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Difficulty: MediumNational Do Not Call Registry and TCPA

A property and casualty insurance agency is launching a cross-selling campaign for life insurance. The agency plans to make outbound telemarketing calls to two specific groups of people, all of whom have their phone numbers listed on the National Do Not Call Registry.

Group 1: Current clients who purchased an auto insurance policy from the agency 12 months ago.
Group 2: Prospects who submitted an online request for an auto insurance quote 4 months ago, but never purchased a policy.

Assuming no express written consent has been provided, which of these groups may the agency legally call under federal telemarketing regulations?

  1. The agency may only call the current clients, as their business relationship falls within the 18-month exemption window.Answer
  2. B
    The agency may only call the prospects who requested a quote, as consumer inquiries provide a permanent exemption from the registry.
  3. C
    The agency may call both groups, because any prior contact or inquiry establishes an open-ended business relationship exemption.
  4. D
    The agency may call neither group, because the National Do Not Call Registry prohibits all telemarketing unless express written consent is obtained.

Answer

The agency may only call the current clients, as their business relationship falls within the 18-month exemption window.
The correct answer accurately applies the two different time limits for the Established Business Relationship (EBR) exemption. Current clients (Group 1) may be called for up to 18 months following their last transaction, so calling them at 12 months is legal. Prospects who merely inquired (Group 2) may only be called for 3 months, making the call at 4 months a violation.

Step-by-Step Solution

1
Determine the Established Business Relationship (EBR) rule for existing clients.
Federal rules allow a producer to call a consumer with whom they have an EBR based on a purchase or transaction for up to 18 months from the last transaction.
This is necessary to evaluate if Group 1 can be legally contacted.
2
Determine the EBR rule for consumer inquiries.
Federal rules allow a producer to call a consumer who made an inquiry or submitted an application for only 3 months from the date of the inquiry.
This is necessary to evaluate if Group 2 can be legally contacted.
3
Apply the timeframes to the groups in the scenario.
Group 1 is at 12 months, which is within the 18-month limit (permitted). Group 2 is at 4 months, which exceeds the 3-month limit (prohibited).
This finalizes the compliance status for the telemarketing campaign.

Key Concept

Under the Telephone Consumer Protection Act (TCPA) and National Do Not Call Registry rules, an Established Business Relationship (EBR) provides an exemption to call individuals on the registry. The exemption lasts 18 months from a financial transaction or purchase, and 3 months from a consumer inquiry or application.
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Topics

National Do Not Call Registry and TCPA

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