The following answers provide general advice and information only. For legal purposes, please refer to the Business Practices and Consumer Protection Act and the Telemarketer Licensing Regulation.

Q. Why are telemarketers regulated?

A. In recent years, fraudulent telemarketing has become a serious problem in North America. Legitimate operations are increasingly becoming tainted by the proliferation of bogus schemes and not only find their reputations adversely affected, but also find it difficult to compete with fraudulent schemes for the limited dollars available in the marketplace.

In addition, consumers are expressing increasing frustration with the number of calls that they are receiving from telemarketers.

Licensing of telemarketers was provided for in the Business Practices and Consumer Protection Act, which came in effect on July 4, 2004, subject to regulations. In March, 2005, the Telemarketer Licensing Regulation was approved, requiring the licensing of telemarketers by October 1, 2005.

Q. How does the regulation address the issues of fraudulent telemarketing and nuisance calls?

A. The licensing of telemarketers allows Consumer Protection BC to request criminal record checks and other information from applicants for telemarketer licences to ensure their legitimacy. The regulation also restricts telemarketers to specific calling times and requires them to keep records relating to each distance sales contract.

Consumer Protection BC receives consumer complaints about telemarketers. The regulation allows Consumer Protection BC to monitor telemarketers and take appropriate enforcement action for violations.

Q. How does the regulation benefit consumers and businesses?

A. The regulation benefits consumers by:

• Reducing the nuisance factor of calls;
• Reducing telemarketing scams; and
• Increasing enforcement and the opportunity for restitution.

The regulation benefits businesses by:

• Improving the reputation of legitimate businesses;
• Increasing consumer confidence in the industry; and
• Ensuring a fair marketplace.

Who requires a licence:

Q. What telemarketers require licences?

A. All telemarketers who conduct business in British Columbia or who contact consumers in British Columbia by telephone or fax for the purpose of entering into a distance sales contract are subject to the Telemarketer Licensing Regulation. As well, all telemarketers who initiate contact with consumers for the purpose of soliciting a consumer, on behalf or for the benefit of another supplier, for a contribution of money or other property by the consumer (i.e. third-party fund raisers) are subject to the regulation. The regulation falls under the Business Practices and Consumer Protection Act, which provides for the licensing of telemarketers.

Q. What is a “distance sales contract”?

A. A distance sales contract is a contract for the supply of goods or services between a supplier and a consumer that is not entered into in person and, with respect to goods, for which the consumer does not have the opportunity to inspect the goods that are the subject of the contract before the contract is entered into. This definition is provided in the Business Practices and Consumer Protection Act (s. 17)

Suppliers entering into distance sales contracts in electronic form must make the information required available in a manner that requires the consumer to access the information, and allows them to retain and print the information, as well as providing an express opportunity to correct errors in the contract and to accept or decline the contract. In addition, there are specific disclosure requirements and cancellation provisions for distance sales contracts.

Q. How is “telemarketer” defined?

A. A telemarketer is someone who sells goods or services over the phone or by fax, and may include someone who solicits donations for charities. The Business Practices and Consumer Protection Act provides a specific definition of “telemarketer” as a supplier who initiates contact with a consumer by telephone or facsimile for the purpose of conducting a consumer transaction (s 142).

Q. How is “consumer transaction” defined?

A. The Business Practices and Consumer Protection Act defines consumer transaction as:

(a) a supply of goods or services or real property by a supplier to a consumer for purposes that are primarily personal, family or household,

or

(b) a solicitation, offer, advertisement or promotion by a supplier with respect to a transaction referred to in paragraph (a), and, except in Parts 4 and 5, includes a solicitation of a consumer by a supplier for a contribution of money or other property by the consumer.”

Q. What telemarketers are exempt from the regulation?

A. A supplier is exempt if the supplier does not initiate contact with consumers for the purpose of selling them goods or services under a distance sales contract or for the purpose of soliciting contributions on behalf of another supplier.

This exemption would include charities who call or fax consumers directly and may include educational institutions, political organizations and firms conducting surveys.

In addition, telemarketers who sell goods such as a security as defined in the Securities Act or contracts of insurance under the Insurance Act are exempt.

Savings institutions are exempt from the requirement to be licensed. Saving institutions included banks and credit unions.

Q. Do telemarketers located in British Columbia, but who do not contact BC consumers require licences?

A. Yes, if telemarketers conduct business in British Columbia, they will require licences, whether or not they contact BC consumers. The Business Practices and Consumer Protection Act defines “consumer” as an individual, whether in British Columbia or not, who participates in a consumer transaction.

Q. Do telemarketers located outside of British Columbia, but who contact BC consumers require licences?

A. Yes, if telemarketers contact BC consumers, they will require licences, regardless of where they are located. The Business Practices and Consumer Protection Act defines “supplier” as a person, whether in British Columbia or not, who in the course of business participates in a consumer transaction.

Q. Must a business licensee who operates from several locations have a licence for each location from which they conduct business?

A. Yes, section 5 of the Telemarketer Licensing Regulation requires a telemarketer to have a licence for each location from which the telemarketer conducts business in BC.

