{"id":106,"date":"2024-10-31T09:00:00","date_gmt":"2024-10-31T09:00:00","guid":{"rendered":"https:\/\/blog.dontsaythat.com\/?p=106"},"modified":"2024-10-23T18:49:11","modified_gmt":"2024-10-23T18:49:11","slug":"5-telesales-mistakes-that-could-get-you-sued","status":"publish","type":"post","link":"https:\/\/blog.dontsaythat.com\/?p=106","title":{"rendered":"5 Telesales Mistakes That Could Get You Sued"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"106\" class=\"elementor elementor-106\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-02cf0cb e-flex e-con-boxed e-con e-parent\" data-id=\"02cf0cb\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-d2a2da9 elementor-widget elementor-widget-text-editor\" data-id=\"d2a2da9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"emailContent ql-container\"><p>Good morning! This is the seventeenth edition of the Compliance Connect newsletter.<\/p><p>The goal is simple: to <strong>keep you in the loop<\/strong> on what the FTC and other regulatory agencies are up to so that you can protect yourself.<\/p><p>These newsletters will land in your inbox twice a week &#8211; Mondays and Thursdays.<\/p><p>Remember: this is NOT legal advice, only information!<\/p><p>Here\u2019s the rundown today\u2026<\/p><ul><li>\ud83c\udf10 <strong>Metaverse Compliance<\/strong><\/li><li>\ud83d\udc76 <strong>Children&#8217;s Privacy Laws &#8211; Not Just For Kids&#8217; Sites<\/strong><\/li><li>\u260e\ufe0f <strong>5 Dangerous Telesales Mistakes<\/strong><\/li><li>\u2709\ufe0f <strong>States That Require A NOTICE Before Filing A Lawsuit<\/strong><\/li><li>\ud83e\udd14 <strong>Why Do Innocent Companies Settle?<\/strong><\/li><\/ul><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0d1547c elementor-widget elementor-widget-text-editor\" data-id=\"0d1547c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"line-height: 1.5; text-align: center;\"><strong style=\"color: #222222; font-family: Arial, sans-serif; font-size: 20px;\">Compliance Digest: What You Should Read Today<\/strong><\/p><p><a href=\"https:\/\/natlawreview.com\/article\/metaverse-giant-native-advertisement\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>What It Takes To Stay Compliant In The Metaverse<\/strong><\/a><\/p><p>As the \u201cmetaverse\u201d expands and people spend more time in virtual worlds, there will be exciting marketing opportunities.\u00a0<\/p><p>The big question for this newsletter is\u2026 how can marketers stay compliant in this new frontier?<\/p><p>Unlike social media, the metaverse&#8217;s vast virtual spaces pose unique challenges for marketers.<\/p><p>For example, how do you disclose that an avatar is relaying a paid message? Will there need to be an \u201cadvertisement\u201d box hovering over the avatar?\u00a0<\/p><p>This article explores some of these challenges.<\/p><p><strong>Note:<\/strong> The FTC has <a href=\"https:\/\/www.ftc.gov\/news-events\/news\/press-releases\/2022\/06\/ftc-looks-modernize-its-guidance-preventing-digital-deception\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>indicated<\/strong><\/a> it will update its &#8220;.com Disclosures&#8221; guidance to address these challenges in games and virtual reality.<\/p><p>\u00a0<\/p><p><a href=\"https:\/\/www.ftc.gov\/business-guidance\/resources\/childrens-online-privacy-protection-rule-not-just-kids-sites\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Simple Breakdown Of Important Children\u2019s Privacy Law That You Might Need To Follow<\/strong><\/a><\/p><p>The FTC enforces the Children&#8217;s Online Privacy Protection Rule (COPPA). This rule requires operators to get parental consent before gathering kids&#8217; personal information, and the FTC takes it seriously.\u00a0<\/p><p>If you think COPPA only applies to kids&#8217; sites, think again!\u00a0<\/p><p>Even general audience websites and third-party services can be on the hook if they collect data from kids under 13.\u00a0<\/p><p>Read the article to learn whether COPPA compliance applies to you and what steps you need to take to make sure your website is compliant.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e6b4d97 elementor-widget elementor-widget-image\" data-id=\"e6b4d97\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"621\" src=\"https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/10\/QLREIyNFLEZVANDaYzCPXjdm0JmXrr51yhVOzhv9-1024x621.jpg\" class=\"attachment-large size-large wp-image-108\" alt=\"\" srcset=\"https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/10\/QLREIyNFLEZVANDaYzCPXjdm0JmXrr51yhVOzhv9-1024x621.jpg 1024w, https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/10\/QLREIyNFLEZVANDaYzCPXjdm0JmXrr51yhVOzhv9-300x182.jpg 300w, https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/10\/QLREIyNFLEZVANDaYzCPXjdm0JmXrr51yhVOzhv9-768x466.jpg 768w, https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/10\/QLREIyNFLEZVANDaYzCPXjdm0JmXrr51yhVOzhv9.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-356d607 elementor-widget elementor-widget-text-editor\" data-id=\"356d607\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: center; line-height: 1.5;\"><strong style=\"font-size: 20px; color: #222222; font-family: Arial, sans-serif;\">5 Telesales Mistakes That Could Get You Sued<\/strong><\/p><p>Telesales are a MAJOR area of focus for the FTC.<\/p><p>If you sell over the phone, then you automatically have a higher level of exposure.