Telemarketing Sales Rule & Do Not Call List: The Complete Compliance Blueprint

What the Telemarketing Sales Rule (TSR) covers—and how it fits with the Do Not Call list

The Telemarketing Sales Rule (TSR) is the Federal Trade Commission’s core regulation for outbound sales and certain inbound upsells across the U.S. It establishes truth-in-selling obligations, Do Not Call (DNC) restrictions, call-time limits, recordkeeping, disclosure duties, payment method bans (e.g., remotely created checks), and special rules for high-risk verticals and negative-option offers. When people talk about “the DNC list,” they usually mean the National Do Not Call Registry, which sits under the TSR umbrella. Telemarketers must scrub calling lists against the Registry and honor a consumer’s request not to be called—forever—via the company’s internal DNC list.

Scope in one view

• Applies to: Most outbound sales calls (B2C), certain inbound upsells, sales by third-party telemarketers, and lead buyers who cause telemarketing.
• Key exclusions: B2B sales calls (unless selling nondurable goods/services to individuals at work), political calls, charitable solicitations by the charity itself (but not necessarily its paid fundraiser), and calls where a consumer initiates and no upsell occurs.
• Other laws still apply: The FCC’s TCPA and state robocall laws govern auto-dialers, texts, and prerecorded calls, especially to mobile phones. Think of TSR + TCPA + state laws as a stack—you must comply with all.

Do Not Call (DNC) basics: national registry + your internal list

National Registry duties

• Access & subscriptions: Telemarketers and sellers must subscribe to the Registry and download the area codes they call. Scrub lead lists at least every 31 days (many programs scrub daily).
• Prohibition: Do not call numbers on the Registry unless an exemption applies (see below).
• Exemptions that commonly apply: Established Business Relationship (EBR) for certain time-limited scenarios; express written permission from the consumer to receive calls; and certain non-commercial or charitable calls (with caveats if using a for-profit fundraiser).

Your company’s internal DNC list

Even when a number is not on the National Registry, you must honor an individual opt-out. Once a consumer says “Do not call me,” you must add the number to your internal DNC within a reasonable time (best practice: immediate) and never call again for sales, regardless of EBR or consent previously held. Maintain this list permanently and propagate it to affiliates, vendors, and dialers.

Disclosures, call times, caller ID, and abandoned-call limits

Mandatory disclosures early in the call

• Your identity, that the call is for sales, and the nature of the goods/services.
• Material terms before obtaining payment: total cost, restrictions, refund policy, negative-option features, and any no-risk trial terms that lead to charges if not cancelled.

Time-of-day restrictions

Do not call residences outside 8 a.m.–9 p.m. local time for the called party. Many programs localize by NPA-NXX and customer address to avoid time-zone mistakes.

Caller ID & truthful transmission

You must transmit a phone number and, when available, a name that identifies your business. Do not spoof or block caller ID to evade detection or suppress callbacks.

Predictive dialers and abandoned calls

TSR caps the abandonment rate in a calling campaign and requires a recorded message when no agent is available within two seconds of the consumer’s greeting. Maintain per-campaign logs: attempts, connects, live-answer ratio, and abandoned calls to prove compliance.

Consent and lead generation: what counts as “express permission”

Written permission

To call a number on the DNC Registry, obtain express written permission that clearly authorizes your brand (and named partners, if any) to call that specific number. The consent should capture who the consumer is, what they agree to (sales calls), how you’ll contact them (voice, possibly text—subject to TCPA), and that they aren’t required to agree as a condition of purchase.

Consent chains and data brokers

• Prohibit generic “marketing partners” lists with hundreds of unnamed brands. Regulators expect brand-specific or narrowly named sellers.
• Require proof of provenance: landing page screenshots, consent language, date/time/IP/UA, and a hash of the form content to deter tampering.
• Audit lead vendors and shut off sources with mismatch between intent and calls (e.g., sweepstakes “click-to-enter” leads).

Payments, no-go instruments, and upsell rules

Payment method restrictions

TSR bans certain high-fraud payment instruments in telemarketing, such as remotely created checks and some cash-equivalent transfers. If you take cards, disclose the amount and cadence accurately and provide a receipt. For subscriptions, align with ROSCA requirements on clear disclosures, consent, confirmations, and easy cancellation.

Inbound upsells

Even when consumers call you, upsells during that call can trigger TSR duties (disclosures, consent, and negative-option clarity). Treat every upsell as its own compliance event.

Recordkeeping and training: the controls that keep programs alive

• DNC hygiene: evidence of subscription to the Registry, download history for area codes, and scrub logs per campaign.
• Internal DNC pipeline: timestamped requests, processing SLAs (target: same day), and global suppression across dialers/vendors.
• Scripts & disclosures: versioned copies, QA checklists, and recordings to confirm required statements are delivered before payment requests.
• Abandonment metrics: predictive-dialer settings, per-campaign abandonment rate, and two-second greeting detection logs.
• Consent artifacts: consent text, page images, date/time/IP, and consent source (publisher ID, form ID).
• Training & audits: quarterly refreshers for agents; mystery-shop calls to verify opt-out handling and script fidelity.

Illustrative graphic: risk reduction once DNC hygiene is in place

Synthetic example for training; replace with your metrics.

Safe harbors, exemptions, and common pitfalls

Safe harbor for DNC violations

There is a limited safe harbor when a call to a DNC number happens despite procedures designed for compliance: written policies, training, recordkeeping of scrubs, and monitoring. This is not a shield for sloppy operations; you must show the violation was an error in an otherwise compliant system.

