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The ViSalus Case:
A Costly TCPA Oversight

In today’s digital age, businesses are continually seeking innovative ways to reach potential customers. However, aggressive marketing strategies that disregard legal boundaries can lead to severe financial repercussions. A stark example is the case of ViSalus, Inc., a health supplement company that faced a monumental penalty for violating the Telephone Consumer Protection Act (TCPA).

The ViSalus Case: A Costly Oversight

In 2019, ViSalus was found to have made 1.8 million unsolicited robocalls to consumers, promoting their products without obtaining prior express consent—a direct violation of the TCPA. The consequence? A staggering $925 million in damages, marking one of the largest TCPA-related fines in history. [stonepigman.com]

Understanding the TCPA

Enacted in 1991, the TCPA was designed to protect consumers from unwanted telemarketing calls, prerecorded messages, and unsolicited faxes. Key provisions include:

  • Consent Requirement: Businesses must obtain prior express consent before making telemarketing calls or sending text messages.

  • Do-Not-Call (DNC) List Compliance: Companies are prohibited from contacting numbers listed on the National DNC Registry.

  • Automated Dialing Restrictions: The use of automated dialing systems or prerecorded voices without consent is restricted.

The Financial Implications of Non-Compliance

The penalties for violating the TCPA are substantial:

  • Standard Violations: Up to $500 per unsolicited call or message.

  • Willful or Knowing Violations: Up to $1,500 per violation.

Given the volume of calls companies often make, these fines can accumulate rapidly, leading to multi-million dollar liabilities, as evidenced by the ViSalus case.

Best Practices for Ensuring TCPA Compliance

To avoid the pitfalls of non-compliance, businesses should consider the following strategies:

  1. Obtain Clear Consent: Before initiating any telemarketing campaign, ensure that you have documented express consent from each consumer.

  2. Regularly Update Contact Lists: Cross-reference your contact lists with the National DNC Registry and maintain an internal DNC list to honor opt-out requests.

  3. Implement Robust Compliance Programs: Train your staff on TCPA regulations and establish protocols to monitor compliance continuously.

  4. Utilize Trusted Compliance Solutions: Employ tools and services that assist in scrubbing phone numbers against DNC lists and managing consent records.

Conclusion

The ViSalus incident serves as a powerful reminder of the importance of adhering to telemarketing laws. By prioritizing TCPA compliance with Scour (scournow.com), businesses not only protect themselves from hefty fines but also build trust and credibility with their audience. In an era where consumer rights are paramount, respecting communication preferences is both a legal obligation and a sound business strategy.

Learn more at www.scournow.com