Predictive Dialing Regulation

Telemarketing has a somewhat negative reputation, but it is a big revenue engine for the business and continues to grow globally. Advanced technologies will continue to contribute to this growth, and predictive dialers are the most important tools that guarantee the success of outbound campaigns.

But, a considerable number of abusive telemarketing practices through harassment, misinformation and privacy violation has urged nations to adopt regulatory acts to protect the consumers.

Predictive dialing regulations are intended to prevent fraudulent and abusive practices by telemarketers, to limit unsolicited telemarketing calls, to stop the annoying phenomenon of 'dead air' from abandoned calls and to regulate the calling hours.

Regulatory Issues

In order to protect the consumers, national, international, local and federal regulatory agencies have been created. Government agencies are responsible for elaborating telemarketing laws that balance the rights of consumers and businesses, as well as supervise companies’ compliance with them. The legislation is continuously improving and stricter adherence to it is requested.

On the other hand, telemarketing businesses united into associations to fight the negative imagine of direct marketing, to improve telemarketing practices, to create consumers confidence. The members oblige to comply with the legislation, code of ethics and standards of practice. This is known as self-regulation.

Below are outlined the most important issues of the predictive dialing regulations.

Do Not Call List

Most countries have adopted a national Do Not Call list, to protect a person’s right to privacy. Consumers can include their home or business phone number on this list and telemarketers are restricted from calling them about services.  There are heavy penalties for companies that don’t abide by this list. Also, there are local lists in addition to the national Do Not Call List. Further more, the company is obliged to have its own list with phone numbers of customers who asked not to be contacted again.

Calling Hours

Generally, telemarketers are restricted to calling between the hours of 8 a.m. and 9 p.m. In some cases, on Sundays and Saturdays they must limit their calls to 10am-6pm time frame.

Outbound Introductions

Telemarketers must consumers you it's a sales call, the name of the seller, and what they are selling before they make their pitch. It's illegal for them to misrepresent any information; any facts about their goods or services; earnings potential, profitability or risk.

Abandoned Calls

An abandoned call is defined as any call made by a predictive dialer in which no agent or telemarketer responds to the called party within two seconds of the recipient's phone picking up. A maximum abandonment rate is mandated as 3% (in USA and Europe) and 5% (in Canada) of all connected calls. Companies are required to log, report and archive calling statistics to validate that they have complied with this requirement.

Poor answer detection technology that is unable to quickly recognize a live answer versus an answering machine and then immediately connect the agent with the called party has lead to "dead air" calls. These calls also happen when predictive dialing systems purposely abandon calls when agents are not available.

The new technologies enable call centers to comply with these regulations and make the industry more accountable, efficient and consumer-friendly.


Learn more about: 

Functioning, features, types and benefits of predictive dialers.

Predictive Dialer Tutorial

Cost of predictive dialing systems, factors to consider in deciding which predictive dialer to purchase.

Predictive Dialing Questions and Answers

Factors affecting predictive dialers' performance.

Predictive Dialers - Overview

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