Businesses are not allowed to record a phone conversation in California without the consent of all parties.

Why Are Phone Calls Recorded?

For the most part, calls are recorded for quality assurance. According to OrecX, a call recording company, 69 percent of surveyed business professionals reported recording calls to assess call agents and ensure customers are getting the best service possible. Fifty-six percent of surveyed professionals reported that call recording was used for dispute resolution and risk management. Another significant reason was training, coaching, and development purposes, which 43 percent of surveyed professionals said factored into recording calls.

One-third or less of surveyed professionals reported recording calls for the following reasons:

• Compliance
• Order verification
• Sales performance
• Staff motivation
• Product development ideas
• Process and system breakdown identification
• Note taking support
• Understanding customer needs
• Decision making
• Branding/marketing
• Customer protection

Professionals were allowed to choose more than one reason in the survey.

Is It Illegal to Record a Phone Conversation in California?

Although call recording may be a valuable resource for businesses, California law makes it illegal to record a phone conversation without consumer consent. Businesses such as Southwest Rapid Rewards may be in violation of California call recording law, according to private investigations.

California is known as a “two-party consent” state. This means that in order for a recorded call to be legal, all parties participating in the call must consent to the recording. Other two-party consent states include Connecticut, Florida, Hawaii, Illinois, Maryland, Massachusetts, Montana, New Hampshire, Pennsylvania, and Washington, although California is generally considered to have the strictest call recording laws.

One of the strongest privacy laws is the California Invasion of Privacy Act. This law helps uphold California citizens’ right to privacy, a right written into the state’s constitution. Under this law, businesses must get consumer consent before recording a call. In order to comply with the law, businesses can include a call recording warning at the beginning of their calls. If a consumer stays on the line after this warning, it is considered to be consent for the call to be recorded.

California also has its own Wiretapping Law, making it illegal for anyone to eavesdrop on a confidential conversation without the consent of all parties. This includes private conversations, phone calls, and any form of communication in which the parties have “an objectively reasonable expectation that no one is listening in or overhearing the conversation.”

Attorneys are investigating companies which may have violated California call recording laws. Numerous companies are included in this investigation, including the following:

• Dermalogica
• Swarovski
• Drs. Foster & Smith
• Mears Transportation Group
• Romano’s Macaroni Grill
• Southwest Rapid Rewards (800-445-5764 only)
• United Airlines Pet Safe (800-575-3335 only)
• Cannondale Bicycle Corporation
• Czech Airlines

If these businesses are found to have recorded calls without consumer consent, they may be forced to pay steep penalties to consumers. Both the California Invasion of Privacy Act and the California Wiretapping Law allow consumers to take legal action if they believe their rights have been violated.