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Telemarketing Licensing and Permitting

A lot of times states require telemarketing companies to obtain licenses or permits prior to opening up the phone lines. For Instance:

The law requires businesses that solicit the sale of consumer goods or services to be licensed, to post some form of security, and that their salespersons be licensed. It also requires the solicitor to identify him or herself by true first and last name and the name of the business on whose behalf he or she is calling. It requires a written contract that matches the description of the goods or services offered in the telephone solicitation, contains the name, address, telephone number and license number of the seller, and states the buyers right to cancel immediately preceding the signature. The written contract is not required if the consumer is given a full refund for the return of undamaged and unused goods or a cancellation of services within 7 days of receipt of the goods or a cancellation of the services and the seller processes the refund within 30 days after receipt of the returned merchandise by the consumer.

-Florida Dept. of Agriculture and Consumer Services

Well, these licenses cost money. Sometimes they cost up to $6,000 a year. Some states require a bond be posted as well. Bond fees can range to $100,000.

There are exemptions in certain cases depending on what is being sold, to whom, and if the business has some other state license. But aside from this, telemarketers will occasionally try to operate without obtaining these mandatory certifications to save money. When this happens, given a little investigation, one could pursue legal action over said issue.