telemarketers can give these reliable customers the attention they deserve.
The reps can phone as often as needed, determine the customers' purchasing cycles, and contact them at appropriate reorder times. In making such a consolidation between a direct and inside sales force, the company must be careful in determining which accounts should stay with field sales and which should be handled by telemarketing. Some businesses start their telemarketing operations with just small or inactive accounts, gradually increasing the size of accounts handled. Lead Generation Through telemarketing, a company can compile and update lists of customer prospect leads and then go through these lists searching for sales leads.
Telemarketing can screen the leads and qualify them according to priority, passing the best leads to the field sales force for immediate action. The inside sales force also can identify the decision maker with the buying power and set up appointments for the outside sales force. Gathering Information Telemarketing can provide accurate information on advertising effectiveness, what customers are buying, from whom they're buying, and when they will buy again.
It is also commonly used in conducting surveys. Improving Customer Service Studies show it costs five times more to win over a new customer than to keep an existing one. By using telemarketing as a main facet of customer service, companies can go a long way toward keeping customers happy. In addition, when used in conjunction with current computer technology, a telemarketing program can be analyzed in terms of costs and benefits, using quantitative data on the number of contacts, number of presentations, total sales, cost per sale, and income per sale.
Improper execution, unrealistic goals over a short time period, oversimplification, and lack of top management support have caused the ultimate failure of more telephone sales programs than can be imagined.
Like any marketing strategy, telemarketing takes time to plan and develop. It takes time to gain confidence in the message, to identify weak areas, and to predict bottom-line results.
Some of the most common telemarketing mistakes include: To create a successful telemarketing program, management must understand and agree to the necessary personnel and financial resources, as well as devoting adequate time for program development and testing. Telemarketing and related direct marketing techniques can produce solid sales.
But they need a chance to develop and demonstrate that success.
Very simply, it takes time. Experts agree that companies must be careful in forming telemarketing goals and objectives.
Some of the most important factors for success include: Both have advantages and disadvantages. They also can be better for firms making a long-term commitment to telemarketing.
Service bureaus, on the other hand, can help firms that need around-the-clock coverage for inbound programs, are supporting television ad campaigns, or are running a seasonal marketing program. Service Bureaus One of the main advantages of service bureaus is that they likely can offer lower costs. By grouping programs from several different companies, service bureaus can generate sufficient volume to reduce labor and telephone costs, which make up a majority of total costs.
They can also get a program started more quickly because they have experienced telephone reps on staff, along with necessary equipment. When hour coverage is needed on an inbound telemarketing program, it probably is more cost-effective to go with a bureau.