The Essential Auto Dialer Laws Every Business Should Know

Hire an auto dialer only after confirming that it conforms with applicable auto dialer laws – otherwise you may put yourself in hot water. In January 2020 there has been a potential class-action suit against a Subway franchise for breaking auto dialer laws is filed in the United States District Court in Arizona. The complaint alleges that during a four-year period, the proprietors of Subway shops distributed mass-marketing text messages without obtaining particular written approval.

Call receiver annoyed by an auto dialer call

Ride-sharing service launched in October 2018 Lyft is facing a class action on behalf of “third-party entity” text messaging consumers. According to the lawsuit, Lyft does not have the authority to send marketing messages to a large number of the persons it contacted.

Again in January 2020, the Eleventh Circuit Court dismissed a class-action lawsuit against Hilton Grand Vacations for making unwelcome marketing calls. The court determined that the Telephone Consumer Protection Act’s (TCPA) specification of an auto dialer has been insufficiently explicit to establish clearly that Hilton’s auto dialer was subject to the TCPA’s jurisdiction.

Auto dialer laws seem to be complicated, and as you’ll see, their interpretation is constantly up for debate. This might make it difficult for a business to determine what and how to look at in an auto dialer or even how to utilize one safely.

Nevertheless, the benefit of using the right auto dialer is a substantial increase in efficiency when attempting to contact customers and prospects, increased success rates through sales as well as outreach, and also an auto dialer with built-in features such as recording, reporting, and campaign tracking that make it easier to do your job and improve your efforts.

It’s a delicate balancing act between employing an auto dialer and adhering to auto dialer laws, but before that, you should be able to know what an auto dialer is.

What really is the distinction between an autodialer, a robocaller, and a predictive dialer?

According to the Federal Trade Commission (FTC), a robocall occurs when you answer your phone and are greeted by a recorded message rather than a real person. A robocaller can conduct hundreds of calls simultaneously, but they cannot render robocalls wishing to sell you anything unless they have your specific written authorization to contact you. Certain robocalls, on the other hand, are entirely lawful. Political and healthcare provider-related calls, for example, are authorized.

On the other hand, a predictive dialer would contact numerous numbers simultaneously with the presumption that only one will be taken, at which time the dialer will transfer the call to a live representative.

By comparison, an auto dialer is a promotional tool that calls a single number at such a time. If no one answers, you can go to the subsequent call whilst your auto dialer ends up leaving a preset message. In other words, it’s one-to-one marketing, but much faster and with a lot more benefits for you than a manual procedure.

While it is a fairly broad term, it is critical to grasp the distinctions before engaging in behavior that might get you in legal jeopardy and this makes a robocaller is ruled out for any business offering a good or service. A predictive dialer is dangerous, and it also puts you in danger of providing subpar customer service, as the individual wherein your phone may or may not talk to a live person.

An auto dialer is a cost-effective method of providing devoted, customer-focused engagements, that is more inclined to maintain you in conformity as long as you adhere to any auto dialer legislation.

Business phone system

Disregard these regulations governing auto dialers at your own risk

There are several auto dialer laws in the United States and because they are always growing, it is critical to stay current. The excellent thing is that a significant deal of them are straightforward and simple to follow. Even the restrictions that may be contested in court are often uncomplicated for non-lawyers.

The majority of auto dialer laws belong within one of two categories – the first is the Telephone Consumer Protection Act or TCPA; and the second one is the Telemarketing Sales Rule (TSR), which regulates the Do Not Call register.

The following are some of the most significant federal auto dialer laws that will affect when and who you contact, as well as the information you are compelled to give.

The time of day that the call was placed

You are not authorized to make calls prior to 8:00 a.m. and after 9:00 p.m. in the receiver’s time zone. This final step is critical if you’re phoning from outside your region. This implies that when you’re on the east coast, you will be unable to contact anyone else in California prior to 11 a.m.

There are parties that you are prohibited to make calls to

To emphasize that you cannot contact emergency channels like those of hospitals, doctors, 911, or fire and police, the FCC (Federal Communications Commission) notes that you cannot use these numbers for personal use.

Not everything can be considered as abandoned calls

You need not “abandon” with over 3% of answered calls. “A call is considered ‘abandoned’ when it is not linked to a live sales professional in less than two seconds of that same called person’s greeting getting completed.” That delay you experience whenever you receive a marketing call when you do not receive a response from a real person in just two seconds, your message is deemed abandoned.

There are deceptive practices that are prohibited

Deceptive techniques are, obviously, outlawed by the Federal Trade Commission (FTC). Nevertheless, if somebody pays you for goods and/or services, then you must be “clear and apparent” in the transaction’s specifics before they will pay you. This contains the entire price, any limitations, and any refund procedures. Additionally, as a reminder, the penalty for participating in these fraudulent acts is $43,280 per violation.

There are required disclosures that must be reported

Just before you get to a marketing pitch, the Telemarketing Sales Rule (TSR) mandates you to declare yourself, the intention of the call, and a general description of the things or services you were offering.


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