This week, the Federal Trade Commission (FTC) proposed changes to the Telemarketing Sales Rule (TSR). While the TSR is best known for its Do Not Call provisions, the Rule regulates a great deal more. The FTC's proposed amendments cut a broad swath across the TSR, and these proposed changes would mark the third time the TSR has been amended in the last 10 years.
Perhaps the most significant proposed change involves a ban on four increasingly common forms of payment the FTC believes make it easier to perpetuate fraud against consumers: "Remotely created" unsigned checks and payment orders, cash-to-cash money transfers, and cash reload mechanisms (which allow consumers to load cash onto either their own or someone else's prepaid debit card by supplying an authorization code).
The FTC is also proposing several changes to the TSR to reflect its current interpretation of the Rule. These are:
- Any recording of a consumer's express verifiable authorization must also include a description of the product they are purchasing;
- The telemarketer has the burden of proof with regard to whether there is an existing business relationship with the consumer or they have express written consent to contact a consumer on the Do Not Call Registry;
- The Business-to-Business exemption applies only to calls intended to bring about a sale or a contribution from a business and not calls targeted to persons employed by that business;
- The prohibition against companies sharing the cost of Do Not Call Registry fees is absolute; and,
- Prohibiting companies from harassing consumers who request to be placed on their do not call lists or imposing any conditions on such a request, such as listening to a sales pitch.
The FTC will accept public comments on the proposed amendments to the TSR deadline until July 29, 2013.
Click here to read a more detailed analysis of the proposed changes to the TSR on Venable's advertising law blog, www.allaboutadvertisinglaw.com.
Click here to read the FTC's notice of proposed rulemaking announcing the proposed changes to the TSR.
Originally published May 23, 2013
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