FTC Passes Final Rule on Telemarketing Fraud Protections

WASHINGTON—The Federal Trade Commission has passed a final rule extending telemarketing fraud protections to businesses and updating the rule’s recordkeeping requirements in light of developments in technology and the marketplace.

The Commission also announced a proposed rule that would provide the agency with significant new tools to combat tech support scams.

The FTC said both actions are part of its current review of the Telemarketing Sales Rule (TSR), which includes the Do Not Call Registry (DNC) rules and provisions banning nearly all telemarketing robocalls to consumers.

“Importantly, the FTC also affirms the TSR’s prohibitions on robocalls using voice cloning technology,” the agency said.

About the Rule

The TSR became effective in 1995 and applies to virtually all “telemarketing” activities, both in the United States and international sales calls to consumers in the United States. The rule generally applies only to outbound calls made by telemarketers to consumers, with some exceptions, and protects consumers in a range of ways,” according to the FTC.

“For example, the rule requires telemarketers to make certain disclosures and prohibits misrepresentations during sales calls,” the FTC said. “The TSR also prohibits calls to consumers on the Do Not Call Registry, and it prohibits calls using prerecorded messages regardless of whether the consumer is listed on the Do Not Call Registry.”

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