New NY Telemarketing Law Demands Immediate Disclosure of DNC Right
On December 6, 2022, New York Governor Kathy Hochul signed legislation intended to crack down on unwanted telemarketing calls.
Legislation (S.8450-B/A.8319-C) requires telemarketers to give customers the option to automatically be added to the company’s do-not-call list at the beginning of certain telemarketing calls, right after the telemarketer’s name and solicitor’s name are provided, and before addressing the purpose of the call, etc.
Caveat, telemarketers that utilize pre-recorded messages must ensure that an automated means exists for consumers to have their telephone numbers suppressed. Consult with a state attorney general (AG) defense lawyer about the applicability of the new legislation, adjustment of scripts, and the implementation of appropriate disclosures and suppression protocols.
We are dialing up our efforts to give New Yorkers a break from unsolicited telemarketing calls,” Governor Hochul said. “For too long, New Yorkers have dealt with these nuisance calls, not knowing they can avoid these interactions by being added to a telemarketer’s do-not-call list. This new legislation will protect New Yorkers from receiving frustrating, unwanted calls by better providing information on do-not-call lists.”
Under existing law (Section 399-Z), telemarketers are required to inform individuals that they may request to be added to their company’s do-not-call list. However, not at the beginning. According to the NY Attornehy General’s office, consumers usually hang up before a telemarketer or recording has mentioned the do-not-call list, allowing telemarketers to continue calling them again and again.
State Senator Jeremy Cooney said, “Since the frequency of nuisance calls continues to rise, we are going further to safeguard New Yorkers from continuous unwanted calls. For too long telemarketers have taken advantage of the opportunity to bury no-call list sign up options at the end of scripts; that stops now. I am grateful for the partnership of Assemblymember Paulin and the support of Governor Hochul as we deliver meaningful protections to New York Residents.”
Assembly member Amy Paulin said, “Robocalls are a daily annoyance and serve no benefit to people or communities. By requiring telemarketers to inform people at the beginning of a call that they may be added to a do-not-call list, we’re closing the door on this pervasive problem. Without this step, most people will have hung up the phone by the time they’re informed they can be added to the list. I’m proud to have sponsored this legislation with NYS Senator Jeremy Cooney and am grateful to Governor Hochul for taking this step to help fight the incessant scourge of robocalls plaguing New Yorkers.”
The legislation becomes effective in March 2023. Penalties of up to $11,000 may be imposed by the Secretary of State for violations of the law.
Richard B. Newman is an FTC lawyer at Hinch Newman LLP.
Informational purposes only. Not legal advice. May be considered attorney advertising.
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