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.

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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.

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.

Quick facts

  • Definition: A solicitation by a different seller after an initial purchase.
  • Legal Area: Primarily civil law related to consumer protection.
  • Key Requirement: The seller must be different from the original seller.

Key takeaways

Frequently asked questions

An external upsell is when a different seller tries to sell additional products to a customer who has already made a purchase.