<\/p><p>Even <strong>well-meaning companies<\/strong> can find themselves in trouble by using some widely-taught practices.<\/p><p>Here are the top five telesales mistakes that can get companies sued\u2014and how to avoid them.<\/p><h3>#1 &#8211; Claims<\/h3><p>The number one mistake in telesales is making <strong>earnings claims<\/strong>\u2014whether explicit or implied.<\/p><p>Salespeople often try to entice potential customers by promising certain financial outcomes, such as, &#8220;You\u2019ll be making $10,000 a month in no time!&#8221; or &#8220;Most of our clients flip houses within 30 days and make over $100,000 per flip.&#8221;<\/p><p>Even more subtle statements can cause trouble, like saying, &#8220;There\u2019s no reason you shouldn\u2019t make $20,000 a month with this program.&#8221;<\/p><p>The FTC and other regulatory bodies scrutinize any claims that a customer will achieve a specific financial result.<\/p><p>Unless a company can <strong>substantiate<\/strong> such claims with solid evidence\u2014showing that the majority of participants actually achieve the promised results\u2014making them is a violation of the FTC\u2019s rules.<\/p><p>It\u2019s nearly impossible for companies to substantiate these types of earnings claims, which is why it\u2019s best to avoid them altogether.<\/p><h3>\u00a0<\/h3><h3>#2 &#8211; Misrepresentations<\/h3><p>A close second to earnings claims is making <strong>misrepresentations<\/strong> about what the customer will receive.<\/p><p>This happens when a salesperson promises features or benefits that don\u2019t match reality.<\/p><p>For example, a telesales representative might say, &#8220;We provide one-on-one coaching every step of the way,&#8221; but in reality, the company offers only group coaching or occasional check-ins.<\/p><p>This type of misrepresentation can create <strong>false expectations<\/strong> in the customer\u2019s mind, leading to complaints and, eventually, legal action.<\/p><p>The FTC views these kinds of statements as deceptive, even if the salesperson didn\u2019t mean to mislead the customer.<\/p><p>Using phrases like &#8220;we\u2019ll hold your hand through every step&#8221; or &#8220;we\u2019re going to monitor your progress&#8221; can easily be flagged as misrepresentations if they don\u2019t reflect the actual service provided.<\/p><p>To avoid this mistake, make sure that <strong>sales scripts align with the actual service<\/strong> and that your staff is trained to make honest and accurate claims.<\/p><h3>\u00a0<\/h3><h3>#3 &#8211; False Scarcity<\/h3><p>Scarcity is a well-known tactic to encourage urgency in a sale.<\/p><p>Phrases like, &#8220;We only have 10 spots left, so you need to act fast!&#8221; can push customers to make quick decisions.<\/p><p>However, <strong>false scarcity<\/strong>\u2014where the company claims limited availability but has no such limits\u2014can be considered deceptive by the FTC.<\/p><p>For example, if a company says they\u2019re only accepting 100 participants, but they\u2019ll happily accept any customer with money to spend, that\u2019s a misrepresentation!<\/p><p>It\u2019s perfectly fine to use <strong>true scarcity<\/strong>, but it must be documented. Businesses should keep records to prove that they turned people away or stopped selling at a specific point.<\/p><p>If a company can\u2019t provide this proof, they could face serious penalties for misleading customers.<\/p><h3>\u00a0<\/h3><h3>#4 &#8211; False Qualifications<\/h3><p>Many telesales teams use the concept of <strong>qualifications<\/strong> to make potential customers feel special.<\/p><p>This tactic involves telling a prospect, &#8220;We only accept qualified individuals, so we need to make sure you\u2019re the right fit for this program.&#8221;<\/p><p>In reality, the \u201cqualification\u201d process is often just a ploy to see if the prospect has the financial means to purchase the product.<\/p><p>The problem with this approach is that it creates a false sense of EXCLUSIVITY.<\/p><p>This false sense of being &#8220;qualified&#8221; can lead to complaints if the program doesn\u2019t live up to their heightened expectations.<\/p><p>Additionally, regulators often view these tactics as deceptive because the real qualification process has nothing to do with a customer\u2019s suitability and everything to do with their ability to pay.<\/p><p>To avoid this mistake, you should <strong>be transparent about your qualification process<\/strong> and avoid using it as a mere sales tactic.<\/p><h3>#5 &#8211; Improper Introductions<\/h3><p>This mistake might seem minor, but it can carry significant legal consequences.<\/p><p>The <strong>Telemarketing Sales Rule (TSR)<\/strong> requires telesales representatives to provide certain key pieces of information at the beginning of every sales call:<\/p><ol><li>The name of the caller.<\/li><li>The company they represent.<\/li><li>The purpose of the call.<\/li><li>A disclosure if the call is being recorded (required in certain states).<\/li><\/ol><p>Failure to provide this information can lead to accusations of <strong>deceptive practices<\/strong>.<\/p><p>The FTC and state regulators want customers to know exactly who they\u2019re talking to and why. If a company doesn\u2019t follow these rules, it could face lawsuits and fines.<\/p><p>Additionally, in states with stringent privacy laws (like California), failing to disclose that a call is being recorded can result in a class action lawsuit.