State Attorney Generals Demanding Further Changes to the Telemarketing Sales Rule!

38 state Attorneys Generals (“AGs”) demanded updates to the Telemarketing Sales Rule (“TSR”). In a letter to the Federal Trade Commission (“FTC”), the AGs called for a number of new requirements as part of the FTC's rule review. The letter is led by Florida Attorney General, Pam Bondi, and Pennsylvania Attorney General, Kathleen Kane, both of whom have won elected office on their commitment to pursue unfair and deceptive acts and practices under state, Federal laws and regulations. As AGs have authority to bring actions against online and off line marketers for violations of the Telemarketing Sales Rule, this demand is significant. The AGs demands can be placed into one of four categories: 1) prohibitions on the use of pre-acquired account information; 2) negative option marketing restrictions on consumer-to-vendor calls; 3) telemarketer / seller requirements to maintain call records; and 4) regulation of money transfers.