Legal: Caution Before Using Telemarketing Firms

Employing a third-party call center to drum up business can be lucrative, but make sure they’re following the law.

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Security, home automation and audio/video professionals often turn to third-party telemarketing agencies to drum up business.

“Done correctly, with the right follow-up processes in place by the dealer, these types of sales are a good way to grow a business,” says one security dealer writing to leading industry attorney Ken Kirschenbaum, a contributor to CE Pro's sister publication Security Sales & Integration.

“I would like to minimize my risk from a call center violating the various rules and laws,” the dealer says.

Kirschenbaum responds that telemarketing agencies will have a standard agreement, but they should be reviewed by an attorney.

At a minimum, Kirschenbaum explains, the service provider should represent:

  • It is licensed where necessary, 
  • It complies with all telemarketing laws, including the Do Not Call List law.
  • It has or subscribes to Do Not Call compliance software program.
  • It agrees to indemnify you for violations of law and penalties.
  • It carries insurance that covers fines and violations and names you as an additional insured.

About the Author

Julie Jacobson
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Julie Jacobson:

Julie Jacobson is founding editor of CE Pro, the leading media brand for the home-technology channel. She has covered the smart-home industry since 1994, long before there was much of an Internet, let alone an Internet of things. Currently she studies, speaks, writes and rabble-rouses in the areas of home automation, security, networked A/V, wellness-related technology, biophilic design, and the business of home technology. Julie majored in Economics at the University of Michigan, spent a year abroad at Cambridge University, and earned an MBA from the University of Texas at Austin. She is a recipient of the annual CTA TechHome Leadership Award, and a CEDIA Fellows honoree. A washed-up Ultimate Frisbee player, Julie currently resides in San Antonio, Texas and sometimes St. Paul, Minn. Follow on Twitter: @juliejacobson

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