[Code of Federal Regulations]
[Title 16, Volume 1]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR310.2]

[Page 373-374]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 310--TELEMARKETING SALES RULE--Table of Contents
 
Sec. 310.2  Definitions.

    (a) Acquirer means a business organization, financial institution, 
or an agent of a business organization or financial institution that has 
authority from an organization that operates or licenses a credit card 
system to authorize merchants to accept, transmit, or process payment by 
credit card through the credit card system for money, goods or services, 
or anything else of value.
    (b) Attorney General means the chief legal officer of a State.
    (c) Cardholder means a person to whom a credit card is issued or who 
is authorized to use a credit card on behalf of or in addition to the 
person to whom the credit card is issued.
    (d) Commission means the Federal Trade Commission.
    (e) Credit means the right granted by a creditor to a debtor to 
defer payment

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of debt or to incur debt and defer its payment.
    (f) Credit card means any card, plate, coupon book, or other credit 
device existing for the purpose of obtaining money, property, labor, or 
services on credit.
    (g) Credit card sales draft means any record or evidence of a credit 
card transaction.
    (h) Credit card system means any method or procedure used to process 
credit card transactions involving credit cards issued or licensed by 
the operator of that system.
    (i) Customer means any person who is or may be required to pay for 
goods or services offered through telemarketing.
    (j) Investment opportunity means anything, tangible or intangible, 
that is offered, offered for sale, sold, or traded based wholly or in 
part on representations, either express or implied, about past, present, 
or future income, profit, or appreciation.
    (k) Material means likely to affect a person's choice of, or conduct 
regarding, goods or services.
    (l) Merchant means a person who is authorized under a written 
contract with an acquirer to honor or accept credit cards, or to 
transmit or process for payment credit card payments, for the purchase 
of goods or services.
    (m) Merchant agreement means a written contract between a merchant 
and an acquirer to honor or accept credit cards, or to transmit or 
process for payment credit card payments, for the purchase of goods or 
services.
    (n) Outbound telephone call means a telephone call initiated by a 
telemarketer to induce the purchase of goods or services.
    (o) Person means any individual, group, unincorporated association, 
limited or general partnership, corporation, or other business entity.
    (p) Prize means anything offered, or purportedly offered, and given, 
or purportedly given, to a person by chance. For purposes of this 
definition, chance exists if a person is guaranteed to receive an item 
and, at the time of the offer or purported offer, the telemarketer does 
not identify the specific item that the person will receive.
    (q) Prize promotion means:
    (1) A sweepstakes or other game of chance; or
    (2) An oral or written express or implied representation that a 
person has won, has been selected to receive, or may be eligible to 
receive a prize or purported prize.
    (r) Seller means any person who, in connection with a telemarketing 
transaction, provides, offers to provide, or arranges for others to 
provide goods or services to the customer in exchange for consideration.
    (s) State means any State of the United States, the District of 
Columbia, Puerto Rico, the Northern Mariana Islands, and any territory 
or possession of the United States.
    (t) Telemarketer means any person who, in connection with 
telemarketing, initiates or receives telephone calls to or from a 
customer.
    (u) Telemarketing means a plan, program, or campaign which is 
conducted to induce the purchase of goods or services by use of one or 
more telephones and which involves more than one interstate telephone 
call. The term does not include the solicitation of sales through the 
mailing of a catalog which: Contains a written description or 
illustration of the goods or services offered for sale; includes the 
business address of the seller; includes multiple pages of written 
material or illustrations; and has been issued not less frequently than 
once a year, when the person making the solicitation does not solicit 
customers by telephone but only receives calls initiated by customers in 
response to the catalog and during those calls takes orders only without 
further solicitation. For purposes of the previous sentence, the term 
further solicitation does not include providing the customer with 
information about, or attempting to sell, any other item included in the 
same catalog which prompted the customer's call or in a substantially 
similar catalog.

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