§ 6101. Findings

The Congress makes the following findings:

• (1) Telemarketing differs from other sales activities in that it can be carried out by sellers across State lines without direct contact with the consumer. Telemarketers also can be very mobile, easily moving from State to State.
• (2) Interstate telemarketing fraud has become a problem of such magnitude that the resources of the Federal Trade Commission are not sufficient to ensure adequate consumer protection from such fraud.
• (3) Consumers and others are estimated to lose $40 billion a year in telemarketing fraud.
• (4) Consumers are victimized by other forms of telemarketing deception and abuse.
• (5) Consequently, Congress should enact legislation that will offer consumers necessary protection from telemarketing deception and abuse.

§ 6102. Telemarketing rules

• (a)
  • (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) 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; 1 1 So in original. The semicolon probably should be a comma. 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.
• (b) The Commission shall have authority to prescribe rules under subsection (a), in accordance with section 553 of title 5 . 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) Any violation of any rule prescribed under subsection (a)—
  • (1) shall be treated as a violation of a rule under section 57a of this title regarding unfair or deceptive acts or practices; and
  • (2) 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 [ 12 U.S.C. 5531 ] regarding unfair, deceptive, or abusive acts or practices.
• (d)
  • (1)
    • (A) 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) 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.
  • (2)
    • (A) 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) For purposes of subparagraph (A)—
      • (i) 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 section 78c(a) of this title ;
      • (ii) the term “investment adviser” has the meaning given such term by section 80b–2(a)(11) of this title ; and
      • (iii) the term “investment company” has the meaning given such term by section 80a–3(a) of this title .
• (e)
  • (1) The rules promulgated by the Federal Trade Commission under subsection (a) shall not apply to persons described in section 9b(1) of title 7 .
  • (2)

§ 6103. Actions by States

• (a) Whenever an attorney general of any State has reason to believe that the interests of the residents of that State have been or are being threatened or adversely affected because any person has engaged or is engaging in a pattern or practice of telemarketing which violates any rule of the Commission under section 6102 of this title , the State, as parens patriae, may bring a civil action on behalf of its residents in an appropriate district court of the United States to enjoin such telemarketing, to enforce compliance with such rule of the Commission, to obtain damages, restitution, or other compensation on behalf of residents of such State, or to obtain such further and other relief as the court may deem appropriate.
• (b) The State shall serve prior written notice of any civil action under subsection (a) or (f)(2) upon the Commission and provide the Commission with a copy of its complaint, except that if it is not feasible for the State to provide such prior notice, the State shall serve such notice immediately upon instituting such action. Upon receiving a notice respecting a civil action, the Commission shall have the right (1) to intervene in such action, (2) upon so intervening, to be heard on all matters arising therein, and (3) to file petitions for appeal.
• (c) For purposes of bringing any civil action under subsection (a), nothing in this chapter shall prevent an attorney general from exercising the powers conferred on the attorney general by the laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of witnesses or the production of documentary and other evidence.
• (d) Whenever a civil action has been instituted by or on behalf of the Commission or the Bureau of Consumer Financial Protection for violation of any rule prescribed under section 6102 of this title , no State may, during the pendency of such action instituted by or on behalf of the Commission or the Bureau of Consumer Financial Protection, institute a civil action under subsection (a) or (f)(2) against any defendant named in the complaint in such action for violation of any rule as alleged in such complaint.
• (e) Any civil action brought under subsection (a) in a district court of the United States may be brought in the district in which the defendant is found, is an inhabitant, or transacts business or wherever venue is proper under section 1391 of title 28 . Process in such an action may be served in any district in which the defendant is an inhabitant or in which the defendant may be found.
• (f)
  • (1) Nothing contained in this section shall prohibit an authorized State official from proceeding in State court on the basis of an alleged violation of any civil or criminal statute of such State.
  • (2) In addition to actions brought by an attorney general of a State under subsection (a), such an action may be brought by officers of such State who are authorized by the State to bring actions in such State on behalf of its residents.

