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Amendments to the FTC’s Telemarketing Sales Rule   Presented by:  Joseph Sanscrainte   Director of Regulatory Affairs   Ca...
DO-NOT-CALL REGISTRY <ul><li>Time Frame:  Enforcement set for October 1, 2003 (consumer sign-up begins July 1; seller acce...
DO NOT CALL REGISTRY (cont’d) <ul><li>Registration Period:  5 years </li></ul><ul><li>Exemptions: </li></ul><ul><ul><li>Ju...
PREDICTIVE DIALING RULES <ul><li>“Abandoned call” = abusive telemarketing practice </li></ul><ul><li>Safe harbor protectio...
CALLER ID <ul><li>“ It is an abusive telemarketing act or practice . . . [to fail] to transmit or cause to be transmitted ...
BILLING INFORMATION RULES <ul><li>Generally, must have “express informed consent” to submit billing information for paymen...
PAYMENT DISCLOSURE RULES <ul><li>Generally, the same </li></ul><ul><li>Credit card protection offers:  caller must now dis...
“ UPSELLS” <ul><li>“ soliciting the purchase of goods or services following an initial transaction during a single telepho...
RECORD-KEEPING RULES <ul><li>advertising materials & scripts </li></ul><ul><li>prize award info </li></ul><ul><li>customer...
CHARITY/NON-PROFIT CALLS <ul><li>Calls by for-profit call center on behalf of non-profit covered by TSR </li></ul><ul><li>...
Thanks For Further Information, contact: Joseph Sanscrainte 90 Pratt Oval Glen Cove, NY  11542 516-656-5125 Copyright  © 2...
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Amendments to the FTC's Telemarketing Sales Rule

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Amendments to the FTC's Telemarketing Sales Rule

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

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