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Legalities of Telemarketing (California)

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AraK

Guest
Does anyone know the legalities of telemarketing a service to a business? I want to go through the newspaper and telemarket website/internet services to businesses who have ad's in it, but am curious what the legal implications are?

I'm aware of the Do Not Call list, but I think I read somewhere that businesses were exempt from this and you are allowed to cold-call them. Anyone else have experience in this area?
 


CaliforniaJay

Junior Member
B2B Telemarketing in California.

AraK said:
Does anyone know the legalities of telemarketing a service to a business? I want to go through the newspaper and telemarket website/internet services to businesses who have ad's in it, but am curious what the legal implications are?

I'm aware of the Do Not Call list, but I think I read somewhere that businesses were exempt from this and you are allowed to cold-call them. Anyone else have experience in this area?


I'm in California and curious about the same (B2B Telemarketing)

Did you ever find out Arak?

Does anyone else know?
 
Do Not Call lists says Business Numbers are not allowed within it, BUT California law states:

Telephonic Seller Registration

Pursuant to California Business and Profession Code section 17511.1, telephonic sellers are required to register not less than 10 days prior to doing business in California. The telephonic seller must file with the Attorney General's Office, Consumer Law Section specified information and a filing fee of fifty dollars. Quarterly updates and annual renewals are required. A seller shall be deemed to do business in this state if the seller solicits prospective purchasers from locations in this state or solicits prospective purchasers who are located in this state. All telephonic sellers shall maintain a bond issued by a surety company admitted to do business in this state. The bond shall be in the amount of one hundred thousand dollars in favor of the State of California for the benefit of any person suffering pecuniary loss in a transaction commenced during the period of bond coverage with a telephonic seller.

Persons or companies wishing to register, or obtain a registration package and persons wishing to file a complaint against a telephonic seller may do so in writing to:

Office of the Attorney General
Public Inquiry Unit
P.O. Box 944255
Sacramento, CA 94244-2550.


More specific information on the Act is located at: http://www.cyberspacelaw.org/loren/ca1629.html

I also recommend doing research on "Operation Cold Call".
 

CaliforniaJay

Junior Member
EvilWizard said:
Do Not Call lists says Business Numbers are not allowed within it, BUT California law states:

Here is the law I guess:

http://caselaw.lp.findlaw.com/cacodes/bpc/17511-17513.html


I don't actually plan to do any selling.

I just want to call people and tell them about a free online resource and online radio show that is relevant to their industry. There is no purchase required to use the resource.


The law has some exemptions but nothing that clearly would exempt me as a "Telephonic Seller"....

(e) For purposes of this article, "telephonic seller" or "seller"
does not include any of the following:

...

(7) A person primarily soliciting the sale of a newspaper of
general circulation, as defined in Article 1 (commencing with Section
6000) of Chapter 1 of Division 7 of Title 1 of the Government Code,
a magazine, or membership in a book or record club whose program
operates in conformity with the requirements of Section 1584.5 of the
Civil Code.

...


(9) A person soliciting without the intent to complete and who
does not complete the sales presentation during the telephone
solicitation but completes the sales presentation at a later
face-to-face meeting between the solicitor and the prospective
purchaser. However, if a seller, directly following a telephone
solicitation, causes an individual whose primary purpose it is to go
to the prospective purchaser to collect the payment or deliver any
item purchased, this exemption does not apply.

It's not really a magazine as in the exemption in #7, and I'm not sure about the exemption #9...

I would not have the intent to complete (a sale), because I am selling nothing. However, I would then not be completing a sale at a later face-to-face meeting either.


Your thoughts?
 
Last edited:

CaliforniaJay

Junior Member
Thinking of the "Magazine" route (I'm assuming that the 1584.5 requirement applies to '...a magazine, or membership in a book or record club' ? )


Here is Civil Code 1584.5:

1584.5. No person, firm, partnership, association, or corporation, or agent or employee thereof, shall, in any manner, or by any means, offer for sale goods, wares, merchandise, or services, where the offer includes the voluntary and unsolicited sending or providing of goods, wares, merchandise, or services not actually ordered or requested by the recipient, either orally or in writing. The receipt of any goods, wares, merchandise, or services shall for all purposes be deemed an unconditional gift to the recipient who may use or dispose of the goods, wares, merchandise, or services in any manner he or she sees fit without any obligation on his or her part to the sender or provider. If, after any receipt deemed to be an unconditional gift under this section, the sender or provider continues to send bill statements or requests for payment with respect to the gift, an action may be brought by the recipient to enjoin the conduct, in which action there may also be awarded reasonable attorney's fees and costs to the prevailing party. For the purposes of this section and limited to merchandise or services offered for sale through the mails, the "voluntary and unsolicited sending or providing of goods, wares, merchandise, or services not actually ordered or requested by the recipient, either orally or in writing," includes any merchandise or services selected by the company and offered to the consumer which will be mailed to him or her for sale or on approval or provided to him or her unless he or she exercises an option to reject the offer of sale or receipt on approval. Merchandise or services selected by the seller and offered for sale on a periodic basis must be affirmatively ordered by a statement or card signed by the consumer as to each periodic offer of merchandise or services. This paragraph shall not apply to any of the following:

(a) Contractual plans or arrangements complying with this subdivision under which the seller periodically provides the consumer with a form or announcement card which the consumer may use to instruct the seller not to ship the offered merchandise. Any instructions not to ship merchandise included on the form or card shall be printed in type as large as all other instructions and terms stated on the form or card. The form or card shall specify a date by which it shall be mailed by the consumer (the "mailing date") or received by the seller (the "return date") to prevent shipment of the offered merchandise. The seller shall mail the form or card either at least 25 days prior to the return date or at least 20 days prior to the mailing date, or provide a mailing date of at least 10 days after receipt by the consumer, except that whichever system the seller chooses for mailing the form or card, the system must be calculated to afford the consumer at least 10 days in which to mail his or her form or card. The form or card shall be preaddressed to the seller so that it may serve as a postal reply card or, alternatively, the form or card shall be accompanied by a return envelope addressed to seller. Upon the membership contract or application form or on the same page and immediately adjacent to the contract or form, and in clear and conspicuous language, there shall be disclosed the material terms of the plan or arrangement including all of the following:

(1) That aspect of the plan under which the subscriber must notify the seller, in the manner provided for by the seller, if he or she does not wish to purchase or receive the selection.

(2) Any obligation assumed by the subscriber to purchase a minimum quantity of merchandise.

(3) The right of a contract-complete subscriber to cancel his or her membership at any time.

(4) Whether billing charges will include an amount for postage and handling.

(b) Other contractual plans or arrangements not covered under subdivision (a), such as continuity plans, subscription arrangements, standing order arrangements, supplements and series arrangements under which the seller periodically ships merchandise to a consumer who has consented in advance to receive the merchandise on a periodic basis.
 

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