Telephone Consumer Protection Act

Even though robo-calls can make it feel like there are no limits on telemarketing, the Telephone Consumer Protection Act (TCPA) is a federal law designed to protect Americans from unwanted phone contact. The TCPA applies to communications sent through telephone lines, including phone calls, robo-calls, and faxes.

When a financial professional makes a cold call, several requirements apply.

First, the representative must check two separate do-not-call lists:

• The national do-not-call list, maintained by the federal government. If the potential customer is on this list, the financial professional may not place the call.
• The firm’s do-not-call list, maintained internally by the firm. If the potential customer is on this list, the representative may not place the call.

If the potential customer isn’t on either do-not-call list, the representative must also call at a reasonable time. The TCPA permits calls only between 8:00am and 9:00pm in the potential customer’s time zone. Calling outside these hours is a violation of the law.

If the representative reaches the prospect, they must provide specific identifying information. They must state:

• Their name
• The firm’s name
• The phone number or address they’re calling from

If the prospect asks not to be contacted and requests placement on a do-not-call list, the representative must add them to the firm’s do-not-call list. Unless the customer initiates contact later and does business with the firm, the firm may not contact them again.

There are exceptions. TCPA rules don’t apply when the customer has an existing relationship with the firm (defined as having done business with the firm in the past 18 months). The rules also don’t apply if the customer specifically requests a call. In addition, calls made by non-profit organizations, or calls not related to business, are exempt from TCPA requirements.