Navigating Global Regulations
for AI Cold
Calling: Staying Compliant
with Phona

AI-driven technologies, such as automated voice assistants, are revolutionizing how businesses approach cold calling. However, this innovation is tightly governed by an intricate web of regulations varying across countries. Organizations deploying AI cold-calling solutions must stay compliant with legal frameworks addressing telemarketing, privacy, and consumer protection.

This blog post explores the rules governing AI cold calling across different jurisdictions and highlights how Phona ensures adherence to these regulations.

United States: TCPA and FTC Rules

The United States has strict laws regulating telemarketing:

1. Telephone Consumer Protection Act (TCPA):

   • Requires express written consent for robocalls and prerecorded messages.
   • Mandates an opt-out mechanism during calls.
   • Prohibits calls to numbers on the National Do Not Call (DNC) Registry.

2. Federal Trade Commission (FTC) Telemarketing Sales Rule:

   • Calls must include an announcement of the entity making the call and the reason for the call.
   • Precludes deceptive practices in telemarketing.

Phona’s Compliance:

• Checks numbers against the DNC registry before calling.
• Provides mandatory announcements indicating that calls may be recorded for quality purposes.
• Offers an easy opt-out mechanism during calls.

Canada: CRTC and CASL

Canada’s Canadian Radio-television and Telecommunications Commission (CRTC) and Canada's Anti-Spam Legislation (CASL) regulate telemarketing:

• Businesses must adhere to the National DNC List.
• Express consent is required for calls involving marketing.
• Recordings of calls must comply with data protection regulations.

Phona’s Compliance:

• Blocks numbers listed on Canada’s DNC registry.
• Ensures that recordings are handled securely and for authorized purposes only.

European Union: GDPR and ePrivacy Directive

AI cold calling in the EU must align with General Data Protection Regulation (GDPR) and the ePrivacy Directive:

1. GDPR:

   • Requires a legal basis for processing personal data, including voice recordings.
   • Mandates transparency and informs callees about the purpose of data collection.

2. ePrivacy Directive:

   • Explicit consent is required for direct marketing calls unless there’s an established business relationship.

Phona’s Compliance:

• Announces the recording of calls upfront, ensuring transparency.
• Avoids unsolicited calls to individuals without explicit consent.
• Employs robust safeguards to protect personal data.

United Kingdom: PECR

The UK’s Privacy and Electronic Communications Regulations (PECR) governs direct marketing:

• Consent is required for automated marketing calls.
• Businesses must not call individuals who have opted out via the Telephone Preference Service (TPS).

Phona’s Compliance:

• Blocks calls to TPS-listed numbers.
• Ensures that all calls comply with PECR’s consent requirements.

Australia: ACMA and Telemarketing Standards

The Australian Communications and Media Authority (ACMA) mandates:

• Adherence to the DNC Register Act.
• Consent is required for marketing calls.
• Recorded messages must clearly state the purpose of the call and the identity of the caller.

Phona’s Compliance:

• Adheres to Australia’s DNC requirements.
• Includes mandatory call disclosures to comply with ACMA rules.

India: TRAI Rules

India’s Telecom Regulatory Authority of India (TRAI) has stringent telemarketing rules:

• Telemarketers must register with TRAI.
• Marketing calls are prohibited to numbers on the National Customer Preference Register (NCPR).

Phona’s Compliance:

• Does not call numbers registered in India’s NCPR.
• Ensures transparency in the purpose of calls.

Other Countries and Regions

1. South Africa (POPIA):

   • Requires explicit consent for direct marketing calls.
   • Emphasizes data protection during recordings.

2. Japan (PPC Guidelines):

   • Consent is required for unsolicited calls.
   • Data from call recordings must be handled per Japan’s privacy regulations.

3. New Zealand (Unsolicited Electronic Messages Act):

   • Prohibits unsolicited marketing calls without prior consent.

4. Brazil (LGPD):

   • Similar to GDPR, requires explicit consent for processing personal data, including voice recordings.

