In an ongoing effort to protect consumers from deceptive telemarketing, the Federal Trade Commission seeks public comment on proposed amendments to strengthen the Telemarketing Sales Rule’s protections against bogus charges and services.
The Commission’s Notice of Proposed Rulemaking announced today would curtail the use of four payment methods favored by con artists and scammers. The proposed changes would:
The FTC has found that unscrupulous telemarketers rely on these payment methods because they are largely unmonitored and provide consumers with fewer protections against fraud. The FTC’s proposed changes to the TSR would make it a violation for telemarketers and sellers to accept any of these payment methods in any telemarketing transaction.
The proposed changes also would expand the TSR’s ban on telemarketing “recovery services” in exchange for an advance fee. In the Commission’s experience, telemarketers who call consumers offering to help recover losses they suffered through an earlier fraud are often engaged in deceptive practices. Currently limited to offers to recoup losses suffered in a prior telemarketing transaction, the existing ban would be expanded to include offers to recoup losses suffered in any prior transaction.
Other proposed amendments to the Rule would clarify and improve various provisions of the TSR. Adopted by the FTC in August 1995, the TSR requires certain disclosures and prohibits misrepresentations during telemarketing calls. It also bars abusive practices, including charging up-front fees for certain services such as credit repair, recovery services, and loan or credit offers presented as “guaranteed” or having a high likelihood of success. Previous TSR amendments created the National Do Not Call Registry, curtailed telemarketing calls that deliver prerecorded messages, and combatted deceptive and abusive telemarketing of debt relief services.
The Notice of Proposed Rulemaking announced today describes the need and basis for the proposed amendments to the TSR. Public comments on the proposed amendments will be accepted until July 29, 2013. Comments can be submitted electronically by clicking here. Or if you prefer to file your comment on paper, mail or deliver it to the following address: Federal Trade Commission, Office of the Secretary, Room H-113 (Annex B), 600 Pennsylvania Avenue, NW, Washington, DC 20580. The Commission vote approving the Notice of Proposed Rulemaking was 4-0.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.
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