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FTC

RIN: 3084-AA98

Publication ID: Spring 2005

Title: Telemarketing Sales Rule
Abstract: This rulemaking is related to RIN 3084-AA86. In 1995, the Commission issued the Telemarketing Sales Rule (TSR), 16 CFR part 310, under the Telemarketing and Consumer Fraud and Abuse Prevention Act (TSR Act), 15 USC 6101-6108. The TSR requires telemarketers to disclose information; prohibits misrepresentations; limits the times telemarketers may call consumers; prohibits calls to consumers who ask not to be called again; and sets payment restrictions for the sale of certain goods and services. In the fall 2003 Agenda, the Commission reported that it had completed its review of the TSR as required by the TSR Act. Among other changes, the Amended TSR established the National Do-Not-Call Registry, enabling consumers to register their preference not to receive telemarketing calls. 68 FR 4580 (Jan. 29, 2003). On July 31, 2003, the Commission published a Final Rule further amending the TSR by establishing the fees that would be charged to entities engaged in telemarketing that access the National Do-Not-Call Registry. 68 FR 45134. The Consolidated Appropriations Act of 2004, Pub. L. No. 188-199, 188 Stat. 3, Division B, Title V (Appropriations Act), required that the Federal Trade Commission amend the TSR within 60 days of enactment to require telemarketers subject to the TSR to obtain from the FTC the list of telephone numbers on the National Do-Not-Call Registry once a month. After notice and comment, the Federal Trade Commission amended the TSR on March 23, 2004, requiring that telemarketers subject to the Rule access the National Do-Not-Call Registry and purge numbers on the registry from their call lists every month, instead of every quarter as the Rule originally required, and also allowing a consumer to assert a valid do-not-call complaint thirty days after entering his or her number rather than waiting three months as originally required. 69 FR 16368 (Mar. 29, 2004)(Final Rule); 69 FR 7330 (Feb. 13, 2004)(NPRM). In the Appropriations Act, Congress also authorized the Commission to collect fees of $23.1 million in fiscal year 2004 to implement and enforce the Amended TSR. On July 30, 2004, the Commission published a final rule revising the fees charged for industry access to the National Do-Not-Call Registry. 69 FR 45580 (Final Rule); 69 FR 23701 (Apr. 30, 2004) (NPRM). Under the new fee structure, the annual fee for each area code of data accessed is $40, and the maximum amount that any entity could be charged for access to 280 area codes of data or more is $11,000. The final rule continues to allow all entities accessing the Registry to obtain the first five area codes of data for free, and allows those entities exempt from the Registrys requirements to obtain access at no charge. The new fee schedule became effective September 1, 2004. In response to a series of requests for advisory opinions, the Commission published an NPRM on November 17, 2004, that requested comments on whether to permit prerecorded message telemarketing when there is an established business relationship between the caller and a consumer. At the same time and in response to a request for reconsideration on the FTC's calculation of call abandonment rates on a daily basis, the NPRM also proposed to revise the TSR to measure call abandonment using a per-30-day calculation. The current TSR, which prohibits all prerecorded message telemarketing regardless of whether there is an established business relationship, is inconsistent with the Federal Communications Commission's regulation of prerecorded messages under which such calls are permitted when such a relationship exists. The NPRM also stated that, pending completion of the rulemaking, the FTC would not enforce the TSR's current call abandonment provisions against callers who engage in prerecorded message telemarketing when there is an established business relationship. The comment period closed on January 10, 2005, and staff anticipates forwarding its recommendation to the Commission this summer. The Commission published an NRPM to revise the fees charged the industry for access to the National Do-Not-Call Registry on April 22, 2005. 70 FR 20848. The comment period will end on June 1, 2005, and staff plans to forward its recommendation to the Commission during August 2005.
Agency: Federal Trade Commission(FTC)	Priority: Substantive, Nonsignificant
RIN Status: Previously published in the Unified Agenda	Agenda Stage of Rulemaking: Proposed Rule Stage
Major: No	Unfunded Mandates: No
CFR Citation: 16 CFR 310
Legal Authority: 15 USC 6101 to 6108

Legal Deadline: None

Timetable:

Action	Date	FR Cite
NPRM - Monthly Access Requirement	02/13/2004	69 FR 7330
Final Rule Announced	03/23/2004
Final Rule (31-Day Access Requirement)	03/29/2004	69 FR 16368
Final Action Effective (31-Day Access Requirement)	01/01/2005
Amended Fees NPRM	04/30/2004	69 FR 23701
Final Rule (Revised Fee Schedule)	07/30/2004	69 FR 45580
Effective Date of New Fee Schedule	09/01/2004
NPRM on Call Abandonment and Prerecorded Messages	11/17/2004	69 FR 67287
NPRM Comment Period End (Call Abandonment)	01/10/2005
Staff Recommendation to Commission (Call Abandonment)	07/00/2005
NPRM (Fee Changes)	04/22/2005	70 FR 20848
NPRM Comment Period End (Fee Changes)	06/01/2005
Recommendation to Commission (Fee Changes)	08/00/2005

Regulatory Flexibility Analysis Required: No	Government Levels Affected: None
Small Entities Affected: Businesses	Federalism: No
Included in the Regulatory Plan: No
RIN Information URL: www.ftc.gov/opa/2004/11/tsramend.htm
Related RINs: Related to 3084-AA86
Agency Contact: David M Torok Attorney Federal Trade Commission Division of Marketing Practices, Bureau of Consumer Protection, Washington, DC 20580 Phone:202 326-3075 Email: dtorok@ftc.gov