Understanding Do-Not-Call rules: The complete guide

The rise of telemarketing has led to stricter regulations to protect consumers from unsolicited calls. One of the most well-known parts of these regulations is the Do-Not-Call (DNC) rules, which dictate how businesses and telemarketers can engage with potential customers. Whether you’re a business or a telemarketer, understanding the DNC rules is critical to avoid hefty penalties and maintain compliance.

In this guide, we’ll break down the essential elements of the DNC rules, what penalties come with violations, the nuances of state DNC lists, and how tools like TrustedForm can help businesses comply by documenting proper consent.

What is the Do-Not-Call registry?

The National Do-Not-Call Registry was created in 2003 by the US Federal Trade Commission (FTC) to allow consumers to opt out of receiving telemarketing calls. This initiative arose from the growing frustration of individuals who were bombarded with unsolicited calls, often at inconvenient times.

Once a phone number is added to the US registry, telemarketers are prohibited from calling that number, with a few exceptions. The registry is designed to give consumers control over their contact preferences while helping businesses focus on reaching individuals who are open to receiving marketing calls.

Why the Do-Not-Call registry was created

  • Consumer protection: It helps individuals block unwanted telemarketing calls, ensuring their personal time is respected.
  • Marketing clarity: The registry allows businesses to target only those interested in receiving calls, enhancing marketing efficiency.
  • Compliance obligations: Telemarketers must regularly check the registry and avoid contacting numbers listed, or risk severe penalties.

Key FTC and FCC Do-Not-Call rules for businesses and telemarketers

Telemarketing businesses must adhere to the US Federal Trade Commission (FTC) and Federal Communications Commission’s (FCC) regulations to operate compliantly within legal boundaries. These regulations are designed to protect US consumers and minimize harassment by limiting unsolicited communications.

Here are the key rules to keep in mind:

  1. Checking the DNC registry: Telemarketers must check the registry every 31 days and scrub their lists of any numbers that have been registered. It is illegal to call or text numbers listed on the registry unless the caller has express permission or a pre-existing business relationship with the consumer.
  2. Obtaining consent: Telemarketers must obtain prior expressed written consent from individuals before contacting them. This consent should be documented in case there is ever a question of compliance. For example, if you provide consent to contact opt-in and notice language in an online web form or social media lead ad, the TrustedForm solution can help provide third-party documentation of the consent language and customer pathway that initiated the outreach.
  3. Caller identification: Telemarketers are required to provide clear identification information, including their name, the company’s name, and contact details during the call.
  4. Call time restrictions: Calls are restricted to the hours of 8 a.m. to 9 p.m. (local time of the person being called). Calling outside of these hours violates FCC guidelines.
  5. Do-Not-Call requests: If a consumer asks to be placed on your company’s internal Do-Not-Call list, you must honor this request immediately and refrain from calling them again.
  6. Use of the RND Reassigned Number Database service: The FCC issued the Second Report and Order on Advanced Methods to Target and Eliminate Unlawful Robocalls (2018). This order established the RND and codified the rules requiring (or highly incentivizing) the use of the RND, which comes from FCC regulations adopted in 2018 and fully implemented in 2021.  
  7. Exemptions: Not all calls are restricted by the DNC rules. Certain exceptions exist, such as calls from political organizations, charities, and surveyors, which have some allowances. Also, businesses with a prior relationship with the consumer may also be exempt, but even these exemptions require careful adherence to other aspects of the law, including consent and call timing.

State-specific Do-Not-Call lists and rules

While the National Do-Not-Call Registry covers federal regulations, it’s important to note that many states also have their own DNC lists and rules. These state-specific lists operate in parallel to the national registry, adding another layer of complexity for businesses and telemarketers who engage in cross-state marketing campaigns. Each state may have different guidelines, registration fees, and enforcement policies, making it crucial for businesses to be aware of these distinctions to avoid penalties.

State-specific Do-Not-Call regulations

Some states have additional considerations, requiring businesses to comply with both federal and state laws. For example:

California Consumer Privacy Act – CCPA

  • Telemarketers must provide an opt-out option for consumers.
  • Prohibits sharing or selling personal data for marketing without proper notice and consent.

Florida Do-Not-Call list rules (Florida Telemarketing Act)

  • Telemarketers must obtain a license before making calls.
  • Calls are restricted from 8 AM to 8 PM (stricter than federal hours).
  • Fines up to $10,000 per violation.
  • SB 1120 (2021) added stricter regulations, including requiring prior written consent for telemarketing calls using automated systems.

