If you run a telemarketing organisation or call center you may want to know if you qualify for exemption from state telemarketing licenses. There are many exemptions that apply according to different types of telemarketing but these vary from state to state. In total there are around 33 states in the United States that have their own specific call centre licenses.
In general, telemarketing companies will need a license if they call into theses particular states. But the registration process varies by state, with some even requiring agents to have an individual license for example.
In terms of exceptions, there are differing instances in which a call centre may be exempt from requiring a license. In some states a telemarketing company may be exempt if it is only calling previous customers, while in others possession of another professional license such as in real estate or insurance, is sufficient. Other exemptions apply depending on whether permission to make the call was given by the receiver prior to the call being made or the volume of calls made. Other exemptions apply based on what is being sold.
In some states exemptions are applied automatically without any applications being made, while in others companies will need to apply for the required exemptions. Either way, it makes good business sense to confirm which exemptions apply to your organisation before basing your operations on them.
Confirming a possible telemarketing exemption may require the advice of a professional such as a lawyer and below we have compiled a list of 10 types of telemarketing exemptions to assist you:
- Previous Permission or Inquiry
As mentioned above, different states have varying requirements for telemarketing license exemptions and one of the most important concerns prior permission or inquiries. Certain states will allow an exemption to call centres that only call numbers for which they have received permission to do so, or if a customer has been in contact with the business about its products before.
It is worth noting that in some cases these exemptions may only apply if specific consent is given, or if any previous customer contact is within a specified timeframe. Some of the states that provide permission for prior consent and inquiries include Washington DC, Kentucky, Vermont, Mississippi, West Virginia, Colorado and Wisconsin.
2. Setting Appointments for Face to Face Meetings
An exemption that is similar to that of prior permission above applies to companies that only complete transactions after a face to face meeting has occurred. In most states where this exemption exists, the exception only applies if the customer agrees to any charges or payment collection after the meeting in person. Any agreements during the telephone call or collection of money before a face to face meeting do not qualify for this exemption.
States in which the face to face meeting exemption applies include Alabama, Alaska, New York, North Carolina, Oklahoma, Oregon, Texas, Washington and West Virginia.
3. Incoming Calls
Other exemptions in some states apply if a call centre only receives incoming calls. However issues may arise from the fact that a call centre may qualify for exemption in some states while others will still require a license even for inbound calls.
While there are practical concerns over how to know where received calls originate, some of the states that offer telemarketing exemptions for inbound calls include Kentucky, New Jersey, North Carolina, and Wyoming
4. Established Customers
As with prior permission or inquires, some states allow for exemptions to telemarketers contacting current or former customers. In some states, call centers that primarily only contact existing business relationships may qualify for telemarketing license exemptions. This exemption includes established customers who continue to receive your products or services. It should be noted however that such exemptions may be subject to other conditions such as how long it has been since the customer’s last purchase or what type of product or service they are paying for, among other factors.
Some of the states in which established business relationships qualify for telemarketing licence exemptions include the following: Alabama, Florida, Kentucky, Louisiana, and New Jersey. The exemptions are also applicable in North Carolina, Rhode Island, Washington, Utah, Vermont, South Dakota, Texas, Wisconsin, and Wyoming.
5. Licensed Insurance Professionals
Some states apply exemptions to telemarketers who are licensed insurance professionals. This type of exemption varies from state to state and may depend on whether you are licensed as a broker or an agent, among other considerations. Important things to consider here include whether you will need a license for your home state only or for some of the states you will be calling into.
States that apply exemptions for licensed insurance professionals include Colorado, Florida, Louisiana, Montana, Nevada, North Carolina, Rhode Island, Washington and West Virginia.
6. Business to Business Calls
Telemarketers and call centres that mainly make business to business calls may be exempt from licensing requirements in certain states. These exemptions depend on requirements such as the product or service being sold, and whether there has been any business conducted between the two in the past.
States with business to business exemptions may also apply them if a company sends descriptive literature prior to the new transaction, and these include; Alabama, New York, North Carolina, Texas, Washington, West Virginia, and Wyoming.
7. Licensed Real Estate Professionals
As with licensed insurance professionals, real estate professionals with a license may be exempt from requiring one for telemarketing in some states. Being properly licensed under a state’s’ real estate statutes may qualify telemarketers for exemption in their home state, although real estate licenses may be required for other states in order to qualify for exemptions.
8. Isolated Transactions
Telemarketing license requirements may be exempted for call centres that make minimal calls into certain states. Some of the call limits may be as low as two calls or less per annum, however, so any exemptions should be confirmed with the help of a qualified professional.
9. Companies Trading on the Stock Exchange
Publicly-traded companies that are regulated by their respective state securities statutes or the Securities Exchange Act may be exempt from telemarketing licensing in some states. These include, Alabama, Colorado, Florida, Idaho, Louisiana, Mississippi, North Carolina, and Rhode Island, among others.
10. Licensed Securities Professionals
Licensed securities professionals may be exempt from telemarketing license requirements in some states. As with licensed insurance or real estate professionals, licensed securities pro’s may also be subject to other requirements.
The ten types of telemarketing exemptions above show how varied licensing requirements are from state to state, as well as other variables. In addition, some states may require companies to apply for any exemptions while in others any applicable exemptions will be be applied without any requirements for paperwork.
As such, decisions made when looking into whether your call centre qualifies for any exemptions from telemarketing licenses in any state should be made with the advice of a qualified telemarketing attorney who can help make informed decisions that are right for the business.