§ 6104. Actions by private persons

• (a) Any person adversely affected by any pattern or practice of telemarketing which violates any rule of the Commission under section 6102 of this title , or an authorized person acting on such person’s behalf, may, within 3 years after discovery of the violation, bring a civil action in an appropriate district court of the United States against a person who has engaged or is engaging in such pattern or practice of telemarketing if the amount in controversy exceeds the sum or value of $50,000 in actual damages for each person adversely affected by such telemarketing. Such an action may be brought to enjoin such telemarketing, to enforce compliance with any rule of the Commission under section 6102 of this title , to obtain damages, or to obtain such further and other relief as the court may deem appropriate.
• (b) The plaintiff shall serve prior written notice of the action upon the Commission and provide the Commission with a copy of its complaint, except in any case where such prior notice is not feasible, in which case the person shall serve such notice immediately upon instituting such action. The Commission shall have the right (A) to intervene in the action, (B) upon so intervening, to be heard on all matters arising therein, and (C) to file petitions for appeal.
• (c) Whenever a civil action has been instituted by or on behalf of the Commission or the Bureau of Consumer Financial Protection for violation of any rule prescribed under section 6102 of this title , no person may, during the pendency of such action instituted by or on behalf of the Commission or the Bureau of Consumer Financial Protection, institute a civil action against any defendant named in the complaint in such action for violation of any rule as alleged in such complaint.
• (d) The court, in issuing any final order in any action brought under subsection (a), may award costs of suit and reasonable fees for attorneys and expert witnesses to the prevailing party.
• (e) Nothing in this section shall restrict any right which any person may have under any statute or common law.
• (f) Any civil action brought under subsection (a) in a district court of the United States may be brought in the district in which the defendant is found, is an inhabitant, or transacts business or wherever venue is proper under section 1391 of title 28 . Process in such an action may be served in any district in which the defendant is an inhabitant or in which the defendant may be found.

§ 6105. Administration and applicability of chapter

• (a) Except as otherwise provided in sections 6102(d), 6102(e), 6103, and 6104 of this title, this chapter shall be enforced by the Commission under the Federal Trade Commission Act ( 15 U.S.C. 41 et seq.). Consequently, no activity which is outside the jurisdiction of that Act shall be affected by this chapter.
• (b) The Commission shall prevent any person from violating a rule of the Commission under section 6102 of this title in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act ( 15 U.S.C. 41 et seq.) were incorporated into and made a part of this chapter. Any person who violates such rule shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act in the same manner, by the same means, and with the same jurisdiction, power, and duties as though all applicable terms and provisions of the Federal Trade Commission Act were incorporated into and made a part of this chapter.
• (c) Nothing contained in this chapter shall be construed to limit the authority of the Commission under any other provision of law.
• (d) Except as otherwise provided in sections 6102(d), 6102(e), 6103, and 6104 of this title, and subject to subtitle B of the Consumer Financial Protection Act of 2010 [ 12 U.S.C. 5511 et seq.], this chapter shall be enforced by the Bureau of Consumer Financial Protection under subtitle E of the Consumer Financial Protection Act of 2010 [ 12 U.S.C. 5561 et seq.], with respect to the offering or provision of a consumer financial product or service subject to that Act.

§ 6106. Definitions

For purposes of this chapter:

• (1) The term “attorney general” means the chief legal officer of a State.
• (2) The term “Commission” means the Federal Trade Commission.
• (3) The term “State” means any State of the United States, the District of Columbia, Puerto Rico, the Northern Mariana Islands, and any territory or possession of the United States.
• (4) The term “telemarketing” means a plan, program, or campaign which is conducted to induce purchases of goods or services, or a charitable contribution, donation, or gift of money or any other thing of value, by use of one or more telephones and which involves more than one interstate telephone call. The term does not include the solicitation of sales through the mailing of a catalog which—
  • (A) contains a written description, or illustration of the goods or services offered for sale,
  • (B) includes the business address of the seller,
  • (C) includes multiple pages of written material or illustrations, and
  • (D) has been issued not less frequently than once a year,

