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Puerto Rico Telemarketing Laws: What Businesses Must Know
If your business makes outbound calls, sends text messages, or uses automated dialing systems to reach customers in Puerto Rico, you operate under a specific legal framework that differs from mainland U.S. telemarketing rules. Puerto Rico telemarketing laws impose strict requirements on how, when, and to whom you can contact potential customers. Violations carry significant penalties, including fines and civil liability. Understanding these rules is not optional for any business conducting telemarketing activities in Puerto Rico, whether you are based on the island or operating remotely.
The Legal Foundation of Puerto Rico Telemarketing Regulation
Puerto Rico's telemarketing laws are codified primarily in Act 257-2018, also known as the Telemarketing Consumer Protection Act. This statute establishes the baseline requirements for all telemarketing activities conducted within Puerto Rico's jurisdiction. The law applies to any person or entity that initiates outbound calls or messages to consumers for the purpose of soliciting sales, donations, or other commercial transactions.
The scope of this law is broad. It covers traditional voice calls, text messages (SMS), email communications, and any other electronic means used to contact consumers. The law does not distinguish between live agents and automated systems, though automated calling systems face additional restrictions under separate provisions. Any business that engages in telemarketing must comply with Act 257-2018 or face enforcement action by Puerto Rico's consumer protection authorities.
One critical point: Puerto Rico's telemarketing law operates independently of the federal Telephone Consumer Protection Act (TCPA). While the TCPA applies to calls made to Puerto Rico residents, Puerto Rico law creates its own separate obligations. A business can comply with the TCPA and still violate Puerto Rico law. Both sets of rules must be satisfied simultaneously.
The Do-Not-Call Registry and Consumer Consent Requirements
Puerto Rico maintains its own do-not-call registry, separate from the federal registry. Businesses must scrub their calling lists against this registry before initiating any telemarketing campaign. Calling a number listed on Puerto Rico's do-not-call registry is prohibited, with limited exceptions for established business relationships and certain nonprofit organizations.
The registry is maintained by Puerto Rico's Office of the Commissioner of Financial Institutions. Businesses can access the registry to verify numbers, though the process differs from the federal system. You cannot simply download a list and assume it remains current. The registry updates continuously, and your compliance obligation is to check numbers against the current registry at the time you initiate contact.
Beyond the do-not-call registry, Puerto Rico law requires prior express written consent from consumers before making telemarketing calls for certain purposes. This consent requirement is stricter than federal law in some respects. Written consent must be clear, specific, and documented. Verbal consent alone is insufficient. The consumer must understand exactly what they are consenting to and must provide that consent in writing before you contact them.
Established business relationships provide a limited exception to the do-not-call registry. If a consumer has done business with you within the past 18 months, you may call them even if they are on the registry, provided you have a legitimate business purpose for the call. However, this exception does not eliminate the requirement to honor a consumer's direct request to be placed on your internal do-not-call list. If a consumer tells you not to call them again, you must comply, regardless of your prior relationship.
Calling Hours and Frequency Restrictions
Puerto Rico law restricts the hours during which telemarketing calls may be made. Calls cannot be placed before 8:00 a.m. or after 9:00 p.m. in the recipient's local time zone. These hours are strictly enforced. A call placed at 9:01 p.m. violates the law, regardless of whether the consumer answered or the call went to voicemail.
The time zone requirement creates practical challenges for businesses operating across multiple regions. You must determine the recipient's local time zone and ensure your calling system respects that zone's restrictions. Using Puerto Rico time for all calls is not sufficient if you are calling consumers in other time zones. Your dialing system must be programmed to account for time zone differences.
Frequency restrictions also apply. You cannot call the same consumer more than once per week regarding the same product or service. Calling the same number multiple times within a seven-day period for the same offer violates this rule. If you have multiple products or services, you may call regarding different offerings, but the restriction still applies to each individual product or service separately.
