Tennessee Legislature Approves New Oversight and Volume Limits for Automated Telephone Solicitations

Legislative Snapshot

• Bill: HB 2408 / SB 2659
• Jurisdiction: Tennessee General Assembly
• Status: Passed by both chambers and transmitted to Gov. Bill Lee on May 7, 2026
• Key Provisions: Requires reporting and recordkeeping for certain automated solicitations, establishes monthly solicitation caps, and authorizes enforcement under the Tennessee Consumer Protection Act
• Effective Date: Applies to conduct occurring on or after July 1, 2026
• Industry Impact: Increases compliance obligations for businesses using prerecorded or automated outbound calling campaigns targeting Tennessee consumers

Tennessee lawmakers have approved legislation that would significantly expand oversight of automated telephone solicitation activity in the state, adding new reporting, recordkeeping, and volume-limit requirements for companies that place large-scale prerecorded outbound calls to Tennessee consumers.

House Bill 2408 and its companion, Senate Bill 2659, passed unanimously in both chambers during the 2026 legislative session. The measure was approved 94-0 in the House and 33-0 in the Senate before being transmitted to Gov. Bill Lee on May 7.

The legislation amends Tennessee’s existing telemarketing framework and gives regulators additional visibility into businesses conducting large-scale automated solicitation campaigns directed at residential subscribers. Earlier summaries of the bill focused primarily on annual reporting requirements for regulators, but the final amended version adopted by lawmakers includes substantially broader operational and enforcement provisions.

If signed into law, the measure would apply to conduct occurring on or after July 1, 2026.

New Monthly Limits and Reporting Requirements

The legislation targets businesses making automated or prerecorded telephone solicitations to Tennessee residential subscribers.

Under the bill, covered entities that make at least 500 telephone solicitations in a calendar month would be required to submit semiannual reports to the Tennessee Public Utility Commission detailing solicitation activity and compliance information.

The legislation also imposes a monthly limit of 10,000 covered telephone solicitations. Violations of that limit could constitute unlawful acts under the Tennessee Consumer Protection Act.

The amended language additionally requires businesses to maintain monthly records tied to automated solicitation activity. While the legislation does not eliminate existing registration obligations under Tennessee’s ‘Do Not Call’ framework, it adds another layer of operational oversight for organizations engaged in high-volume outbound campaigns.

The final amendment reflects a broader regulatory approach than earlier versions of the legislation, which centered primarily on annual compliance reporting by the Public Utility Commission to legislative committees.

Existing Telemarketing Compliance Rules Remain in Place

The new requirements operate alongside Tennessee’s existing telephone solicitation regulations, which already include registration, caller identification, and do-not-call compliance obligations.

Businesses conducting outbound solicitation activity in Tennessee remain subject to rules governing:

• Annual registration with the Tennessee Public Utility Commission
• Use of state and federal do-not-call lists
• Caller ID transmission requirements
• Restrictions on calling hours
• Identification disclosures during solicitations
• Internal do-not-call procedures and recordkeeping

The legislation also preserves existing enforcement authority for the Tennessee Attorney General and the Public Utility Commission.

Reported penalty provisions include civil penalties of at least $1,000 for certain violations, in addition to existing enforcement mechanisms available under Tennessee law.

Compliance Pressure Likely to Increase for High-Volume Dialing Campaigns

The legislation arrives amid broader nationwide scrutiny of automated calling practices, particularly in sectors that rely heavily on outbound telephone and text campaigns for marketing or customer acquisition.

Industries likely to face increased compliance attention under the Tennessee framework include:

• Consumer finance and lending
• Insurance marketing
• Home services providers
• Debt relief and credit repair firms
• Subscription and fintech services
• Lead generation companies
• Telemarketing vendors and dialing platforms

Although the legislation focuses on Tennessee consumers, compliance professionals note that state-level telemarketing laws increasingly create operational challenges for companies running multistate campaigns.

Businesses that rely on automated outbound communications may need to reassess dialing volumes, vendor oversight, consent management practices, and record retention procedures before the July 2026 effective date if the measure is signed into law.

The bill also signals growing legislative interest in obtaining more detailed visibility into solicitation activity and complaint trends within the state. Regulatory reporting requirements often serve as a foundation for future enforcement initiatives or additional legislative proposals.