Today’s Business: Connecticut expands telemarketing laws

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Today’s Business: Connecticut expands telemarketing laws

It is election season, and this year we should expect to endure telemarketing like we’ve never experienced before. It’s already started, with candidates soliciting for votes — and dollars.

Because of this increase in calls, it is a good time for businesses to make sure their telemarketing efforts are effective (as opposed to annoying) and to make sure their programs comply with applicable state laws.

Whether engaged in telemarketing campaigns to win votes — or to promote a business — it is critical to understand the impact of Connecticut’s telemarketing statute, which was recently expanded. The new law allows for a penalty of up to $20,000 per violation.

In the past, Connecticut’s telemarketing laws primarily targeted entities directly engaged in making unsolicited sales calls. Today, any company that conducts business in Connecticut, along with any affiliates, subsidiaries, vendors, and service providers, can now be classified as a telemarketer if they make or cause to be made “telephonic sales calls” to Connecticut residences. Companies that outsource telemarketing to a third-party vendor were previously excluded from any liability for noncompliance, but that is no longer the case.

Telephonic sales calls refer to any telephone number that has a Connecticut area code or a resident consumer of the state. Some of the exemptions are:
•    Calls in response to a consumer request or inquiry
•    Calls made by a nonprofit to a consumer active in their organization
•    Calls regarding polling, soliciting votes, or the expression of ideas
•    Calls made in connection with an existing debt, contract, payment, or performance which has yet to be completed
•    Calls made to an existing customer that has not opted out of receiving such calls
•    Calls made on behalf of a religious, charitable, political, or other noncommercial purpose

Businesses need to have clear communication with third-party vendors hired for telemarketing to ensure that the third party is equally aware of Connecticut regulations.

Business telemarketers trying to connect with Connecticut residents, in general, are prohibited from making calls without prior express written consent. This requirement strengthens consumer protections against unwanted sales calls and avoids ambiguity. Explicitly authorized sales calls must state the purpose of the call and the products or services being offered. As noted, some exceptions to this general rule requiring prior written consent exist, including existing customers, calls in response to inquiries, calls from non-profits and debt collectors, and business-to-business calls.
Within the first 10 seconds, a telemarketer now must disclose their identity, the company they represent, and the reason for the call. Consumers must be asked, at the beginning of the call, if they wish to continue or end the call, or be removed from the telephone solicitor’s list.  If a consumer wants to end the call, the telemarketer must hang up within 10 seconds.

To reduce the risk of inadvertent violations, companies should educate their employees as to the new telemarketing rules and requirements.

Companies that fail to adhere to the new rules risk consumer complaints and substantial business and legal risks.

Attorney Steven M. Frederick is co-managing partner at the Stamford-based law firm Wofsey, Rosen, Kweskin & Kuriansky, LLP. His focus is on employment and labor law and a wide variety of commercial, civil, construction, and business litigation. He can be reached at 203-327-2300.

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