Understanding Autodialer Laws:
A Complete TCPA Guide

Offering 300% higher call volumes and 50% lower call times, auto-dialers have become a staple of outbound marketing campaigns. However, a single mistake with autodialer laws can cost your company up to $1,500* under TCPA.

Clearly, auto-dialers are powerful tools. Perhaps too powerful, according to certain jurisdictions. For example, as we’ll discuss, the US chose to limit its use with the targeted TCPA ruleset to limit auto-dialers’ negative impact on consumers.

But that hasn’t discouraged companies from finding legal ways to leverage auto-dialers to increase their productivity. And neither should it discourage you. In this article, we’ll discuss everything you need to know to make auto-dialers work for you. Keep reading!

Key Takeaways:

• Auto-dialers boost efficiency but require compliance. Using a TCPA-compliant dialer can increase call volume by 300% while avoiding costly fines.
• Consent is key for legal outbound calls. Businesses must obtain prior express written consent for marketing calls to cell phones and landlines.
• TCPA enforces strict calling rules. Follow TCPA hours (8 AM–9 PM local time), honor DNC lists, and provide opt-out options to stay compliant.
• State laws may be stricter than TCPA. States like Florida and Oklahoma impose additional restrictions, such as call frequency limits and written consent mandates.
• Compliance tools help prevent violations. Use AI-powered autodialers, DNC scrubbing, and agent training to ensure outbound call compliance and reduce risks.

What Is an Autodialer?

Auto-dialer (alt. autodialer, auto dialer) is the general umbrella term for all types of automatic outbound dialing systems. As the name suggests, it describes specialized tools designed to automatically dial phone numbers and boost outreach efficiency.

Nowadays, salespeople across all B2B and B2C niches use auto-dialers to maximize call volume, successful contact rates, and overall productivity while lowering call and idle times with the many workflow automation tools the systems provide. 

What Are the Different Types of Autodialers?

As auto-dialers developed over time, industry experts developed new dialing techniques, which were eventually developed and sold as stand-alone dialers. Today, you can choose from 6 different types of auto-dialers, each with their benefits and downsides.

Power Dialer

Power dialers dial one number at a time from a predefined list of contacts, automatically calling the next prospect when a call ends. They are most often used for high-volume, low-value campaigns, where maximizing outreach is a priority.

Benefits:

Pricing: $50 per user/month with CloudTalk

Progressive Dialer

Progressive dialers, similar to power dialers, dial numbers in sequence and are able to filter out unavailable contacts based on busy dial tones and answering machines. Due to this, they sometimes cause extra idle time in favor of successful contacts.

Benefits:

Pricing: $44 per user/month on average

Parallel Dialer

Parallel dialers, unlike their other power-dialing counterparts, attempt multiple calls simultaneously (i.e., in parallel) and connect the first person to pick up an available agent. This makes them exceptionally desirable for high-volume outreach campaigns.

Benefits:

Pricing: $70 per user/month on average

Preview Dialer

Preview dialers allow agents to review contact details before initiating a call, ensuring more personalized and informed conversations. They are best suited for high-value prospecting and relationship-based sales.

Benefits:

Pricing: $45 per user/month on average 

Predictive Dialer

Predictive dialers leverage algorithms to simultaneously anticipate your call center’s current availability and prospects’ likelihood to pick up the call to order your call queues and maximize pick-up rates and efficiency.

Benefits:

Pricing: $90 per user/month on average 

Smart Dialer

Smart dialers allow you to make better calls faster by letting you populate call queues with numbers directly from your browser, CRM, or Helpdesk with just a click and automatically order them based on your predefined settings and likelihood of a pick-up. 

Benefits:

Pricing: $50 per user/month with CloudTalk

How Did Autodialers Begin?

The first auto-dialers and auto-dialer regulations can be dated back to the 1980s when these then-analog systems first became prominent in US telemarketing, leading to the rise of abusive marketing techniques and, as we’ll soon discuss, subsequent regulation.

As technology progressed, auto-dialers left behind their bulky and expensive analog forms in favor of specialized, often cloud-hosted software. Consequently, the market boomed, reaching a value of $506.6 million, with NA holding a 33% market share.

What Is the TCPA?

According to the Federal Communications Commission (FCC), the Telephone Consumer Protection Act of 1991 (TCPA) is an expansion of the Communications Act from 1934, signed into law by George H. W. Bush.

The goal of the TCPA was to align legislation with then-current technology, adding provisions for regulating the use of telephones, autodialers, voice messages, SMS messages, and fax machines in telemarketing. 

