Communicating with consumers via telephone and text messaging has been a popular tool for businesses for decades. With the increasing need for social distancing brought on by the Covid-19 pandemic, however, and despite some state restrictions on telemarketing activities during this period of uncertainty, telemarketing has become an even more useful advertising and consumer outreach tool. Businesses that have obtained the consent necessary to contact consumers via telemarketing can take advantage of this opportunity by entering into a telemarketing contract with call centers and marketing partners capable of assisting with the process.
Telemarketing contracts can be used to cover a variety of telemarketing-related relationships, including contracts with call centers that provide logistical support for a business’s internal campaigns, as well as third party database managers (or list managers) who can contact consumers with third party offers. Notwithstanding the attractiveness of this marketing method, it is crucial that businesses interested in pursuing these types of relationships, whether with list managers or list owners, ensure that the parties negotiate and enter into comprehensive telemarketing contracts that establish each party’s respective obligations, restrictions and standards of conduct. In doing so, business owners can maximize revenue potential, while properly allocating risk and potential liability.
Could a Telemarketing Contract Protect My Business?
Making the Right Call on Telemarketing Contracts
For business owners that contact consumers via telemarketing, it is essential to establish a contractual vehicle that shields business owners from liability and protects key assets. Below are some of the key provisions to consider when preparing telemarketing contracts:
- The telemarketing contract should clearly state that the database of consumer information is the sole and exclusive property of the business owner and that the call center or list manager (“Marketer”) may only use that database as necessary to provide the contemplated services.
- The telemarketing contract should require the Marketer to represent that its telemarketing activities will comply with all applicable laws, including restrictions regarding which days and times are permissible to engage in telemarketing activities.
- The telemarketing contract should require the Marketer to strictly adhere to the scripts provided or approved by the list owner.
- The telemarketing contract should require that the Marketer remain solely responsible for any and all telemarketing activities engaged in on the business owner’s behalf.
| Your education on compliance with Internet, telemarketing, and trademark law should begin with a discussion between you and an experienced attorney. Scheduling a free consultation with Klein Moynihan Turco is a great place to start. |
Avoiding a Judgment Call
Without implementing strict contractual obligations that require that the Marketer act responsibly and in compliance with all applicable telemarketing laws, there is an increased likelihood that the business owner could suffer significant legal liability. Given the level of risk involved, it is highly recommended that businesses retain qualified legal counsel to ensure that any telemarketing contract is drafted and/or revised, as applicable, in order to ensure proper regulatory and legal protection.
Please note that this is only a brief overview of some of the legal issues surrounding telemarketing contracts.
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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