Facts for Consumers:
You Make the Call: The FTC’s Telemarketing Sales Rule
The Federal Trade Commission’s (FTC) Telemarketing Sales Rule (TSR) puts consumers in charge of the number of telemarketing calls they get at home. The TSR established the National Do Not Call Registry, which makes it easier and more efficient for consumers to reduce the number of unwanted telemarketing sales calls they get.
How can I put my number on the National Do Not Call Registry?
You may register online at donotcall.gov, provided you have a working email address, or by phone, by calling toll-free 1-888-382-1222 (TTY: 1-866-290-4236) from the number you wish to register. Registration is free.
What does registration entail?
If you register by phone, you must call from the number you want to register. If you register online, you must provide an email address for confirmation. The system will send you a confirmation email that you will have to open. Click on the link in it within 72 hours for your online registration to be complete. You can expect fewer calls within 31 days of the date you sign up for the registry. The only identifying information that will be provided to telemarketers and other companies accessing the registry will be the phone number you register.
How does the National Do Not Call Registry work?
The law requires telemarketers to search the registry every 31 days and avoid calling any phone numbers that are on the registry. If you receive telemarketing calls after you have registered your telephone number and it has been in the registry for 31 days, you can file a complaint at donotcall.gov or by calling toll-free 1-888-382-1222 (TTY: 1-866-290-4236). You will have to know the date of the call and the company’s name or phone number to file a do not call complaint. A telemarketer who disregards the National Do Not Call Registry could be fined up to $11,000 for each call.
Telephone numbers on the registry will only be removed when they are disconnected and reassigned, or when the consumer chooses to remove a number from the registry.
When did the National Do Not Call Registry take effect?
The FTC, the Federal Communications Commission (FCC), and the states began enforcing the National Do Not Call Registry on October 1, 2003. Consumers should notice a reduction in the number of telemarketing calls they get within 31 days after placing a number on the registry.
Does the National Do Not Call Registry cover all telemarketing calls?
Placing your number on the National Do Not Call Registry will stop most telemarketing calls, but not all. Calls from or on behalf of political organizations, charities, and telephone surveyors are still permitted.
Organizations with which you have an established business relationship can call you for up to 18 months after your last purchase, payment, or delivery — even if your number is on the National Do Not Call Registry. And companies to which you’ve made an inquiry or submitted an application can call you for three months. Therefore, carefully read any questionnaires or surveys you submit; they may be an attempt to establish a business relationship. Also be careful to read anything you sign, such as sweepstakes forms or requests for “free” products; they may be attempts to get your written permission.
If you place your number on the national registry, you still can give written permission for particular companies to call you. Alternately, if you have an established business relationship, you still can ask the company not to call you. The company must honor your request, regardless of any prior written permission. And if you don’t put your number on the national registry, you still can prohibit individual telemarketers from calling, by asking each to put you on their company’s do not call list.
One more important point: Although callers soliciting charitable contributions do not have to search the national registry, a for-profit telemarketer calling on behalf of a charitable organization must honor your request not to receive calls on behalf of that charity.
Are there other protections against unwanted telemarketing calls?
The TSR prohibits deceptive and abusive telemarketing acts and practices and sets forth standards of conduct for telemarketing calls:
- Calling times are restricted to the hours between 8 a.m. and 9 p.m.
- Telemarketers must promptly tell you the identity of the seller or charitable organization and that the call is a sales call or a charitable solicitation.
- Telemarketers must disclose all material information about the goods or services they are offering and the terms of the sale. They are prohibited from lying about any terms of their offer.
In addition to creating the National Do Not Call Registry, the amended TSR:
Restricts unauthorized billing.
Before submitting your billing information for payment, telemarketers must get your express informed consent to be charged — and to charge to a specific account. If a telemarketer has your account information before the call — known as “preacquired account telemarketing” — and offers you goods or services on a free trial basis before charging you automatically, the telemarketer must get your permission to use a particular account number, ask you to confirm your desire to approve a charge by giving the telemarketer at least the last four digits of the account number, and, for your protection, create an audio recording of the entire phone transaction.
Reduces abandoned calls.
Telemarketers are required to connect their call to a sales representative within two seconds of the consumer’s greeting. This will reduce the number of “dead air” or hang-up calls you get from telemarketers. These calls result from the use of automatic dialing equipment that sometimes reaches more numbers than there are available sales representatives. In addition, when the telemarketer doesn’t have a representative standing by, a recorded message must play to let you know who’s calling and the number they’re calling from. The law prohibits a recorded sales pitch in a cold call. And to give you time to answer the phone, the telemarketer may not hang up on an unanswered call before 15 seconds or four rings.
Requires caller ID transmission.
Telemarketers must transmit their telephone number and if possible, their name, to your caller ID service. This protects your privacy, increases accountability on the telemarketer’s part, and helps in law enforcement efforts.
The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
Business Opportunity and MLM-Related Websites
- MLM Legal. MLM Legal contains interesting articles and information about legal developments affecting the Multi-Level Marketing and Direct Sales Industry. For example, the site contains a page devoted to FTC's Proposed Business Opportunity Rule Resources and Analysis.
- Net Based Business Opportunities Pamphlet. Website provides full-text of government publication concerning Net Based Business Opportunities and links to additional information on MLMs and business opportunities.
- Business Opportunity Defined. Wikipedia defines business opportunity - or biz-op - in part as involving "the sale or lease of any product, service, equipment, etc. that will enable the purchaser-licensee to begin a business."
- Business Opportunities Weblog. A moderated list of business opportunities for entrepreneurs that includes chronological archives and extensive links.
- Business Opportunity Resources. FTC has extensive page links to websites of other organizations, including links to state information, Franchise and Business Opportunity FAQs, North American Securities Administrators Association, and more.
- Entrepreneur.com. Web pages devoted to home based business and at home business opportunities, including information and articles on legal issues, zoning issues, home based basics, how-to guides, home based business ideas, and more.
- Business Opportunity Information. Articles, examples, links.
- Multilevel Marketing Plans - Online Pamphlet. Website provides full-text of government publication concerning Multilevel Marketing Plans plus links to additional information on MLMs.
- Pro-MLM Website. Website lists state and federal regulatory sites and MLM attorneys.
- Ten Big Lies of Multilevel Marketing. Critical article about MLMs.
- TRUTH ON MLM. MLM research, statistics, law enforcement, news, articles, case studies, and more.
- What's Wrong With Multi-Level Marketing?. Website devoted to Anti-MLM resources, cases, and information.
- Multi-Level Marketing (MLM). The main thesis of this site is that MLMs were once legitimate, but now are scams.
- Business Opportunities in Internet Marketing. Many Useful Links.
- MLM Survivor's Homepage. Posts involving MLM are reprinted.
- MLMWatch. The Skeptical Guide to Multi-level Marketing.
- Home Based Business Opportunities. This site's stated purpose is to educate you with all aspects of starting and running a home-based business.
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