Ultimately, the TCPA serves to protect end-users from abusive telemarketing practices, reducing “robocalls,” preventing intrusions on privacy, and requiring customer consent for specific types of outreach efforts.

The FCC and the FTC (Federal Trade Commission) enforce the TCPA. The first oversees compliance, issues rulings, and interprets the law, while the latter enforces the National Do Not Call Registry (DNC) and takes action against violators. 

What Is an Autodialer Under TCPA?

Although the interpretation has been hotly debated in court, particularly in the Facebook Inc. v. Duguid 2021 lawsuit, the TCPA refers to auto-dialers as Automatic Telephone Dialing Systems (ATDS) and defines them as:

However, as a result of the previously mentioned legal proceedings, the definition has been changed under the US Supreme Court ruling to include the provision that:

Does the TCPA Restrict the Use of Automatic Dialing Systems?

Yes, the TCPA does restrict the use of auto-dialers. However, crucially, it does not outlaw them outright. It’s important to note that the call rules determining whether an autodialer call is legal depend on who is being called and how consent is obtained.

• Calls to Cell Phones: Businesses must have prior express consent to use auto-dialers in their non-marketing calls and prior express written consent (can be digital) for marketing calls.
• Calls to Landlines: Auto-dialers can be used freely for non-marketing calls, but prior express written consent is required for telemarketing outreach.
• DNC Registry: Auto-dialers cannot be used to contact numbers registered in the National Do Not Call Registry unless a prior business relationship exists.

Although not necessarily relevant, it’s also worth mentioning that any calls using pre-recorded messages and artificial voices have to have prior express written consent, regardless of whether the call is made using an auto-dialer or not. 

What Are the TCPA Autodialer Rules?

Now that we’ve illustrated how different types of calls and targets affect outbound calling regulations, let’s look at the individual TCPA autodialer rules you should be aware of.

• Consent Requirement: Written consent is required for telemarketing calls made to cell phones and landlines.
• Cell-Phone Requirements: No auto-dialed calls, pre-recorded voice messages, or texts can be sent to cell phones without prior consent.
• Landline Rules: Only non-marketing calls can be made to landlines freely. Marketing messages must have prior consent issued.
• National Do Not Call List:  Auto-dialers cannot contact numbers on the DNC Registry unless an existing business relationship exists.
• Time Restrictions: Marketing calls can only be made between 8 AM and 9 PM of the recipient’s local time, according to TCPA calling hours.
• Opt-Out Compliance: Businesses must provide their end-customers with a clear opt-out method and cease all contact following an express request.
• Penalties: Fines range from $500 to $1,500 per violation for non-compliance.

Is It Illegal to Use an Autodialer?

So, to answer the big question on everyone’s mind, are auto-dialers illegal? No, automatic phone dialers are not illegal. At least not on a national level in the US, as long as you comply with all of the outbound calling laws outlined above. 

Autodialer Laws by State

However, that doesn’t mean you’re in the clear quite yet. Different jurisdictions, even within the United States itself, sometimes have varying regulations for the use of auto-dialers. Below, we’ll discuss some of the specific examples.

How to Find Out What Laws My State Has for Auto-Dialed Calls?

As we’ve seen in the previous table, auto-dialer regulations can vary significantly between states and countries. We’ll touch on international law in a moment, but before that, here’s a guide on how to research your local legislation.

• Visit the Websites of Local Officials:
  Most states enforce telemarketing and consumer protection laws through the Attorney General’s office. Visit your state’s official website and look for sections on telemarketing, consumer protection, or business compliance.

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Some Attorney General websites publish recent enforcement actions against companies. Reviewing these can give you insights into common violations and help you avoid compliance pitfalls.

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• Review FTC & FCC Guidelines:
  The Federal Communications Commission and Federal Trade Commission regulate federal auto-dialing. Their websites provide updates on national laws and how they interact with state-specific regulations.
• Contact Regulatory Agencies:
  Some states have dedicated consumer protection agencies or telecommunications boards that enforce telemarketing laws. Check their websites or call them directly to ask about compliance requirements.
• Consult a Legal Expert:
  Compliance can be complex and ever-changing if your business operates in multiple states. Consulting a telecommunications attorney or compliance expert ensures you stay ahead of new regulations and avoid costly fines.

