Business-To-Business Calls: Georgia's Legal Stance

In the state of Georgia, business-to-business calls are not covered by the Do Not Call laws. However, telemarketers who violate the Do Not Call law are subject to civil penalties under federal law of up to $11,000 per violation and under state law of up to $5,000 per violation. Furthermore, businesses can be held liable for the actions of their telemarketing vendors. Businesses in Georgia can file a DBA (doing business as) to operate under a name other than their registered name, but this does not provide liability protection.

Telemarketing laws

Georgia's telemarketing laws aim to protect consumers from nuisance calls and unwanted solicitations while balancing commercial free speech rights. The state's Do Not Call Law and recent amendments to its telemarketing regulations help achieve this balance.

The Do Not Call Law

The Georgia Do Not Call Law, merged with the Federal Do Not Call (DNC) registry in 2003, allows consumers to opt out of receiving telemarketing calls. While business phones are not eligible for registration, individuals can register their residential, mobile, or wireless phone numbers to reduce unsolicited sales calls. Telemarketers are prohibited from contacting those on the DNC list, with some exceptions, including calls from charitable organizations, political campaigns, and businesses with prior relationships.

Amendments to Telemarketing Law

Effective July 1, 2024, Georgia strengthened its telemarketing law to enhance consumer protection. The amendments include:

• Removing the damages cap for private plaintiff lawsuits, allowing for unlimited damages.
• Removing the requirement of "knowing" from violations, holding businesses accountable even if they are unaware of the law.
• Adding vicarious liability, making businesses responsible for the actions of their telemarketing vendors.
• Requiring telemarketers to state their identity and the business they represent, and prohibiting them from blocking or circumventing caller ID.

Enforcement and Penalties

Telemarketers who violate the Do Not Call law face civil penalties of up to $11,000 per violation under federal law and up to $5,000 per violation under state law. Additional penalties may apply if the consumer is elderly. Enforcement actions brought by the Attorney General can result in a $1,000 fine per violation.

To report a violation, individuals can visit http://www.donotcall.gov and file a complaint. It is essential to gather and report as much information as possible about the call, including the caller's name, company name, telephone number, and approximate date and time of the call.

Business-to-business calls

Georgia's Do Not Call Law prohibits telemarketers from selling products or services by calling consumers who have registered their phone numbers on the National Do Not Call Registry. This federal registry, maintained by the Federal Trade Commission (FTC), is the only registration site for Georgians seeking to reduce unsolicited telemarketing calls. Business phones are not eligible for registration on the list, and business-to-business calls are not covered by the Do Not Call laws.

While business-to-business calls are exempt from Georgia's Do Not Call Law, telemarketers must adhere to specific regulations when contacting consumers. They must clearly state their identity and the name of the company they are calling on behalf of, and it is illegal for them to block Caller ID. Telemarketers using Automatic Dialing and Announcement Devices (ADADs) in Georgia are also required to obtain a permit from the Georgia Public Service Commission (PSC).

The National Do Not Call Registry allows consumers to register their residential, mobile, or wireless phone numbers to opt out of receiving telemarketing calls. The law defines telephone solicitation as "any voice communication over a telephone line for the purpose of encouraging the purchase or rental of, or investment in, property, goods, or services." Certain types of calls are exempt from the Do Not Call Law, including those from charitable organizations, political campaigns, and businesses with which the consumer has an existing relationship.

Telemarketers who violate Georgia's Do Not Call Law are subject to civil penalties under federal and state law. The federal government can assess penalties of up to $11,000 per violation, while the state law imposes penalties of up to $5,000 per violation. Additional penalties may apply if the consumer is elderly. Furthermore, the recent amendments to Georgia's telemarketing law have removed the damages cap for private plaintiffs, increasing the risk for organizations making calls in the state.

In addition to the Do Not Call Law, Georgia's Fair Business Practices Act prohibits unfair and deceptive practices in consumer transactions involving the sale, lease, or rental of goods, services, or property for personal, family, or household purposes. This includes making false or misleading statements about another business or its products and services, as well as advertising goods or services with the intent not to sell them as advertised. Businesses must also comply with other relevant laws, such as the Sale of Business Opportunities and Multilevel Distribution Companies Act, which requires certain disclosures to consumers before they sign contracts.

