Communicating with consumers via telephone and text messaging has become an increasingly effective means of consumer outreach. To do it correctly, comprehensive and well-drafted call center agreements must be an essential component of the process. Due to the significant risk of violating state and federal telemarketing laws, its is vital that businesses negotiate and enter into call center agreements that establish the call center’s obligations, restrictions and standards of conduct.
Through effectively drafted call center agreements, businesses can ensure the call center’s compliance with the complex patchwork of state and federal telemarketing laws. In doing so, business owners can maximize the benefits of their telemarketing campaigns, while vastly reducing risk and the size and scope of potential liability.
Can a Call Center Agreement Limit the Liability of My Business?
What Should Be Front and Center in Call Center Agreements?
For business owners that retain a third-party call center to contact consumers via telemarketing, it is essential to establish contractual obligations to ensure that the call center’s practices comply with all applicable laws. Below are some of the provisions to consider when preparing call center agreements:
- The call center agreement should clearly state that the database of consumer information is the sole and exclusive property of the business owner. Further, the call center should only be permitted to use that database as necessary to provide the contemplated services.
- The call center agreement should require the call center to represent that its telemarketing activities will comply with all applicable laws. These requirements should include restrictions regarding which days and times are permissible to engage in telemarketing activities.
- The call center agreement should require the call center to strictly adhere to the scripts provided or approved by the business owner.
- The call center agreement should require that the call center (and its agents) obtain and/or maintain, at its/their sole cost and expense, all permits, licenses and other consents necessary to perform the contemplated telemarketing services. These should include, where appropriate, telemarketing registration in applicable United States jurisdictions.
- The call center agreement should require that the call center only employ qualified personnel. This should include only those individual agents who have not been previously precluded from performing telemarketing services by a United States regulatory agency.
Avoiding a Tough Call
Without establishing express contractual obligations that require that the call center comply with all applicable telemarketing laws, there is an increased likelihood that the business owner may suffer significant regulatory and legal liability. Given the level of risk involved, it is highly recommended that businesses retain qualified legal counsel. Such counsel can help ensure that any call center agreement is drafted and/or negotiated, as applicable, to include proper regulatory and legal protection.
Please note that this is only a brief overview of some of the legal issues surrounding call center agreements.
If you are interested in learning more about this topic or require assistance in connection with preparing a telemarketing contract, please e-mail us at: info@kleinmoynihan.com, or call us at (212) 246-0900.
The material contained herein is provided for informational purposes only and is not legal advice, nor is it a substitute for obtaining legal advice from an attorney. Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice of an experienced attorney.
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