The FTC Issues a Notice of Proposed Rulemaking for the Telemarketing Sales Rule

On June 3, 2022, the Federal Trade Commission (“FTC”) published a Notice of Proposed Rulemaking (“NPRM”) concerning updates to the Telemarketing Sales Rule (“TSR”). These proposed amendments are designed to bolster consumer protections and ensure integrity in telemarketing practices. Key changes include enhanced recordkeeping requirements for telemarketers and sellers, aimed at facilitating enforcement against deceptive practices. The FTC said that this move responds to evolving market dynamics that have made it more challenging for regulators to access necessary records. Moreover, the proposed amendments introduce prohibitions against material misrepresentations and false statements in business-to-business (“B2B”) telemarketing transactions. The FTC said this step is crucial in safeguarding businesses from deceptive practices that could harm their operations. Additionally, the FTC proposes a refined definition of "previous donor" to clarify that telemarketers cannot use prerecorded messages to solicit charitable donations unless the recipient has donated to that specific charitable organization within the last two years.