Telemarketing Regulation

In Montana, telemarketing is defined as using the phone to encourage consumers to purchase, rent or invest in goods, property or services.

E-mail is not covered by this or any other Montana law. For assistance with e-mail, go to the Federal Trade Commission website.

Recorded telemarketing messages are illegal in Montana under 45-8-216 of the Montana Code Annotated. There are a few exceptions such as the use of recorded messages to tell a customer that previously ordered goods are available for pick-up.

Telemarketing Registration

The Telemarketing Registration and Fraud Prevention Act requires sellers and telemarketers to register with the Department of Justice before conducting telemarketing transactions in Montana. Unless a business can prove it is exempt under MCA 30-14-1405, it must stop all telemarketing activities in Montana until it is properly registered.

Penalties – Unregistered businesses and telemarketers who continue to conduct telemarketing in Montana are subject to civil fines and penalties.

• Under MCA 30-14-1413, the sale of any goods or services by an unregistered seller or telemarketer who is required to register is void.
• Under MCA 30-14-1414, an unregistered seller or telemarketer may be fined up to $500 and imprisoned for up to six months for a first offense, and for a second or subsequent conviction, may be fined up to $50,000 and imprisoned for up to five years.

Application and Bonding Requirements

A business wishing to telemarket must have its registration application approved by the department before it offers consumer goods or services for sale. Telemarketers who do not have a physical location in Montana must also register with the Secretary of State as a foreign business.

Surety Bond Requirements – All applicants must submit proof of:

• a surety bond of $50,000 issued by an A- surety company authorized to do business in Montana and registered with the Secretary of State
  OR, in lieu of bond,
• a certificate of deposit, cash or a government bond of $50,000

The bond:

• cannot be combined with other bonds
• must be only in the Department of Justice's name
• must be issued for a two-year period

Annual Renewal Required – Telemarketers must renew their registration and update their surety bond form annually. The department requires a 60-day written notice prior to bond renewal. You have 30 days to either have the surety bond re-issued or you can request in writing that your telemarketing registration application be cancelled. If you fail to meet any of the renewal requirements or cancel your registration, you must cease doing telemarketing in Montana. Fines will be assessed for non-compliance.

How to Register

1. Complete the Telemarketing Registration Application and include all attachments. Incomplete applications cannot be processed and will be returned.

2. Complete the Telemarketing Registration Surety Bond Form as proof of your surety bond.

3. Mail the completed application packet to:

   Office of Consumer Protection
   2225 11th Avenue
   P.O. Box 200151
   Helena, MT 59620-0151

There is no application fee.

Do-Not-Call Lists

Under Montana law, telemarketers in Montana may be required to purchase and use a do-not-call list. Those who are required to buy the list must update it every 31 days.

If someone asks to be put on your do-not-call list, you must maintain a list of people who have requested not to be called. You cannot call them again.

If someone files a telemarketing complaint against your business, you will receive notice in the mail from either the Montana Office of Consumer Protection Office or the Federal Trade Commission (FTC). You need to respond to complaints as they come in. Failure to respond can be a violation of state or federal law.

Penalties for not using a required do-not-call list include a fine of up to $11,000 per call. In addition, criminal charges are possible for intentional violations.

Who Needs to Buy the List

If you are not engaged in telemarketing, you do not need to buy the list.

If you are engaged in telemarketing, answer the questions below to determine if you need to buy the list. If the answer to any of the following questions is yes, your business does not need to use the state do-not-call list. If you answer no to all of the questions, your business is required to purchase and use the state do-not-call list.

• Are you a 501(c)1-(c)6 engaged in fundraising to support your charitable purpose and not using third-party telemarketers to make the calls?
• Are you licensed by Montana to carry out your trade and calling to set an appointment only?
• Are you regulated by a federal agency and required by that same agency to maintain a do-not-call list?
• Are you calling from your own primary residence?
• Are you calling someone with whom you have had a business contact within the last 180 days or someone whose number you got by referral?
• Has the person specifically asked you to call them?

Charities and Nonprofits

A nonprofit organization does not have to buy the state do-not-call list if:

• it seeks donations without selling anything. That does not qualify as telemarketing under Montana law.
• it is selling something and is a tax-exempt organization under 501(c)1-(c)6, provided it does not hire third parties to make the calls.

A charity or nonprofit organization is required to buy the state do-not-call list if it is selling something and hires third parties to make the calls.

If a person requests that your organization not call them again, you must honor the request.

To Purchase the State Do-Not-Call List

Montana has fully integrated its state do-not-call list with the National Do-Not-Call Registry. To comply with Montana's telemarketing laws, businesses must purchase the (406) area code or a package of area codes that includes the (406) area code from the National Do-Not-Call Registry. The price varies depending on how many area codes a business purchases. For more information, pricing details, or to purchase the National Do-Not-Call Registry, go to the Telemarketer section of the National Do Not Call Registry website.

Telemarketers who call across state lines need to buy the list for any area code they call.