Recording a Conversation in California May Prove Costly to Miele

Recording a conversation in California without the consent of all parties may prove to be very costly to the Miele Company. The Miele Company, founded in 1899 in Germany, is a maker of domestic appliances such as clothes washing machines and dishwashers.

Entering the U.S. domestic markets in 1983, Miele eventually set up their current corporate headquarters in Princeton, New Jersey in 1999.

The Miele Company has recently come under investigation, along with several other business entities, for possibly failing to get the consent of both parties before recording a conversation on both inbound and outbound calls.

Whether making marketing calls or accepting customer service calls, modern businesses need to educate themselves on the minutia of the law surrounding recording a conversation.

Some states only require the employee involved in the call to give consent. But other states, such as California, require that all parties to a conversation give permission prior to any recording being made.

Consumers call business customer service lines all the time and, mostly, are greeted with the now-commonly heard pre-recorded voice which clearly states that “this phone call may be recorded for quality-assurance purposes.”

This warning, once given, allows for legally recording the conversation that follows if the caller decides to stay on the line. The decision of the caller to remain connected after being warned gives “implied consent” to the recording.

Companies with customer service lines using the pre-recorded voice warning method often train their customer staff to ask for consent early in the person-to-person contact part of the call. This provides a double dose of legal coverage, especially when the possibility of technological failure is always present.

The California Invasion of Privacy Act (CIPA) was passed in 1967 and has some of the strictest and most enforced two-party consent laws in the country. Different sections of California Penal Code 630 outline that it is illegal to engage in wiretapping, monitoring or recording a conversation that might be confidential without getting the permission of all people engaged in the communication first.

Its basis is to protect the privacy of consumers in a society that is rapidly becoming infiltrated with the mechanical means to invade. These laws are applicable to both inbound and outbound calls.

The failure to adhere to the spirit and letter of this law has serious economic consequences, particular when grouped together in class actions. Each violation can cost a company $5,000 minimally or, if specific damages can be proven in a court of law, up to three times the amount of those damages. Exponentially, that can be quite a fine when levied against a business.

Other businesses coming under scrutiny for allegedly failing to follow CIPA laws for recording a conversation are: AMF Bowling, Baja Fresh, British Airways, Casino Royale out of Las Vegas, Czech Airlines, Malaysia Airlines, Pei Wei Asian Diner, TGI Friday’s, and 99 Cents Only Stores.

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