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What is an External Upsell? A Comprehensive Legal Overview
Definition & Meaning
An external upsell occurs when a seller attempts to sell additional products or services to a customer who has already made a purchase, but the seller is different from the one involved in the initial transaction. This can happen regardless of whether the same telemarketer is involved in both the initial sale and the follow-up solicitation.
Table of content
Legal Use & context
The term "external upsell" is primarily used in the context of telemarketing and consumer protection laws. It is relevant in civil law, particularly in cases involving deceptive marketing practices. Understanding this term is crucial for businesses that engage in telemarketing, as it affects compliance with regulations designed to protect consumers from unsolicited sales tactics. Users can manage related legal documents using templates from US Legal Forms, which are crafted by qualified attorneys.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A customer purchases a vacuum cleaner from Company A. Later, Company B, which sells cleaning supplies, contacts the customer to offer a discount on cleaning products. This is an external upsell because Company B is different from Company A.
Example 2: A person subscribes to a magazine and receives a phone call from a different company offering a subscription to an online service. This scenario also illustrates an external upsell. (hypothetical example)
State-by-state differences
State
Key Differences
California
Strict regulations on telemarketing practices, including external upsells.
Texas
Less stringent rules compared to California, but still requires transparency in sales.
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
Cross-sell
Offering related products to a customer who has made a purchase.
Cross-selling typically involves the same seller.
Upsell
Encouraging a customer to purchase a more expensive item.
Upselling is usually done by the same seller involved in the initial sale.
Common misunderstandings
What to do if this term applies to you
If you are involved in a situation where external upselling applies, ensure that you understand the relevant laws in your state. Consider using US Legal Forms to access templates that can help you navigate the legal requirements. If the situation is complex, seeking professional legal advice may be necessary.
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