Telemarketing Laws in India

This article on telemarketing laws in India is written by Premvati Dhaka pursuing M.A. in business law from NUJS, Kolkata.

Telemarketing (telesales) is a very common form of marketing companies use to connect with potential customers of their products or services.

With new technology, telemarketing has expanded to include video conferencing calls as well, although those are typically conducted with existing customers. Telemarketing is often used to try to sell a product or service, but it can also take the form of surveys or information gathering.

Telemarketing is regulated at the federal level by two statutes:

The Telephone Consumer Protection Act of 1991 (TCPA) – The Federal Communications Commission (FCC) derives its regulatory authority from TCPA
And the Telemarketing Sales Rule (TSR) – while the Federal Trade Commission (FTC) is responsible for enforcing TSR.

Telemarketing is a direct marketing method, which is concerned with selling products and services to prospective customers via the telephone. The person engaged in such an activity is called a salesperson.

Telemarketing is a method of advertising a marketing option as a commercial communication, i.e. prospective customers are solicited to buy products or avail investment schemes or services.

There are various methods of telemarketing in India, such as over telephone calls whether recorded or not, messages in the form of SMS and emails.

Advertising through telemarketing is an extensive activity in India and includes communication of unsolicited nature, i.e. unsolicited commercial calls (UCC) and unsolicited commercial emails (UCE).

Telemarketing is one of the most divisive strategies in modern marketing because many organizations have been known to use irritating or unethical practices in telemarketing.

One of the most negatively perceived versions of telemarketing is known as “robocalling,” a practice that involves using a pre-recorded message delivered through an automatic dialing machine that can contact thousands of people every day.

Because of these and other unpopular methods, there are many government regulations of telemarketing in several countries throughout the world.

Telemarketing is the process of using the telephone to generate leads, make sales, or gather marketing information.

Telemarketing is especially useful when the customers for a small business’s products or services are located in hard-to-reach places, or when many prospects must be contacted in order to find one interested in making a purchase.

Definition

‘Telemarketing’ – Transmission of any message through telecommunication services for the purpose of soliciting or promoting any commercial transaction in relation to goods, investment or services.

‘Telemarketer’ – Person/ legal entity engaged in the activity of telemarketing.

‘Telemarketing Centre’ – The telemarketing facility at a location in India used by the Telemarketer for providing the telemarketing services.

‘Telecom Resource’ – Telecom facilities provided by licensed telecom service provider.

‘Remote Location’ – A point of presence from where Telemarketer collects and carries the non-voice traffic relating to telemarketing activities.

‘Commercial communication’ – means any message, voice or SMS made through telecommunications services which is transmitted for the purpose of informing about or soliciting or promoting any commercial transaction in relation to goods, investment or services.

“Telegraph” means any appliance, instrument, material or apparatus used or capable of use for transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature by wire, visual or other electro-magnetic emissions, Radio waves or Hertzian waves, galvanic, electric or magnetic means.

“Telegraph officer” means any person employed either permanently or temporarily in connection with a telegraph established, maintained or worked by [the Central Government] or by a person licensed under this Act.

“Message” means any communication sent by telegraph, or given to telegraph officer to be sent by telegraph or to be delivered.

“Telegraph line” means a wire or wires used for the purpose of a telegraph, with any casing, coating, tube or pipe enclosing the same, and any appliances and apparatus connected therewith for the purpose of fixing or insulating the same.

“Post” means a post, pole, standard, stay, strut or other above ground contrivance for carrying, suspending or supporting a telegraph line.

“Telegraph authority” means the Director General of [Posts and Telegraphs], and includes any officer empowered by him to perform all or any of the functions of the telegraph authority under this Act.

“Local authority” means any municipal committee, district board, body of port commissioner or other authority legally entitled to, or entrusted by” the Central or any State Government] with, the control, management of any municipal or local fund.

Objectives of telemarketing:

Reduce selling expenses replacing personal visits by phone calls.
Increase profits per sales concept to reduce costs and increase sales volumes, since we can cover a market more big.
Generate new business in Territories not covered by the sales staff.
Improve service to customers, through a contact more often.
Vendors specialize in closing techniques since over the phone you can prospect, classify and qualify customers.
Optimize the costs of advertising, through accounts more promising, because that is better known to consumers.
Promotion most diffused.
Respond more quickly when the competition.
Better control of accounts
Revive inactive accounts.
Provide service more personalized.
Extend Salesforce with minimum costs.
Research the market in a way more economic.
Introduce new products.
Improve the way sell, since it avoids facing pollution, the high price of transport and distances that are increasingly more.

