How to Understand Federal Telemarketing Laws

Federal telemarketing laws give consumers the ability to stop telemarketing calls. These laws also permit law enforcement officials to prosecute telemarketers that engage in fraudulent practices. Here's how they work.

Things You'll Need

  • Computer with Internet access
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Instructions

    • 1

      Remember that federal telemarketing laws prohibit telemarketers from calling you before 8 a.m. and after 9 p.m.

    • 2

      The law requires telemarketers to explain that they're making a sales call and to notify you of the company whose product they're selling before beginning their pitch. If the telemarketer is promoting a contest, the caller must inform you that no purchase or payment is required to enter or win.

    • 3

      Federal telemarketing laws prohibit telemarketers from misrepresenting their products.

    • 4

      These laws require telemarketers to reveal the full cost of their products or services. They must also disclose all restrictions and reveal whether a refund will be available before you agree to pay.

    • 5

      Telemarketers cannot withdraw money from your checking account without your express authorization. If you authorize these payments, the telemarketer must reveal the due date and amount for each payment.

    • 6

      Report telephone fraud to the Federal Trade Commission (see Resources below). If you feel your rights have been violated, you may have grounds to sue. Gather any correspondence between you and the telemarketing company, and hire an attorney experienced in consumer law.

    • 7

      Protect yourself from unwanted calls by placing your telephone number on the National Do Not Call Registry (see Resources below).

    • 8

      Learn more about federal telemarketing laws by visiting the Federal Trade Commission Web site (see Resources below).

Tips & Warnings

  • Federal telemarketing laws cover calls that pitch goods and services, or promote sweepstakes and investment opportunities. Also included are calls made by consumers regarding offers made via the mail or Internet.

  • Calls made by consumers in response to general advertisements and calls that you make without prior solicitation are not covered.

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