International Dialer Laws & Regulations

In 2017, the Dish Network was fined $280 million for willful negligence of the DNC Registry. As you can see, breaking auto-dialer rules in the US alone can get very expensive, let alone when it happens internationally. Keep in mind the following:

Exemptions & Special Cases

We’ve touched on this before, but it’s worth reiterating that the laws we’ve discussed thus far don’t apply to every entity in equal measure. Some businesses/organizations can willfully disregard outbound call compliance without repercussions. For example:

• Emergency Services: Don’t need to obtain consent for public safety notifications and disaster alerts.
• Government Organizations: Don’t need to obtain consent for census data collection and public safety announcements.
• Charities and Non-Profits: Don’t need to obtain consent in certain jurisdictions, as long as they provide the option of an opt-out.
• B2B Calls: Often exempt from stricter telemarketing laws, they still need to respect the National DNC Registry.

Common Autodialer Pitfalls & How to Avoid Costly Mistakes

So, we’ve discussed existing legislation and even the specific rules regulating how you can use auto-dialers. The question is, where do businesses go wrong the most often? Below, we’ll introduce you to the most common violations and ways to avoid them.

1. Making Unlawful Robo-Calls: All calls made using pre-recorded messages or artificial voices need to be made with express written consent both under the TCPA and some international laws, whether or not an auto-dialer is involved.
   
   How to Fix It: Always secure prior express written consent for marketing calls and keep records of agreements.
2. Not Providing Opt-Out Options: All telemarketing outreach, whether via phone call, SMS, or otherwise, needs to give users a reliable and timely way of opting out from all future campaigns in perpetuity.
   
   How to Fix It: Ensure recipients can easily opt-out through SMS keywords, online forms, or voice prompts.
3. Making Too Many Calls, Too Often: Calling the same contact repeatedly in a short span of time can often lead to harassment complaints. Consequently, many jurisdictions limit outreach frequency to a maximum of 3 attempts per day.
   
   How to Fix It: Set automated rules to limit the number of calls to the same recipient within a certain period by implementing “cool-off” rules.
4. Not Maintaining DNC Compliance: Calling a number registered in a state, national, or international Do-Not Call Registry is a serious violation and can cost you $1,500 per call made, resulting in a hefty penalty per campaign.
   
   How to Fix It: Use automated DNC compliance tools to update records and prevent accidental violations.
5. Using Non-Compliant Techniques in Scripts: You can make many mistakes in a call in only a few words. Not introducing yourself properly, using misleading urgency, and failing to provide adequate opt-out information are most common.
   
   How to Fix It: Provide regular training on TCPA, GDPR, CASL, and other relevant laws to prevent unintentional violations.

As a final word to the wise, one of the most important things you can do to maintain your compliance and avoid penalties is to audit and log all calls regularly. Keeping a detailed record of consent, opt-outs, and call histories is vital for audits and lawsuits.

Best Practices for Using an Autodialer Legally

Now you know what not to do. The question is, what should you do to reap all the benefits of using a TCPA-compliant autodialer while staying compliant with all the autodialer laws that apply to you to keep both your prospects and company safe?

• Obtain Proper Consent – Ensure you have written or recorded consent before making auto-dialed marketing calls.
• Use Smart Call Pacing: Avoid excessive call frequency and ensure your dialer does not overwhelm recipients with repeated calls.
• Maintain a Suppression List: Keep an up-to-date internal DNC list and remove numbers immediately upon request.
• Implement Real-Time DNC Scrubbing: Integrate your autodialer with DNC databases to automatically flag restricted numbers before dialing.
• Ensure Clear Caller Identification: Always state your business name, purpose, and a way for recipients to opt out within the first few seconds of a call.
• Use Opt-Out Mechanisms for All Calls: Whether it’s voice or SMS, provide a simple and immediate way for recipients to opt out.
• Leverage AI for Compliance Monitoring: Use AI-powered autodialer software that automatically detects and prevents non-compliant calls.
• Train Agents on Legal Requirements: Regularly educate employees on TCPA, GDPR, CASL, and other laws to ensure compliant call handling.
• Stay Updated on Regulatory Changes: Autodialer laws evolve frequently, so subscribe to FCC, FTC, and international regulatory updates to stay compliant.

Choose CloudTalk for Your TCPA-Compliant Autodialer

As a leading call center software provider, we understand how vital it is to stay compliant with all local and international regulations. We’ve done the work, earned all our certifications, and are now helping businesses worldwide do the same.

Save yourself some of the trouble of keeping your company compliant and partner with a provider that knows what they’re talking about. Reach 1+ international markets without worrying about lawsuits and penalties.

Source: 

• CloudTalk
• The National Law Review