How to apply for a licence:

Q. What is the process for a telemarketing company to be licensed?

A. A licence application form is available on our website. The package consists of licence application forms, criminal record check consent forms and sample statutory declarations for any applicants who declare criminal records. The completed forms, along with the applicable payment, should be forwarded to Consumer Protection BC for processing.

Q. Is training be required before a licence is issued?

A There is no educational requirement in the regulation and we have no plans to offer a training program for licensees. Anyone licensed under the Business Practices and Consumer Protection Act should be aware of the provisions of both the Act and regulations, in particular, the sections in the Act relating to contracts and unfair practices.

Q. How can telemarketers contact us?

A. For licensing and other business inquiries, telemarketers should contact our licensing team.

Consumers may direct complaints and inquiries to the inquiry team.

What the regulation requires of licensees:

Q. What are the licensing requirements?

A. The Telemarketer Licensing Regulation regulates the acts or practices of telemarketers. Telemarketers are required to:

• Collect and maintain records of consumer transactions for 2 years;
• Comply with conditions of communication:

- restricted hours of communication
- must not “call block” the originating call number
- may not contact a consumer more than once in a 30 day period for the same proposed consumer transaction;

• Disclose identifying information about the call (and supplier, if different from the caller); and
• Disclose descriptive information about the solicited good or service, or the purpose of a contribution.

Q. What restrictions are placed on calling hours?

A. The regulation restricts the times that licensees can communicate with consumers to weekdays between 9 am and 9:30 pm and weekends between 10 am and 6 pm. No calls are permitted on statutory holidays. The time refers to the local time of the person being contacted. In addition, a telemarketer may not contact a consumer more than once in every 30 day period for the same good or service without the consumer’s permission.

Q. Does the regulation require telemarketers to keep a “Do Not Call List”?

A. No, the Telemarketer Licensing Regulation does not require this. However, the federal Canadian Radio-television and Telecommunications Commission does require telemarketers to maintain "do not call/fax lists" and provide customers with contact information for a responsible person to whom the called party can write.

How consumers are protected:

Q. How can a consumer know if the telemarketer is licensed?

A. The consumer may ask telemarketers for their licence number. If there is an issue, the consumer should also note the date and time of the call, the originating number and other information in order to provide information to Consumer Protection BC.

A list of licensees is also posted on our website that allows consumers to search for licensees.

Q. How can consumers complain about telemarketers?

A. Consumers may call our inquiry team to lodge a complaint.

Q. How will Consumer Protection BC enforce the regulatory requirements?

A. Consumer Protection BC will first encourage licensing through education, communication, and voluntary compliance. However, a telemarketer who operates without a licence is committing an offence and is liable to a fine of not more than $10,000 for an individual and not more than $100,000 for a corporation.

For non-compliance with the regulation, we will take progressive enforcement action as follows:

• Accept undertakings in writing;
• Issue compliance orders;
• Impose administrative monetary penalties; and
• File undertakings or orders in Supreme Court.

Examples of activities included in the regulation

Q. Are call centers included in the regulation?

A. Call centers (both first party and third party) conducting business in BC or contacting BC consumers are included if they are initiating contact with consumers for the purpose of conducting consumer transactions under distance sales contracts or if they are third party fund raisers.

Q. Is licensing required where a business calls its customers regarding:

• Surveys
• New Products
• Courtesy Calls
• Account Inquiries?

A. The regulation applies only to those calls made for the purpose of entering into a distance sales contract, i.e. not surveys or account inquiries. Calls about new products and courtesy calls depend upon whether they are made for the purpose of entering into a distance sales contract.

Q. Is it considered to be telemarketing if a business contacts existing clients?

A. The legislation does not address the existing relationship between the supplier and consumer, so this is not a factor in identifying who would fall under the regulation. Again, all telemarketers, conducting business in BC or contacting BC consumers, who are contacting consumers for the purpose of conducting consumer transactions under distance sales contracts or as third party fund raisers would require licences – regardless of whether they are existing clients.

Q. Do businesses handling inbound calls have to be licensed?

A. The company only requires a licence if it is initiating contact for the purpose of entering into a distance sales contract. If the company is not initiating the call, or if they are not entering into a distance sales contract, they will not require a licence.

Q. Do businesses that contact consumers over the phone and then send salespeople to customers’ homes to sign contracts require telemarketer licences?

A. This type of situation would not fall under the Telemarketing Licensing Regulation. However, the contract signed may be a direct sales contract which has specific disclosure and cancellation requirements as well.

Q. If customers call to make inquiries about their accounts, can the company call them within the 30 days?

A. The regulation applies only to the same consumer transaction. An account inquiry is not a consumer transaction so there would be no restrictions on calls within the 30 day period.

Q. Does the Telemarketer Licensing Regulation apply to a company that calls customers who are businesses rather than consumers?

A. No. The definition of consumer transaction refers only to the supply of goods, services or real property to a consumer for purposes that are primarily personal, family or household. It does not include business-to-business transactions.