Identification and Disclosure Requirements
Every telemarketing call must include clear identification of the caller. The person making the call must state their name and the name of the business they represent. This information must be provided at the beginning of the call, before any sales pitch or solicitation. Vague or misleading identification violates the law.
The caller must also disclose the purpose of the call immediately. The consumer must understand within the first few seconds whether this is a sales call, a survey, a donation request, or some other type of contact. Burying this disclosure later in the conversation does not satisfy the requirement.
If the call involves a product or service with a cost, the price and material terms must be disclosed clearly and completely. Hidden fees, unclear pricing, or conditional terms that are not immediately disclosed create liability. The consumer must have all material information before they agree to anything.
For calls involving credit or financial products, additional disclosures are required. The annual percentage rate (APR), finance charges, and all other material terms must be disclosed. These disclosures cannot be rushed or minimized. They must be presented in a manner that allows the consumer to understand them fully.
Automated Calling Systems and Robocalls
Automated dialing systems, including robocalls and prerecorded messages, face heightened restrictions under Puerto Rico law. You cannot use an automated system to call a consumer without prior express written consent, even if the number is not on the do-not-call registry. This is a stricter standard than the identification and disclosure rules that apply to live calls.
Prior express written consent for automated calls must be obtained before the first call is placed. The consumer must sign or electronically agree to receive calls from your specific business using automated systems. Generic consent to receive marketing calls is insufficient. The consent must specifically authorize automated calls from your company.
Prerecorded messages must include a clear statement of the caller's identity and the purpose of the call. The message must also include instructions for the consumer to request removal from future calls. These instructions must be simple and effective. Requiring the consumer to navigate a complex menu or call a number that is difficult to reach does not satisfy the requirement.
Text messages sent via automated systems are treated similarly to robocalls. You cannot send unsolicited text messages to consumers. Prior consent is required. The message must clearly identify the sender and provide an easy method for the consumer to opt out of future messages.
Prohibited Practices and Deceptive Conduct
Puerto Rico law prohibits a broad range of deceptive and abusive telemarketing practices. These prohibitions go beyond simple false statements. They include practices that are misleading, even if technically not false.
You cannot misrepresent your identity, the purpose of the call, or the nature of the product or service being offered. You cannot imply that the consumer has won a prize or is entitled to a benefit unless this is true. You cannot use high-pressure tactics or threats to coerce a consumer into making a purchase. You cannot call repeatedly with the intent to harass or annoy.
Calling someone who has previously stated they are not interested is considered harassment under Puerto Rico law. If a consumer says no, you must respect that decision. Calling back the next day with a slightly different pitch does not change the fact that the consumer has already declined.
You cannot request payment for a product or service before the consumer has had a reasonable opportunity to receive and evaluate it. You cannot charge a consumer's credit card or bank account without clear authorization. You cannot use payment information obtained for one purpose to charge for a different product or service.
Misleading claims about the consumer's eligibility for a product or service are prohibited. You cannot tell someone they are pre-approved for credit if they are not. You cannot claim that a product is risk-free if there are conditions or limitations. All material terms must be disclosed truthfully.
Record-Keeping and Compliance Documentation
Businesses conducting telemarketing in Puerto Rico must maintain detailed records of their calling activities. These records must include the dates and times of calls, the numbers called, the names of consumers contacted, and the purpose of each call. Records must be kept for a minimum of three years.
You must also maintain records of all consumer requests to be placed on your do-not-call list. When a consumer tells you not to call them again, you must document this request and ensure that the number is added to your internal list. Failure to maintain these records makes it difficult to defend against allegations of repeated calling.
Records of prior express written consent for automated calls must be preserved. If you are using robocalls or automated text messages, you must be able to produce the signed consent form or electronic agreement that authorized these contacts. Without this documentation, you cannot defend against a violation claim.
Call recordings, if made, must be retained in accordance with Puerto Rico law. Some businesses record calls for quality assurance or training purposes. These recordings must be made with the consumer's knowledge and consent, and they must be retained securely. Unauthorized recording of calls is illegal.
