The Federal Trade Commission's (FTC) Telemarketing Sales Rule (TSR) has been a vital tool in combating deceptive and abusive telemarketing practices since its inception. With the recent changes set to take effect in January 2025, businesses that rely on outbound calls, especially call centers and companies utilizing outbound leads, need to stay informed and prepared.
This post will dive into the TSR updates, discuss how they impact outbound call centers, outline how businesses can avoid fines and lawsuits, and address the question of retroactive enforcement. For companies looking to remain compliant, this guide also provides a roadmap to navigate the new regulations and protect your bottom line.
The TSR, first introduced by the FTC in 1995, was designed to protect consumers from deceptive telemarketing practices and unwanted calls. It established key regulations, including the national Do Not Call (DNC) Registry, call time restrictions, and transparency requirements around offers and sales tactics.
While first introduced in 1995, the FTC has amended the TSR in 2003, 2008, 2010, and 2015. These amended rules give effect to the Telemarketing and Consumer Fraud and Abuse Prevention Act (TCFPA).
The new ruling and legislation are meant to give both the FTC and state attorney generals around the nation law enforcement tools to combat telemarketing fraud, give consumers privacy protections against unscrupulous telemarketers, and aim to help consumers be able to tell the difference between legitimate and fraudulent telemarketers.
The TSR has been updated and amended multiple times over the decades since its passing to keep up with advances in telecommunications technology, and the scammers & spammers who utilize it to nefarious ends. Unfortunately, any outbound call center or company that utilizes leads to make outbound calls runs the risk of violations if they don’t understand and re-tool their processes to comply with these changes.
If you would like to read the new rules for yourself, here is an article about it from the FTC:
https://www.ftc.gov/business-guidance/resources/complying-telemarketing-sales-rule
Here is the record of its passage in the Federal register:
https://www.federalregister.gov/documents/2024/04/16/2024-07180/telemarketing-sales-rule
As government agency documents can be difficult to read and follow, below we will break down and explain the changes and what outbound call companies need to be aware of so they can remain in compliance with these rule changes.
The upcoming 2025 updates to the TSR build on existing rules but impose stricter requirements to address evolving industry practices, particularly around automated calls and lead generation. Please take note that these changes have neither gone into effect nor been tested yet, meaning there isn’t established jurisprudence at this point.
As these changes have a focus on what some call the “TCPA lead generation loophole,” it is expected that these could change the lead generation industry and potentially affect any company that purchases outbound leads from third-party lead generation companies.
Although not yet tried or tested in court (jurisprudence), there are some who believe that an outbound call center that purchases leads from a third-party lead generation company may themselves be culpable if those leads violate these rule changes.
The changes include:
-Stricter limitations on call frequency: Companies will face tighter restrictions on how often they can call consumers, even those who have given prior consent.
-Expanded DNC lists and enforcement: More robust enforcement measures and an expansion of the DNC list rules mean businesses must be extra vigilant about whom they contact.
-Increased transparency requirements: Companies must ensure clear consent and provide more detailed disclosures during calls.
-Restrictions on automated and pre-recorded calls: There will be tighter limitations on robocalls, and automated calls must adhere to stricter consent protocols.
-Heavier penalties for violations: Fines for non-compliance are increasing, making violations more financially damaging.
-One-to-one consent: A caller who is attempting to sell something (seller) must obtain a consumer’s written consent before using an autodialer or pre-recorded message to contact them - and this applies to each seller separately.
-Clear and conspicuous disclosure: If your company utilizes robocalls or robotexts, you must clearly and conspicuously inform your consumers that you will use these methods to contact them.
-Document consent: The documents regarding the consent above and those in compliance with former TCPA regulations must be maintained and kept readily available.
-Record keeping: Detailed records of proof of consumer consent, detailed call records, and those listed above must be maintained for at least five (5) years.
Notably, while the rule changes above will likely require outbound call centers and companies to purchase technology to keep up with documentation and compliance, these rule changes do not apply to manually dialed telemarketing calls.
The rule changes apply to all businesses making outbound calls, including telemarketing firms, lead generators, and companies that use third-party services to make sales or promotional calls.
The new 2025 TSR changes will have a profound impact on the operations of outbound call centers, particularly those using automated dialing systems or making large volumes of calls.
Let’s explore the specific areas where the changes will be felt.
The current TSR restricts calls to between 8 a.m. and 9 p.m., but the new rules may place additional limitations on certain types of calls, particularly those involving pre-recorded messages or robocalls. Non-compliance with these timing regulations could result in hefty fines.
The 2025 TSR puts more pressure on call centers to ensure they are working with high-quality, compliant lead sources. It's no longer enough to simply have a list of leads. Outbound call centers must ensure every lead has provided express consent to be contacted and that they are not on the DNC list.
One of the most significant changes involves new caps on how many times a customer can be contacted within a specific time period, even if they have shown interest. Call centers will need to adjust their operations and use software to monitor and limit the frequency of their calls.
Given the stricter requirements, call centers must implement a robust compliance strategy. Here’s a checklist to help navigate the changes and ensure your operations remain compliant.
-Regular List Scrubbing: Ensure that your contact lists are regularly scrubbed against the national DNC list and other relevant registries. Remember that the law already requires this to be done every 31 days at a minimum.
-DNC-Compliant CRM Tools: Utilize Customer Relationship Management (CRM) systems that automatically update your contact lists against DNC data.