Categories of telemarketing:

Telemarketing is the most common way for businesses to generate leads. Prospective buyers might ignore advertisements, but they will always answer the telephone. A lead can be generated once a prospect answers the phone.

Telemarketers make calls based on a list of potential leads who are most likely to use the company’s product or service.

Types of calls in a call centre can be divided into inbound and outbound. Inbound calls are made by customers who wish to obtain information, ask for help, report a malfunction, etc. Outbound calls are more closely related to telemarketing, as they are placed by agents to potential customers with the intention of providing services or selling products.

Telemarketing can be either inbound or outbound in scope.

Inbound telemarketing

It consists of handling incoming telephone calls—often generated by broadcast advertising, direct mail, or catalogs—and taking orders for a wide range of products. Representatives working in this type of telemarketing program normally do not need as much training as outbound reps because the customer already has shown an interest by calling in.

It consists of handling incoming telephone calls—often generated by broadcast advertising, direct mail, or catalogues—and taking orders for a wide range of products. The representatives working in this type of telemarketing programme normally do not need as much training as the outbound representatives.

Outbound telemarketing

It can be aimed directly at the end consumer—for example, a home repair business may call people in its community to search for prospects—or can be part of a business-to-business marketing program. Representatives working on this side of the industry generally require more training and product knowledge, as more actual selling is involved than with inbound operations.

It can be aimed directly at the end consumer; for example, a home repair business may call people to search for prospects and customers. Representatives working on this side of the industry generally require more training and product knowledge, as more actual selling is involved in comparison to the inbound operations.

The two major categories of telemarketing are Business-to-business and Business-to-consumer. The former is concerned with transacting goods and services between businesses, whereas the latter focuses on serving products and services to the end consumer.

Business-to-business (B2B)
Business-to-consumer (B2C)

Business-to-business (B2B)

Business-to-business lead generation one can understand the process of helping compatible companies to find each other. This is a term commonly used to define transactions between businesses and is different to those between businesses and other groups, such as business and individual consumers (B2C) or business and government (B2G).

This kind of telemarketing can improve a company’s existence in the market and in this way it let forecasts know about its products and services.

Business to Business Telemarketing Services make business leads, and they are the key to growing sales and improving customer retention rates.

Business-to-consumer (B2C)

The second method of communicating clients is through a customer service representative making outbound calls.

Business-to-consumer telemarketing represents the act of making calls to clients and sharing or giving quality information about the products. Business-to-consumer telemarketing focuses on a goal consumer to market services or goods to the community.

It provides in-house maintenance software networks for other firms to lift marketing, profits and efficiency.

It creates prompt interface with prospects. You can have the opportunity to upsell your product and services and B2C is a sure fireway to increase your revenue if you sell on-line services or products.

B2C telemarketing is more profitable strategy for increasing one’s customer base.

Advantage and disadvantage of telemarketing:

Advantage of using telemarketing

Telemarketing is an important and effective way for your business and it also increase your returns.

Human interaction: One of the advantages telemarketing has over other direct marketing is that it involves human interaction. It provide a more interactive and personal sale service.
Small businesses: Telemarketing can be a mainly effective tool for small businesses, it saves time and cash as compared to personal selling, but offers many of the same profits in terms of straight contact with clients. It creates an instant relationship with your clients.
Customer service: Construction of a faithful client base is an important issue in starting a long- term business success and increasing the worth of the company. It can gain repeat orders and increase the penetration of the customer base. Telemarketing has the advantages of bringing outstanding customer service. In this we can explain technical issues more clearly.
Reduces cost: This is the way to reduce the cost of selling. It is also easier to interconnect with clients.
Flexibility: It is the flexible form of direct marketing. In this we can understand that what customers want or what is customer is Survey can be conducted customers are looking for, the product or service, the brand, etc. Achieve outcomes that are calculable and we can maintain a sheet for all customers.
Response measurement: Response measurement is possible by knowing the effectiveness of publicity. The results can be compared with the ones previously established, and the future plans can be based on such results.

Disadvantages of telemarketing

There are many disadvantage with telemarketing.

