Understanding the TCPA and How AI Marketing Calls Are Breaking the Rules
If you’ve ever been jolted awake by an early morning marketing call or interrupted during dinner by an incessant robocall, you’re not alone. These calls are not only annoying—they’re also, in many cases, illegal. The Telephone Consumer Protection Act (TCPA) was designed to protect consumers from intrusive telemarketing calls, robocalls, and spam messages, but with the rise of AI-driven bots, violations of these rules have surged.
What is the TCPA?
The Telephone Consumer Protection Act was enacted in 1991 to curb unwanted telemarketing practices. Here’s a breakdown of its key provisions:
- Consent Requirement:
- Businesses must have prior express written consent before making telemarketing calls or sending text messages using automated systems or prerecorded voices.
- Calling Time Restrictions:
- Telemarketing calls can only be made between 8:00 AM and 9:00 PM local time of the recipient. Violating this time window can lead to hefty fines.
- Do-Not-Call Registry:
- Consumers can register their phone numbers with the National Do Not Call Registry to opt out of telemarketing calls. Telemarketers are required to check this list and avoid calling registered numbers.
- Opt-Out Mechanism:
- All telemarketing messages must provide a clear and easy way for recipients to opt out of future communications.
- Penalties for Violations:
- Violators can be fined $500 to $1,500 per illegal call or message, depending on whether the violation was intentional.
How AI Bots are Exploiting Loopholes
With advancements in AI, some businesses have started using AI-powered bots to make calls that sound eerily human. This has led to confusion and a rise in complaints from consumers who feel misled and harassed. While these AI bots can technically mimic human interaction, they are still subject to TCPA regulations. That means businesses using AI bots to make marketing calls must:
- Obtain prior written consent from consumers.
- Adhere to the 8:00 AM to 9:00 PM calling window.
- Provide a clear opt-out mechanism.
However, it seems many businesses are either unaware of these requirements or choose to ignore them.
The Rise of AI in Loan Broker Networks
One of the most concerning trends is the use of AI bots by loan broker networks. In a recent sales video from a loan broker network, the presenter proudly described how they use AI bots to call potential loan clients. While this may sound innovative, it could also be a blatant violation of the TCPA if they haven’t obtained proper consent or if the calls are being made outside the permitted hours.
Loan brokers, like any other business, are required to follow the same telemarketing rules. Using AI doesn’t give them a free pass to bypass consumer protection laws.
Caller ID Spoofing: Deceptive Tactics to Make You Answer
Another deceptive tactic commonly used by telemarketers and AI-driven bots is caller ID spoofing. This involves displaying a local number on your caller ID, even though the call is coming from a different location entirely. The idea is simple: people are more likely to answer calls from local numbers, assuming it might be someone they know or an important local business.
But here’s the thing—starting a conversation by being deceptive isn’t exactly a great way to build trust. Why would anyone (certainly not me!) want to purchase anything from a company that begins by tricking them into answering the phone? It’s bad enough that they’re interrupting your day; adding deception to the mix makes it worse.
This practice, known as number spoofing, is illegal under the Truth in Caller ID Act when done with the intent to defraud, cause harm, or wrongfully obtain anything of value. Unfortunately, enforcement can be challenging because many of these spoofed numbers are not in use or are randomly generated. Spoofing is made possible through technology that allows callers to manipulate the information transmitted to your caller ID display. Telemarketers and scammers often use VoIP (Voice over Internet Protocol) services and specialized software that can easily create fake numbers. These systems can generate numbers that appear local or even imitate legitimate businesses, increasing the likelihood of someone answering the call.
The reason this tactic is so effective is psychological—people are more inclined to answer a call if they believe it’s from their area or a familiar organization. The spoofing software also allows callers to change numbers frequently, making it harder for authorities to track them down. Some spoofing services are even sold online, with little regulation to prevent misuse.
Why Caller ID Spoofing Persists
Despite regulations, spoofing continues because it works. Many telemarketers and scammers use this tactic because it increases the chances of someone picking up the call. Even if only a small percentage of people answer and engage, the tactic can be profitable for those making the calls.
Why This Matters to You
If you’re tired of unwanted marketing calls, you’re not alone. Many people are unaware that telemarketers cannot legally call before 8:00 AM or after 9:00 PM local time. If you receive a call outside these hours, there’s a good chance it’s illegal, and you have the right to report it.
Additionally, if you didn’t give explicit written consent to receive marketing calls, those calls are likely violating the TCPA. Filing a complaint with the Federal Communications Commission (FCC) or your state’s Attorney General’s office can help hold these businesses accountable.
How to Protect Yourself
Protecting yourself from these intrusive calls can be a frustrating endeavor. In theory, filing a complaint with the Federal Communications Commission (FCC) or your state’s Attorney General’s office should deter offenders, but in practice, it’s often ineffective. Both agencies openly acknowledge that they may not act on individual complaints, which leaves many consumers wondering if reporting violations is worth the effort.
Adding your number to the National Do Not Call Registry seems like a logical step, but it’s often comical how little it accomplishes. Telemarketers and scammers who are already breaking the law aren’t deterred by a registry. Legitimate companies may honor it, but the worst offenders—those using spoofed numbers and AI bots—ignore it entirely.
Realistically, there’s very little that consumers can do to fully protect themselves. Call-blocking apps can help reduce the volume of calls, but they aren’t foolproof. Spoofed numbers change so frequently that blocking individual numbers becomes a game of whack-a-mole.
For some instant gratification, you might consider buying an air horn and giving the caller an unpleasant surprise. It may not solve the problem, but it sure can be satisfying!
However, there is a serious side to answering these calls. Scammers can record your voice and use it in fraudulent activities, such as making fake calls to your family members to extort money. This makes it even more critical to be cautious when dealing with unknown numbers.
Still, if you want to take some action, here are a few steps you can try:
- Use Call-Blocking Apps: Many smartphones have built-in call-blocking features, and several third-party apps can help screen and block unwanted calls. While not perfect, they can reduce the nuisance.
- Report Violations: Even if you feel like it won’t make a difference, filing a complaint with the FCC or your state’s Attorney General can contribute to larger investigations and actions against repeat offenders.
- Ignore Unknown Numbers: If you don’t recognize the number, let it go to voicemail. Legitimate callers will leave a message.
- Stay Informed: Knowing your rights under the TCPA can at least help you recognize illegal activity when it happens.1. Register Your Number: Sign up for the National Do Not Call Registry. While it won’t stop all calls, it will reduce the volume of legal telemarketing calls.
- Know Your Rights: Familiarize yourself with the TCPA rules so you can identify when your rights are being violated.