FTC Amends Telemarketing Sales Rule

On December 10, 2024, the FTC adopted amendments to the Telemarketing Sales Rule (TSR) that extend the Rule's applicability to inbound telemarketing calls in response to an advertisement through any medium or direct mail solicitation in which technical support products or services are offered for sale. The amendments will become effective on January 9, 2025.

The Telemarketing and Consumer Fraud and Abuse Prevention Act was enacted by the Congress to curb abusive telemarketing practices and provide key anti-fraud and privacy protections to consumers. The Rule prohibits deceptive telemarketing practices, like misrepresenting information or making false statements to persuade people to pay for goods or services. It also requires sellers and telemarketers to provide specific disclosures and maintain records of their activities.

The Rule exempts from its coverage certain calls that consumers make to telemarketers, known as inbound calls. The Rule generally exempts inbound calls that are: (1) not the result of any solicitation, (2) in response to certain advertisements, and (3) in response to a direct mail solicitation that contains certain information. However, the exemptions for inbound calls contain exclusions for certain types of calls that are often deceptive, such as inbound calls relating to investment opportunities, debt relief services, and prize promotions. The amended rule Commission proposed covering inbound telemarketing of technical support services (or tech support) in the Rule because of the harm associated with telemarketing these products and services.

The Rule exempts certain inbound calls to telemarketers, including those not resulting from solicitation, responding to specific advertisements, or direct mail solicitations with particular information. However, it excludes deceptive types of inbound calls, such as those related to investment opportunities, debt relief services, and prize promotions. The amended rule aims to cover inbound telemarketing for technical support services due to associated harms.

The final rule can be found here.

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