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Complying with the Telemarketing Sales Rule

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Complying with the Telemarketing Sales Rule Complying with the Telemarketing Sales Rule FEDERAL TRADE COMMISSION Table of Contents Introduction . .4 The Amended TSR at a Glance . .5 Charities and For-Profit Telemarketers Calling on Their Behalf . .6 Who Must Comply with the Amended TSR? . .7 Exemptions to the Amended TSR . .8 Some Types of Businesses and Individuals . .8 Coverage of the Business of Insurance is Limited . .9 Some Types of Calls . .9 Exemptions Explained . .9 • Unsolicited Calls from Consumers . .9 • Most Calls in Response to a Catalog . .9 • Business-to-Business Calls, Unless They Involve the Sale of Nondurable Office or Cleaning Supplies . .10 • Most Calls Responding to General Media Advertising . .10 • Some Calls Responding to Direct Mail Advertising Are Exempt . .11 Partial Exemptions . .12 Calls Relating to the Sale of 900-Number Services . .12 Calls Relating to the Sale of Franchises or Business Opportunities . .13 Calls that Are Part of a Transaction Involving a Face-to-Face Sales Presentation . .13 Requirements for Sellers and Telemarketers . .14 Sellers and Telemarketers Must Disclose Material Information . .14 What Information Must Sellers and Telemarketers Provide to Consumers? . .15 Cost and Quantity . .15 Material Restrictions, Limitations, or Conditions . .16 No-Refund Policy . .16 Prize Promotions . .17 Credit Card Loss Protection . .17 Negative Option Features . .18 Prompt Disclosures in Outbound Telemarketing Calls . .18 Oral Disclosures in Outbound Sales Calls and Upselling Transactions . .18 Oral Disclosures in Outbound Calls to Solicit Charitable Contributions . .20 Misrepresentations are Prohibited . .21 1 Sales Transactions . .21 Cost and Quantity . .21 Material Restrictions, Limitations, or Conditions . .21 Performance, Efficacy, or Central Characteristics . .21 Refund, Repurchase, or Cancellation Policies . .22 Material Aspects of Prize Promotions . .22 Material Aspects of Investment Opportunities . .22 Affiliations, Endorsements, or Sponsorship . .22 Credit Card Loss Protection . .23 Negative Option Features . .23 Charitable Solicitation Calls . .23 The Nature, Purpose, or Mission of Entity on Whose Behalf Solicitation is Made . .23 Tax Deductibility . .23 Purpose of a Contribution . .23 Percentage or Amount of Contribution that Goes to a Charitable Organization or Program . .24 Material Aspects of Prize Promotions . .24 Affiliations, Endorsements, or Sponsorship . .24 Payment Methods Other than Debit and Credit Cards . .24 Written Authorization . .26 Oral Authorization . .26 Authorization by Written Confirmation . .26 Assisting and Facilitating Sellers or Telemarketers Who Violate the Rule is Prohibited . .28 Credit Card Laundering is Prohibited . .29 Unauthorized Billing . .30 Express Informed Consent is Required in Every Telemarketing Transaction . .30 Obtaining Express Informed Consent in Telemarketing Transactions Involving Pre-acquired Account Information . .31 When the offer includes a free-to-pay conversion feature . .31 When the offer does not include a free-to-pay conversion feature . .33 Protecting Consumers’ Privacy . .34 The Do Not Call Provisions . .34 The Entity-Specific Do Not Call Provision . .34 2 The National Do Not Call Registry Provision . .35 How the National Do Not Call Registry Works . .36 Small, Home-Based Sellers . .41 Do Not Call Safe Harbor . .42 Exemptions to the National Do Not Call Registry Provisions . .43 The Established Business Relationship Exemption . .43 The Written Permission to Call Exemption . .44 Other Provisions Relating to Do Not Call . .45 Selling or Using a Do Not Call List for Purposes Other than Compliance . .45 Denying or Interfering with Someone’s Do Not Call Rights . .45 Calling Time Restrictions . ..
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