Indiana’s recently enacted HB 1123 is set to take effect July 1, 2019, and any business making calls to Indiana residents should take note of its drastic changes. The new law brings with it sweeping revisions to the scope of telemarketing regulation and severe penalties for violations of its requirements.
Previously, Indiana’s telemarketing laws required a limited number of sellers making specific misrepresentations during calls to register with the state. The new law, however, expands the registration requirement to encompass any entity making solicitations, which the statute broadly defines as “a telephone conversation or attempted telephone conversation in which the seller offers, or attempts to offer, an item to another person in exchange for money or other consideration.”
The new law also expands the scope of liability for violations. Company executives may now be held independently liable if they directly or indirectly control an employee who violates the state’s telemarketing laws. This applies uniformly to officers and other key members of corporations, partnerships, and LLCs.
With penalties for violations reaching five figures and no applicable exemptions, businesses making calls to the state should take action to ensure their compliance with the state’s new registration protocols.