Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC extends public comment period on Telemarketing Sales Rule review, (Oct 8, 2014)

By Linda O’Brien, J.D., LL.M.

The deadline for consumers to submit comments regarding the FTC’s Telemarketing Sales Rule (TSR) has been extended through November 13, 2014, the agency announced yesterday. In July 2014, the FTC began its review of the TSR, as part of its systematic review of the Commission’s rules and regulations.

As detailed in the announcement of the rule review, the TSR has been updated regularly since 2000, leading to amendments in 2003 to create the national Do Not Call (DNC) Registry for telemarketers and amendments in 2008 and 2010 to more specifically address pre-recorded telemarketing calls and debt relief services, respectively. In addition, last year, the Commission proposed amendments to the TSR to ban telemarketers from using certain payment methods often used in defrauding consumers.

The FTC’s notice requesting public comment posed an extensive list of questions on the costs, benefits, and efficacy of the TSR in the marketplace and whether the FTC should retain, modify, or rescind it. The Commission also specifically requested comment on three issues: (1) whether the pre-acquired account information provisions of the TSR should be modified in view of current credit card association rules and the Restore Online Shoppers’ Confidence Act; (2) what impact, if any, the increasing use of general media to solicit inbound calls from consumers to purchase a variety of goods or services, including those involving a negative option or free trial, is having; and (3) the costs and burdens of modifying the recordkeeping requirements of the TSR to require telemarketers to retain their own call records. The regulatory review comment period was to end on October 14, 2014.

Public comments should be submitted to the FTC Office of the Secretary, 600 Pennsylvania Ave., N.W., Suite CC-5610 (Annex B), Washington, DC 20580. Comments can also be submitted electronically.

The Commission vote approving the Federal Register notice extending the public comment period was 5-0.

News: Advertising ConsumerProtection FederalTradeCommissionNews