Telemarketing is one of the most highly regulated sales channels in the country. If your business makes outbound calls across state lines—or even just in one state—you may be legally required to hold a telemarketing license. Most telemarketers are surprised to learn that as many as 32 states currently require licenses for outbound calling.

These laws aren’t new. In 1989, Florida was one of the first states to introduce a telemarketing law. The Florida Telemarketing Act, Section 501.601, Chapter 501, Part VI of the Florida Statutes, was drafted to give the state more oversight of phone-based sales. That law became a blueprint for others, and now, more than half the country has licensing requirements of some kind.

So, if you’re making calls to sell products or services, you’ll likely need a license—and possibly a bond—before you pick up the phone.

Which States Require Licenses and Bonds?

Many states require a license for certain types of telemarketing. The most common trigger is outbound sales calls. However, a number of states apply their rules to any sales made over the phone, even if the customer initiates the call.

Each state defines “telemarketing” a little differently, and that matters. In one state, calling to confirm appointments might not qualify as telemarketing. In another, it might. Some states base the requirement on whether you’re calling residential consumers. Others apply the law to business-to-business calls, too.

Around two-thirds of the states that require a license also require a bond. These bonds typically require $50,000-$100,000 in coverage and are paid for through a bond company that insures your license. This is not optional—you can't get the license if you don’t have the bond.

The licensing process usually includes a detailed application and submitting contracts and other documentation. States may request copies of your call scripts, rebuttals, promotional materials, training guides, and anything else your agents use on the phone.

What Makes Florida Unique

Florida’s telemarketing rules are some of the most detailed in the country. While most states require a company-level license, Florida also requires licenses for individual sales reps making the calls. That means you’ll need two types of licenses: one for the business and one for each caller.

Florida also outlines over two dozen exemption categories covering people or companies that don’t need a license. These include stockbrokers, insurance agents, travel agents and certain catalog businesses. Many of these exempt groups are already required to hold other professional licenses or registrations with the state or federal government.

Even if your business is exempt in Florida, you may still need a license in other states where you’re calling. It’s common for companies to assume they’re covered based on one state’s exemptions only to find out they’re out of compliance elsewhere.

Because each state has slightly different definitions and thresholds, it is essential to review each state’s rules before launching a new multi-state campaign. What qualifies as “telemarketing” in one place might be completely exempt in another.

If your business makes outbound calls or closes sales by phone, getting licensed might not be optional—it might be required. Keeping track of state-by-state requirements, bonds, exemptions, and renewals can quickly seem overwhelming, but it’s worth getting right.

If you need help sorting through the requirements or preparing your applications, Cove Law, PA, can help you determine what’s needed, where, and why. We work with telemarketing companies of all sizes and throughout the U.S. to stay compliant, avoid penalties, and get licensed efficiently. Reach out today to get started.