Do-Not-Call Rules:
Companies Cannot Share Client Lists
By Henry Lerner, Esq.
Can I give my client list to an affiliated company to use to solicit my clients’ business?
Recent FTC enforcement actions lead me to say no.
In general, state and federal Do-Not-Call rules prohibit making sales calls to any consumer who is on the Do-Not-Call list, however, there are several exceptions to this rule. One exception provides a window to place calls when a caller already has an Established Business Relationship (EBR) with an individual.
A seller and its contract telemarketing firm recently tried to stretch the definition of the “EBR exception.” The seller argued that because the consumers being called had a legitimate established business relationship with a company affiliated with the seller, the EBR exception should also apply to the company placing the calls. They argued that once a consumer has a relationship with a single company, he has implicitly consented to get telemarketing calls from all other entities related to the first company. The FTC disagreed and charges were eventually settled with civil penalties of $300,000 for the seller and $50,000 for the telemarketer.
If your brokerage owns or is affiliated with another business entity – a mortgage company, for example – can you provide a client list to this company to use in making sales calls to your real estate clients? The answer is no. Just because your client has a relationship with ABC Realty doesn’t mean he has any defined relationship with ABC Title Company.
If you want an affiliate to be able to make sales calls to your clients, the best approach is to disclose the relationship to your client and give him the option to take or refuse those calls. Instead of giving a buyer’s name and phone number to someone in your affiliated title company, just ask your client whether he’d mind receiving a call. Even better, arrange a face-to-face meeting or provide the materials yourself. You’ll avoid the Do-Not-Call concerns and probably get a better response from your client!
More information about the state and federal Do-Not-Call regulations are available in the Issues Resource Center of the PAR web site, where you can also learn about DNC Quickcheck, a Pennsylvania REALTOR® Advantage Partner. DNC Quickcheck offers a 50-percent discount on the cost of its Do-Not-Call compliance software.