What Is Call Recording Disclosure?

Call recording disclosure refers to the legal obligation to inform call participants that their conversation is being recorded. Disclosing this information is essential for both individuals and businesses in order to comply with various laws and regulations, but how this information is shared differs between jurisdictions.

Generally, call recording disclosure involves notifying individuals at the beginning of the call that the conversation will be recorded. This can be done via an automated message, or by the person initiating the conversation reading a call recording disclosure statement. Depending on the jurisdiction, consent from one or all parties involved in the call may be required. This can be active consent (e.g. with an explicit written or verbal agreement), or passive content (e.g. continuing the conversation after being informed).

Disclosure should also ideally include information about the purpose of the recording and how the recorded information will be used, stored, and protected. For example, you might say that calls are recorded for training and monitoring purposes.

There are a few exceptions to these rules, but this is typically only for emergency services, law enforcement activities, or situations where the recording is deemed necessary for public safety or legal compliance.

Why Is Call Recording Disclosure Important?

Call recording disclosure laws demand that individuals are informed of call recordings. In the U.S., some states operate on a one-party consent basis, where only one participant has to give consent, and several have a two-party consent law — meaning that both participants must be aware that a call is being recorded.

In the EU, the General Data Protection Regulation (GDPR) requires consent from all parties. There must also be a lawful basis for recording the call in order to comply with stringent legal requirements.

Under the Personal Information Protection and Electronic Documents Act (PIPEDA), which applies to most commercial activities in Canada, organizations must obtain meaningful consent before recording calls.

For all of the above, failing to disclose the relevant information can lead to serious legal repercussions, such as lawsuits, fines, and the inadmissibility of recorded conversations as evidence in legal proceedings –— hampering your reputation and putting your business in jeopardy.

Alerting callers to the call recording means businesses can respect and uphold the privacy rights of their customers and clients. Being transparent allows individuals to make informed decisions about their participation in the conversation, ensuring that their personal information is handled with care and consent. Disclosure also fosters trust between businesses and customers. When customers are aware of company call recording practices, they perceive the business as transparent and ethical, which can enhance customer loyalty and satisfaction.

What Is One-Party vs. Two-Party Consent?

One-party vs two-party consent refers to the legal requirement dictating how many parties must agree to the call being recorded.

One-Party Consent

• Under one-party consent laws, only one person involved in the conversation needs to be aware of and consent to the recording. This person can be the individual doing the recording.

• As long as one participant in the call is aware of the recording, it is legally permissible.

• Most U.S. states have one-party consent laws, including New York and Texas. Denmark also acts as a single-consent state; however, forwarding or playing privately recorded calls is illegal there.

Two-Party Consent

• Two-party consent, otherwise referred to as all-party consent, requires that all individuals participating in the conversation must be informed of and agree to the recording.

• Every participant in the call must give their consent, ensuring complete transparency.

• This consent can either be given actively — for instance by explicitly agreeing to the recording –—or passively, i.e., they’re told the call will be recorded, and by continuing the conversation it’s assumed they consent.

• Jurisdictions with two-party consent laws include states like California, Florida, and Pennsylvania.

• In a situation where one caller resides in a one-party consent state while the other is located in a two-party consent area, the two-party consent call recording disclosure regulation must be followed.

Inbound Call Recording Disclosure

Inbound call recording disclosure involves informing the caller that their conversation will be recorded as soon as they connect with the business. This is typically done through an automated message, which can be easily achieved with Vonage’s AI Virtual Assistant tool, or by a representative reading out a call recording disclosure script.

The purpose of this disclosure is to ensure that the caller is aware of the recording and has the opportunity to consent or terminate the call if they do not wish to be recorded.

Outbound Call Recording Disclosure

Outbound call recording disclosure is the process of informing the recipient of a call that their conversation will be recorded. This notification must occur at the beginning of the call, before any substantive conversation takes place, ensuring that the recipient can consent to or decline the recording.

Call Recording Disclosure Requirements

Call recording disclosure requirements differ depending on the jurisdiction. For contact centers operating in multiple states, the conflicting one-party and two-party consent rules may be confusing to your teams and lead to costly errors. To avoid this, it’s best to err on the side of caution and make it standard practice to comply with the most stringent requirements.

In two-party states, failure to obtain consent from all parties can result in serious legal repercussions. Non-compliance with call recording disclosure laws can be risky, resulting in criminal charges, substantial fines, and civil lawsuits. To make matters worse, any recorded conversation obtained without proper disclosure and consent may be deemed inadmissible in court, undermining its utility in legal proceedings. Businesses may also suffer reputational damage, leading to a loss of customer trust and potential financial losses.

