Attorney General Peter F. Kilmartin today called upon the Federal Trade Commission (FTC) to update the Telemarketing Sales Rule in order to reflect realities of today's marketplace and better protect consumers from unscrupulous telemarketers.
In a letter co-signed by 37 other attorneys general, Kilmartin asked the FTC to update the Telemarketing Sales Rule to further protect consumers from the continued prevalence of telemarketing fraud and abuse.
The attorneys general support the existing Telemarketing Sales Rule but contend that the following are areas of concern:
o An increase in the number of fraud complaints from consumers who are contacted by telephone;
o The pervasiveness of general media solicitations and advertisements that have resulted in the growth of inbound telemarketing;
o The use of certain payment methods that allow retrieval of funds with little meaningful scrutiny of the recipient's identity; and
o The pervasiveness of preacquired account marketing.
"It is necessary for the FTC to update telemarketing regulations to reflect the practices at work in today's marketplace and address the potential for consumer harm caused by them," said Attorney General Kilmartin. "The Consumer Protection Unit in our office is often at the front line in fielding consumer complaints, taking up investigations, and pursuing legal actions against those who prey on victims through telemarketing. In order to more effectively protect consumers, we need the FTC to take action to stop ruthless and unscrupulous telemarketers before they can scam consumers."
Telemarketing and its abuses occur when consumers are engaged in phone calls with businesses in the privacy of their homes or on their personal cellular telephones. State attorneys general are on the forefront in fielding consumer complaints, investigating, and taking legal actions against those who prey on victims using telemarketing and negative option scams.
According to recent statistics by the FTC, more than 3.7 million telemarketing complaints were filed with the Commission. Telemarketing complaints also rank among the top five complaint categories received from citizens in many states.
The states and territories that signed today's letter are: Alaska, Arizona, Arkansas, Colorado, Delaware, District of Columbia, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, and Washington.