Unsolicited Fax and Telephone Calls
Under Federal and State law a dealer may not initiate a telephone call to:
- any person who has previously stated that s/he does not wish to receive calls from the dealer
- any person who is named on the do-not-call registry
However, if a dealer “has an established business relationship with such person”, and that person has not stated that he or she does not wish to receive telephone calls from the dealer, then it is not a violation of FTC Rule to contact the person by telephone. In the amended Rule effective March 31, 2003, the FTC clarified that an established business relationship ends three months after the date of an application or inquiry to a dealer, except with the consumer’s express consent or permission to continue a relationship.
The amended Rule allows for an 18-month period if there has been a purchase, rental or lease, or other financial transaction between the customer and the seller. The 18-month period commences on the date of the last payment or transaction. In instances where consumers pay in advance for future services (such as extended warranties, credit life insurance, etc.), the 18-month period runs from the date of the last payment or delivery of the product.
A dealer cannot send a facsimile to a customer unless the business has received the written consent of the customer. Substantial penalties apply to violation o f this law.
Various states have adopted laws regulating telephone contacts with customers and sending unsolicited commercial e-mails. Dealers should check with their local counsel on their state’s laws.
For further information or assistance, please contact Edward Castellani, Chair of the Michigan Auto Dealers Practice Group at (517) 482-5800. His email is: ecast@fraserlawfirm.com.