BBB Alert: FTC Prohibits “Robocalls”
Change to Telemarketing Sales Rule Could Spell Relief for Consumers
Austin, TX – September 1, 2009 – Effective today, the prerecorded telemarketing calls for expiring car warranties, lower credit card rates and other solicitations are officially prohibited by the Federal Trade Commission. This new requirement is one of several amendments to the FTC’s Telemarketing Sales Rule (TSR) that was originally announced last year. Unless the telemarketer has obtained permission in writing from consumers who want to receive the calls, they can face penalties of up to $16,000 per call.
Telemarketing calls to cell phones are already illegal due to FCC regulation, but the FTC’s newest ban will alleviate incoming “robocalls” to home and office phones.
“This new rule should help put an end to these annoyances, but consumers need to let their BBB and the FTC know if they continue to receive them,” said Carrie A. Hurt, President and CEO of BBB serving Central, Coastal and Southwest Texas.
The FTC’s rule changes do allow some “informational” recorded messages to continue as long as the message does not attempt to interest consumers in the sale of any goods or services. For example, it would be legal for a consumer to receive an automatic message regarding their flight time at the airport being changed. However, it would not be legal for the message to try and interest that consumer in joining a Web site promising lower flight rates and travel expenses.
A full press release from the FTC can be found here. Consumers who continue to receive “robocalls” should file a complaint with their local Better Business Bureau at www.bbb.org and the Federal Trade Commission at www.donotcall.gov or call 1-888-382-1222.
About BBB:
BBB's mission is to be the leader in advancing marketplace trust. BBB accomplishes this mission by creating a community of trustworthy businesses, setting standards for marketplace trust, encouraging and supporting best practices, celebrating marketplace role models and denouncing substandard marketplace behavior. Businesses that earn BBB Accreditation contractually agree and adhere to the organization's high standards of ethical business behavior. BBB provides objective advice, free business BBB Reliability Reports and charity BBB Wise Giving Reports, as well as educational information on topics affecting marketplace trust. To further promote trust, BBB also offers complaint and dispute resolution support for consumers and businesses. The first BBB was founded in 1912. Today, 128 BBBs serve communities across the U.S. and Canada, evaluating and monitoring more than 3 million local and national businesses and charities. Please visit bbb.org for more information about the BBB System.
This Better Business Bureau is currently supported by approximately 9,500 Accredited Business locations and serves more than 5.5 million consumers in its 62-county service area in Texas. These counties include: Aransas, Atascosa, Bandera, Bastrop, Bee, Bell, Bexar, Blanco, Bosque, Burnet, Caldwell, Calhoun, Comal, Comanche, Coryell, De Witt, Dimmit, Duval, Edwards, Falls, Fayette, Freestone, Frio, Gillespie, Goliad, Gonzales, Guadalupe, Hamilton, Hays, Hill, Jackson, Jim Wells, Karnes, Kendall, Kerr, Kinney, Kleberg, Lampasas, La Salle, Lavaca, Limestone, Live Oak, Llano, Maverick, McLennan, McMullen, Medina, Mills, Navarro, Nueces, Real, Refugio, San Patricio, San Saba, Travis, Uvalde, Val Verde, Victoria, Webb, Williamson, Wilson and Zavala.