Telemarketing can be disliked mostly when calls are made in the evenings and nights.
Customer lists may not always be clean, this leaves you with a possible threat of violation the law
Telemarketing has a negative image that could harm your business’ status – if carried out poorly
Telemarketing has the potential to replace a sales team and this could lead to destructive feelings among employees
Training staff can be long and costly
An outside service provider can result in your losing control over your sales processes because the people doing the work aren’t your employees
An increasing number of people have become unfavorable to telemarketing.
No optical and visual contact with the customer is possible.
More people are using technology to screen out unsolicited callers, particularly telemarketers.
Government is realizing tougher measures to curb unscrupulous telemarketers.
If hiring an outside firm to do telemarketing, there is lesser control in the process, given that the people doing the calls are not your employees.
A telephone conversation has very short memory.
Pre-purchase inspection of goods not possible.
It can be extremely costly, particularly if telemarketing is subcontracted to an outside firm.

Roles of telemarketing:

Telemarketing is a stand-alone operation, it often works best as part of an overall marketing strength.

Companies considering the use of telemarketing have to look at such factors as:

Which products and services are candidates to be sold by telephone?
Whether telemarketing can be used to rise volume through progression of the sale;
How the process can help qualify prospects, define the market, and service existing accounts;
And whether telemarketing can help make new business.

Selling – Telemarketing substitute face to face selling into existing account. Field sale effort increase by new customer base and with less expensive. Also used to sell product or services individually no field sale force required. This technique is used for often is used for readily identifiable products.

Present customer is more important assets for any business, always to maintain existing customers is less costly than to find and add new customers. Telemarketing can provide reliable customer care. The inside sales force can be used to substitute direct contact for slightly profitable clients.

Company can determine that which account should stay with field sales and which account should be handled by telemarketing. Generally small business start with telemarketing.

Lead generation –by the help of telemarketing a company can update lists of customer. Telemarketing can screen the leads and qualify them according to importance, passing the best leads to the field sales force for instant action. The inside sales force also can recognize the decision maker with the buying power and set up appointments for the outside sales force.

Gathering Information – Telemarketing can provide precise data on promotion efficiency, what clients are purchasing, from whom they’re purchasing, and when they will purchase again. It is also commonly used in conducting surveys.

Improving Customer Service – existing customer is much easier than to make new customers. New customers is time-consuming and costly. Companies can go far toward keeping their clients pleased and satisfied with the service and product.

If we combined with current computer technology, a telemarketing program can be examined in terms of costs and benefits, using measureable data on the number of connections, number of demonstrations, total sales.

Process of registration for telemarketers

The Telecom Regulatory Authority of India (TRAI) issued the Telecom Commercial Communications Customer Preference (Fourteenth Amendment) Regulations, 2013

In India to register with TRAI, telemarketers have to visit the website www.nccptrai.gov.in

Home page of this website there is “new telemarketer registration’ option.

You have to select type of entity like – company, firm, society or individual.

According to entity you will get an application form, application form should filled. Once form filled completely click on ‘review’ tab to check

If something needs to be change you can go back by “back” tab

On successful submission of application form, unique application and username will be displayed while the password will be send to your email.

You can take print of your application form for the reference. All new telemarketers will have to pay Rs 5,000 as registration fee.

At this stage if you desire to make payment later you may choose “payment for registration”

If you want to make payment immediately after submission of the application form click on “proceed for payment”

To pay offline – you can make offline payment either by cash or through Demand draft

Demand draft should be in the favor of – “telecom regulator authority of India”

Fill the appropriate detail in the form. You may now obtain customer acquisition form (CAF) from your access provider. Filled CAF along with a copy of the application form, payment receipt, telemarketer registration certificate with TRAI.

Before you are allocated any telecom resource by access provider, you will also have to enter into an agreement with access provider, as specified in schedule IV or schedule V to the telecom commercial communications customer preference regulation 2010 for sending promotional messages.

The access provider after receipt of the prescribed documents will process the request for allocation of telecom resources as per existing guidelines.

Access provider shall provide identifiable telecom resource allotted to a telemarketer on website.

All telemarketer will be provided the dump of the most recently updated NCPR data by the access provider.

National Informatics Centre (NIC) has been authorized to set up a National Do Not Call (NDNC) registry. The Telephone users who do not want unsolicited commercial calls can register with NDNC register.

The Telemarketers shall scrupulously follow the orders/directions/regulations issued by DoT / TRAI on the unsolicited commercial communication including scrubbing of the list of the subscribers to be called for telemarketing purpose through the National Do Not Call (NDNC) registry of National Informatics Centre (NIC).

Detailed guidelines for registration of ‘Telemarketer’ are available on the DoT’s website www.dot.gov.in also.

How to make good telemarketer:

A telemarketer is a individual who is accountable for selling a product or service over the telephone. Telemarketers may work in a private office, from a call center or from home. Telemarketer will not meet their customer face to face.

