Telemarketing Sales Rule

Most people know this rule only through the do not call list, which is one part of it. The rest governs the call itself: when it may happen, what must be said, and what counts as deceptive. Those provisions apply whether or not the number was ever on a list.

Start with the clock, because it is the easiest to get wrong. Without the prior consent of the person, calling a residence outside 8am to 9pm is an abusive practice under the rule. The detail that catches businesses is which clock counts: the rule says local time at the called person's location. A team dialing a list across time zones from one office is working to several windows at once.

Then what has to be said, and how fast. The rule requires a telemarketer to disclose truthfully, promptly, and in a clear and conspicuous manner, four things: the identity of the seller, that the purpose of the call is to sell goods or services, the nature of those goods or services, and, where a prize promotion is involved, that no purchase or payment is necessary to win or to increase the chance of winning.

Separately, before a customer agrees to pay, the rule requires clear disclosure of material information. That includes the total costs to purchase, receive or use the goods or services and the quantity involved, all material restrictions, limitations or conditions, and if the seller does not make refunds, a statement saying so.

One more definition closes the obvious loophole. The FTC says that when disclosures are oral, clear and conspicuous means at an understandable speed and pace, and in the same language, tone and volume as the sales offer, so that ordinary consumers can easily hear and understand it. The fast quiet disclaimer at the end is not a disclosure.