15 U.S.C. § 6102 | Telemarketing rules

(a)

In general

(1)

The Commission shall prescribe rules prohibiting deceptive telemarketing acts or practices and other abusive telemarketing acts or practices.

(2)

The Commission shall include in such rules respecting deceptive telemarketing acts or practices a definition of deceptive telemarketing acts or practices which shall include fraudulent charitable solicitations, and which may include acts or practices of entities or individuals that assist or facilitate deceptive telemarketing, including credit card laundering.

(3)

The Commission shall include in such rules respecting other abusive telemarketing acts or practices—

(A)

a requirement that telemarketers may not undertake a pattern of unsolicited telephone calls which the reasonable consumer would consider coercive or abusive of such consumer’s right to privacy,

(B)

restrictions on the hours of the day and night when unsolicited telephone calls can be made to consumers,

(C)

1 So in original. The semicolon probably should be a comma.

a requirement that any person engaged in telemarketing for the sale of goods or services shall promptly and clearly disclose to the person receiving the call that the purpose of the call is to sell goods or services and make such other disclosures as the Commission deems appropriate, including the nature and price of the goods and services;  and

(D)

a requirement that any person engaged in telemarketing for the solicitation of charitable contributions, donations, or gifts of money or any other thing of value, shall promptly and clearly disclose to the person receiving the call that the purpose of the call is to solicit charitable contributions, donations, or gifts, and make such other disclosures as the Commission considers appropriate, including the name and mailing address of the charitable organization on behalf of which the solicitation is made.

In prescribing the rules described in this paragraph, the Commission shall also consider recordkeeping requirements.

(b)

Rulemaking authority

section 553 of title 5The Commission shall have authority to prescribe rules under subsection (a), in accordance with . In prescribing a rule under this section that relates to the provision of a consumer financial product or service that is subject to the Consumer Financial Protection Act of 2010, including any enumerated consumer law thereunder, the Commission shall consult with the Bureau of Consumer Financial Protection regarding the consistency of a proposed rule with standards, purposes, or objectives administered by the Bureau of Consumer Financial Protection.

(c)

Violations

Any violation of any rule prescribed under subsection (a)—

(1)

section 57a of this title shall be treated as a violation of a rule under regarding unfair or deceptive acts or practices; and

(2)

12 U.S.C. 5531 that is committed by a person subject to the Consumer Financial Protection Act of 2010 shall be treated as a violation of a rule under section 1031 of that Act [] regarding unfair, deceptive, or abusive acts or practices.

(d)

Securities and Exchange Commission rules

(1)

Promulgation

(A)

In general

Except as provided in subparagraph (B), not later than 6 months after the effective date of rules promulgated by the Federal Trade Commission under subsection (a), the Securities and Exchange Commission shall promulgate, or require any national securities exchange or registered securities association to promulgate, rules substantially similar to such rules to prohibit deceptive and other abusive telemarketing acts or practices by persons described in paragraph (2).

(B)

Exception

The Securities and Exchange Commission is not required to promulgate a rule under subparagraph (A) if it determines that—

(i)

Federal securities laws or rules adopted by the Securities and Exchange Commission thereunder provide protection from deceptive and other abusive telemarketing by persons described in paragraph (2) substantially similar to that provided by rules promulgated by the Federal Trade Commission under subsection (a); or

(ii)

such a rule promulgated by the Securities and Exchange Commission is not necessary or appropriate in the public interest, or for the protection of investors, or would be inconsistent with the maintenance of fair and orderly markets.

If the Securities and Exchange Commission determines that an exception described in clause (i) or (ii) applies, the Securities and Exchange Commission shall publish in the Federal Register its determination with the reasons for it.

(2)

Application

(A)

In general

The rules promulgated by the Securities and Exchange Commission under paragraph (1)(A) shall apply to a broker, dealer, transfer agent, municipal securities dealer, municipal securities broker, government securities broker, government securities dealer, investment adviser or investment company, or any individual associated with a broker, dealer, transfer agent, municipal securities dealer, municipal securities broker, government securities broker, government securities dealer, investment adviser or investment company. The rules promulgated by the Federal Trade Commission under subsection (a) shall not apply to persons described in the preceding sentence.

(B)

Definitions

For purposes of subparagraph (A)—

(i)

section 78c(a) of this title the terms “broker”, “dealer”, “transfer agent”, “municipal securities dealer”, “municipal securities broker”, “government securities broker”, and “government securities dealer” have the meanings given such terms by paragraphs (4), (5), (25), (30), (31), (43), and (44) of ;

(ii)

section 80b–2(a)(11) of this title the term “investment adviser” has the meaning given such term by ; and

(iii)

section 80a–3(a) of this title the term “investment company” has the meaning given such term by .

(e)

Commodity Futures Trading Commission rules

(1)

Application

section 9b(1) of title 7The rules promulgated by the Federal Trade Commission under subsection (a) shall not apply to persons described in .

(2)

Omitted

Pub. L. 103–297, § 3Aug. 16, 1994108 Stat. 1545 Pub. L. 107–56, title X, § 1011(b)(1)Oct. 26, 2001115 Stat. 396 Pub. L. 111–203, title X, § 1100C(a)July 21, 2010124 Stat. 2110(, , ; , (2), , ; , , .)

Editorial Notes

References in Text

Pub. L. 111–203July 21, 2010124 Stat. 1955 section 5301 of Title 12The Consumer Financial Protection Act of 2010, referred to in subsecs. (b) and (c)(2), is title X of , , , which enacted subchapter V (§ 5481 et seq.) of chapter 53 of Title 12, Banks and Banking, and enacted and amended numerous other sections and notes in the Code. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Codification

section 3 of Pub. L. 103–297 section 3 of Pub. L. 103–297 section 9b of Title 7Section is comprised of . Subsec. (e)(2) of enacted , Agriculture.

Amendments

Pub. L. 111–2032010—Subsecs. (b), (c). added subsecs. (b) and (c) and struck out former subsecs. (b) and (c) which read as follows:

RulemakingAugust 16, 1994section 553 of title 5“(b) .—The Commission shall prescribe the rules under subsection (a) of this section within 365 days after . Such rules shall be prescribed in accordance with .

Enforcementsection 57a of this title“(c) .—Any violation of any rule prescribed under subsection (a) of this section shall be treated as a violation of a rule under regarding unfair or deceptive acts or practices.”

Pub. L. 107–56, § 1011(b)(1)2001—Subsec. (a)(2). , inserted “which shall include fraudulent charitable solicitations, and” before “which may include”.

Pub. L. 107–56, § 1011(b)(2)Subsec. (a)(3)(D). , added subpar. (D).

Statutory Notes and Related Subsidiaries

Effective Date of 2010 Amendment

Pub. L. 111–203 section 1100H of Pub. L. 111–203 section 552a of Title 5Amendment by effective on the designated transfer date, see , set out as a note under , Government Organization and Employees.