Call Recording Laws for Small Businesses: US and Canada

Call recordings help you check what a customer asked for, settle disputes, train staff, and make sure nothing was missed. If you use an AI receptionist, recordings and transcripts are also how you see what happened on each call.

But recording a phone call is also collecting personal information. The rules depend on where you are and where your caller is. This guide is a simple summary, not legal advice.

Federal law allows a call to be recorded if one person on the call agrees. Most states follow this “one-party consent” rule.

But a group of states require everyone on the call to agree. These commonly include California, Delaware, Florida, Illinois, Maryland, Massachusetts, Montana, Nevada, New Hampshire, Pennsylvania, and Washington. Some lists also include Connecticut, Michigan, and Oregon, because their laws have special rules.

When a call crosses state lines, the stricter rule can apply. The easy way to be safe everywhere: tell every caller at the start that the call may be recorded. If they stay on the line after hearing that, it is generally treated as consent.

In Canada, businesses covered by PIPEDA must follow privacy rules when they record customer calls. The Office of the Privacy Commissioner of Canada updated its guidance on October 8, 2026. The main points:

• Tell the customer that the call is being recorded.
• Say why, as clearly and narrowly as possible. Vague reasons like “quality assurance” should not hide other uses.
• Implied consent usually works. If the customer continues the call knowing it is recorded and why, consent is generally implied.
• Offer alternatives if recording is not essential, like continuing without recording or using email.
• Be extra careful with voiceprints. Using voice recordings to identify people is sensitive biometric data and usually needs express consent.
• Do not keep recordings forever. Keep them only as long as you need them for the stated purpose or the law requires.

1. Add a short recording notice to your greeting.
2. Decide why you record, and write it down.
3. Limit who on your team can listen to recordings.
4. Set a retention period and delete old recordings.
5. Ask your phone or AI provider where recordings are stored and how they are protected.
6. Update your privacy policy to mention call recording.

“Thanks for calling Smith Electric. This call may be recorded so we can get your booking details right. How can I help you today?”

Mercvox informs callers that their call may be recorded and handled by an AI assistant, which helps meet consent expectations in all-party consent states and under PIPEDA. Recordings and transcripts are used to run the service for your business, such as bookings, confirmations, and call summaries, and are never shared with other businesses or used for advertising. See our security page for details.

• Office of the Privacy Commissioner of Canada — Recording of customer telephone calls (updated October 2026)
• 18 U.S. Code § 2511 — Federal wiretap law (one-party consent)