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 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.

Who has authority to implement the Do-Not-Call rules?

The authority to implement the Do-Not-Call rules primarily falls under the following agencies in the United States:

1. Federal Trade Commission (FTC)

  • The FTC is the main regulatory body overseeing the National Do-Not-Call Registry under the Telemarketing Sales Rule (TSR).
  • It enforces penalties for businesses that violate DNC rules.

2. Federal Communications Commission (FCC)

3. State Attorneys General

  • Many states have their own Do-Not-Call lists and regulations.
  • State Attorneys General enforce both state and federal DNC laws, sometimes imposing additional penalties.

4. Private lawsuits

  • Under the TCPA, individuals can sue violators and seek statutory damages (up to $500 per violation, tripled to $1,500 for willful violations).

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

Telemarketing businesses must adhere to the FTC and Federal Communications Commission’s (FCC) regulations to compliantly operate within legal boundaries. These regulations are designed to protect consumer privacy 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, 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. Exemptions: Not all calls are restricted by the DNC rules. Certain exceptions exist, such as calls from political organizations, charities, and surveyors 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.

Penalties for violating federal Do-Not-Call rules

The penalties for violating federal DNC rules are steep. Both the FTC and the FCC have the authority to enforce these rules and penalize non-compliant companies.

What’s the penalty for violating federal Do-Not-Call rules?

  1. Fines per violation: Businesses that violate the DNC rules can face penalties of up to $43,792 per call. This penalty applies each time a prohibited call is made, meaning that even a minor mistake can result in significant financial repercussions if repeated across multiple calls.
  2. Class action lawsuits: In addition to government penalties, businesses can face class action lawsuits from consumers. These legal actions can add further financial strain, tarnish a company’s reputation, and cause significant operational disruptions.
  3. Federal investigation: In cases of repeated violations or large-scale misconduct, federal agencies may launch investigations that could lead to more substantial legal actions, additional fines, and possibly the revocation of licenses to operate.

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 stricter rules than federal guidelines, requiring businesses to comply with both federal and state DNC lists. For example:

California Consumer Privacy Act – CCPA

  • Telemarketers must provide an opt-out option for consumers.
  • Prohibits sharing personal data for marketing without consent.
  • California follows stricter consent rules for robocalls and telemarketing.

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.
  • 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.

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

Are there any Do-Not-Call list Canada rules?

Yes, Canada has Do-Not-Call list rules regulated under the Canadian Radio-television and Telecommunications Commission (CRTC) through the National Do Not Call List (DNCL). Here are the key Do-Not-Call list Canada rules:

Registration

  • Consumers can register their phone numbers for free to avoid unsolicited telemarketing calls.
  • Businesses must check and comply with the DNCL before making calls.

Who must comply?

  • Telemarketers and organizations making sales calls must register and purchase the DNCL list.
  • Fines: Violators can face penalties of up to $15,000 per violation.

Calling restrictions

  • Allowed calling hours:
  • Weekdays: 9 AM – 9 PM (local time of recipient).
  • Weekends: 10 AM – 6 PM.
  • Telemarketers must identify themselves at the beginning of the call.

Exemptions

Some organizations are exempt from DNCL rules, including:

  • Charities
  • Political parties/candidates
  • Newspapers (for subscriptions)
  • Businesses with an existing business relationship (EBR)

Do-Not-Call violations

  • Consumers can file complaints against violators through the CRTC.
  • The CRTC actively investigates and has issued millions in fines for non-compliance.

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

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.
  • 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.

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.

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.

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Written by Andrew Bailey

Andrew Bailey is an experienced digital marketer and industry strategist for ActiveProspect with over 10 years of content-creation experience.

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