We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
Cold Calling: What You Need to Know About Its Legal Definition
Definition & Meaning
Cold calling refers to the practice of making unsolicited phone calls to potential customers with the aim of selling products or services. The term "cold" indicates that the recipient is not expecting the call and has not previously expressed interest in being contacted. This method is widely recognized as a challenging sales technique, as it requires the caller to engage individuals who may be unaware of or uninterested in their offerings.
Table of content
Legal Use & context
Cold calling is often used in sales and marketing contexts, but it intersects with legal regulations, particularly concerning consumer protection laws. In the United States, various laws govern telemarketing practices, including the Telephone Consumer Protection Act (TCPA) and state-specific regulations. These laws aim to protect consumers from unwanted solicitations and allow individuals to add their numbers to "Do Not Call" lists. Businesses must ensure compliance with these regulations to avoid legal repercussions.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
(hypothetical example) A sales representative from a software company makes a cold call to a business owner who has not previously shown interest in their product. The representative introduces the software and attempts to schedule a demo. If the business owner is on a Do Not Call list, the company may face legal consequences for the unsolicited contact.
Relevant laws & statutes
The following laws are significant in the context of cold calling:
Telephone Consumer Protection Act (TCPA): Regulates telemarketing calls and requires prior consent for certain types of calls.
Telemarketing Sales Rule (TSR): Enforces rules against deceptive and abusive telemarketing practices.
State-by-state differences
State
Regulation
California
Strict regulations on telemarketing; requires registration and compliance with state Do Not Call laws.
Florida
Enforces its own Do Not Call list; telemarketers must comply with state-specific rules.
Texas
Allows residents to register for a Do Not Call list; telemarketers must check this list regularly.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Difference
Telemarketing
Marketing conducted over the phone.
Cold calling is a subset of telemarketing involving unsolicited calls.
Warm Calling
Contacting potential customers who have shown some interest.