Prepare for telemarketing –

As a good telemarketer you have to learn about your product as much as you can. You should have enough knowledge and detailed understanding of the product and its work and how it will be useful for potential customers. With the product and service company reputation is directly attached so need to understand about company also. When you will sale a product you have confidence in product what u r selling.

A good telemarketer always build confidence on company product what he/she is selling and clients. Understand the selling process properly. A good telemarketer is who can explain full selling process from start to end. Including all paperwork, bill, shipment, support and policies of the work process of the company workflow.

Once you convince your customers about the product and service. Make a list of all your customer and their detail. Practice well what you are going to explain to your customer.

Express self-confidence – A good telemarketer always speak with confidence and explain to their customer detail about the company and product with easy manner.
Preparation good communications skills – A good telemarketer should have a good communication skill also. He/she should speak clearly and precise way so that your client can understand easily. First give your introduction and greeting of the day. Speak the way that should be specific and limited. Do not talk more and do not talk less as required.
Do not to sound prepared – mainly writings are common and words are same for a telemarketer with respect to same product. Before start your call go slow and talk clearly with deep breath. Keep focusing on the matter and words what you are delivering to your customers.
Positive mental approach – Many people when you call they may not accept your call and got irritated and no response from them. This kind of things happen many time a day with telemarketer. So don’t take all this negative personally. Even take the chance to improve your communication skill better.
Stay strong – Telemarketing takes time to develop required ability. Each day practice for some calls and ready for rejections also.
Identify – When you will start with your call, it is the possibility that your client is not interested to listen to you so be prepared for the “not interested” answer and move on for the next client with next call. When it is time to move on to the next call.
Solid Opening – try to get more information about the person and the company so it would be easier to talk about and start your conversation with some greetings and exciting news. And provide a good presentation of your product in front of clients.
Use Conversation Style Approach –

Top telemarketing reps don’t sound like they’re reading from a script. They come across as if they are carrying on a conversation. That is why it is important to learn your basic script when starting out and then tailor it to your own conversation style. The best way to accomplish this is by asking questions. Start out by asking if the person has ever purchased or had the need for your particular type of product or service, for example. That way you can qualify them as a prospective buyer simultaneously. Subsequently, relate a positive buying experience. Get the person to agree how a particular buying experience benefited them. Ask the consumer or business owner what he likes best about your type of product. Ask questions that naturally progress into introducing your specials or new products.

Overcoming Purposes –

One of the most important tasks a telemarketer faces is overcoming objections. Top telemarketers know that an objection does not necessarily mean, “No” Instead, you have to find out why the consumer or business owner is momentarily objecting. Maybe they already have a supplier, or they don’t know how your products could benefit them. Use the “feel, felt, found” approach to overcome objections. Say, “I understand how you feel. Others have felt that way, too.” Subsequently, explain how others found your products superior to another supplier’s, for example. Stress unique features or services that your products or services offer. Offer easy payment plans for those who object because of a lack of funds.

Closing Skills –

Various closing techniques available. If you will ask a straightforward que about your product answer service the answer you can get straight also like “Yes” or “No”.

You can ask suppose what kind of credit card you are using. And you can tell your customer that try this product or service for next 30 days, if you will be not happy or satisfied you can return with no loss.4

Indian Regulatory Regime

The Telegraph Act and Rules, which contains provisions that prohibit and penalize unlawful interception of communication. Furthermore, licenses issued to telecom service providers (TSPs) under this Act require TSPs to take actions to protection the privacy of their clients and privacy of communications.

The Telecom Regulatory Authority of India has issued various guidelines to TSPs many of which pertain to privacy.

The Consumer Protection Act provides customers with an avenue of redress in case of violation of their privacy.

The Indian Telegraph Act and Rules

This act is enacted in Oct 1885, includes different communications like telephone, fax and internet etc.

Rule 419A of the Indian Telegraph Rules, 1951. The Central Government made the following rules to amend the Indian Telegraph Rules, 1951. 10 (1) these rules may be called the Indian Telegraph (Amendment) Rules, 2007. (2) They shall come into force on the date of their publication in the Official Gazette.

Part I (Preliminary)

Short title, local extent and commencement.
Repeal and savings.
Definitions (as above described)

Part II (Privileges and Powers of the Government)

Exclusive privilege in respect of telegraphs, and power to grant licenses
Power for Government to take possession of licensed telegraphs and to order interception of messages.

