The Federal Trade Commission (FTC) has taken significant steps to combat telemarketing fraud and tech support scams with the announcement of a final rule and proposed rule aimed at protecting consumers and businesses from deceptive practices in the marketplace.
The final rule extends telemarketing fraud protections to businesses and updates recordkeeping requirements to address advancements in technology and emerging threats in the industry. This includes prohibitions on AI robocalls and voice cloning technology, providing important new protections for small businesses and consumers alike.
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, emphasized the importance of these changes in combating deceptive marketers and tech support scams. The FTC is seeking public comments on additional proposals to further deter tech support scams and help defrauded consumers recover their losses.
The Telemarketing Sales Rule (TSR), which became effective in 1995, applies to virtually all telemarketing activities and protects consumers from misrepresentations and abusive practices during sales calls. The rule also prohibits calls to consumers on the Do Not Call Registry and the use of prerecorded messages, regardless of registry status.
The final rule announced today expands prohibitions against misrepresentations in business-to-business calls and updates recordkeeping requirements to ensure compliance with the TSR. Additionally, the proposed rule aims to extend coverage to inbound telemarketing calls involving technical support services, addressing the widespread deception and consumer harm caused by tech support scams.
The Commission’s vote approving these rules was unanimous, with a focus on strengthening consumer protections and combating fraudulent practices in the telemarketing industry. For more information, the staff contact on this matter is Benjamin Davidson in the FTC’s Bureau of Consumer Protection.