Posted: February 2, 2017
Everyone has heard the tale of the telemarketing company that makes a few too many calls to numbers on the Do Not Call list, only to be buried in fines and legal fees due to a lawsuit with the FTC. Since the passing of Do Not Call (DNC) legislation, companies making telemarketing calls have dedicated valuable time and resources ensuring they have sufficient DNC policies in place to avoid going to court with federal agencies and professional plaintiffs.
While keeping up with federal telemarketing requirements can be a daunting task at times, it is important to remain equally as diligent with state telemarketing laws. For example, 12 states have their own version of a DNC list for their residents to register their phone numbers and these states can levy costly penalties for violations of their own DNC list requirements.
Recently, Arizona heavily enforced its DNC law. In addition to a $50,000 fine, Scottsdale auto-glass Company was recently banned from placing any telemarketing calls for the next six years for placing calls to consumers on the Arizona DNC list. As part of the settlement, if the company violates this ban, it will be fined another $50,000.
The Arizona Attorney General filed the lawsuit in June 2016 against the auto-glass company, alleging that unlawful calls were made to consumers’ regarding windshield replacement services between 2013 and 2015. “This case is about protecting Arizonans from harassing and illegal telemarketing calls… Arizonans on the Do Not Call list are off-limits to telemarketers, and anyone caught violating telemarketing laws will be held accountable,” Mark Brnovich said in a statement.
Arizona is definitely not the first state to make an example of companies engaging in illegal telemarketing practices. However, in light of this recent action, it serves as an important reminder to include all applicable state telemarketing laws in your company’s compliance policies and procedures to avoid enforcement actions like this.
We know that keeping track with the state telemarketing requirements can be overwhelming, but organizations must ensure they are complying with the various rules and regulations to avoid any penalties for non-compliance. For more information on navigating the various state regulations, please feel free to reach out to us at firstname.lastname@example.org.
Alex Sharpe is a Consultant at CompliancePoint. She works with clients in a variety of industries and aims to keep them updated on the latest changes in the regulatory environment related to U.S. federal and state consumer contact requirements and direct marketing compliance. Her focus is on helping clients navigate and understand how the regulations affect their business. Alex has earned her Customer Engagement Compliance Professional (CECP) certification from the Professional Association for Customer Engagement (PACE) and has a B.B.A. in Management from the University of Georgia’s Terry College of Business.