On October 15, 2024, the Federal Trade Commission’s (FTC) latest amendment to the Telemarketing Sales Rule (TSR) comes into effect, increasing the record-keeping obligations for companies engaged in telemarketing activities. If your business involves telemarketing or works with third-party telemarketers, now is the time to ensure your practices align with these updated regulations.

The TSR applies to all outbound interstate phone calls that are part of a plan, program, or campaign designed to encourage the purchase of goods, services, or charitable donations. Importantly, this includes calls made by live agents, not just calls made via autodialers or prerecorded messages.

Key Changes to Record-Keeping Requirements

The new rules significantly expand the amount of information telemarketers and sellers (the businesses hiring telemarketers) must retain for a minimum of five years. Below is a breakdown of what companies must now document:

1. Prerecorded Messages

Businesses must keep copies of every unique prerecorded message used during telemarketing campaigns. This includes calls made using soundboard technology, where a live agent communicates with recipients by playing recorded audio snippets instead of using their own voice.

2. Established Business Relationships (EBRs)

To demonstrate that a company has an established business relationship (EBR) with a consumer, records must show:

   – The consumer’s name and last known phone number.

   – The date the consumer submitted an inquiry or application.

   – Details of the product or service the consumer inquired about.

   – Financial records that prove a previous transaction between the company and the consumer.

3. Contracts with Service Providers

For businesses that outsource telemarketing, it’s now mandatory to keep detailed records of service providers, including:

   – Copies of contracts with those service providers.

   – The date contracts were signed and the duration of their validity.

4. Compliance with the FTC’s National Do Not Call (NDC) Registry

Records showing that the company has complied with the NDC Registry must be maintained, including procedures to ensure that no calls are made to consumers on the list.

New Information to Record for Telemarketing Calls

In addition to the above, the amended TSR mandates that businesses maintain new types of information regarding the specifics of each telemarketing call. This includes:

1. Call Details

Businesses must document the details of each telemarketing campaign, such as:

   – The calling number and the number dialed.

   – The time, date, and duration of the call.

   – The disposition of the call (answered, dropped, transferred, etc.).

   – If the call was transferred, the phone number or IP address to which it was transferred, and the name of the company receiving the transfer.

2. Telemarketer Identity

Records must include the name of the telemarketer who placed or received each call, as well as the organization that initiated the telemarketing activity.

3. Call Purpose

The business must document the product, service, or subject of the call and whether it was directed to a consumer or a business. Additionally, it should record whether the call involved robocalls or was initiated as an outbound call.

4. Caller ID Information

For outbound calls, the caller ID details must be captured, including:

   – The name and phone number transmitted.

   – Proof that the telemarketer was authorized to use the transmitted name and number.

Ensuring Compliance with the New Rule

Businesses engaging in telemarketing, either directly or through third-party providers, should immediately review and update their record-keeping practices to ensure compliance with the TSR’s revised requirements. These new rules mean that both telemarketers and sellers must be more diligent in tracking the details of their interactions with consumers, from the content of the calls to the contractual agreements with service providers.