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Federal Trade Commission urged to update telemarketing sales rule to protect consumers

18 December 2014
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Federal Trade Commission urged to update telemarketing sales rule to protect consumers

Pervasiveness of general media solicitations and advertisements that have resulted in the growth of inbound telemarketing.

Ohio Attorney General Mike DeWine called upon the Federal Trade Commission to update the Telemarketing Sales Rule in order to reflect realities of today’s marketplace and better protect consumers from unscrupulous telemarketers.

DeWine joined 37 other state and territorial attorneys general in a letter asking the FTC to update the Telemarketing Sales Rule to further protect consumers from the continued prevalence of telemarketing fraud and abuse.

“The consumer protection offices of the State Attorneys General are often at the ‘front line’ in fielding consumer complaints, taking up investigations, and pursuing legal actions against those who prey on victims through telemarketing and negative option scams,” DeWine and the attorneys general said in their letter.

In their comments, submitted by the National Association of Attorneys General (NAAG), the attorneys general support the existing Telemarketing Sales Rule but contend that the following are areas of concern:

  • An increase in the number of fraud complaints from consumers who are contacted by telephone;
    •    The pervasiveness of general media solicitations and advertisements that have resulted in the growth of inbound telemarketing;
    •    The use of certain payment methods that allow retrieval of funds with little meaningful scrutiny of the recipient’s identity; and
    •    The pervasiveness of preacquired account marketing.

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