SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

CHANNEL BY TOPICS


QUICK LINKS




Changes to the TCPA May Bring Big Fines for Missteps in Automated Outbound Marketing

TMCnews Featured Article


October 17, 2013

Changes to the TCPA May Bring Big Fines for Missteps in Automated Outbound Marketing

By Tracey E. Schelmetic, TMCnet Contributor


The Telephone Consumer Protection Act (TCPA) that was designed to protect consumers from harassment from telemarketers was originally passed in 1991. Needless to say, technology has changed quite a bit in the last 22 years. For starters, when the TCPA was originally authored, few people carried cell phones, and the cell phones that existed were about the same size as a toaster.


Fast-forward to today, and nearly everyone in the U.S. carries a mobile phone, using it for both texting and calling. In many cases, Americans don’t even maintain landline phones anymore, relying solely on their mobile phones.

In the intervening years since the TCPA was passed, we’ve seen the rise in popularity of another technology: automated outbound calls, or “robocalls.” While these types of calls have a place in certain industries – appointment reminders, school notifications, emergency alerts – they are increasingly being used for commercial purposes, and when it comes to receiving robocalls on a regular basis, Americans aren’t very happy about it.

For this reason, the Federal Communications Commission (FCC (News - Alert)), which oversees and enforces the TCPA, recently updated the legislation, adding new rules.  Starting yesterday, October 16th, companies are prohibited from calling land lines or cell phones or sending text messages using an "automated telephone dialing system or an artificial or prerecorded voice" without first obtaining the "prior express written consent of the called party."

Prior to the implementation of these new rules, companies were free to robocall or text if a customer had done business with the company during the previous 90 days and had provided their contact information. That provision has been eliminated, and the FCC and FTC (News - Alert) have recently stepped up their enforcement of the TCPA rules.

The new regulations put a heavy burden on marketers: according to the new rules, any company using robocalling or outbound text messaging must prove that the consumer gave consent in writing (either on paper or electronically in an e-signature) or face heavy fines. The revisions lay out the fines consumers can sue violators for: $500 per violation if it was unintentional, and triple that if the company “knowingly and willfully” violated the rules.

Existing business relationships have not been grandfathered: companies now must gain the written consent not only of new customers, but any customers it regularly called prior to the change. Law professionals say they expect to see an explosion of class-action lawsuits against telemarketers by angry consumers looking to pursue fines against violators.




Edited by Blaise McNamee







Technology Marketing Corporation

2 Trap Falls Road Suite 106, Shelton, CT 06484 USA
Ph: +1-203-852-6800, 800-243-6002

General comments: [email protected].
Comments about this site: [email protected].

STAY CURRENT YOUR WAY

© 2024 Technology Marketing Corporation. All rights reserved | Privacy Policy