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USA: NAAG urges FTC to amend Telemarketing Sales Rule

The National Association of Attorneys General ('NAAG') announced, on 3 August 2022, that it had sent a letter to the Federal Trade Commission ('FTC') urging it to repeal telemarketing exemptions in the Telemarketing Sales Rule of 1995 ('TSR') and to provide protections for negative option products.

In particular, the NAAG encouraged the FTC to consider the proposed changes to the TSR, including:

  • requiring negative option sellers and telemarketers to provide consumers with notice, and the chance to cancel before they are billed for negative option products;
  • adding additional recordkeeping requirements for negative sales options; and
  • eliminating the TSR exemption for business-to-business phone calls and inbound calls.

You can read the press release here and the letter here.