Enforcement and Penalties for Violations
Puerto Rico's consumer protection authorities actively enforce telemarketing laws. The Office of the Commissioner of Financial Institutions and the Attorney General's office both have authority to investigate complaints and take enforcement action. Violations can result in significant penalties.
Civil penalties for telemarketing violations can reach thousands of dollars per violation. A single call to a do-not-call number can result in a penalty. A campaign involving hundreds of calls can result in penalties that total hundreds of thousands of dollars. These penalties are assessed regardless of whether the business intended to violate the law.
Consumers also have the right to bring private lawsuits against businesses that violate Puerto Rico telemarketing laws. A consumer can sue for actual damages, statutory damages, and attorney's fees. Statutory damages are often set at a fixed amount per violation, which means a large calling campaign can expose a business to substantial liability even if individual consumers suffered minimal actual harm.
Injunctive relief is available in cases of repeated or egregious violations. A court can order a business to cease all telemarketing activities, freeze assets, or take other drastic measures. Criminal penalties, including fines and imprisonment, are possible in cases involving fraud or intentional deception.
Compliance Best Practices for Puerto Rico Telemarketing
Compliance with Puerto Rico telemarketing laws requires a systematic approach. Begin by obtaining a current copy of Puerto Rico's do-not-call registry and scrubbing your calling list against it. Update this list regularly, as the registry changes continuously.
Implement a calling system that respects time zone restrictions. Program your dialer to account for the recipient's local time zone and to prevent calls outside the 8:00 a.m. to 9:00 p.m. window. Test this system regularly to ensure it is functioning correctly.
Develop a script for your callers that includes all required disclosures. The script must include the caller's name, the business name, the purpose of the call, and all material terms of any product or service being offered. Train your staff to follow the script precisely and to answer consumer questions accurately.
Maintain a detailed do-not-call list for your business. When a consumer requests removal from your calling list, document this request immediately and ensure the number is added to your internal list. Review this list before each calling campaign to ensure no calls are placed to numbers on it.
If you use automated calling systems, obtain prior express written consent from every consumer before placing the first call. Keep these consent forms or electronic agreements on file. Do not rely on verbal consent or generic consent forms.
Establish a record-keeping system that captures all required information about your calling activities. Include dates, times, numbers called, consumer names, and the purpose of each call. Retain these records for at least three years.
Review your practices regularly to identify potential compliance issues. If you discover violations, take immediate corrective action and consider whether disclosure to authorities is necessary. Proactive compliance is far less expensive than defending against enforcement actions or lawsuits.
Telemarketing and Other Puerto Rico Business Regulations
Telemarketing compliance is one component of broader Puerto Rico business law. If your business is structured as a Puerto Rico entity or if you are taking advantage of Puerto Rico tax incentives under Act 60, additional compliance obligations may apply. Tax incentive programs often include specific requirements regarding business conduct and consumer protection.
If your telemarketing involves financial products, securities, or banking services, you must also comply with Puerto Rico banking and securities regulations. These rules impose additional disclosure requirements and restrictions on sales practices. Violations of banking or securities laws can result in license revocation and criminal penalties.
Next Steps: Ensuring Your Business Complies
Telemarketing compliance in Puerto Rico is not a one-time task. Laws change, enforcement priorities shift, and business practices evolve. Regular review of your telemarketing practices is essential to maintain compliance and protect your business from liability.
If you are currently conducting telemarketing in Puerto Rico or planning to launch a telemarketing campaign, a free initial evaluation with an experienced Puerto Rico business attorney can identify compliance gaps and help you implement effective safeguards. Christian M. Frank Fas, Esq. has over 20 years of experience in Puerto Rico commercial law and can provide focused guidance on telemarketing compliance specific to your business.
Contact the firm for a free initial evaluation to discuss your telemarketing practices and ensure your business operates within Puerto Rico law.