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Don’t Test the Water

Have you seen the “free” water test kits available at Home Depot?  You send a sample to be tested, and, with the test results comes a barrage of marketing calls from a company selling water purification systems. Annoying? Yes; also illegal.

The federal Telephone Consumer Protection Act (“TCPA”) prohibits the use of automatic telephone dialing systems, also known as “robo dialers,” to make unsolicited marketing calls.  The penalties are stiff; $500.00 per call, and $1,500.00 for each call made after the recipient of a call demands that they cease. The statute imposes a flat ban on these calls, and knowledgeable consumers have learned to use the statute to collect significant damage awards.  If you, or someone you know, has had it with automated marketing calls, call me, and I’ll refer you to an attorney who specializes in consumer protection law.

More importantly, if you use any direct marketing for your business, you need to know the law so that you won’t find yourself the target of a suit for violating the TCPA.

Consumer Protection Against Unsolicited Marketing Calls

The key factor in triggering a suit for violation of the TCPA is that a call must be “unsolicited.”  Calls are not unsolicited if the recipient has a prior relationship with the company making the calls.  Customers to whom you have sold a product or service have a prior relationship with you, as does anyone who contacts you for information about your product or service.

Home Depot ran afoul of the TCPA because it allowed sellers of water purification systems to use Home Depot’s name, logo and real estate to gather personal information about the individuals who sent in the water test kits.  Free test kits of different kinds are proliferating as a marketing tool.  Done right, they can be very effective.  In the wrong hands, they are a menace to your reputation and business.

Need expert legal advice and counsel for your business?

Schedule a consultation with Praxis Legal Solutions

Barbara Burns: I provide my clients with advice and counsel on a broad range of subject matter, including entity formation and corporate governance; labor and employment; regulatory compliance and copyright and trademarks. I assist my clients in the negotiation and execution of transactional matters, including the acquisition and sale of businesses and business assets; financing arrangements; and hiring and firing of employees. In addition, I review, revise, negotiate and draft contractual agreements of all kinds. Providing my clients with information, counsel and transactional assistance in a timely and efficient manner, saves them time money and angst, and frees them to operate and grow their businesses.
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