In a recent ruling by an Illinois federal court, lead generator company Day Pacer, also known formerly as EduTrek, along with three of its top-level executives, have been found culpable of contravening the Telemarketing Sales Rule (TSR).
Underlining the dramatic shift in legal outcomes for lead generation companies, the court’s ruling sheds new light on the enforcement of TSR. TSR prohibits deceptive and abusive telemarketing acts and practices and imposes strict regulations on how companies, specifically those in the telemarketing space, engage in commerce.
The Illinois court’s decision is critically important for large corporations and law firms who engage in, or represent clients who are involved in, telemarketing activities. In this particular judgment, the court concluded that Day Pacer and its executives infringed on TSR by sharing telemarketing leads to clients that were involved in illegal telemarketing practices, in addition to failing to adhere to the do-not-call registry.
These findings offer a stark reminder of the high-risk environment that lead generators operate in, as well as the profound need for law-abiding procedures and practices. Compliance and legal teams are strongly advised to ensure a robust understanding of TSR and its implications, to avoid potential pitfalls and costly penalties.
A more comprehensive breakdown of the case can be found on JD Supra, provided by the TCPA Counseling & Litigation Team of Alston & Bird. The publication offers notable insights and expert legal perspectives on this timely issue affecting several corporations engaging in telemarketing and lead generation.