Understanding Established Business Relationship: Key Legal Insights
Definition & Meaning
An established business relationship refers to a connection between a seller and a consumer that is based on specific interactions. This relationship can arise from:
- The consumer's purchase, rental, or lease of the seller's goods or services, or a financial transaction, within the last eighteen months before a telemarketing call.
- The consumer's inquiry or application regarding a product or service offered by the seller, within the last three months before a telemarketing call.
Legal Use & context
This term is commonly used in telemarketing regulations and consumer protection laws. It is essential in determining whether a seller can legally contact a consumer through telemarketing practices. Understanding established business relationships is crucial for businesses to comply with the Telephone Consumer Protection Act (TCPA) and similar regulations.
Real-world examples
Here are a couple of examples of abatement:
Example 1: A consumer who purchased a laptop from a retailer six months ago has an established business relationship with that seller. The seller can legally contact the consumer for marketing purposes.
Example 2: A consumer who filled out an application for a credit card from a bank three weeks ago also has an established business relationship with that bank. The bank may reach out to the consumer regarding related offers. (hypothetical example)
Relevant laws & statutes
The primary statute governing established business relationships in the context of telemarketing is the Telephone Consumer Protection Act (TCPA). This law outlines the rules for telemarketing calls and the conditions under which they are permissible.