There have been several landmark cases related to call recording disclosures in the U.S. In 2014, the People v. Clark case established that recording someone’s words without consent — even if the recording is never published — is classed as a criminal act in Illinois. In the 2006 Kearney v. Solomon Smith Barney Inc case, the California Supreme Court ruled that California law will apply no matter where you’re located if you do business in California and record a call with a California client.

5 Best Practices for Call Recording Disclosure 

Getting call recording disclosures right is crucial to adhering to legal requirements and respecting the privacy of your customers. These best practices will ensure you comply with regulations, build trust with customers, and provide top-quality business communications support.

1. Make Disclosures Clear and Concise

Ensure that the disclosure is straightforward and easy to understand. Use simple language to inform all parties that the call is being recorded. Avoid jargon or technical terms that might confuse the listener.

2.  Identify the Need for Verbal vs. Written Disclosures

Choose the appropriate method of disclosure based on the context of the call. For phone conversations, a verbal notification at the start of the call is typically sufficient. For online or app-based communications, a written disclosure that users must acknowledge before proceeding can be effective.

3. Decide on the Placement and Timing of Disclosures

Deliver the disclosure at the very beginning of the call, before any substantive conversation takes place. This ensures that all parties are aware of the recording from the outset and can consent or choose to end the call if they do not agree.

4. Document Processes and Train Staff

Document the disclosure process and train all employees on its importance and execution. Regular training sessions and clear documentation help ensure that all staff members adhere to the required practices, thereby minimizing the risk of non-compliance.

5. Stay Consistent

Implement a uniform disclosure practice for all recorded calls, whether inbound or outbound. Consistency helps in maintaining compliance with legal standards and fosters trust among all parties involved.

How To Implement Call Recording Disclosure in Your Business

To implement call recording disclosure in your business, you need a comprehensive approach to ensure legal compliance and build trust with your clients.

Develop a Disclosure Policy

Start by developing a clear and detailed disclosure policy. This policy should outline when and how call recording notifications will be delivered, the consent requirements based on relevant jurisdictional laws, and the specific language to be used during disclosures.

Set Up Employee Training 

The next thing to do is train your employees. Scheduling regular training sessions will make sure staff are educated on the importance of call recording disclosure and the legal implications of non-compliance. Give them a call recording disclosure script and guidelines to follow when informing callers about recording practices. Emphasize the need for consistent application across all calls to ensure every interaction adheres to the established policy.

Use Automated Call Recording Software 

Technology can streamline and automate the disclosure process. Utilize software that includes on-demand call recording and automated notification features, ensuring that every inbound and outbound call starts with a pre-recorded disclosure message. This reduces the risk of human error and ensures that disclosures are consistently delivered according to your policy.

Conduct Regular Audits 

Regular audits and monitoring can further reinforce compliance. Review recorded calls periodically to ensure that disclosures are being correctly implemented and address any deviations promptly.

Call Recording Disclosure Case Studies

Now that we understand how call recording disclosure works, let’s take a look at some case studies that help to demonstrate what this process looks like in real-world scenarios and why it’s so important.

Tiger Natural Gas, Inc.

In 2019, Tiger Natural Gas, Inc. was hit with a class action lawsuit alleging that the company had illegally recorded conversations with more than 27,000 potential customers. The plaintiffs claimed that neither Tiger nor its third-party telemarketing agency informed them that calls were being recorded. Under California law, both parties must be aware of and consent to the recording. Settling out of court, the natural gas company agreed to pay a staggering $3.7 million for their non-compliance.

Uber

Uber recently rolled out a new call recording feature for their passengers and drivers. This feature enhances safety and service quality, allowing passengers to record the audio from their trip if they’re feeling uncomfortable or concerned. Uber provides clear in-app notifications about call recording to both drivers and passengers, ensuring transparency and consent from all parties involved. This approach not only improves trust and accountability, but also protects the company from potential legal issues related to privacy violations.

Stay Compliant and Record the Calls You Want, When You Want

Compliance is crucial to avoid hefty fines and lawsuits, but call recording disclosures aren't just legal necessities — they're trust builders. By transparently informing all parties of recordings, businesses respect privacy and foster customer confidence. Adopt clear policies, train your team, and use technology to automate disclosures. This straightforward approach protects your business and enhances your reputation.

Don’t risk non-compliance — make call recording disclosures a priority today. Vonage allows you to easily and conveniently record conversations, store and access recordings, and meet compliance regulations with a call-recording disclosure statement example. Get in touch now to find out more or to see the solution in action.