FTC's Telemarketing Sales Rule

Dec. 18, 2002 — -- Following are tips from the Federal Trade Commission about its Telemarketing Sales Rule, which was adopted in 1994 in an effort to protect consumers from fraud and abuse by telemarketers.

The FTC requires telemarketers to make certain disclosures and prohibits certain misrepresentations. To determine whether or not you're talking with a scam artist or a legitimate telemarketer, keep the following tips in mind:

If you have asked a telemarketer not to call you back and he or she continues to call, hang up and report the telemarketer to your state attorney general.

Calling times are restricted to the hours between 8 a.m. and 9 p.m.

Telemarketers must acknowledge where they are calling from and what they're selling. If it's a prize promotion, they must tell you that no purchase or payment is necessary to enter or win. If you're asked to pay for a prize, hang up.

It's illegal for telemarketers to misrepresent any information, including facts about their goods or services, earnings potential, profitability, risk or liquidity of an investment, or the nature of a prize in a prize-promotion scheme.

Telemarketers must tell you the total cost of the products or services they're offering and any restrictions on getting or using them, or that a sale is final or non-refundable, before you pay.

It's illegal for a telemarketer to withdraw money from your checking account without your expressed, verifiable authorization.

Telemarketers cannot lie to get you to pay, no matter what method of payment you use.

You do not have to pay for credit repair, recovery room, or advance-fee loan/credit services until these services have been delivered.

--Source: Federal Trade Commission

If you think you've been a victim of a fraudulent telemarketer, you can call the FTC's toll-free number, 1-877-FTC-HELP (1-877-382-4357), or file a complaint online.

If you do not want a telemarketer to call you again, simply say, "Put me on your do not call list."