New Advisory Highlights Potential Traps for the Unwary in Updated FCC Prerecorded Telemarketing Rules

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[author: Ronald G. London]

Be sure to spend some time with our new advisory in which we expand on our previous entry outlining the basics of the revised FCC automated/prerecorded telemarketing rules.  The advisory explains how, even though the FCC’s primary purpose was to mirror FTC prerecorded telemarketing rules adopted several years back (which were the subject of our advisory issued at that time, here), some additional new requirements resulted from the FCC’s update of its rules.

These include raising the bar for the type of consent needed for auto-dialed live-agent telemarketing to cell phones as part of the new prior, written signed consent requirement for prerecorded telemarketing generally, and extending the automated opt-out mechanism required for prerecorded telemarketing to “abandoned” live-agent telemarketing calls.  While the FCC mostly tracked existing FTC regulations, these additional requirements are new and may require operational changes for a variety of companies. 

In addition, to the extent the FTC’s jurisdiction does not cover certain business sectors, such as common carriers, banks and other financial institutions, and the business of insurance, to the extent participants in those industries had not started adhering to the FTC prerecorded telemarketing rules, adoption of similar rules by the FCC will mean a variety of new compliance burdens for those companies.  Access the advisory here.