Surety Bond Encyclopedia

Telemarketing ($50,000) Bond - Statewide in Florida

Brief Summary

The $50,000 on this page is a floor, not a fixed number. Florida Statute 501.611 lets FDACS set a larger bond for a commercial telephone seller, so get the amount from your license file before you buy. When it is $50,000, a surety bond keeps that money in your business instead of locked in a certificate of deposit the department controls.

Before doing business in Florida, a commercial telephone seller must obtain a license from the Florida Department of Agriculture and Consumer Services under F.S. 501.605. The application must be accompanied by a surety bond, an irrevocable letter of credit or a certificate of deposit of at least $50,000, in favor of the department for the benefit of purchasers harmed by fraud, misrepresentation, breach of contract, financial failure or violation of the Florida Telemarketing Act.

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How to Apply for a Telemarketing ($50,000) Bond:

Confirm whether a s. 501.604 exemption applies and, if it does, whether an affidavit of exemption is still due.
Confirm the security amount FDACS requires, which is at least $50,000.
Apply for the bond in the exact legal name and business name on the license application.
Pay the premium and receive the executed bond in favor of the Florida Department of Agriculture and Consumer Services.
Submit the bond with the s. 501.605 application and the $1,500 license fee.
License each salesperson under s. 501.607 at $50 per salesperson unless the military fee waiver applies.

Detailed Information About the Florida Telemarketing ($50,000) Bond:

A minimum, not a ceiling

Section 501.611 sets the security at a minimum of $50,000 and allows the department, at its discretion, to require a greater amount to protect the public and the telemarketing industry. Applicants who budget for exactly $50,000 are sometimes surprised. Check the figure FDACS assigns before the bond is written.

Who needs the license

A commercial telephone seller is a person who makes unsolicited calls, directly or through salespersons, to induce people to buy or invest in consumer goods or services. Entities providing substance abuse marketing services under s. 397.55 also need this license. The seller license fee is $1,500, and each salesperson needs a separate license with a $50 fee under s. 501.607. That salesperson fee is waived for honorably discharged veterans, active duty service members, their spouses and businesses majority owned by them, with documentation such as a DD Form 214.

Exemptions still involve paperwork

Section 501.604 lists a long set of exemptions. Among them are licensed insurance agents and securities brokers soliciting within the scope of their licenses, supervised financial institutions, businesses that have run a retail establishment under the same name for at least one year, and certain business to business sellers that have operated lawfully for at least three years under the same name. Several of these exemptions require a notarized affidavit of exemption filed with the department under s. 501.608(1)(b). Being exempt from the bond does not mean being exempt from filing.

Three ways to post the security

Florida accepts a bond from a corporate surety approved by the department and licensed in Florida, an irrevocable letter of credit from a federally insured bank, or a certificate of deposit at a federally insured institution that can be withdrawn only on the department's order. Whichever you choose must remain in force throughout the period of licensure.

Eligibility and Requirements for a Florida Telemarketing ($50,000) Bond:

Security of at least $50,000, or a higher amount set by the department.
Surety company approved by the department and licensed to do business in Florida.
Obligee is the Florida Department of Agriculture and Consumer Services, for the use and benefit of injured purchasers.
Security kept in force for the full period of licensure.
Each business location listed on the application, with the principal location designated.

Florida Telemarketing ($50,000) Bond FAQs:

Is the bond always exactly $50,000?

No. F.S. 501.611 makes $50,000 the minimum and lets the department require a greater amount at its discretion. Confirm your figure with FDACS before the bond is issued.

Can I use something other than a surety bond?

Yes. The statute also accepts an irrevocable letter of credit from a federally insured bank or a certificate of deposit at a federally insured institution that only the department can order withdrawn. Interest on the certificate may accrue to the applicant.

I sell insurance by phone. Do I need this bond?

A licensed insurance broker, agent, customer representative or solicitor soliciting within the scope of that license is exempt from most of the Telemarketing Act under s. 501.604. Calls outside the scope of that license are not covered by the exemption.

Who can make a claim on the bond?

The security is in favor of the department for the use and benefit of a purchaser injured by the seller's fraud, misrepresentation, breach of contract, financial failure or violation of the act.

Do my salespeople need their own bonds?

Section 501.611 attaches the security to the seller's license application. Salespeople need their own licenses under s. 501.607, with a $50 fee each, but the statute does not call for a separate bond for each salesperson.