New York State Do-Not-Call rules

  • Enforced by the New York Department of State.
  • Prohibits unsolicited calls to numbers registered on the state’s DNC list.
  • Businesses must disclose identity and purpose within the first 10 seconds.
  • Violators face penalties of up to $11,000 per violation.

Texas No-Call list

  • The Texas Public Utility Commission maintains its own Texas No-Call List, separate from the National DNC Registry.
  • Fines up to $1,000 per violation.
  • Businesses must register with the state before making telemarketing calls.
  • Exemptions exist for political organizations, non-profits, and established business relationships.

Pennsylvania Telemarketer Registration Act

  • Requires all telemarketers to register with the Attorney General’s Office.
  • The State DNC list is updated quarterly.
  • No calls allowed on Sundays.
  • Violators can face civil penalties up to $1,000 per violation.

Indiana Do-Not-Call list

  • One of the strictest state DNC laws.
  • No exemptions for political or charitable calls.
  • Violators face fines of up to $10,000 per call.
  • Telemarketers must register annually and pay fees.

Louisiana Do-Not-Call rules

  • Managed by the Louisiana Public Service Commission under the Louisiana Telephone Solicitation Relief Act.
  • Residential phone numbers may be added to the state DNC list; business numbers are excluded.
  • Telemarketers may not call listed numbers, with exemptions for prior relationships, express requests, non-profits using unpaid solicitors, and political calls.
  • The DNC list has been active since 2002 and is free to join.

Missouri Do-Not-Call rules

  • Overseen by the Missouri Attorney General’s Office.
  • Residents can register residential and mobile numbers to block unsolicited sales calls and texts.
  • Exemptions include existing business relationships, referrals, and certain non-profits.
  • The list is updated quarterly, and registration does not expire unless the number changes.
  • Violators may face civil penalties up to $5,000 per knowing violation.

Illinois Do-Not-Call rules

  • Illinois does not maintain a separate state Do-Not-Call (DNC) list.
  • The state follows the National DNC Registry.
  • Residents can register home or mobile numbers at donotcall.gov or by calling 1-888-382-1222.
  • Telemarketers must stop calling registered numbers within 31 days.
  • Exemptions may include:
    • Political calls
    • Charitable calls
    • Survey calls
    • Debt collection calls
    • Informational messages
    • Calls from businesses with an existing relationship
    • Calls with prior written consent
  • Registration is free and remains active unless the number is disconnected or removed manually.

To further reduce unwanted calls, Illinois residents are encouraged to opt out of data broker listings, which are often used by scammers.

Many other states follow similar patterns, with some having their own enforcement bodies and penalties that could stack on top of federal fines.

Navigating state Do-Not-Call rules

Managing compliance across multiple states requires vigilance, as state rules may differ on key points, including:

  • Call time restrictions: While the national rule restricts calls to between 8 a.m. and 9 p.m., some states may have narrower time windows.
  • Consent requirements: Some states require more explicit consent before telemarketing calls can be made, with stricter documentation and consent verification processes.
  • Internal lists: Businesses may also be required to maintain and update their own internal DNC lists based on consumer requests as well as state and national registries.

Seeking legal counsel for state compliance

Given the complexity and variability of state-specific rules, it is advisable for businesses to seek legal counsel regarding both federal and state DNC laws. Failure to comply can result in both state and federal penalties, compounding the risks for businesses operating across multiple regions.

Importance of consent and how TrustedForm helps

Obtaining and documenting consent is a cornerstone of compliance with DNC rules for businesses. Having a robust system in place to track and document consent can be the difference between compliance and expensive penalties.

Why consent matters

  • Clear evidence: If there’s ever a dispute, businesses need to provide clear evidence that consent was given before any telemarketing calls were made.
  • Consumer trust: Gaining consent also helps foster trust with potential customers, ensuring they are more receptive to marketing efforts and less likely to file complaints.

The TrustedForm solution

TrustedForm is the ultimate compliance solution for the lead generation industry. TrustedForm helps companies document prior express written consent to empower marketing efforts while helping to comply with regulations like the Telemarketing Sales Rule (TSR), Telephone Consumer Protection Act (TCPA), and related DNC rules

With TrustedForm, businesses can:

  • Maintain compliance with documentation of prior express written consent
  • Review and audit lead sources with viewable and shareable consent-to-contact session replays
  • Optimize purchasing and communication decisions with data about your leads
CTA_TFDemo

Best practices for compliance

Staying compliant with DNC rules requires businesses to implement best practices across all telemarketing efforts. Here are a few tips:

  • Regularly update your call lists: Maintain that your call lists are up-to-date and cross-referenced with the most recent DNC registry.
  • Leverage AI receptionists to collect consent: Capture verbal consent by having your AI receptionist collect marketing preferences before transferring calls to agents or during post-call surveys. Every opt-in gets timestamped and logged automatically for compliance audits.
  • Train your staff: Make sure your telemarketing staff understands the FTC and FCC DNC rules and the importance of compliance.
  • Use consent verification tools: Platforms like TrustedForm help streamline the consent process and provide reliable proof if needed.
  • Respect opt-out requests: Always honor requests to be placed on a DNC list immediately and avoid calling those numbers again.

