[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: 16CFR310.4]

[Page 376-377]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 310--TELEMARKETING SALES RULE--Table of Contents
 
Sec. 310.4  Abusive telemarketing acts or practices.

    (a) Abusive conduct generally. It is an abusive telemarketing act or 
practice and a violation of this Rule for any seller or telemarketer to 
engage in the following conduct:
    (1) Threats, intimidation, or the use of profane or obscene 
language;
    (2) Requesting or receiving payment of any fee or consideration for 
goods or services represented to remove derogatory information from, or 
improve, a person's credit history, credit record, or credit rating 
until:
    (i) The time frame in which the seller has represented all of the 
goods or services will be provided to that person has expired; and
    (ii) The seller has provided the person with documentation in the 
form of a consumer report from a consumer reporting agency demonstrating 
that the promised results have been achieved, such report having been 
issued more than six months after the results were achieved. Nothing in 
this Rule should be construed to affect the requirement in the Fair 
Credit Reporting Act, 15 U.S.C. 1681, that a consumer report may only be 
obtained for a specified permissible purpose;
    (3) Requesting or receiving payment of any fee or consideration from 
a person, for goods or services represented to recover or otherwise 
assist in the return of money or any other item of value paid for by, or 
promised to, that person in a previous telemarketing transaction, until 
seven (7) business days after such money or other item is delivered to 
that person. This provision shall not apply to goods or services 
provided to a person by a licensed attorney; or
    (4) Requesting or receiving payment of any fee or consideration in 
advance of obtaining a loan or other extension of credit when the seller 
or telemarketer has guaranteed or represented a high likelihood of 
success in

[[Page 377]]

obtaining or arranging a loan or other extension of credit for a person.
    (b) Pattern of calls. (1) It is an abusive telemarketing act or 
practice and a violation of this Rule for a telemarketer to engage in, 
or for a seller to cause a telemarketer to engage in, the following 
conduct:
    (i) Causing any telephone to ring, or engaging any person in 
telephone conversation, repeatedly or continuously with intent to annoy, 
abuse, or harass any person at the called number; or
    (ii) Initiating an outbound telephone call to a person when that 
person previously has stated that he or she does not wish to receive an 
outbound telephone call made by or on behalf of the seller whose goods 
or services are being offered.
    (2) A seller or telemarketer will not be liable for violating 
Sec. 310.4(b)(1)(ii) if:
    (i) It has established and implemented written procedures to comply 
with Sec. 310.4(b)(1)(ii);
    (ii) It has trained its personnel in the procedures established 
pursuant to Sec. 310.4(b)(2)(i);
    (iii) The seller, or the telemarketer acting on behalf of the 
seller, has maintained and recorded lists of persons who may not be 
contacted, in compliance with Sec. 310.4(b)(1)(ii); and
    (iv) Any subsequent call is the result of error.
    (c) Calling time restrictions. Without the prior consent of a 
person, it is an abusive telemarketing act or practice and a violation 
of this Rule for a telemarketer to engage in outbound telephone calls to 
a person's residence at any time other than between 8 a.m. and 9 p.m. 
local time at the called person's location.
    (d) Required oral disclosures. It is an abusive telemarketing act or 
practice and a violation of this Rule for a telemarketer in an outbound 
telephone call to fail to disclose promptly and in a clear and 
conspicuous manner to the person receiving the call, the following 
information:
    (1) The identity of the seller;
    (2) That the purpose of the call is to sell goods or services;
    (3) The nature of the goods or services; and
    (4) That no purchase or payment is necessary to be able to win a 
prize or participate in a prize promotion if a prize promotion is 
offered. This disclosure must be made before or in conjunction with the 
description of the prize to the person called. If requested by that 
person, the telemarketer must disclose the no-purchase/no-payment entry 
method for the prize promotion.