§ 6107. Enforcement of orders

• (a) Subject to subsections (b) and (c), the Federal Trade Commission may bring a criminal contempt action for violations of orders of the Commission obtained in cases brought under section 53(b) of this title .
• (b) An action authorized by subsection (a) may be brought by the Federal Trade Commission only after, and pursuant to, the appointment by the Attorney General of an attorney employed by the Commission, as a special assistant United States Attorney.
• (c)
  • (1) A special assistant United States Attorney may be appointed under subsection (b) upon the request of the Federal Trade Commission or the court which has entered the order for which contempt is sought or upon the Attorney General’s own motion.
  • (2) The Attorney General shall act upon any request made under paragraph (1) within 45 days of the receipt of the request.
• (d) The authority of the Federal Trade Commission to bring a criminal contempt action under subsection (a) expires 2 years after the date of the first promulgation of rules under section 6102 of this title . The expiration of such authority shall have no effect on an action brought before the expiration date.

§ 6108. Review

Upon the expiration of 5 years following the date of the first promulgation of rules under section 6102 of this title , the Commission shall review the implementation of this chapter and its effect on deceptive telemarketing acts or practices and report the results of the review to the Congress.

§ 6151. National Do-Not-Call Registry

• (a) The Federal Trade Commission is authorized under section 6102(a)(3)(A) of this title to implement and enforce a national do-not-call registry.
• (b) The do-not-call registry provision of the Telemarketing Sales Rule (16 C.F.R. 310.4(b)(1)(iii)), which was promulgated by the Federal Trade Commission, effective March 31, 2003 , is ratified.

§ 6152. Telemarketing Sales Rule; do-not-call registry fees

• (a) The Federal Trade Commission shall assess and collect an annual fee pursuant to this section in order to implement and enforce the “do-not-call” registry as provided for in section 310.4(b)(1)(iii) of title 16, Code of Federal Regulations, or any other regulation issued by the Commission under section 6102 of this title .
• (b)
  • (1) The Commission shall charge each person who accesses the “do-not-call” registry an annual fee that is equal to the lesser of—
    • (A) $54 for each area code of data accessed from the registry; or
    • (B) $14,850 for access to every area code of data contained in the registry.
  • (2) The Commission shall not charge a fee to any person—
    • (A) for accessing the first 5 area codes of data; or
    • (B) for accessing area codes of data in the registry if the person is permitted to access, but is not required to access, the “do-not-call” registry under section 1 1 So in original. Probably should be “part”. 310 of title 16, Code of Federal Regulations, section 64.1200 of title 47, Code of Federal Regulations, or any other Federal regulation or law.
  • (3)
    • (A) The Commission shall allow each person who pays the annual fee described in paragraph (1), each person excepted under paragraph (2) from paying the annual fee, and each person excepted from paying an annual fee under section 310.4(b)(1)(iii)(B) of title 16, Code of Federal Regulations, to access the area codes of data in the “do-not-call” registry for which the person has paid during that person’s annual period.
    • (B) In this paragraph, the term “annual period” means the 12-month period beginning on the first day of the month in which a person pays the fee described in paragraph (1).
• (c)
  • (1) The Commission shall charge a person required to pay an annual fee under subsection (b) an additional fee for each additional area code of data the person wishes to access during that person’s annual period.
  • (2) For each additional area code of data to be accessed during the person’s annual period, the Commission shall charge—
    • (A) $54 for access to such data if access to the area code of data is first requested during the first 6 months of the person’s annual period; or
    • (B) $27 for access to such data if access to the area code of data is first requested after the first 6 months of the person’s annual period.
• (d)
  • (1)
    • (A) The dollar amount described in subsection (b) or (c) is the amount to be charged for fiscal year 2009.
    • (B) For each fiscal year beginning after fiscal year 2009, each dollar amount in subsection (b)(1) and (c)(2) shall be increased by an amount equal to—
      • (i) the dollar amount in paragraph (b)(1) or (c)(2), whichever is applicable, multiplied by
      • (ii) the percentage (if any) by which the CPI for the most recently ended 12-month period ending on June 30 exceeds the baseline CPI.
  • (2) Any increase under subparagraph (B) shall be rounded to the nearest dollar.
  • (3) The Commission shall not adjust the fees under this section if the change in the CPI is less than 1 percent.
  • (4) Not later than September 1 of each year the Commission shall publish in the Federal Register the adjustments to the applicable fees, if any, made under this subsection.
  • (5) In this subsection:
    • (A) The term “CPI” means the average of the monthly consumer price index (for all urban consumers published by the Department of Labor).
    • (B) The term “baseline CPI” means the CPI for the 12-month period ending June 30, 2008 .
• (e) No person may enter into or participate in an arrangement (as such term is used in section 310.8(c) of the Commission’s regulations (16 C.F.R. 310.8(c))) to share any fee required by subsection (b) or (c), including any arrangement to divide the costs to access the registry among various clients of a telemarketer or service provider.
• (f)
  • (1) The Commission shall deposit and credit as offsetting collections any fee collected under this section in the account “Federal Trade Commission—Salaries and Expenses”, and such sums shall remain available until expended.
  • (2) No amount shall be collected as a fee under this section for any fiscal year except to the extent provided in advance by appropriations Acts.

