Telemarketing scams and legal issues
How you can protect your customers when telemarketing, and telemarketing legalities and scams to be aware of.
There are several laws and legal issues to consider when carrying out telemarketing activities, including restrictions on unlawful selling.
Telemarketing scams
Telemarketing scams are of concern for customers.
Common examples include:
- fraudulent directory listing services
- false offers of lottery prizes or loans
- advance fee fraud
- charity fraud
Because of these potential scams, you need to ensure you protect your customers.
Telemarketing laws
Telemarketing is governed by the Privacy and Electronic Communications Regulations 2003 (PECR). Under these regulations, you must not call people who have indicated that they do not wish to receive marketing calls. They may indicate this either directly to your business or by registering with the Telephone Preference Service (TPS).
When collecting personal information from potential customers, you must:
- identify who you are and explain why you are requesting the data
- say if the information will be used for future marketing
- obtain the individual’s consent if the data will be shared with a third party
The Direct Marketing Association (DMA) also offers guidance on the best telemarketing practices.
Read more about the direct marketing legal issues and best practice.
Individuals and organisations who do not wish to receive telesales calls can register with the TPS or the Corporate Telephone Preference Service (CTPS).
Silent calls
You must ensure your telemarketing activity does not result in silent calls — where a person answers the phone but hears no one on the line. This problem can occur in automated call centres.
Businesses should also avoid using answer machine detection equipment more than once a day, unless an agent is immediately available to handle the call.