On October 1, 2023, Senate Bill No. 1058 – Public Act No. 23-98 took effect, introducing substantial revisions to Connecticut’s telemarketing statutes, putting greater restrictions on calls, and imposing some stiff penalties for violators. These amendments to legislation necessitate careful consideration by businesses that engage in telemarketing calls and related activities within the state. It is critical for businesses to understand how these new regulations will impact them, especially including the expansion of the definition of “telemarketer,” mandated call disclosures, and other new restrictions.

By staying abreast of these legal developments, businesses can mitigate the risk of non-compliance and the associated penalties, which can reach up to $20,000 per violation. Continue reading to learn more about these significant developments and how the law firm of Wofsey Rosen can help your business continue to comply with important regulations under business law.

Broadened Scope of the Term “Telemarketer”

Prior to SB 1058, Connecticut’s telemarketing laws primarily targeted entities directly engaged in making unsolicited sales calls. The new piece of legislation significantly expands the definition of the term telemarketer to encompass a wider range of businesses that make direct calls. Any company that conducts business in Connecticut, along with any affiliates, subsidiaries, vendors, and service providers, can now be classified as a telemarketer under the law if they make or cause to be made “telephonic sales calls” to Connecticut residences. Companies that outsource their telemarketing activities to a third-party vendor were previously excluded from any liability for non-compliance, but that is no longer the case.

The term telephonic sales call is defined as a telephone call to any telephone number that has a Connecticut area code or a resident consumer of the state. Not all calls that fall under this definition are regulated by SB 1058, however. Exempt calls include:

• Calls in response to a request or inquiry made by the consumer
• Calls made by a nonprofit to a consumer who is an active member of their organization
• Calls regarding polling, soliciting votes, or the expression of ideas
• Calls made as a part of a business-to-business relationship
• Calls made to a consumer that has granted written consent previously
• Calls made in connection with an existing debt, contract, payment, or performance which has yet to be completed
• Calls made to an existing customer that has not opted out of receiving such calls
• Calls made on behalf of a religious, charitable, political, or other noncommercial purpose

This means that there will be increased scrutiny, and companies that were previously exempt from telemarketing regulations may now need to review their calling practices to ensure compliance with SB 1058. Businesses will now need to have clear communication with any third-party vendors that they hire for telemarketing activities to ensure that the third party is equally aware of the importance of compliance with these new regulations.

New Restrictions on Telemarketing Calls

Prior regulations were primarily limiting unsolicited calls made by using automated dialing systems or prerecorded messages. The new restrictions create significant restrictions on telephonic sales calls and how businesses can reach potential customers in the state of Connecticut. SB 1058 establishes a general rule prohibiting telemarketers from making calls to Connecticut residents without prior express written consent. This means that businesses will have to obtain verifiable written permission from the consumer before initiating a sales call. Verbal or implied consent is no longer sufficient.

This requirement for written consent strengthens consumer protections against unwanted sales calls and avoids ambiguity. Explicitly authorized sales calls must state the purpose of the call and the products or services being offered. Some exceptions to this general rule requiring prior written consent exist, including existing customers, calls in response to inquiries, calls from non-profits and debt collectors, and business-to-business calls.

Call Time Limitations

Call times are now limited to a specific time frame between 9 am and 8 pm local time. Businesses must ensure their calling practices adhere to this specific time frame or risk penalties for violations. Compared to other state and federal telemarketing laws, Connecticut’s time window offers businesses a longer period for permissible calls.

Required Disclosures During Calls

SB 1058 also introduced new requirements regarding the disclosure of information during telemarketing calls to Connecticut residents. These are intended to provide greater transparency to consumers and provide more control over their interactions with telemarketers. Within the first 10 seconds, the telemarketer must disclose their identity, the company they represent, and the reason for the call. This allows consumers to make informed decisions about whether they want to continue the call and avoids ambiguity.

Businesses will also be required to ask the consumer at the beginning of the call if they wish to continue, end the call, or be removed completely from the telemarketer’s call list. If a consumer indicates their wish to end the call, it is now regulation that the telemarketer must end the call within 10 seconds of hearing that stated.

Penalties for Non-Compliance

Penalties for non-compliance with Connecticut’s revised telemarketing laws have been significantly raised under SB 1058. Businesses that disregard the regulations outlined above expose themselves to significant risk and potential for substantial penalties. The new law allows for a penalty of up to $20,000 per violation of its provisions, which could quickly impact a business’s bottom line.

Alongside these reasons to comply with Connecticut’s telemarketing regulations, businesses can benefit from better telemarketing practices by avoiding damaging their reputation and eroding customer trust. Companies could also benefit from implementing new training to educate employees on these regulations, which can help mitigate the risk of inadvertent violations. Businesses are strongly advised to seek guidance from legal counsel to ensure their telemarketing practices fully comply, given the potential consequences.

Seek Legal Counsel for Help with Connecticut’s New Telemarketing Regulations

By adhering to these mandated disclosures and respecting your consumer’s choices, businesses can demonstrate good faith efforts to comply with SB 1058 and minimize the potential for consumer complaints and legal actions. If you have questions about any of these new regulations or if your company’s telephonic activities fall under the new definition of telemarketing, contact the corporate lawyers at the law firm of Wofsey Rosen for answers.