-Express Written Consent: Ensure that you have explicit consent from consumers before contacting them. This should be documented and verifiable, maintaining those records for at least five (5) years.
-Double Opt-In: Implement a double opt-in system where consumers actively confirm their consent, reducing the risk of disputes later.
-New Rule Training: Train your staff thoroughly on the 2025 TSR updates, particularly regarding DNC rules and consent verification.
-Compliance Documentation: Keep a record of all training sessions to demonstrate your company’s commitment to compliance.
-Call Recordings: Keep recordings of calls to provide evidence that you are adhering to the TSR, especially when it comes to consent and disclosure.
-Internal Audits: Regularly audit your calls to ensure that your employees are following the scripts and procedures required by the TSR.
Failing to comply with the TSR can result in substantial fines and even legal action. Here are ways to stay ahead of the curve and avoid costly mistakes.
The FTC can impose fines of up to $46,517 per violation. This can accumulate quickly, especially if multiple calls are made to individuals on the DNC list or without proper consent. High-profile cases of companies being fined millions of dollars for violations serve as a stark warning.
Keep in mind that along with the FTC, there are “professional litigants” who purposely make themselves attractive to call violations so that they can sue outbound call centers and companies in civil court. If you are unaware of how serious and significant this problem is today, read our article on Litigator Trap Numbers.
Establish a compliance officer or team responsible for monitoring and enforcing TSR compliance within your company. This team should regularly review your policies, train employees, and keep up with any changes to the rules.
Conduct regular internal audits to ensure that all practices align with the latest TSR regulations. This includes checking call records, consent forms, and lead sources to identify any potential issues before they become problematic.
For an additional layer of protection, consider hiring third-party auditors or legal firms to assess your company’s compliance with the TSR. This can help you uncover potential issues you might have overlooked, or may help you find aspects of your internal training that need to be improved or changed entirely.
A key concern for companies is whether they can be fined retroactively for actions taken before the January 2025 updates go into effect. Let’s explore whether retroactive enforcement is a real threat.
Generally, regulatory changes like the TSR cannot be applied retroactively unless explicitly stated in the rule. However, certain practices that were already illegal under the current TSR may still be prosecuted, even if they occurred before the 2025 updates. For example, calling numbers on the DNC list has always been prohibited, and violations of this rule can be penalized regardless of when they occurred.
Several past rulings suggest that the courts are unlikely to enforce retroactive penalties unless the FTC explicitly specifies that the rules are retroactive. Nonetheless, this does not provide a blanket exemption for companies that have been skirting the rules. Ensuring compliance before January 2025 will safeguard against any surprises.
Even if retroactive enforcement is unlikely, it’s wise to review past telemarketing practices now. Ensure that your company has adequate records of customer consent and complies with current TSR rules to minimize risk when the new regulations take effect.
If your company is sued or fined under the new TSR, knowing the next steps is crucial to mitigating the damage.
If your company receives a notice of violation or lawsuit, the first step is to consult with a legal expert who specializes in telemarketing law. They can advise on whether the violation is legitimate and help you form a response.
Sometimes, companies can negotiate with the FTC to reduce fines, particularly if they can demonstrate that they made a good-faith effort to comply with the law. A strong compliance record can work in your favor during these negotiations.
If you believe the fine or lawsuit is unwarranted, you may have the option to appeal the FTC's decision. Keep in mind that appeals are often complex, and you will need solid evidence to support your case.
To avoid legal risks and ensure smooth operations after the January 2025 updates, outbound call centers should begin preparing now.
Start reviewing and updating your calling procedures. This includes checking how often you call each contact, ensuring that consent is properly documented, and updating call scripts to reflect new disclosure requirements.
Technology is essential for maintaining compliance. Invest in software that tracks call frequency, automatically scrubs DNC lists, ensures calls are within appropriate times based on the recipient’s time zone, and verifies consent. Tools like compliance-focused CRMs or automated dialing systems with built-in safeguards can help.
Partnering with legal experts who understand telemarketing law can help ensure that your company’s internal policies are aligned with the new TSR rules. They can also help you prepare for potential changes in enforcement.
Our team at CallPurity has decades of experience working with the largest telecom and mobile carriers, with and within the government, and consulting with professional call centers and companies. We understand the newest technology and how difficult compliance can seem. This is our specialty, and our team can help you find the right solution for your needs to stay ahead of and in compliance with these rule changes.
The 2025 updates to the Telemarketing Sales Rule (TSR) present new challenges for outbound call centers, but they also offer an opportunity to build trust with consumers by improving transparency and consent practices. By preparing now, companies can not only avoid fines and lawsuits but also enhance their reputation in a competitive marketplace.
The key to success is staying informed, investing in compliance, and adapting your operations to align with the new regulations. With the right strategies in place, outbound call centers can thrive under the 2025 TSR while minimizing legal risks.
If you need help ensuring that your company is ready for this challenge, our team at CallPurity is here to help.
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What is the 2025 Telemarketing Sales Rule and How Can Outbound Call Centers Stay Compliant?
The 2025 Telemarketing Sales Rule (TSR) introduces stricter limitations on call frequency, expands Do Not Call (DNC) list enforcement, requires express consent for robocalls or robotexts, and increases penalties for non-compliance. Outbound call centers must verify consent, adjust call strategies, and adopt compliance tools to avoid costly fines and lawsuits. Learn how to prepare, maintain compliance, and navigate the new regulations effectively.
