Attorney General Masto Urges FTC to Update the Telemarketing Sales Rule To Protect Consumers


November 24, 2014

Las Vegas, NV – Nevada Attorney General Catherine Cortez Masto today called upon the Federal Trade Commission to update the Telemarketing Sales Rule (TSR) in order to reflect realities of today’s marketplace and better protect consumers from unscrupulous telemarketers.

In a letter joined by 38 other attorneys general, Masto asked the FTC to update the TSR to further protect consumers from the continued prevalence of telemarketing fraud and abuse.

“Consumers have a right to be free from fraud and abuse arising from telemarking scams,” said Masto. “The Telemarketing Sales Rule should be updated to reflect the practices at work in today’s marketplace and address the potential for consumer harm caused by them.”

The attorneys general support the existing TSR but contend that the following are areas of concern:

  • An increase in the number of fraud complaints from consumers who are contacted by telephone;
  • The pervasiveness of general media solicitations and advertisements that have resulted in the growth of inbound telemarketing;
  • The use of certain payment methods that allow retrieval of funds with little meaningful scrutiny of the recipient’s identity; and
  • The pervasiveness of pre-acquired account marketing.

Telemarketing and its abuses occur when consumers are engaged in phone calls with businesses in the privacy of their homes or on their personal cellular telephones. State attorneys general are on the forefront in fielding consumer complaints, investigating, and taking legal actions against those who prey on victims using telemarketing and negative option scams. According to recent statistics by the FTC, more than 3.7 million telemarketing complaints were filed with the Commission. Telemarketing complaints also rank among the top five complaint categories received from citizens in many states.

To read the joint letter, click here.

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