Call recording is an integral part of every business with a call center. Over the years, most companies have made call recording mandatory as it helps evaluate and improve the sales team’s performance. It also helps:
- Analyze the quality of customer service
- Train employees using accurate data
- Protection against liability
- Understand customers’ pain points
- Identify changing customer behavior
However, businesses that record calls are required to comply with several laws and regulations to ensure the privacy and security of the customer. Unfortunately, there’s no universal law for call recording compliance it varies in different countries.
In this article, we will discuss what call recording compliance is, its importance, benefits, and the problems of non-compliance. We will also talk about call recording laws for major countries (like India, Australia, UK, the US, and more). Let’s get started!
What is Call Recording Compliance?
Regulatory compliance for call recording is the process of ensuring that the recording of interactions with customers over the phone is legally compliant with various state and international laws and regulations.
As mentioned above, call recording enables you to train and monitor call center staff effectively, ensure the quality of customer service, acquire valuable customer data, and resolve disputes.
But any organization that employs call recording software must be aware of the legal requirements that govern the use of call recording in different geographic jurisdictions. Failure to comply with these legal restrictions could result in severe penalties, both financial and reputational.
Benefits of Being Call Recording Compliant
Being call recording compliant can benefit your organization in several ways, such as:
- It prevents you from fines and penalties.
- Eliminates the chances of legal cases or customers suing you.
- Helps build trust with customers. They can rest assured that their data is safe with you.
- Increases word-of-mouth marketing. Customers recommend businesses they trust with their friends and families.
- Helps maintain your brand’s reputation.
Problems of Not Being Call Recording Compliant
Non-compliance will likely invite fines. Anyone who violates the Electronic Communications Privacy Act (ECPA), commonly known as the Wiretap Act, can face up to five years in prison and/or a fine of up to $500.
But that’s not it. Non-compliance with call recording laws can also invite additional penalties, such as lawsuits and loss of business license. Since voice and video recording laws vary from state to state, it is advisable to hire a local lawyer in the region you’re located.
For example, in states like Alabama, Delaware, and Kansas, recording calls without obtaining proper consent can be considered a misdemeanor. However, in Hawaii, Connecticut, and Kentucky, the same violations can be viewed as a felony.
Fines for these violations can vary from $2,500 to $10,000, depending on the state, country, the industry you’re in, and the kind of data you’re collecting. Your past compliance history will also be considered. If you’ve been fined for the same violation in the past, your penalty will increase.
If civil parties or a customer sues the company for violating the law, the fine can go up as much as three times the damage is done or $5,000 per violation, whichever is greater.
Also, in most cases, employers will be held legally and financially responsible if their employees violate any call recording compliance laws.
How to Notify Customers About the Call Recording?
The Federal Communications Commission defines accepted forms of notification for telephone recording by telephone companies as:
- Prior verbal (oral) or written notification of all parties to the telephone conversation.
- Verbal (oral) notification before the recording is made. This is the most commonly used type.
- An audible beep tone repeated at regular intervals during the call.
How CallHippo Helps in Ensuring Call Recording Compliance?
While notifying customers that the call is being recorded as soon as the call starts during support sounds good, but for outbound calls, it could be disruptive. But, CallHippo still has a solution for you!
CallHippo’s new feature helps you in call recording, efficiently managing data and contacts concerning compliance. Our call recording solution is equipped with versioning, and robust governance capabilities that ensure content across channels is compliant and meets global regulatory requirements.
Here’s how it works:
- Log in to your CallHippo account.
- Go to compliance recording under settings.
- Select recording settings and choose from three options (a, b, and c) as per the country to ensure call recording compliance.
Here’s what the three options (a, b, and c) mean:
- Show notification to the agent to collect explicit consent: When you choose a, it will show a notification to the agent to ask the customer for consent before recording the call.
- Auto pause recording and allow agents to enable it: When you choose b, the call recording will be paused by default. If you wish to record the call, you will have to tap the record button.
- Disable recording and do not allow it to restart: When you choose c, the recording will be turned off for the selected country. If the next call is with someone from a different country for which you have not blocked call recording, it will start automatically.
To learn more about CallHippo Compliance Call Recording. Check out our in-depth explanation video
Call recording compliance helps you prevent fines, legal cases, and maintains your reputation as a trustworthy business. Make sure to read about the laws and regulations of call recording of the countries you operate in. Or you can choose a reliable call center software like CallHippo that ensures call recording compliance in each country.
Disclaimer: This blog does not constitute legal advice and is not meant to substitute for the advice of a lawyer in any way.