22 Jan
A recently released Canada Post report shows that telemarketing constitutes 23 percent of the total amount of money spent on advertising, in Canada. A large sum out of this total amount is spent on heavy fines for not following proper business ethics. Earlier this year, The Canadian Radio-television and Telecommunications Commission (CRTC) penalized nine companies a total of $149,000 in fines, for non-compliance with DND guidelines. In the light of what happened, we’ve compiled a list of ethical practices to help other Canadian telemarketing agencies avoid a similar fate.
Register with National DNCL
A telemarketer that makes unsolicited calls to Canadian citizens and the client(s) of a telemarketer are required to register with the national Do Not Call List (DNCL). If a third party is handling the subscriptions for a business, then that party also needs to register with DNCL. An identification process precedes this registration process; it takes a mere 10 minutes to complete this process on the national DNCL site.Make Timely Payments of DNCL Subscription Fee
It is mandatory for a telemarketing agency to maintain an internal do not call list, even if they only make DND exempt calls. As you may already know, DNCL subscription comes with an annual fee; the amount depends on your area code. If a telemarketing agency acquires Canada business lists from a provider, it is best to ensure it is a reliable and only issues numbers that are exempt from the DND list. Insurance Companies- Agents can only ‘promote’ insurance products and services of only one particular insurance company.
- If you’re telemarketing for a broker, you may promote the services of multiple insurance companies.
- CRTC assumes the agents of an insurance company are dealing on the behalf of the insurance company in question and holds the company responsible for any violations committed.
- MGAs to brokers and insurance companies to MGAs telecommunication is exempted from DNCL rules (but not telemarketing rules and ADAD rules).
Mutual Fund Providers and Financial Advisors
- Such telemarketers fall under the investment industry and need to comply with the guidelines issued by the Investment Industry Regulatory Organization of Canada (IIROC)
- Mutual fund dealers are liable to third parties and their clients for the acts and omissions of employees for violations committed during a call.
- The Security Related Business that an investment advisor conducts telephonically is in the name of his investment dealer.
- Unsolicited Telecommunication apply to the unsolicited calls that Financial Advisors make (to sell a service/product).
Real Estate Companies
- A real Estate Telemarketing Agent will be exempted from DNCL rules if ‘existing business relationship’ rules, as stated in section 41.7 (2) of the Commission, are applicable.
- The Commission views telecommunication between a real estate agent and a prospect as a business relationship. That means follow-up calls are B2B in nature, hence exempted from DNCL rules. However, ADAD and Telecommunication rules may apply.