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Understanding the Pre-Existing Business Relationship in Legal Terms
Definition & Meaning
A pre-existing business relationship refers to a connection between a business and a consumer that is based on certain criteria. This relationship can arise from:
A financial contract that is active when the consumer receives a marketing solicitation.
The consumer's purchase, rental, or lease of goods or services from the business within the past 18 months, or any ongoing financial transaction, such as maintaining an active account.
An inquiry or application made by the consumer regarding the business's products or services within the last three months before receiving a solicitation.
Table of content
Legal Use & context
The term "pre-existing business relationship" is primarily used in the context of affiliate marketing and consumer protection laws. It plays a crucial role in determining when a business can legally contact consumers for marketing purposes without violating privacy regulations.
This term is significant in areas such as:
Consumer protection law
Marketing regulations
Financial services
Users can manage related legal processes by utilizing templates from US Legal Forms, which are crafted by experienced attorneys to ensure compliance with applicable laws.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A customer who has a credit card with a bank receives a promotional offer for a new loan from that bank. This is a pre-existing business relationship based on the active financial contract.
Example 2: A consumer who rented a car from a rental agency within the past 18 months receives a marketing email for discounts on future rentals. This also qualifies as a pre-existing business relationship.
Relevant laws & statutes
Key regulations surrounding pre-existing business relationships include:
12 CFR 41.20, which outlines the definition and criteria for establishing such relationships in the context of affiliate marketing.
State-by-state differences
Examples of state differences (not exhaustive):
State
Variation
California
Stricter regulations on unsolicited marketing communications.
Texas
More lenient rules regarding follow-up marketing after a purchase.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Prior Business Relationship
A relationship established before the current solicitation, often with different legal implications.
Consumer Consent
Explicit permission given by a consumer to receive marketing communications, which may not always require a pre-existing relationship.
Common misunderstandings
What to do if this term applies to you
If you find yourself in a situation involving a pre-existing business relationship:
Review any communications you receive to determine if they comply with legal standards.
Consider using legal form templates from US Legal Forms to manage your responses or agreements.
If you have concerns about compliance or your rights, consult a legal professional for tailored advice.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.