Questions & Answers

Can I Require a Dedicated Account according to the Telemarketing Sales Rule?

Under the new Rule, you may require your customers to set aside your fee and funds to pay debts in a dedicated account as long as: the account is held at an insured financial institution; the customer owns the funds (including any interest accrued), controls them, and can withdraw them at any time...

Definitions as defined in the Telemarketing Sales Rule

Telemarketing Sales Rule Definitions: 15 U.S.C. 6101–6108 § 310.2. Definitions. (a) Acquirer means a business organization, financial institution, or an agent of a business organization or financial institution that has authority from an organization that operates or licenses a credit card system...

How do you make truthful and substantiated claims according to the Telemarketing Sales Rule?

If you provide debt relief services, it’s illegal to misrepresent any material aspect of your services, either explicitly or by implication. A material aspect of a debt relief service includes any information that is likely to affect someone’s decision to sign up for your program or to choose one...

How do you Protect Consumers’ Privacy Under the TSR?

The TSR prohibits sellers and telemarketers from engaging in certain abusive practices that infringe on a consumer’s right to be let alone. The TSR’s privacy protections include prohibitions on: calling a person whose number is on the National Do Not Call Registry or a person who has asked not to...

In Charitable Solicitation Calls, what does the TSR Prohibit Misrepresentations about?

1. The Nature, Purpose, or Mission of the Entity on Whose Behalf the Solicitation is Made The TSR prohibits telefunders from misrepresenting the nature, purpose, or mission of any entity on whose behalf a charitable contribution is being solicited. It would violate the TSR for a telefunder to claim...

What are Considered Fraudulent Telemarketing Operations under the TSR?

Several distinct practices occur in fraudulent telemarketing operations. The TSR takes specific aim at these practices. Disclosing or Receiving Unencrypted Account Numbers for Consideration Along with the provisions on express verifiable authorization and unauthorized billing, another provision is...

What are other Best Practices according to the Telemarketing Sales Rule?

In addition to adhering to the basic compliance requirements of the new Rule, providers of debt relief services may want to incorporate other practices to help their customers: Screen prospective customers for suitability. Debt relief programs aren’t right for everyone. For example, some people may...

What are the best practices in the FTC's New Telemarketing Sales Rule?

In addition to adhering to the basic compliance requirements of the new Rule, providers of debt relief services may want to incorporate other practices to help their customers: • Screen prospective customers for suitability. Debt relief programs aren’t right for everyone. For example, some people...

What are the Exemptions from the Telemarketing Sales Rule?

Some Types of Businesses and Individuals Some types of businesses, individuals, and activities are outside the FTC’s jurisdiction, and not covered by the TSR. Certain calls or callers also are completely or partially exempt from the Rule’s provisions. The following sections explain the coverage of...

What are the FTC's New Telemarketing Sales Rule for Collecting Fees?

If you provide debt relief services, the new Rule says you can’t collect any fee from a customer until you meet these three requirements: 1. You must have reached a successful result for your customer. You must have renegotiated, settled, reduced or otherwise changed the terms of at least one of...

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