Rules for calling sellers on state do not call lists

Federal vs. state do not call lists

The federal Do Not Call Registry covers interstate telemarketing calls, but many states maintain their own DNC lists and regulations. These state rules can sometimes be more restrictive than federal ones. It is important to check the specific DNC laws for each state where you operate or plan to call.

Some states might have different exemption criteria, or they might impose stricter penalties. Always prioritize compliance with the more stringent rule, whether it is federal or state. This approach helps minimize risk.

The established business relationship (EBR) exemption

Both federal and many state DNC rules often include an exception for an Established Business Relationship (EBR). Generally, an EBR allows you to call a consumer even if he or she is on a DNC list, provided you have had a prior business transaction or inquiry with him or her. The definition and duration of an EBR can vary by state.

For investors, an EBR might be established if a seller has previously contacted you directly, perhaps through a website inquiry or by replying to a text message. However, verify what constitutes an EBR in your specific state, as some interpretations are narrower than others.

Express consent and DNC lists

The safest way to contact a consumer, regardless of DNC lists, is with his or her express consent. If a seller explicitly provides permission to be contacted, either verbally or in writing, you generally have a clear path to communicate. This overrides DNC restrictions.

When a homeowner replies to a text message about selling his or her house, this often implies an initial interest and might be considered a form of express consent for a follow-up call, depending on how the initial outreach was framed and the specific state laws. However, always err on the side of caution and clarity.

Best practices for cold calling and DNC compliance

If you are cold calling, meaning initiating contact without prior consent or an EBR, you must diligently scrub your call lists against both federal and relevant state DNC registries. This is a non-negotiable step to avoid violations. Keep detailed records of your DNC scrubbing process.

Additionally, maintain your own internal Do Not Call list. If any individual requests not to be called again, you must honor that request immediately and permanently, regardless of whether he or she is on a federal or state registry. This demonstrates good faith and adherence to consumer preferences.

This is not legal advice

The information provided here is for general informational purposes only and does not constitute legal advice. Telemarketing and DNC regulations are complex and subject to change. You should consult with a qualified legal professional to ensure your specific business practices comply with all applicable federal and state laws. Compliance is your responsibility as an investor.