Telemarketing Rules

7/29/2019 Telemarketing Rules

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TELEMARKETING RULES

LAW REGARDING

TELEMARKETING


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Telemarketing Consumer Fraud and

Abuse Act

On August 16, 1994, President Clinton sighed into law

the Telemarketing Consumer Fraud and Abuse Prevention Act.The Act was the culmination of Congressional efforts during theearly 1990s to protect consumers against telemarketing fraud.The purpose was to counteract telemarketing fraud by providinglaw enforcement agencies with powerful new tools, and to give

consumers new protections.


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Federal Telemarketing Laws

There are federal telemarketing rules promulgated by the following agencies:

1) Federal Trade Commission (FTC)

The Federal Trade Commission (FTC) works to ensure that thenations markets are vigorous, efficient and free of restrictions that harmconsumers. FTC enforces federal consumer protection laws that prevent fraud,deception and unfair business practices. The Commission also enforces federalantitrust laws that prohibit anticompetitive mergers and other business practicesthat restrict competition and harm consumers. Whether combating telemarketingfraud, Internet scams or price-fixing schemes, the FTCs primary mission is to

protect consumers.


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2) Federal Communications Commission (FCC)

The Federal CommunicationsCommission (FCC) is an independent UnitedStates government agency, directly responsibleto Congress. The FCC was established by theCommunications Act of 1934 and is chargedwith regulating interstate and internationalcommunications by radio, television, wire,

satellite and cable. The FCCs jurisdictioncovers the 50 states, the District of Columbia,and U.S. possessions.


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Laws generated by the FTC and the

FCC:Federal Telephone Consumer Protection Act of 1991 (TCPA)sets forth restrictions on the use of telephone equipment to sendunsolicited commercial advertisements.

Telemarketing Sales Rule (TSR) - pursuant to theTelemarketing and Consumer Fraud and Abuse Prevention Act,the TSR provides similar restrictions on telemarketing, and alsorequires certain disclosures and record keeping in connectionwith telemarketing calls. A recent amendment to the TSRcreated a national Do Not Call registry, which is currently beingdeveloped.


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State Telemarketing Laws

Laws governing automatic dialing and announcing devices(telemarketing auto dialer equipment) differ from state to state and fromcountry to country. Some locales have additional legislation at the city andcounty levels. It is the sole responsibility of each Sales Representative tofamiliarize themselves with the laws related to their specific application, andadhere to them. Because of the large number of laws on the books andtheir variance, and for the reason that these laws frequently contradict oneanother.

State law is preempt by the federal rules, except to the extent thata state law imposes stricter requirements on telemarketers. For these states for example, require sellers to abide by not using rebuttalswhen the customer objects:


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Protecting Consumers Privacy

The Rule prohibits sellers and telemarketers from engaging in

certain abusive practices that infringe on a consumers right to be letalone. The

Rules privacy protections include prohibitions on:

Calling a person whose number is on the National Do .Not CallRegistry or a person who has asked not to get telemarketing callsform a particular company or charity. Misusing a Do Not Call list. Not providing Proper Identification Calling outside the permissible hours. Not providing general information of Product/service to theconsumer Abandoning an outbound telephone call. Other related policies.


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Do Not Call List

The FTCs National Do Not Call Registry has beenaccepting registrations from consumers who choose notto receiving telemarketing sales calls since June 27,2003. Consumers can place their telephone numbers on

the National Registry by making a toll-free telephone callor via the Internet. Consumer registrations are valid forfive years, or until the consumer asks to be taken off theNational Registry or the number is disconnected. Only

telephone numbers are included in the National Registry.This means that all household members who share anumber will stop receiving most telemarketing calls afterthe number is registered. Consumers may register boththeir residential land line telephone numbers and theirwireless telephone numbers.


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Telephone Sales Compliance

In 1994, Congress passed the Telemarketing and Consumer Fraud andAbusePrevention Act to combat telephone fraud by providing law enforcementagencies with powerful new tools and to give consumers new protectionsand guidance on how to differentiate between fraudulent and legitimate

telemarketing.

Here are the major components of the act and how they impact our jobsat any call center:- Proper Identification

All call center outbound telemarketing calls must promptly disclose, in aclear andobvious manner: ______ The identity of the CSA making the call. The purpose of the call.


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Calling Hour Restrictions

The act expressly forbids calls to private residences before 8:00

a.m. or after 9:00 p.m. (local time at the customers location). Anyexceptions to this must be with the expressed consent of the calledparty.

Required Information To Consumers

Cost & Quantity

The act requires us whetherwere receiving inbound calls ormaking outbound calls to provide the total cost to purchase ourproducts or services.

RestrictionsWe must disclose to our customers any restrictions, limitations,conditions, or additional expenses that they may incur to purchase ourproducts or services.


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Authorization For PaymentThe act requires our customers expressed verifiable

authorization for use of bank account information to obtainpayment through phone checks. This can beaccomplished by advance written authorization, a fax, or atape recording of the customer giving the authorization.

Prohibitions Under The ActClaims which are false or misleading are strictly prohibited.

All offers must be stated clearly and honestly so that the

parties know exactly what they have committed to, howmuch it will cost, and what they will be getting in return.


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Do Not Call Policies

Any CSAs may not call a customer who has requested to receive no

more calls from us. The act also requires all call centers to maintain do not calllists of those consumers who do not wish to be contacted by phone, to develop awritten policy implementing this do not call list-keeping requirement, and to trainour CSAs in these procedures.

Enforcement and Penalties

Calling a consumer who has requested not to be called is an actviolation and could result in civil penalties of up to $10,000 per violation.

Other Rules that apply:

Denying or interfering with a persons Do Not Call rights. Using threats, intimidation, or profane or obscene language. Causing any telephone to ring or engaging any person in telephoneconversation repeatedly or continuously with intent to annoy, abuse, or harass.

Telemarketing Rules

Documents

Transcript of Telemarketing Rules