New rules for prerecorded telemarketing calls.

• Author: Pry, Carl G.
• Position: MARKETING COMPLIANCE

THE FEDERAL COMMUNICATIONS COMMISSION recently issued new rules under the Telephone Consumer Protection Act impacting how banks (or third parties on their behalf) make autodialed or prerecorded telemarketing calls, sometimes called "robocalls."

Before a bank may place prerecorded unsolicited calls (or text messages) to residential or cell phone numbers, or use an automatic dialing system (which connects the consumer to a live representative once the call is answered) in order to sell a product or service, it must obtain a signed written agreement from the consumer.

The rules apply specifically to telemarketing calls that advertise a bank product or service. So-called "dual purpose calls," which also contain other information, are equally covered; if the call has any advertising message in it, regardless of other content, the consent rule applies. The rule does not apply to calls containing only non-sales information, such as those communicating account balances, or for fraud alert or collection purposes. Those calls only need "prior express consent," which can be verbal, if made to cell phones, and no consent at all if made to residential numbers.

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Prior written consent required

The new rules eliminate the "established business relationship" (EBR) exemption, which previously allowed telemarketing robocalls to residential line phones; now, prior written consent is required, even for a bank's existing customers.

The agreement must contain a "clear and conspicuous disclosure" stating that the agreement authorizes the bank to make autodialed or prerecorded telemarketing calls to a specific phone number. It must be signed by the consumer; however, this may be done electronically, such as over the Internet, via email, text message, or by pressing a button on a phone. I laving the consumer sign an agreement like this cannot be made to be a condition of purchasing any bank product or service; it must be a...