Insights
Client Alert
FTC Moves to Regulate the Use of Certain Payment Methods in Telemarketing Sales Rule
May 29, 2013
BY THE GLOBAL BANKING AND PAYMENT SYSTEMS PRACTICE
The client alert discusses a recent proposal by the Federal Trade Commission to amend the Telemarketing Sales Rule to ban sellers and telemarketers from using certain payment instruments, including remotely-created checks and payment orders, cash-to-cash money transfers, and cash reload mechanisms, as payment for telemarketing transactions. The proposal would also expand the scope of the ban on the payment of advance fees paid for so-called “recovery services,” which is currently limited to the recovery of losses arising from prior telemarketing transactions, to include the recovery of losses in any prior transaction.