How Phona Assists with Compliance

Phona's AI voice assistant is designed with compliance at its core:

• Transparency: Every call announces recording for training and quality purposes, ensuring callees are informed upfront.
• Registry Compliance: Checks and blocks numbers listed on DNC registries in the US, Canada, and other jurisdictions where registries apply.
• Ethical AI: Does not use custom or cloned voices, preventing deceptive practices and deepfake risks.
• Data Security: Adheres to GDPR and other data protection regulations, ensuring secure handling of call recordings.

How Businesses Can Ensure Compliance with AI Cold Calling Regulations

While using a compliant AI solution like Phona is an excellent start, businesses must also adopt additional measures to ensure they remain within regulatory frameworks. Here are key steps businesses can take to stay compliant with AI cold calling laws globally:

1. Obtain Explicit Consent

• Lead Generation Forms:
  • Add a clear disclosure on lead generation forms that states: “By submitting this form, you consent to receiving calls from our AI-powered calling system for informational and promotional purposes.”
  • Provide a checkbox (unchecked by default) for users to opt into receiving such calls.
• Verifiable Consent Records:
  • Maintain detailed records of consents, including timestamps, IP addresses, and the specific consent language used.

2. Update Privacy Policies

• Include a specific section in your privacy policy outlining the use of AI calling technologies. For example:

  We may use AI-powered technologies, such as automated voice calling systems, to interact with you for customer support, informational, or promotional purposes. These systems comply with applicable laws and ensure the protection of your data.

• Be transparent about:

  • The purpose of using AI calls (e.g., customer service, marketing).
  • Data collected during calls (e.g., call recordings, feedback).
  • Rights of the individual to opt-out or request data deletion.

3. Scrub and Maintain Call Lists

• Regularly update and scrub your call lists against applicable Do Not Call (DNC) registries.
• Implement processes to identify and remove numbers that have opted out or are invalid.
• For international campaigns, ensure you comply with country-specific DNC rules.

4. Provide Clear Opt-Out Mechanisms

• During AI calls, explicitly state the recipient’s right to opt-out and provide simple mechanisms to do so, such as pressing a number during the call.
• Include opt-out options in follow-up communications, such as emails or text messages.

5. Ensure Disclosures in AI Calls

• Every call should start with a disclosure, such as:

  This call may be recorded for training and quality purposes.

• Avoid misleading or deceptive statements that could harm consumer trust.

6. Train Your Team

• Educate employees and stakeholders about compliance requirements for AI cold calling.
• Ensure your marketing and sales teams are aware of the restrictions on unsolicited communications.

7. Implement Data Security Practices

• Follow data protection laws like GDPR, CCPA, and LGPD for handling personal data.
• Limit access to call recordings to authorized personnel and store recordings securely.
• Regularly audit data handling practices to ensure compliance with legal requirements.

8. Monitor AI Call Campaigns

• Periodically review call scripts, disclosures, and outcomes to ensure compliance.
• Use analytics to identify potential red flags, such as high opt-out rates or complaints.

9. Use Trusted AI Calling Solutions

• Choose an AI solution, like Phona, that is designed with compliance in mind. Phona assists businesses by:
  • Scrubbing numbers against DNC lists.
  • Providing upfront call disclosures.
  • Managing secure storage of call recordings.

10. Stay Updated with Local and International Laws

• Regulations around telemarketing and AI are evolving. Regularly consult legal advisors and stay informed about changes in relevant laws, such as:
  • TCPA updates in the U.S.
  • Amendments to GDPR or ePrivacy regulations in the EU.
  • New telemarketing rules in regions like APAC or South America.

Conclusion

Navigating global regulations for AI cold calling requires vigilance and proactive measures to respect consumer rights. Phona not only adheres to these regulations but also sets a high ethical standard by ensuring transparency, respecting privacy, and offering tools for compliance. By choosing Phona, businesses can leverage the power of AI cold calling while confidently staying within legal boundaries.

By taking the proactive measures outlined above, businesses can mitigate risks associated with AI cold calling and build trust with their audience. Combining robust internal policies with a compliant solution like Phona ensures not only regulatory adherence but also ethical and effective communication practices.

Disclaimer: Before using Phona, please consult with a legal professional in your jurisdiction to get a complete understanding of the rules and regulations your state or country require you to follow.