Rule one in telemarketing – follow the law

It really should go without saying that research and preparation are the keystones to a successful business strategy. When your profit margin and/or success on contracted business is being assessed why would you fail to check the legislation, rules or conditions of conducting business. Failure to adhere to published guidelines and laws is a surefire way to throw any profit right out the window, knowing this it makes the following story all the more remarkable. As if the momentous debate surrounding healthcare reform wasn’t complex enough it seems that a third party call service provider was also being poorly advised as to the telemarketing campaign that was orchestrated.

An extended probe by the State Dept of Justice for North Carolina has been brought to an end with Blue Cross and Blue Shield of NC agreeing to pay a $95,000 penalty. The inquiry came about as a result of calls that were made last year concerning the legislation pertaining to Health Care reform that was pending in Congress. Some 100,000 North Carolina residents received the calls commissioned by Blue Cross Blue Shield last October and findings have determined the process did not follow state law. Specifically the law requires the introduction of a call must be commenced by a live operator and permit call recipients the option to refuse the call prior to the automated message being delivered.

A call center made the calls on behalf of Blue Cross which in turn resulted in residents filing complaints with the state’s office of the Attorney General Roy Cooper. The exception to the the rule would be for a tax-exempt company which does not apply to Blue Cross. Blue Cross spokesman Lew Borman provided the script of the call but did not elaborate on the situation.

The script partially stated: “I’m calling because the U.S. Senate will soon vote on a health care bill that will affect our lives and our families. Today, we need your help. You will receive a mailer with a prepaid return card that allows you to voice your view directly to Senator Kay Hagan. Simply sign the card and put in the mailbox — that’s it. Together we can get health care reform right.”

Maureen O’Connor, general counsel and executive vice president of the North Carolina Blues, said the company regrets the mistake and apologized for the errors made in placing the calls incorrectly. It seems unfathomable that a call campaign to 100,000 recipients was not researched with the thoroughness required prior to launch. A very critical role prior to commencing a campaign is researching the project’s objectives and analyzing all of the logistics in completing the campaign. Calling lists, regulations, data uploads and laws in terms of delivery and guidance should each be assessed even before a contract is signed and the planning phase moved beyond the fundamentals.

O’Connor stated “The Attorney General has informed us that our automated calls about health reform did not fully comply with state law. We regret this mistake, and we apologize for the error made in how these calls were placed. We continue to believe that it is important for BCBSNC to take an active role in the health reform debate. We contracted with a vendor to place automated telephone calls in accordance with state law. The automated calls took place over a two-day period in October 2009. State law required our vendor to use a live operator to introduce the prerecorded messages, but this procedure was not followed. We cooperated promptly and fully in the Attorney General’s review of this matter. From the beginning of the health care debate, BCBSNC has affirmed its support for health reform that covers all Americans, promotes quality care and controls costs. The company has taken an active role in this discussion, particularly in educating North Carolinians on the likely impact of various health reform proposals. We will continue to be engaged.”

It should be added that Blue Cross did immediately cease the calls when contacted by the office of the attorney general. Within the confines of the settlement Blue Cross has agreed to follow the law and enact policies telling its vendors to do so also, the attorney general’s office said. There is a silver lining as the office of the attorney general announced that the monies from the fine would be distributed to public schools in North Carolina.

Lesson for the day? Correctly and adequately research your local, state or regional calling laws before commencing a calling campaign, though that seems obvious enough this story suggests it was a lesson still to be learned.

Quotes for this story courtesy The Associated Press.