Questions & Answers

What is the FTC's New Telemarketing Sales Rule for Making Truthful and Substantiated Claims?

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...

What is the FTC's New Telemarketing Sales Rule for the Three Key principles of the New Rule?

The Federal Trade Commission (FTC), the nation’s consumer protection agency, has amended the Telemarketing Sales Rule (TSR) to add specific provisions to curb deceptive and abusive practices associated with debt relief services. One key change is that many more businesses will now be subject to the...

What is the FTC's New Telemarketing Sales Rule for Types of Telemarketing Calls Covered?

The Telemarketing Sales Rule has covered a wide variety of telemarketing transactions since it was enacted in 1995, including the sale of credit repair services, products with a negative option feature, prize promotions and advance fee loans. Debt relief companies that initiate calls to potential...

What is the FTC's New Telemarketing Sales Rule for what Information you Must Disclose to Customers?

If you provide debt relief services, the new Rule lays out several key pieces of information you must disclose both truthfully and clearly and conspicuously – either orally or in writing – before people sign up for your services. The “clear and conspicuous” standard means that information must be...

What is the FTC's New Telemarketing Sales Rule for what Records have to be Kept?

Under the new Rule, any debt settlement, debt management plan or other debt resolution plan from a creditor must be in writing. You must keep these documents for at least two years. The type of documentation depends on the services you provide. Examples of acceptable documentation include: • For...

What is the FTC's New Telemarketing Sales Rule for when can you Require a Dedicated Account?

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...

What is the Telephone Disclosure and Dispute Resolution Act of 1992?

The Act requires the Commission to promulgate certain regulations respecting advertising for, operation of, and billing and collection procedures for, pay-per-call or "900 number" telephone services. The regulations must include certain provisions, such as price disclosure requirements, mandatory...

What is Unauthorized Billing Under the TSR?

It is a violation of the TSR to cause billing information to be submitted for payment — directly or indirectly — without the express informed consent of the customer or donor. The TSR requires that in any telemarketing transaction, sellers and telemarketers obtain the express informed consent of...

What rules must a company follow if it sells goods or services over the telephone?

As with any other form of advertising or promotion, claims made through telemarketing must be truthful and substantiated. In addition, the FTC’s Telemarketing Sales Rule applies to transactions involving the use of interstate telephone calls to sell goods or services. The Rule requires companies to...

Who Can Enforce the Telemarketing Sales Rule?

The FTC, the states, and private citizens may bring civil actions in federal district courts to enforce the TSR. State attorneys general or any other officer authorized by the state to bring actions on behalf of its residents may bring actions by the states. Private citizens may bring an action to...

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