It’s fairly common for all sorts of companies to record phone calls with consumers. Phone call recording can be done for a number of reasons, such as for customer service, quality assurance, training purposes, and more. But the legality of phone recording doesn’t depend on the reason it takes place—instead, it depends on where you are when the call is made, as well as on whether or not the recorder has given proper warning that the recording is taking place, thereby giving the person on the other end of the line a chance to opt-out by hanging up.

According to consumers, companies including Drs. Foster & Smith, Dermalogica, Swarovski, Mears Transportation Group, Southwest Rapid Rewards, United Airlines Pet Safe, Cannondale Bicycle Corporation, and Czech Airlines may record phone calls without notifying consumers or obtaining their prior consent.

Can a Company Record Phone Calls?

Companies in the United States may be allowed to record phone calls to or from customers, though laws vary by state, and have various requirements. There are two main types of call recording laws: one-party consent laws and two-party consent laws.

Under federal call recording laws, only one party’s consent is necessary to legally record a phone call. This means that it’s legal to record a phone call without notifying the other person or people on the call, as long as you are a party on the call. This applies not only to phone calls from businesses, but any recording or eavesdropping on confidential information, such as a private conversation or phone call. In all cases, the law hinges on whether or not there is a reasonable expectation of privacy for the conversation—such as a phone call in a hotel room versus a call in a crowded coffee shop.

However, many states have stricter laws pertaining to call recording and consent. Several states have two-party consent laws, which are a bit of a misnomer, actually requiring that all parties on the call be notified that it is being recorded. They might be better described as having all-party consent law.

The 11 states with all-party consent law are currently:

• California
• Delaware
• Florida
• Illinois
• Maryland
• Massachusetts
• Montana
• New Hampshire
• Oregon
• Pennsylvania
• Washington

Technically, Nevada also has one-party consent law. However, the state Supreme Court of Nevada has interpreted its law to actually function as all-party consent. The rules in Illinois, Hawai’i, and Massachusetts are also a bit muddled, with Illinois’ two-party consent statute ruled unconstitutional, Hawai’i only requiring two-party consent in certain instances, and Massachusetts banning “secret” recordings rather than requiring explicit consent.

Businesses may record phone calls with consumers for various purposes, such as improving customer service and training. However, in states with strict call recording laws, companies that fail to promptly notify consumers that they are being recorded may face penalties or legal action.

What are California’s Call Recording Laws?

California has some of the strictest call recording laws in the country—in fact, its privacy laws are part of its state constitution. Under the state’s two-party consent laws, consumers must be notified that they may be recorded at the beginning of a call. This notification is usually done with a prerecorded message at the outset of the call. These warnings are often something to the effect of “this call may be monitored or recorded,” or something similar.

Consumers who stay on the line after hearing this notification are assumed to have given consent to be recorded. This is known as implied consent. Opting out of being recorded, then, simply requires that the consumer hangs up.

However, consumers have alleged that certain companies may not be notifying callers that they are being recorded. Recordings without consent are looked upon as an invasion of privacy, in violation of the California Invasion of Privacy Act.

Numerous businesses that have failed to comply with California call recording laws and CIPA, including parties out of state, have been prosecuted for these violations.

Under California call recording laws, a consumer who discovers that an illegal recording of a conversation was made without their consent has the right to recover damages. Notably, this right is subject to a one-year statute of limitations. In 2017, the California State Assembly clarified the law, determining that a violator can be liable for $5,000 per CIPA violation. Though this adjustment was made in 2017, the law applies retroactively if the relevant call took place prior to 2017.

According to the Los Angeles Times, Wells Fargo Bank paid $8.5 million to settle a 2016 lawsuit filed by the California Attorney General. Other major call recording lawsuits have been filed against Capital One, Bass Pro Outdoor, and the Cosmopolitan Hotel, among others. Many of these lawsuits have ended with substantial settlement agreements.

Companies still under investigation for failing to notify consumers that calls may be recorded include Drs. Foster & Smith, Dermalogica, Swarovski, Mears Transportation Group, Southwest Rapid Rewards, United Airlines Pet Safe, Cannondale Bicycle Corporation, and Czech Airlines.

What if My Calls Were Recorded?

A growing number of people are coming forward with allegations of companies violating California call recording laws.

If you live in California and you believe that your phone calls were recorded by Drs. Foster & Smith or another company without your knowledge or consent, you may be eligible to hire a qualified attorney and file a class action lawsuit. In addition to potentially receiving compensation for these violations, consumers who file class action lawsuits may be able to hold companies accountable and prevent them from continuing to illegally record conversations with consumers.

Filing a lawsuit can be a daunting prospect, so Top Class Actions has laid the groundwork for you by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

This particular class action lawsuit investigation applies to California residents specifically, but keep in mind that California’s phone recording laws protect you while you are in California, regardless of your residency there.