Fair Business Practices Act

Georgia's Fair Business Practices Act (FBPA) prohibits unfair and deceptive acts or practices in the marketplace. This law applies to consumer transactions involving the sale, lease, or rental of goods, services, or property mainly for personal, family, or household purposes. The FBPA is based on the Model Unfair and Deceptive Acts and Practices statute, which most US jurisdictions adopted in some form in the 1970s. The legislative purpose of the FBPA is to protect consumers and legitimate business enterprises.

The FBPA prohibits the following activities:

• Passing off goods or services as those of another (for example, representing that a product or service is manufactured or provided by Company X when it is actually from Company Y).
• Claiming that goods come from a particular place when they do not (for example, representing that products are manufactured in the USA).
• Making false or misleading statements about another business or its products or services.
• Advertising goods or services with the intent not to sell them as advertised (for example, using "bait-and-switch" tactics).
• Advertising goods or services without having enough merchandise to meet expected demand, unless the advertisement states "quantities limited."
• Making false or misleading statements about sale prices (for example, advertising "On sale today only," when the item has been offered at that price for the past month).

The FBPA also contains specific provisions relating to the Georgia Lemon Law Act, which outlines a self-help process to aid consumers in getting their vehicles repaired. If a manufacturer fails to repair a recurring problem after a reasonable number of attempts, and the consumer meets certain eligibility requirements, they may apply for recourse under the Georgia Lemon Law Act.

In addition to the FBPA, Georgia has other statutes that promote fair business practices. These include the Sale of Business Opportunities and Multilevel Distribution Companies Act, the Georgia Buying Services Act, the Georgia Debt Adjustment Act, and the Georgia Charitable Solicitations Act. These laws provide protections for consumers in various contexts, such as when joining multilevel distribution companies, purchasing from buying clubs, arranging debt repayment, or donating to charities.

While there are no published appellate decisions applying the FBPA in personal injury and wrongful death cases, there have been successful claims based on violations of the FBPA in these contexts. Case analysis for such claims must include a careful evaluation of how the unfair or deceptive act or practice affects the public interest and how it contributed to the proximate cause of the injury.

Doing Business As (DBA)

In the state of Georgia, a "Doing Business As" (DBA) is a way to operate a business under a different name than its registered legal name. This is often used for branding purposes, and a DBA does not constitute a business structure or provide liability protection.

If you are using a business name that is different from your legal business name, you will need to file a DBA. This includes if you use a shortened version of your business name, or if you use a logo, website, signs, or products with a name that is not identical to the company's legal name. For example, if your legal business name is "Georgia Holdings, LLC" but you do business as "Georgia Realty," you will need to file a DBA.

In Georgia, you file a DBA with the Clerk of the Superior Court in the county where your business is located. The forms and fees may vary by county and can be provided by the Clerk's Office of the Superior Court. Before filing, you must verify that the name you want is not already in use by searching the county trade name records. Your chosen name should also adhere to the State of Georgia's business name standards.

It is important to note that a DBA is not a substitute for registering your business. You can only register a DBA if you already have a legal business entity or if you are operating as a sole proprietor or partnership. Additionally, a DBA is just a nickname for a business and cannot become a legal business entity.

Georgia's Fair Business Practices Act prohibits certain activities, including making false or misleading statements about another business or its products and services, and advertising goods or services with the intent not to sell them as advertised.

Business opportunity companies

Georgia's Do Not Call Law prohibits telemarketers from selling a product or service from contacting households that have registered with the Do Not Call List. However, business-to-business calls are not covered by the Do Not Call laws.

Now, onto business opportunity companies. These companies sell or lease to you the right to start a business identical to the parent company. Under Georgia's Sale of Business Opportunities and Multilevel Distribution Companies Act, if you sign up for certain business opportunities or join certain multilevel distribution companies, you must be given specific information before signing any contract. The contract must detail the terms and conditions for your payment to the company, the goods or services the company will provide, and the approximate delivery date for these goods or services.

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Frequently asked questions