FAQs

1) What are the rules for the Do-Not-Call list?

The Do-Not-Call (DNC) rules limit when and how businesses can contact consumers for telemarketing. They’re enforced primarily under the FTC’s Telemarketing Sales Rule (TSR) and the FCC’s Telephone Consumer Protection Act (TCPA).

Here are the core requirements:

  • Check the National DNC Registry every 31 days
    Telemarketers must scrub their call lists against the registry at least once every 31 days.
  • Do not call registered numbers
    You cannot call or text numbers on the registry unless:
    • You have prior express written consent, or there is an established business relationship (EBR)
  • Obtain prior express written consent
    For many marketing calls and texts, especially robocalls or calls to mobile phones, documented written consent is required under the TCPA.
  • Follow calling time restrictions
    Calls are allowed only between 8 a.m. and 9 p.m. (recipient’s local time), unless state law is stricter.
  • Identify yourself clearly
    At the start of the call, you must provide:
    • Your name
    • Company name
    • Contact information
  • Maintain an internal Do-Not-Call list
    If a consumer asks not to be called, you must:
    • Add them to your company’s internal DNC list
    • Stop calling them immediately
  • Comply with state-specific rules
    Many states have additional requirements, such as:
    • Shorter calling windows
    • Licensing or registration requirements
    • Higher penalties

2) Who enforces Do-Not-Call rules in the U.S.?

  • Federal Trade Commission (FTC): Oversees the National Do-Not-Call Registry under the Telemarketing Sales Rule (TSR). Can issue fines for violations.
  • Federal Communications Commission (FCC): Enforces the Telephone Consumer Protection Act (TCPA), including robocalls and calls to mobile phones without consent.
  • State Attorneys General: Enforce both federal and state DNC laws. Many states have their own DNC lists and penalties.
  • Private individuals: Consumers can sue under the TCPA for:
    • Up to $500 per violation
    • Up to $1,500 per violation if the violation is willful

3) What are the penalties for violating federal DNC rules?

  • Up to $43,792 per illegal call (each call counts as a separate violation)
  • Class action lawsuits, which can significantly increase financial exposure
  • Federal investigations for repeated or large-scale violations, potentially leading to additional fines or business restrictions

4) Does Canada have Do-Not-Call rules?

Yes. Canada regulates telemarketing through the National Do Not Call List (DNCL), enforced by the CRTC.

Key rules:

  • Consumer registration: Free for individuals
  • Business requirement: Telemarketers must register and check the DNCL before calling
  • Fines: Up to $15,000 per violation

Calling restrictions:

  • Weekdays: 9 a.m. – 9 p.m. (recipient’s local time)
  • Weekends: 10 a.m. – 6 p.m.
  • Callers must clearly identify themselves at the start of the call.

Exemptions include:

  • Charities
  • Political parties and candidates
  • Newspaper subscription calls
  • Businesses with an existing business relationship (EBR)

Enforcement:

  • Consumers can file complaints with the CRTC.
  • The CRTC investigates violations and has issued millions in penalties.

Final thoughts

Complying with DNC rules is essential for any business engaged in telemarketing. Failure to follow the rules can result in substantial fines, legal action, and damaged reputations. By understanding these regulations and using tools like TrustedForm to track consent, businesses can protect themselves while ensuring that their marketing practices respect consumer preferences.

Safeguard your telemarketing campaigns with the help of TrustedForm.

CTA_demo1

DISCLAIMER: This page and all related links are provided for general informational and educational purposes only and are not legal advice. ActiveProspect does not warrant or guarantee this information will provide you with legal protection or compliance. Please consult with your legal counsel for legal and compliance advice. You are responsible for using any ActiveProspect Services in a legally compliant manner pursuant to ActiveProspect’s Terms of Service. Any quotes contained herein belong to the person(s) quoted and do not necessarily represent the views and/or opinions of ActiveProspect.

Stay in the loop! Subscribe to the recAP email list to get our latest updates and insights.