Telemarketing can be an essential tool for businesses wanting to reach consumers nationwide. If this is a sales tool your business utilizes, you should ensure that your company complies with federal and state laws and regulations, including state telemarketing registration requirements.
Obtaining telemarketing registration approval for each state in which you intend to do business is time-consuming due to the different requirements each state has in place. The required documents can include lengthy applications for the company and the sales staff, financial information, background questionnaires, marketing materials, sales scripts, and more. Additionally, several states require a surety bond, and almost all require annual renewals. Even though the process can be tedious, companies must comply with these state regulations.
Failure to comply with state telemarketing registration requirements can result in enforcement and criminal actions brought against the company and individuals and can include hefty fines and other legal consequences.
In Wisconsin, an enforcement action was brought against a business that made thousands of telemarketing calls to Wisconsin numbers without being registered as a telephone solicitor as required by state law[1]. The result was a judgment for civil forfeiture and assessments of $350,000. In Utah, the Utah Division of Consumer Protection has taken action against four companies for violating state telemarketing laws, resulting in civil penalties amounting to over $800,000[2].
By registering with state agencies as a telemarketer, you prove your commitment to compliance, and by doing so, it builds trust with consumers, upholds your business reputation, and helps avoid legal risks associated with non-compliance.
Cosgrove Law Group has experience in telemarketing registration compliance. If you would like assistance registering in the states where you do business, please get in touch with our office to speak with one of our licensed attorneys at 314-563-2490.
[1] https://www.doj.state.wi.us/news-releases/attorney-general-kaul-datcp-announce-settlement-enforcement-action-against-extended
[2] https://dcp.utah.gov/2023/07/18/utah-and-law-enforcers-nationwide-announce-enforcement-sweep-to-stem-the-tide-of-illegal-telemarketing-calls-to-u-s-consumers/