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Home>Business Resource Center >Business Articles >Direct Selling

Telemarketers Do Not Call List | Do Not Call Compliance - Telemarketing Sales Rule

It is important that business owners know the laws regarding the 2003 Federal Trade Commission Do Not Call legislation. You should consult the Federal Trade Commission guidelines to see how this law will impact you if your business uses the telephone to sell your products. If you place a call to a consumer who is registered on the federal Do Not Call list, you risk a fine of $10,000.00.

Telemarketers and lead-generation sellers must comply with the Telemarketing Sales Rule (TSR). This includes calls by telemarketers who solicit consumers, often on behalf of third party sellers. It also includes sellers who are paid to provide goods or services to consumers. Telemarketers and sellers are required to search the registry at least once every 31 days and drop from their call lists the phone numbers of consumers who have registered.

Organizations Exempt from the Do Not Call List

• Charities
• Certain non-profit organizations
• Organizations engaged in political solicitations or surveys
• Sellers or telemarketers that call only consumers with whom they have an established business relationship or from whom they obtain the express written agreement to call
• Entities with tax exempt status under the Internal Revenue Code are not necessarily exempt organizations for the purpose of the registry

In FY 2007, a total of 6,242 entities paid fees for access to the National Registry. For a more detailed description of the National Do Not Call Registry and telemarketing rules and regulations, access https://telemarketing.donotcall.gov .

Following are the key provisions of the Telemarketing Sales Rule:

• A telemarketer cannot:
  • Call a consumer's residence before 8 a.m. or after 9 p.m.
  • Call consumers who have requested they not be called (telemarketers must keep "do not call" lists of people who have asked not to receive calls).
  • Withdraw money from a consumer's checking account without express, verifiable authorization.
  • Misrepresent any information or lie to get a consumer to pay.

• On all outgoing calls, telemarketers must disclose:
  • The seller's identity.
  • That the purpose of the call is to sell goods or services.
  • The nature of the goods or services offered.
  • The fact that no payment or purchase is necessary to enter or win a prize promotion.

• Before a customer pays for goods or services, telemarketers must state:
• The total cost and quantity of the goods or services.
• Any restrictions for getting or using the goods or services.
• If a sale is final or nonrefundable.
• The terms and conditions of any refund policy.
• The specifics of a prize promotion: the odds of winning, the fact that no purchase or payment is necessary to win, and any restrictions or conditions on receiving the prize.

For more information on the Telemarketing Sales Rule, visit https://telemarketing.donotcall.gov .

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