Legal Question in Business Law in California

We are a Financial Institution that receive calls from our clients all over the US and we record all of our calls for the sole purpose of training and quality control. We do disclose this on our main phone line, but do not disclose it when we call out to our clients or they call us to a direct associates extention. My question is "Do we have to notify our clients everytime we speak with them that they may be recorded when it is for quality control?"

Scott


Asked on 2/22/10, 2:51 pm

7 Answers from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

You don't just have to notify them, you have to get their permission, or they can sue for $5,000 per unauthorized recording. That is if the person is also in California. Depending on the laws of other states you might or might not have to notify them or get permission.

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Answered on 2/27/10, 3:00 pm
Edward Hoffman Law Offices of Edward A. Hoffman

Yes. And if they don't want the call recorded, you have to stop recording it. Secretly recording a private phone conversation is a crime in California, and also carries hefty civil penalties. It doesn't matter whether you place the call or receive it. It likewise doesn't matter whether the call comes to your main phone number or a direct extension. When you speak with someone in another state or country, you may also be subject to the laws of that jurisdiction.

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Answered on 2/27/10, 3:18 pm
Terry A. Nelson Nelson & Lawless

Recording without specific knowledge and/or consent is a crime.

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Answered on 2/27/10, 4:14 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

I don't think the previous answers are accurate. This is a question I have answered several times over the last 10 or so years on LawGuru; the laws regarding recording phone conversations are in the Penal Code, with more or less detailed provisions scattered among sections 631 to 637.2. I have not re-researched these or other laws tonight, but as I understand it, the law prohibits recording conversations where a party has a "reasonable expectation of privacy," and an announcement at the beginning of the call that it may be recorded for "training purposes" or for "quality-control purposes" or anything like that will dispel any expectation of privacy the other party might have. In other words, when you are informed that the call will be, or may be, recorded, you lose any right to continue to participate in the conversation and then later object. Now, there may be some law I'm unaware of; but none of the other answers cites any authority, and I suspect the writers are shooting from the hip. I could be wrong....but when I hear telephonic voices advising me over and over that my call may be monitored or recorded for this-or-that, I have to believe my conception that warning the caller about possible recording is sufficient to satisfy the law, as might other indications of recording, like "After the beep, please leave a detailed message."

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Answered on 2/27/10, 9:36 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Hmmm, I see that after delivering my oration on this subject, I essentially failed to answer your question. The answer is yes, to be sure your are dispelling any expectation of privacy, each and every recorded call should be preceded by the warning.

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Answered on 2/27/10, 9:38 pm
Kevin B. Murphy Franchise Foundations, APC

What you're doing is not legal - recording a phone conversation without the other person's knowledge or consent brings into play various sections of California's penal code. Don't think your company wants to go there. Consult with an attorney in your area.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

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Answered on 2/28/10, 7:06 am

Interesting answers... In most states, it is legal to record this type of conversation without permission. There are Federal laws that prohibit recording conversations for illegal purposes, and as you've explained the facts, those would not apply. In California, it's a crime, and punishable by a $2,500 fine and jail -- the key is the expectation of confidentiality. Each caller must be advised that the call could be monitored or recorded, so they do not have an expectation that the call is "confidential". See Penal Code 632.

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Answered on 3/01/10, 9:15 am


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