Keller Williams SUED $40M for COLD CALLING!
Keller Williams is being sued for $40M due to cold calling practices that violate do-not call registry laws. Today we are going to talk about cold calling, what it is, where Keller Williams went wrong and the end result. Stick around!
My name is Greyson Roberts, Realtor and owner of BOSS Properties. Consider us your one stop shop for all real estate needs! Whether you’re looking to buy, sell or invest, we can help nationwide. Give me a call or text, I’d be more than happy to serve you!
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Let’s start with talking about what cold calling is for those of you who may not know.
What is Cold Calling?
Cold calling is a technique in which a salesperson, using the telephone, tries to solicit the business of someone who has not shown interest in their product or service. Contact information for cold calling is usually collected by marketing and sales professionals through non-traditional means such as searching for and piecing together information from public records.
Contact lists for cold calls may also be purchased from list brokers. The effectiveness of cold calling is often questioned, as the practice is time consuming and negative responses typically outweigh successful ones. However, benefits of cold calling include immediate feedback response, personal connection, a lower likelihood of being ignored and accessibility. For newer companies, it is a relatively cheap way to inform potential customers and generate contacts.
Cold calling has been a point of contention in the greater sales community since telephones first began. I know mega agents in my town who swear by calling and I know people who have never made a single cold call. Including me! However, another agent in my company BOSS properties cold calls like a mother fucker. Two different strategies that compliment each other nicely.
Regardless of the effectiveness of cold calling, almost NOBODY enjoys getting cold called on the receiving end. I personally hate it just as much as spam emails and texts. However, cold calling is NOT illegal, but here’s where KW went wrong.
In the June 2022 complaint reported by Inman, plaintiff Beverly DeShay claimed the cold-calling violated the Telephone Consumers Protection Act (TCPA) — a 1991 law designed to protect consumers against unsolicited telemarketing calls.
This isn’t just calling expired listings or even some FSBO’s (for sale by owner). It’s gotten to the point where local authorities have had to step in! And it’s not only phone calls, it’s text messages as well.
Here’s the actual issue
The settlement benefits consumers who received two or more calls or text messages from Keller Williams on a phone number that appeared on the National Do Not Call Registry, where the calls included an artificial or prerecorded voice and/or where the phone calls were made using an automatic dialing system since May 2, 2014.
Long story short, Keller Williams has been reported to deny any wrongdoing but has agreed to pay $40M and agreed to also create a task force to ensure agents comply with the TCPA.
So, who is actually eligible for the whopping up to $20 payment?
The settlement benefits consumers who received two or more calls or text messages from Keller Williams on a phone number that appeared on the National Do Not Call Registry, where the calls included an artificial or prerecorded voice and/ or where the phone calls were made using an automatic dialing system since May 2, 2014
Now, every source I am pulling this information from seems to have a slightly different take and story which is NOT GOOD and I am having a hard time feeling comfortable presenting the information that I am.
For example, last night when I first heard about this issue, I heard that it was one particular market center franchise being sued and not the entire company, however, I haven’t heard that since and can’t seem to find it anywhere. So, disclaimer, I am not rock solid confident on the details of this.
There you have it! Be careful on your next cold-calling campaign and make sure you comply with TCPA. Hope you gained some value and I’ll see you in the next one! Be sure to check out our YouTube channel as well.