FTC Tightens Noose on Telemarketing

New restrictions being imposed on commercial and fundraising telemarketing by the Federal Trade Commission require consent prior to making outbound calls involving pre-recorded messages.

For consumers who do consent to receiving calls with pre-recorded messages—automated systems must be accessible 24/7 for them to opt out from telemarketing lists.

Pre-recorded messages must disclose at the outset of the call that recipients may ask to be placed on the company’s do-not-call list at any time during the message. It can either be by voice response or by pressing buttons on the telephone keypad.

If recorded messages are left, a toll free number must be provided for consumers to call to register on a do-not-call list.

Banks, telephone companies, survey and political calls will be exempt from new regulations that require obtaining permission, which take effect Sept. 1, 2009.

Pre-recorded healthcare messages covered by the Health Insurance Portability and Accountability Act of 1996 (HIPAA) also will be exempt from the new requirement.

As of Dec. 1 of this year, commercial and fundraising telemarketers that use pre-recorded messages must provide consumers with an automated system to opt out of telemarketing lists.

Automated systems to opt out from telemarketing lists must be accessible to consumers who answer calls in person, as well as those who pick up messages from answering machines or voice mail services.

Only consumers with established business relationships can be called, regardless of whether pre-recorded messages are used or not.