Car Dealer Lawyer

Today, the FTC issued its final Telemarketing Sales Rule (TSR) Amendments regarding prerecorded calls.  In essence, this rule will eliminate pre-recorded telemarketing calls unless the consumer has previously agreed to take the calls.

As a bit of background, this rule has been brewing for quite some time now.  In 2004, the telemarketing industry filed a petition  proposing an amendment to the TSR allowing prerecorded calls that initiated rulemaking proceedings.  The general public apparently hates these calls and over 14,000 comments were generated.  

The new rules will be phased in over time.  On December 1, 2008, prerecorded telemarketing calls must have an automated interactive opt-out mechanism that allows consumers to opt out of future prerecorded calls.  On September 1, 2009, telemarketers will need to have prior permission from consumers before they can make prerecorded telemarketing calls. (Good luck!)

The new rules only apply to sales calls – they do not affect purely “informational” calls, such as reminding you that your service appointment is scheduled for tomorrow.  There are also some exceptions for charitable fundraising.

In the dealership world, most prerecorded calls are probably informational and will still be allowed.  But if you are annoying people by using prerecorded telemarketing calls, then please have your attorney check out this new rule.

Federal Trade Commission News Release