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Following a public comment period, the Commission amended the Telemarketing Sales Rule (TSR) on December 14, 2015, to define and prohibit the use of certain payment methods in all telemarketing transactions; expand the scope of the advance fee ban for recovery services; and clarify certain provisions of the Rule (80 FR 77520). For inbound or outbound telemarketing transactions by telemarketers and sellers, the amendments prohibit novel payment methods that are difficult to trace and hard for people to reverse.  The prohibited payment methods include remotely created checks, remotely created payment orders, cash-to-cash money transfers, and cash reload mechanisms. While addressing changes in the financial marketplace to ensure consumers remain protected by the TSR’s anti-fraud provisions, the amendments are narrowly tailored to allow for innovations with respect to other payment methods that are used by legitimate companies.  

In a separate proceeding, on August 11, 2014, the Commission initiated periodic review of this rule and solicited public comments (79 FR 46732). The comment period as extended closed on November 13, 2014 (79 FR 61267). Staff anticipates making a recommendation to the Commission by July 2017.