§ 6153. Federal Communications Commission do-not-call regulations

Not later than 180 days after March 11, 2003 , the Federal Communications Commission shall issue a final rule pursuant to the rulemaking proceeding that it began on September 18, 2002 , under the Telephone Consumer Protection Act ( 47 U.S.C. 227 et seq.). In issuing such rule, the Federal Communications Commission shall consult and coordinate with the Federal Trade Commission to maximize consistency with the rule promulgated by the Federal Trade Commission (16 CFR 310.4(b)).

§ 6154. Reporting requirements

• (a) Not later than December 31, 2009 , and biennially thereafter, the Federal Trade Commission, in consultation with the Federal Communications Commission, shall transmit a report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Energy and Commerce that includes—
  • (1) the number of consumers who have placed their telephone numbers on the registry;
  • (2) the number of persons paying fees for access to the registry and the amount of such fees;
  • (3) the impact on the “do-not-call” registry of—
    • (A) the 5-year reregistration requirement;
    • (B) new telecommunications technology; and
    • (C) number portability and abandoned telephone numbers; and
  • (4) the impact of the established business relationship exception on businesses and consumers.
• (b) Not later than December 31, 2009 , the Federal Trade Commission, in consultation with the Federal Communications Commission, shall transmit a report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Energy and Commerce that includes—
  • (1) the effectiveness of do-not-call outreach and enforcement efforts with regard to senior citizens and immigrant communities;
  • (2) the impact of the exceptions to the do-not-call registry on businesses and consumers, including an analysis of the effectiveness of the registry and consumer perceptions of the registry’s effectiveness; and
  • (3) the impact of abandoned calls made by predictive dialing devices on do-not-call enforcement.

§ 6155. Prohibition of expiration date

• (a) Telephone numbers registered on the national “do-not-call” registry of the Telemarketing Sales Rule (16 CFR 310.4(b)(1)(iii)) since the establishment of the registry and telephone numbers registered on such registry after March 11, 2003 , shall not be removed from such registry except as provided for in subsection (b) or upon the request of the individual to whom the telephone number is assigned.
• (b) The Federal Trade Commission shall periodically check telephone numbers registered on the national “do-not-call” registry against national or other appropriate databases and shall remove from such registry those telephone numbers that have been disconnected and reassigned. Nothing in this section prohibits the Federal Trade Commission from removing invalid telephone numbers from the registry at any time.