The Federal Trade Commission (“FTC”) announced today that it is seeking public commentary on proposed changes to the Telemarketing Sales Rule (“TSR”) that would ban the use of the following types of payments by telemarketers and telephone sellers:
remotely created payments linked to a consumer’s bank account using unsigned checks or other payment orders
payments using cash-to-cash or cash reload money transfers
In addition, the new rules would expand on the FTC’s ban on advance fee recovery services – a practice whereby an entity charges an advance fee for recovering losses suffered by a consumer from a prior fraudulent telemarketing transaction. The new rules would ban charging advance fees to recover on any loss suffered by a consumer due to fraud, not just losses resulting from a fraudulent telemarketing transaction.
For the complete text of the proposed rulemaking, click here.