The FTC Released a Guide for Complying with the Telemarketing Sales Rule (June 2016)

Complying with the Telemarketing Sales Rule

June 2016

The Federal Trade Commission (“FTC”) amended the Telemarketing Sales Rule (“TSR”) multiple times between 2003 and 2015 to enhance consumer protections and combat telemarketing fraud. The rule enforces the Telemarketing and Consumer Fraud and Abuse Prevention Act (“TCFPA”), which provides law enforcement with tools to fight fraudulent practices and helps consumers distinguish between legitimate and deceptive telemarketing efforts. This guidance, published in June 2016, outlines these amendments and explains the TSR’s provisions.

The TSR includes key provisions that require telemarketers to make specific disclosures, avoid misrepresentations, limit calling hours, and transmit Caller ID information. It also prohibits abandoned calls (with certain exceptions), unauthorized billing, and mandates recordkeeping for two years. The rule applies to upsells made during unsolicited calls and restricts certain types of payments for specific goods and services.

Amendments to the TSR have addressed concerns such as prerecorded messages in 2008, deceptive debt relief services in 2010, and payment methods like remotely created payment orders and cash reload mechanisms in 2015. These amendments expanded the rule’s scope to include broader consumer protections and clarified enforcement guidelines.

The rule applies to telemarketing activities that cross state lines, whether the calls are outbound or in response to advertising. Organizations must comply with the TSR, including charities and for-profit telemarketers working on their behalf, with some exemptions. Violating the TSR or facilitating violations can result in penalties, and credit card laundering or unauthorized billing practices are specifically prohibited. The rule also focuses on protecting consumer privacy and includes a system for enforcement by the FTC and other authorities.

 

For more information, see here: https://www.ftc.gov/tips-advice/business-center/guidance/complying-telemarketing-sales-rule

 

These materials were obtained directly from the Federal Government public websites and are posted here for your review and reference only.  No Claim to Original U.S. Government Works.  These may not be the most recent versions.  The U.S. Government may have more current information.  We make no guarantees or warranties about the accuracy or completeness of this information or the information linked to.  Please check the linked sources directly.