The New TSR Amendments

Specifically, the TSR amendments adopted by the Commission and announced today:

- Expressly prohibit telemarketing sales calls that deliver prerecorded messages, whether answered in person by a consumer or by an answering machine or voicemail service, unless the seller has previously obtained the recipient’s signed, written agreement to receive such calls;

- Permit sellers to obtain the required permission for prerecorded message sales calls from a consumer in any manner permitted by the Electronic Signatures In Global and National Commerce Act (E-SIGN Act);

- Exempt healthcare-related prerecorded message calls that are subject to the Health Insurance Portability and Accountability Act (HIPAA) from the prohibition on telemarketing calls that deliver prerecorded messages;

- Exempt from the written agreement requirement all charitable solicitation calls placed by for-profit telemarketers (telefunders) that deliver prerecorded messages on behalf of non-profits to members of, or previous donors to, the nonprofit, but require that such calls include a prompt keypress or voice-activated opt-out mechanism;

- Require that, by December 1, 2008, sellers and telemarketers provide, at the outset of all prerecorded messages, an automated keypress or voice-activated interactive opt-out mechanism so that consumers can opt out as easily as they can from a live telemarketing call;

- End the FTC’s current policy of forbearing from bringing enforcement actions against sellers and telemarketers who place prerecorded calls that meet certain specified conditions that would be inconsistent with the new requirements; but

- Permit sellers, as under the forbearance policy, to continue for one year after the rule’s publication to place calls delivering prerecorded messages to consumers with whom they have an established business relationship, after which no prerecorded message calls can be made to consumers without their express permission.

The prerecorded call amendment requires that any prerecorded telemarketing call must:

1) allow the telephone to ring for at least 15 seconds or four rings before an unanswered call is disconnected;

2) begin the prerecorded message within two seconds of a completed greeting by the consumer who answers;

3) disclose at the outset of the call that the recipient may ask to be placed on the company’s do-not-call list at any time during the message;

4) in cases where the call is answered by a person, make an automated interactive voice and/or keypress-activated opt-out mechanism available during the message that adds the phone number to the company’s do-not-call list and then immediately ends the call; and

5) in cases where the call is answered by an answering machine or voicemail, provide a toll-free number that allows the person called to be connected to an automated interactive voice and/or keypress-activated opt-out mechanism anytime after the message is received. The telemarketer, while complying with each of these provisions, also must be in compliance with all other requirements of the TSR and other federal and state laws.

You may read detailed information about FTC’s guide to telemarketing sales rule or visit www.ftc.gov