It pays to watch your Vendors closely

eyebrow-clipart-a_pair_of_blue_eyes_with_eyebrows_0521-1102-0513-1231_SMUHere is a case that clearly illustrates the importance of having tight and ongoing oversight over the operations of your third party vendors and Business Process providers. If a third party is answering or making calls on behalf of your company’s product or service, this is very important to your company’s future.

A recent decision out of North Carolina has given more insight into when a company may be on the hook for the actions of its independent contractors. In Krakauer v. Dish Network, LLC, Dish Network employed the services of Satellite Systems Network (SSN) to make telemarketing calls to sell Dish services. After finding that SSN failed to comply with the “Do-Not-Call” provisions of the TCPA, the Court ruled that Dish had also willfully and knowingly violated the provisions, and tripled the damage verdict from $20.5 million dollars to $63.1 million dollars. read the full story here

Occasional visits to the vendor are never enough. Depending on the size of the operation, I might suggest a full-time presence at the Vendor’s site. Beyond reviewing and signing off on all operational procedures and scripting, a major percentage of calls should be reviewed on a regular basis. Call audio and PC screen video should be accessible by the parent company at will from any location and it should be someone’s job to ensure the highest quality standards are being met and that your team is managing the vendor as if they were your employees because, as made clear in this court’s decision, everyone is liable for misconduct.

ROI on the investment your company makes toward legal and regulatory compliance is hard to quantify until it saves you from a 63 million dollar verdict.

 

 

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