In the competitive field of telemarketing, success hinges on reaching the right leads at the right time - and doing so in a way that is legally compliant. High-quality lead hygiene not only enhances conversion rates but also ensures adherence to essential regulatory requirements like the Telephone Consumer Protection Act (TCPA) and the upcoming changes to the Telemarketing Sales Rule (TSR).
Whether you’re new to telemarketing or a seasoned pro, understanding these rules and how they intersect with lead hygiene is critical. This article will outline what you need to know to keep your lead lists and calling practices in line with these regulations.
Lead hygiene refers to the practice of maintaining accurate, up-to-date, and compliant lead lists that every seller or telemarketer who runs telemarketing campaigns should practice. Think of it as “cleaning” your lead data to ensure only quality, engaged contacts are included.
Maintaining good lead hygiene and a complete record of DNC lists is essential not just for avoiding penalties but also for making sure your outreach sales calls are effective and well-received by prospects.
The TCPA was enacted by the Federal Communications Commission in 1991 to protect consumers from unwanted telemarketing activities. It imposes strict guidelines on when, how, and to whom telemarketing communications can be made, and has been updated several times to put greater scrutiny on telemarketing transactions (The Deceptive Telemarketing Act, The Abusive Telemarketing Act, and changes to limit tech support scams, consumer fraud, and other nefarious actors).
Telemarketers are required to regularly scrub their lead lists against the National Do-Not-Call (DNC) Registry and any internal DNC lists or other such records before making an outbound call.
Telemarketers must obtain and document express informed consent (written) to contact consumers on their mobile phones, especially if using autodialing systems. Prerecorded messages are often found to be in violation of TCPA as well, especially if used in conjunction with an autodialer.
TCPA restricts the hours for telemarketing calls to between 8 a.m. and 9 p.m. in the recipient’s local time.
Violating the TCPA can result in hefty fines (up to $1,500 per infraction). Adhering to TCPA guidelines is critical to avoid penalties and to respect consumers’ preferences. While $1,500 may not seem like much, serial litigators and attorneys often create class action lawsuits by finding every telephone call made and detail records to run up their lawsuits.
Some TCPA lawsuits for telemarketing campaigns can be extremely expensive, both in legal costs and the final rule or judgment. If deceptive or abusive practices can be proven through any false or misleading statements, the final judgment can be enough to bankrupt many sellers and telemarketers.
The Telemarketing Sales Rule (TSR), regulated by the Federal Trade Commission (FTC) in coordination with the Federal Communications Commission (FCC), complements the TCPA by setting additional rules specifically for telemarketing campaign practices. The TSR prohibits deceptive and abusive practices, requires clear disclosures, and mandates protections for consumer data security.
Importantly, the Telemarketing Sales Rule also changes who is considered a seller or telemarketer by adding groups that may not have been previously included. A charitable organization soliciting a charitable contribution from a previous donor, debt relief services with an established business relationship, technical support services, and many others may now be considered sellers and telemarketers under certain readings of the proposed rulemaking.
Essentially, any such business that utilizes a telemarketing script, whether a seller or telemarketer, non profit charitable organization, or any company running a single calling campaign should pay attention to the Telemarketing Sales Rule that is set to begin being enforced concerning phone calls in January of 2025.
Previously, Telemarketing Sales Rule guidelines mainly targeted unsolicited sales calls to new leads. Now, even phone calls to existing customers or another established business relationship may fall under Telemarketing Sales Rule scrutiny, impacting lead nurturing and follow-up strategies to sell goods or services.
The rule restricts the use of prerecorded messages without express informed consent, placing more limitations on the way that sellers and telemarketers deliver prerecorded messages.
The new Telemarketing Sales Rule revisions place greater emphasis on data security. Every seller or telemarketer will need to implement robust data protection measures, both for stored leads and for leads in transit, and maintain records of their security in case of an audit.
With the fundamentals of Telephone Consumer Protection Act (TCPA), Telemarketing Sales Rule (TSR), and lead hygiene in mind, here’s a guide to keeping your lead list both clean and compliant for your telephone sales:
To remain compliant with Telephone Consumer Protection Act (TCPA) and Telemarketing Sales Rule (TSR) requirements, it’s essential to avoid placing telemarketing calls to consumers who have opted out of receiving your phone calls.
