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2015 GNYADA Membership Directory

100

Pages 98-113 provided by Dealertrack Technologies 516.547.2242;

www.dealertrack.com

IMPORTANT LAWS AND REGULATIONS

Laws Regulating Telemarketing, Email and Faxing

Federal and state laws govern contacting consumers by telephone,

fax or email. The FTC and a number of states maintain “Do-

Not-Call” lists prohibiting telemarketing calls to the listed

numbers, which include both land lines and cell numbers. Scrub

telemarketing lists against both the FTC’s National Do Not Call

Registry and applicable state do-not-call lists. Additionally,

dealers are required to keep their own company list of

customers who indicate that they do not want to be

contacted by telephone, fax or email and their names

must be deleted from marketing lists as well. If you

share customer information with affiliates or third

parties, make sure to scrub from the shared lists any

customers who have opted out of being contacted in any

medium of expression.

As background, the federal Telephone Consumer Protection Act (“TCPA”) and the Telemarketing Sales and

Consumer Fraud and Abuse Prevention Act (“Telemarketing Act”) restrict the use of telephonic equipment to

contact consumers and the use of fax machines to send unsolicited advertisements. The Junk Fax Prevention Act

of 2005 also restricts fax advertising.

The FTC also regulates use of phone numbers for various purposes principally through its Telemarketing Sales

Rule published pursuant to the Telemarketing Act. Among other things, the Telemarketing Sales Rule prohibits

making prerecorded telephone marketing calls to any phone number unless the recipient has provided a

prior express written consent to receive such calls at the indicated phone number. An established business

relationship with the consumer is no longer sufficient for prerecorded telemarketing. Even with consents, all

prerecorded calls must include an automated interactive opt-out mechanism to disconnect at the outset of the

call by means of a key-press or voice activated mechanism, as well as a toll-free number to limit further calls. If

the customer opts out at any time during the call, then the prerecorded message must immediately terminate

and disconnect from the consumer’s phone.

The Telemarketing Sales Rule can be enforced by the FTC, state Attorneys General or via consumer lawsuits,

including class actions. States also have laws that restrict the right to make calls to cell phones, fax numbers

and for telemarketing and other purposes.

The federal CAN-SPAM Act of 2003 and the Junk Fax Prevention Act of 2005 also require that each email and fax

transmission conspicuously gives the consumer a way to opt out of receiving further communications in that

medium.