Power to establish telegraph on land of Railway Company
Power to make rules for the conduct of telegraphs

7A. saving of existing agreements

7B. Arbitration of disputes

Revocation of licenses
Government not responsible for loss or damage

Part III (Power to Place Telegraph Lines and Posts)

Power for telegraph authority to place and maintain telegraph lines and posts
Power to enter on property in order to repair or remove telegraph lines or posts
Power for local authority to give permission under section 10, clause (c), subject to conditions
Power for local authority to require removal or alteration of telegraph line or post
Power to alter position of gas or water pipes or drains
Disputes between telegraph authority and local authority

Provisions applicable to other property

Exercise of powers conferred by section 10, and disputes as to compensation, in case of property other than that of a local authority
Removal or alteration of telegraph line or post on property other than that of a local authority

Provisions applicable to all property

Removal of trees interrupting telegraphic communication
Telegraph lines and posts placed before passing of this Act.

19 A. Person exercising legal right likely to damage telegraph or interfere with telegraphic communication to give notice

19B. Power to confer upon licensee powers of telegraph authority under this Part

Part IV (Penalties)

Establishing, maintaining or working unauthorized telegraph

20 A. Breach of condition of license

Using unauthorized telegraphs
Opposing establishment of telegraphs on railway land
Intrusion into signal-room, trespass in telegraph office or obstruction
Unlawfully attempting to learning the contents of messages
Intentionally damaging or tampering with telegraphs

25 A. Injury to or interference with a telegraph line or post

Telegraph officer or other official making away with or altering, or unlawfully intercepting or disclosing, messages, or divulging purport of signals
Telegraph officer fraudulently sending messages without payment
Misconduct
[Sending fabricated messages]Rep. by the Indian Telegraph (Amendment) Act, 1971 (33 of 1971), Sec 4.

29 A. Penalty

Retaining a message delivered by mistake
Bribery
Attempts to commit offences

Part V (Supplemental Provision)

Power to employ additional police in places where mischief to telegraphs is repeatedly committed

34 A. Application of Act to Presidency-towns

Reference to certain laws of Part B States.

TRAI Regulations and Directions

TRAI is recognized from Feb 1997 by an act of Parliament, called the Telecom Regulatory Authority of India Act, 1997. For the regulation of telecom services.

The objective of TRAI is to generate a healthy telecommunications in India. And also to provide an open policy environment.

To achieve these objectives TRAI issued timely guidelines, regulations and orders.

The TRAI Act was revised by an ordinance that is effective from 24 January 2000, starting a Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT) to take over the adjudicatory and disagreements functions from TRAI.

TDSAT was started to judge any disagreement between a licensor and a licensee or two parties.

Unsolicited Commercial Communications Regulation

Telemarketing or telecom industry also brought unwanted subjects that is against of individuals privacy and cause annoyance to clients. In 2007, the Authority announced the Telecom Unsolicited Commercial Communications Regulations which were intended at creating a tool for registering requests of subscribers who did not wish to receive unsolicited commercial communications.

After that TRAI has come with “The Telecom Commercial Communication Customer Preference Regulations, 2010”. All these regulations came into the force by Sep 2011.

Regulations in different countries:

United States of America

Telemarketing law in USA covered by the TCPA (Telephone consumer protection act 1991) and telemarketing sales rule (TSR).

In industry and companies ruled applied “Do not call”: barrier for a telemarketer to contact their clients. There is penalties on company which call anybody on these listings.

US – FTC (federal trade commission) has implemented “Do not call” registry to avoid unwanted calls from the telemarketing company.

Companies that use telemarketing as a sales tool are governed by the United States Federal regulations outlined in the TSR (amended on January 29, 2003 originally issued in 1995) and the TCPA.

September 1, 2009, FTC regulations banning most robo calls went into effect.

Telemarketing methods are progressively used in political drives. That’s why many states controlled political robo calls.

Telephone consumer protection act relates to US corporations that no phone calls allowed in before 8:00 am or after 9:00 pm, company must keep the record of clients and not to called again to the same client if he/she is not interested with product n services offered to him/her. Telephone monitoring and recording are controlled in each states of USA for the purpose of the regulation.

Canada

Telemarketing is controlled by Federal Government (Canadian Radio-television and Telecommunications Commission) in Canada.

Australia

Telemarketing in Australia is controlled by AFG (Australian Federal Government) and ACMA (Australian Communications and media authority).

In Australia also there is “Do not call registry” for Australia inbound telephone numbers.

Europe

European Union adopted Directive 2006/24/EC which mandated member states with respect to telemarketing law. By the use of this directive police and security agencies request to access IP address and time of use of every email.

References

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