<\/p><p>Anik and Greg talk more about these in <a href=\"https:\/\/www.youtube.com\/watch?v=fjO6DNfWfts&amp;t=53s\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>this episode<\/strong><\/a> of the Don&#8217;t Say That podcast.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-745b056 elementor-widget elementor-widget-text-editor\" data-id=\"745b056\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: center; line-height: 1.3;\"><strong style=\"color: #222222; font-family: Arial, sans-serif; font-size: 20px;\">Did You Know\u2026<\/strong><\/p><p>Alabama, California, Georgia, Indiana, Maine, Mississippi, Texas, West Virginia and Wyoming require a pre-suit notice in most cases to a company violating the state\u2019s consumer protection law.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-5dd9c9b e-flex e-con-boxed e-con e-parent\" data-id=\"5dd9c9b\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-d86179e elementor-widget elementor-widget-image\" data-id=\"d86179e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1024\" height=\"768\" src=\"https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/10\/0gdixkJEKaFvtYCC3QZRljzvNjYGHDAkbniEUM87-1024x768.jpg\" class=\"attachment-large size-large wp-image-107\" alt=\"\" srcset=\"https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/10\/0gdixkJEKaFvtYCC3QZRljzvNjYGHDAkbniEUM87-1024x768.jpg 1024w, https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/10\/0gdixkJEKaFvtYCC3QZRljzvNjYGHDAkbniEUM87-300x225.jpg 300w, https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/10\/0gdixkJEKaFvtYCC3QZRljzvNjYGHDAkbniEUM87-768x576.jpg 768w, https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/10\/0gdixkJEKaFvtYCC3QZRljzvNjYGHDAkbniEUM87.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-67b7c1e elementor-widget elementor-widget-text-editor\" data-id=\"67b7c1e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"line-height: 1.2; text-align: center;\"><strong style=\"font-size: 20px; font-family: Arial, sans-serif; color: #222222;\">Quick Compliance Tip: Why Companies Settle Even If They\u2019re Innocent<\/strong><\/p><p>We feature a lot of FTC cases in this newsletter, and in many cases the companies deny the FTC\u2019s charges.<\/p><p>That leads to a natural question: why would companies pay a bunch of money to the FTC and take the hit on their business if they did nothing wrong?<\/p><p>Simple. A trial is VERY expensive.<\/p><p>Defendants often spend <strong>tens of thousands a DAY<\/strong> for their defense\u2026 that\u2019s just during the trial.<\/p><p>It didn\u2019t include the HUNDREDS of hours of preparation that led up to the trial or all of the discovery requests.<\/p><p>In many cases it would cost MILLIONS to mount a defense.<\/p><p>Then there\u2019s the psychological cost. Trials are mental torture for the defendant and a MASSIVE distraction for the business.\u00a0<\/p><p>The burden, the cost, the psychological impact, in the end, it just isn\u2019t worth it &#8211; especially if the case isn\u2019t a slam dunk.<\/p><p>Remember, the burden of proof is LOWER than a criminal trial.<\/p><p>In the end, a Judge or Jury may just agree with the FTC and the fine levied on the business could be far greater than the settlement cost.\u00a0<\/p><p>Often when business leaders strip away the emotion around how unfair it feels, the smart decision is to settle and move forward.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Good morning! This is the seventeenth edition of the Compliance Connect newsletter. The goal is simple: to keep you in [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":109,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[24],"tags":[167,179,166,186,160,19,184,180,183,164,30,182,105,7,174,165,187,185,181,65,51],"class_list":["post-106","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ftc-compliance-connect","tag-business-opportunities","tag-business-settlements","tag-cbd-marketing","tag-childrens-privacy-laws","tag-compliance-challenge","tag-consumer-protection","tag-consumer-protection-laws","tag-coppa","tag-digital-marketing-compliance","tag-drip-pricing","tag-earnings-claims","tag-false-qualifications","tag-false-scarcity","tag-ftc-compliance","tag-junk-fees","tag-keto-marketing","tag-metaverse-advertising-compliance","tag-metaverse-marketing","tag-pre-suit-notice-states","tag-telemarketing-sales-rule","tag-telesales-compliance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>5 Telesales Mistakes That Could Get You Sued -<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blog.dontsaythat.com\/?p=106\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"5 Telesales Mistakes That Could Get You Sued -\" \/>\n<meta property=\"og:description\" content=\"Good morning! This is the seventeenth edition of the Compliance Connect newsletter. The goal is simple: to keep you in [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/blog.dontsaythat.com\/?p=106\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61555269426442\" \/>\n<meta property=\"article:published_time\" content=\"2024-10-31T09:00:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/10\/DST-Blog-Images-6-1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"768\" \/>\n\t<meta property=\"og:image:height\" content=\"432\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Andrew Lantz\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Andrew Lantz\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" 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