thetelemarketingsalesrule.docVIP

The Telemarketing Sales Rule The Telemarketing Sales Rule (TSR), a regulatory rule implementing the Telemarketing and Consumer Fraud and Abuse Prevention Act, became effective on December 31, 1995. The TSR prohibits misrepresentations during telephone solicitations, requires certain disclosures and policies, and—with amendments that took effect in 2003—provides for a national “Do-Not-Call” (DNC) list. In 2002, the Federal Trade Commission (FTC) announced major changes to the TSR, most of which became effective on March 31, 2003. In addition to the National Do-Not-Call List, the Amended Rule placed restrictions on the use of “upsells,” negative options, free-to-pay conversions, pre-acquired account information, and predictive dialers. While most of the Amended Rule became effective in March 2003, the DNC list became operational in October 2003. The Federal Communications Commission (FCC) also regulates some telephone solicitations under authority of the Telephone Consumer Protection Act (TCPA). In 2003, the FCC made changes to its telemarketing rules.? In addition to coordinating with the FTC on the creation of the DNC list, the FCC rules also address the use of predictive dialers and caller ID.? The FCC rules regarding DNC lists, predictive dialing, and caller ID effectively preempt state laws and regulations for interstate calls.? The FCC will decide on a case-by-case basis whether it will allow states to regulate intrastate calls.? Some of the FCC rules differ from the FTC regulations—including the restrictions on predictive dialers.? Most publishers are subject to FTC jurisdiction and must comply with the FTC rules.? Under limited circumstances, some not-for-profit publishers may not be subject to either FTC or FCC regulation.? Publishers are advised to consult with their attorneys to ensure they are in compliance with all applicable laws and regulations. The Rule has been amended periodically since 2003 to adjust the fees associated with the National Do-No