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Amendments to the FTC's Telemarketing Sales Rule
 

Amendments to the FTC's Telemarketing Sales Rule

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    Amendments to the FTC's Telemarketing Sales Rule Amendments to the FTC's Telemarketing Sales Rule Presentation Transcript

    • Amendments to the FTC’s Telemarketing Sales Rule Presented by: Joseph Sanscrainte Director of Regulatory Affairs Call Compliance, Inc. Copyright © 2002 Call Compliance, Inc. All Rights Reserved. For informational purposes only; not to be construed as legal advice
    • DO-NOT-CALL REGISTRY
      • Time Frame: Enforcement set for October 1, 2003 (consumer sign-up begins July 1; seller access to list set for Sept. 1)
      • Cost to “Sellers”: Est. $18.1 million for first year; $29/area code; cap of $7,250
      • Cost to Consumers: None
      • “ Transition” period & “Harmonization” necessary to work with state lists
      • No pre-emption of state lists
      • FCC to “maximize consistency” with FTC DNC rules
      Copyright © 2002 Call Compliance, Inc. All Rights Reserved. For informational purposes only; not to be construed as legal advice
    • DO NOT CALL REGISTRY (cont’d)
      • Registration Period: 5 years
      • Exemptions:
        • Jurisdictional (insurance, common carriers, banking, intrastate calls)
        • Political Calls
        • Survey Calls
        • Existing Business Relationship (18 months for “transactions”; 3 months for “inquiries”)
      • Cell Phone #’s accepted
      • Same fines ($11,000 per violation)
      • Safe Harbor offered
      Copyright © 2002 Call Compliance, Inc. All Rights Reserved. For informational purposes only; not to be construed as legal advice
    • PREDICTIVE DIALING RULES
      • “Abandoned call” = abusive telemarketing practice
      • Safe harbor protection IF:
        • abandonment rate of no more than 3%
        • ring phone for 15 seconds or 4 rings
        • recorded message if call “abandoned”
        • record keeping
      • Enforcement delayed until October 1, 2003
      Copyright © 2002 Call Compliance, Inc. All Rights Reserved. For informational purposes only; not to be construed as legal advice
    • CALLER ID
      • “ It is an abusive telemarketing act or practice . . . [to fail] to transmit or cause to be transmitted the telephone number, and, when made available by the telemarketer’s carrier, the name of the telemarketer, to any caller identification service . . . .” TSR, as amended, Section 310.4(a)(7)
      • Provision set to take effect January 29, 2004
      • FTC recognizes that some switches lack caller ID functionality, and that malfunctions sometimes occur – no liability if telemarketer has taken all steps to transmit or cause the transmission of Caller ID info
      Copyright © 2002 Call Compliance, Inc. All Rights Reserved. For informational purposes only; not to be construed as legal advice
    • BILLING INFORMATION RULES
      • Generally, must have “express informed consent” to submit billing information for payment
      • Non-credit/debit card transactions require “express verifiable authorization”
        • in writing (with signature)
        • oral authorization rules toughened
        • written confirmation rules toughened
      • “ Express informed consent” and pre-acquired account transactions
        • General rules (account must be identified with specificity)
        • Pre-acquired + “free to pay conversion” (consumer must give last 4 digits of account; no follow-up written verification allowed)
      • No sharing of unencrypted billing information
      Copyright © 2002 Call Compliance, Inc. All Rights Reserved. For informational purposes only; not to be construed as legal advice
    • PAYMENT DISCLOSURE RULES
      • Generally, the same
      • Credit card protection offers: caller must now disclose legal limits on cardholder liability ($50)
      • Offers including “negative option feature” : caller must disclose nature of the offer and how consumer can avoid being charged; no misrepresentations of feature allowed.
      Copyright © 2002 Call Compliance, Inc. All Rights Reserved. For informational purposes only; not to be construed as legal advice
    • “ UPSELLS”
      • “ soliciting the purchase of goods or services following an initial transaction during a single telephone call.”
      • “ external” v. “internal”
      • Inbound call upsell = outbound call
      • TSR rules, except do-not-call and time restrictions, apply to upsells
      • No need to repeat up-front disclosures for internal upsell
      Copyright © 2002 Call Compliance, Inc. All Rights Reserved. For informational purposes only; not to be construed as legal advice
    • RECORD-KEEPING RULES
      • advertising materials & scripts
      • prize award info
      • customer info
      • names of employees & contact info
      • EVA & EIC info
      • abandoned call safe harbor compliance records
      Copyright © 2002 Call Compliance, Inc. All Rights Reserved. For informational purposes only; not to be construed as legal advice
    • CHARITY/NON-PROFIT CALLS
      • Calls by for-profit call center on behalf of non-profit covered by TSR
      • Covered non-profit calls must follow “in-house” list rules
      • Covered non-profit calls must make certain identification disclosures
      • Covered non-profit calls must avoid certain misrepresentations re: material information
      • Covered non-profit calls do not have to comply with FTC do-not-call list
      Copyright © 2002 Call Compliance, Inc. All Rights Reserved. For informational purposes only; not to be construed as legal advice
    • Thanks For Further Information, contact: Joseph Sanscrainte 90 Pratt Oval Glen Cove, NY 11542 516-656-5125 Copyright © 2002 Call Compliance, Inc. All Rights Reserved. For informational purposes only; not to be construed as legal advice