With an increasing number of businesses engaging in email and text (SMS) based marketing, business owners must navigate an increasingly complex legal landscape surrounding data privacy and telemarketing. While no single federal law comprehensively regulates these practices, businesses are facing a growing patchwork of state laws demanding attention. So, what do employers need to know?
As Maryland data privacy and telemarketing laws are not as stringent as those in many other states, and to keep ahead of evolving regulations, business owners should consider complying with California and New York laws, which are some of the strictest regulations nationwide. The California Consumer Privacy Act (“CCPA”) grants consumers extensive rights over their personal data, mandating clear notices about data collection practices and simple opt-out mechanisms for marketing communications. New York’s laws mirror many CCPA provisions while adding requirements such as obtaining written consent for prerecorded messages.
Adhering to California and New York requirements should put businesses on solid footing, but dozens of other states have unique telemarketing laws warranting consideration. For example, Florida restricts calling times, while Colorado requires checking state-specific do-not-call lists.
On the federal level, the FTC’s Telemarketing Sales Rule and the FCC’s Telephone Consumer Protection Act provide overarching guidelines all businesses must follow. Consent remains paramount, as companies generally need written permission to send marketing messages or place pre-recorded calls to cell phones.
What steps should employers take to protect their businesses?
As the regulatory scrutiny and legal risks surrounding data-driven marketing heighten, businesses relying on these outreach methods should carefully review their practices, secure proper consents, align with telemarketing best practices, and maintain scrupulous records. In cases where obtaining direct consent is not feasible, it is crucial to have comprehensive contracts in place that secure appropriate representations and warranties from data providers or partners to mitigate liability and ensure regulatory compliance.
Taking proactive compliance steps now can help mitigate downstream liability as the law continues to evolve. Our team is here to assist you, including reviewing current practices, drafting contracts, or developing a comprehensive compliance strategy.
For more information, please contact the Davis, Agnor, Rapaport & Skalny attorney with whom you typically work, or contact an attorney in our Business Planning & Transactions Practice Group.
