FCC's New Rules Change the Telemarketing Landscape

The Federal Communications Commission (FCC) is continuing to have a powerful influence on the telemarketing industry by opening the door wider for class actions based on telemarketing campaigns. Most recently, the FCC passed new regulations narrowing existing exemptions for telemarketers to make calls to phone numbers registered on the federal Do Not Call list. While many consumers may applaud these steps in the short run, companies are claiming that these new regulations are overly burdensome to comply with, if not impossible, and are contemplating shutting down their telemarketing operations. Has the FCC gone too far this time or do the new regulations merely help provide necessary protection for consumers? Whether you believe the former or the latter, one thing is clear—the new regulations will likely spark even more class action lawsuits that allege violations of the Do Not Call list.

In 1991, the Telephone Consumer Protection Act (TCPA) was passed by Congress and signed into law by President George H.W. Bush. It amended the Communications Act of 1934. The TCPA places restrictions on telemarketing, including through calls, text messages and faxes. Generally, only three types of calls are exempt from the TCPA: (1) a call made on behalf of a tax-exempt nonprofit organization; (2) a call that is not made for a commercial purpose; and (3) even if a call is made for a commercial purpose, a call that does not include an unsolicited advertisement. All other telemarketing calls are subject to the restrictions contained in the TCPA.