Scrub your lead list against the National DNC registry and maintain an internal list for individuals who have directly requested not to receive any telemarketing activites (phone calls or SMS messages). This is legally required to be done against the national DNC list every 31 days at a minimum.
Use automated DNC scrubbing software to make it easy to update and maintain compliance. This can save time and reduce the risk of accidental DNC violations with your outbound calls.
By regularly updating your DNC lists, you reduce the risk of fines and respect the privacy preferences of consumers.
Consent is one of the most critical aspects of compliance for sellers and telemarketers. Obtaining and properly documenting such records of consent allows you to reach out legally, particularly if you are using autodialers or prerecorded messages.
For calls or texts to mobile numbers, TCPA requires written consent, especially if you’re using automated dialing systems or a prerecorded message.
Keep comprehensive detail records of consumer consent, including the date, time, and method through which consent was obtained. This is especially important in case of a regulatory audit or lawsuit over Telephone Consumer Protection Act or Telemarketing Sales Rule violations.
Over time, consumer consent can become outdated. Develop a system to periodically refresh consent from leads, especially if the lead is older than a certain period.
Lead data can quickly become outdated or inaccurate. By practicing regular data cleansing, you ensure you’re only reaching valid, relevant leads.
Leads with incomplete or duplicate information add unnecessary clutter and can lead to multiple or mistaken calls.
Ensuring that each lead’s origin is credible and compliant can help avoid potential TCPA violations, especially for leads purchased from third parties.
Use tools that validate contact numbers in real-time, ensuring that each number is accurate and up-to-date. This helps reduce misdials, which can lead to TCPA complaints.
Respecting consumer requests to opt-out of telemarketing is a critical component of both Telephone Consumer Protection Act and Telemarketing Sales Rule compliance. Take care that you have a process for managing records for those who give and others who may revoke their consent (or opt-out of telemarketing activities entirely).
A centralized database for opt-in and opt-out preferences will help your team easily see each lead’s consent status and avoid telemarketing calls to individuals who have opted out.
Use tools that automatically process opt-outs as soon as requests are received. Failure to do so can result in regulatory fines and damage the brand reputation of the seller or telemarketer.
If a consumer has already opted out and contacts you again with the same request, ensure it’s honored. Multiple opt-out requests are often a red flag to regulators.
Avoid excessive telemarketing calls to maintain good relationships with leads and stay compliant with regulations. Call frequency and repeated calls after opt-outs are a major focus of the federal government and many lawsuits against sellers and telemarketers today.
The Telephone Consumer Protection Act and Telemarketing Sales Rule discourage repetitive telemarketing calls or attempts. Establish a clear internal policy that limits call frequency, particularly if the phone calls are unanswered.
Scheduling systems with built-in safeguards can prevent overcalling and help avoid calling outside Telephone Consumer Protection Act-approved windows (8 a.m. to 9 p.m.).
Regularly review telemarketing call frequency to identify patterns that could lead to consumer complaints or compliance issues.
The telemarketing landscape is constantly evolving, and it’s vital to keep your team updated on any new rules.
Stay informed on Federal Trade Commission and Federal Communication Commission updates, which often release guidance documents, newsletters, and alerts about rule changes that sellers and telemarketers need to be aware of.
Educate your team regularly on Telephone Consumer Protection Act and Telemarketing Sales Rule guidelines and best practices for call handling, consent management, and respectful communication. Training should also cover the upcoming Telemarketing Sales Rule changes, so everyone is prepared.
Keeping lead data clean, compliant, and up-to-date is crucial to achieving success for sellers and telemarketers while respecting consumer rights. Following these practices will help you maintain high lead quality, avoid regulatory penalties & lawsuits, and enhance the efficiency of your telemarketing campaign efforts.
By investing in lead hygiene and staying compliant with TCPA and TSR requirements, you can ensure that your telemarketing campaigns are both effective and legally sound.