Common pitfalls that trigger enforcement

• Using old lead files not scrubbed against the Registry in the last 31 days.
• Failing to propagate internal DNC across vendors and affiliates.
• Suppressing or spoofing caller ID.
• Abandon rates above the campaign limit or lack of two-second connection behavior.
• Upsells that omit material terms or negative-option disclosures before payment.
• Relying on generic “marketing partners” consent with hundreds of unidentified brands.

Operational playbook: building a TSR-ready program in 10 steps

1. Map your calls (outbound, inbound, upsell) and identify which are TSR-covered.
2. Subscribe to the National DNC Registry; schedule automatic downloads for all area codes you call.
3. Deploy a suppression service that scrubs against National DNC and your internal list before dialing and again at connect time.
4. Implement agent one-click opt-out and real-time feeds to push suppression to all dialers and vendors.
5. Standardize scripts with required early disclosures; run QA call scoring and coaching.
6. Configure predictive dialers to meet abandon caps; retain per-campaign metrics and recordings.
7. Require brand-level express written consent on web forms; store consent artifacts and page captures.
8. Display caller ID that consumers recognize; monitor spam-labeling and correct reputation issues.
9. Ban no-go payments in telemarketing; confirm amounts and cadence in receipts.
10. Run monthly audits across vendors; verify scrub dates, abandonment, and opt-out SLAs; remediate gaps within 5 business days.

Conclusion

The TSR gives a clear blueprint for lawful telemarketing: honor DNC rights, disclose early, obtain valid consent, show real caller ID, control dialers, and prove it with records. Treat DNC compliance as a product and data pipeline problem—automate scrubbing, surface opt-outs to every vendor in real time, and train agents to complete disclosures with confidence. Combined with TCPA/state rules for texts and autodialers, a mature TSR program reduces complaints, chargebacks, and regulatory risk while preserving the channel for customers who actually want to talk.

Quick Guide — Telemarketing Sales Rule (TSR) & National Do Not Call Registry

• Subscribe & scrub: access the National DNC Registry, download area codes you call, scrub lists at least every 31 days.
• Honor internal DNC: one-click agent opt-out; never call that number for sales again.
• Disclose early: identity, sales purpose, key terms, total cost, refund/negative-option details before payment.
• Caller ID: transmit a valid number/name; no spoofing or blocking.
• Time windows: 8 a.m.–9 p.m. local time for the called party.
• Dialer controls: cap abandoned calls; play a recorded message if no agent within ~2 seconds.
• Consent quality: brand-specific, written permission to call DNC numbers; store date/time/IP and landing page.
• Lead hygiene: ban vague “marketing partners” consents; audit vendors and provenance.
• Payment limits: avoid banned instruments; send receipts; align subscriptions with ROSCA and click-to-cancel.
• Training & logs: scripts, QA recordings, scrub logs, abandonment metrics; run monthly audits.

FAQ

What is the TSR and who enforces it?

The Telemarketing Sales Rule is the FTC’s nationwide rule for most sales calls and some inbound upsells. The FTC enforces it, often with state AGs.

How does the National Do Not Call Registry work?

Numbers registered by consumers may not be called for sales unless an exception applies. Sellers/telemarketers must subscribe, download, and scrub lists.

Do B2B calls fall under the TSR?

Pure B2B sales are generally excluded, but calling individuals at work for personal purchases or nondurable goods can still trigger the TSR.

What’s the difference between national DNC and internal DNC?

National DNC is a federal registry; internal DNC is your company’s list. If a consumer asks not to be called, you must honor that permanently, even with prior consent.

When can I call a number on the DNC list?

Only with express written permission that names your brand (and any named partners) or during a valid, time-limited established business relationship.

What disclosures must I make on a call?

Identity, that it’s a sales call, the nature of the goods/services, and all material terms (price, restrictions, refunds, any negative-option details) before taking payment.

What are the call-time restrictions?

Do not call residences outside 8 a.m.–9 p.m. local time for the called party.

How do predictive dialer rules work?

Campaigns must keep abandonment within the TSR cap and play a recorded message if no agent is available within ~2 seconds of the consumer’s greeting.

What counts as valid consent from a lead form?

Brand-specific written permission captured with the page text shown, date/time/IP/UA, and a durable record. Generic “marketing partners” lists are risky.

Do texts and prerecorded messages follow the TSR?

They are primarily covered by the FCC’s TCPA and state robocall laws, but TSR may still apply to the sales program behind them. Comply with both.

What are typical penalties for violations?

Injunctions, civil penalties, restitution, vendor bans, and compliance monitoring; private suits may arise under state laws.

Legal Groundwork & Key Sources

• Telemarketing Sales Rule (TSR): DNC duties, disclosures, call-time limits, abandonment caps, recordkeeping, payment method restrictions.
• National Do Not Call Registry: subscription, area-code downloads, 31-day scrub cadence, internal DNC obligations.
• FTC Act §5: bans unfair/deceptive acts—used with TSR for spoofing, hidden terms, and deceptive scripts.
• TCPA & FCC rules: autodialers, texts, and prerecorded messages—especially to mobile phones.
• State laws: robocall statutes, mini-TCPAs, and telemarketing registration/bonding requirements.
• Negative-option/ROSCA alignment: if you sell subscriptions by phone, mirror online rules: clear terms, express consent, confirmation, easy cancellation.

Final Considerations

Build telemarketing like a compliance product: automate DNC scrubs, capture and synchronize opt-outs across vendors, show a real caller ID, keep abandonment in check, and verify disclosures before payment. Treat consent as data with provenance and retention policies. Monthly audits and agent training keep complaint rates and regulatory exposure low while preserving a lawful, reputationally safe channel.

Important Notice

This content is for general information and does not replace professional legal advice. TSR/TCPA/state requirements change and vary by jurisdiction. Have qualified counsel review your scripts, consent flows, dialer settings, and DNC processes before launch and during periodic audits.