CHAPTER 87 -TELEMARKETING AND CONSUMER FRAUD AND ABUSE PREVENTION!@!Sec. 6101 -->
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.
title X, §1011(a), Oct. 26, 2001, 115 Stat. 396 , provided that: "This section [amending sections 6102 and 6106 of this title and sections 917 and 2325 of Title 18 , Crimes and Criminal Procedure] may be cited as the 'Crimes Against Charitable Americans Act of 2001'."
§1, Nov. 22, 2000, 114 Stat. 2555 , provided that: "This Act [enacting provisions set out as notes under this section and section 3732 of Title 42 , The Public Health and Welfare] may be cited as the 'Protecting Seniors From Fraud Act'."
§1, Aug. 16, 1994, 108 Stat. 1545 , provided that: "This Act [enacting this chapter and section 9b of Title 7 , Agriculture, and amending section 52 of this title ] may be cited as the 'Telemarketing and Consumer Fraud and Abuse Prevention Act'."
§2, Nov. 22, 2000, 114 Stat. 2555 , provided that: "Congress makes the following findings:
"(1) Older Americans are among the most rapidly growing segments of our society.
"(2) Our Nation's elderly are too frequently the victims of violent crime, property crime, and consumer and telemarketing fraud.
"(3) The elderly are often targeted and retargeted in a range of fraudulent schemes.
"(4) The TRIAD program, originally sponsored by the National Sheriffs' Association, International Association of Chiefs of Police, and the American Association of Retired Persons unites sheriffs, police chiefs, senior volunteers, elder care providers, families, and seniors to reduce the criminal victimization of the elderly.
"(5) Congress should continue to support TRIAD and similar community partnerships that improve the safety and quality of life for millions of senior citizens.
"(6) There are few other community-based efforts that forge partnerships to coordinate criminal justice and social service resources to improve the safety and security of the elderly.
"(7) According to the National Consumers League, telemarketing fraud costs consumers nearly $40,000,000,000 each year.
"(8) Senior citizens are often the target of telemarketing fraud.
"(9) Fraudulent telemarketers compile the names of consumers who are potentially vulnerable to telemarketing fraud into the so-called 'mooch lists'.
"(10) It is estimated that 56 percent of the names on such 'mooch lists' are individuals age 50 or older.
"(11) The Federal Bureau of Investigation and the Federal Trade Commission have provided resources to assist private-sector organizations to operate outreach programs to warn senior citizens whose names appear on confiscated 'mooch lists'.
"(12) The Administration on Aging was formed, in part, to provide senior citizens with the resources, information, and assistance their special circumstances require.
"(13) The Administration on Aging has a system in place to inform senior citizens of the dangers of telemarketing fraud.
"(14) Senior citizens need to be warned of the dangers of telemarketing fraud before they become victims of such fraud."
"(a) Authorization of Appropriations .—There is authorized to be appropriated to the Attorney General $1,000,000 for each of the fiscal years 2001 through 2005 for programs for the National Association of TRIAD.
"(b) Comptroller General .—The Comptroller General of the United States shall submit to Congress a report on the effectiveness of the TRIAD program 180 days prior to the expiration of the authorization under this Act [see Short Title of 2000 Amendment note above], including an analysis of TRIAD programs and activities; identification of impediments to the establishment of TRIADs across the Nation; and recommendations to improve the effectiveness of the TRIAD program."
"(a) In General .—The Secretary of Health and Human Services, acting through the Assistant Secretary of Health and Human Services for Aging, shall provide to the Attorney General of each State and publicly disseminate in each State, including dissemination to area agencies on aging, information designed to educate senior citizens and raise awareness about the dangers of fraud, including telemarketing and sweepstakes fraud.
"(b) Information .—In carrying out subsection (a), the Secretary shall—
"(1) inform senior citizens of the prevalence of telemarketing and sweepstakes fraud targeted against them;
"(2) inform senior citizens how telemarketing and sweepstakes fraud work;
"(3) inform senior citizens how to identify telemarketing and sweepstakes fraud;
"(4) inform senior citizens how to protect themselves against telemarketing and sweepstakes fraud, including an explanation of the dangers of providing bank account, credit card, or other financial or personal information over the telephone to unsolicited callers;
"(5) inform senior citizens how to report suspected attempts at or acts of fraud;
"(6) inform senior citizens of their consumer protection rights under Federal law; and
"(7) provide such other information as the Secretary considers necessary to protect senior citizens against fraudulent telemarketing and sweepstakes promotions.
"(c) Means of Dissemination .—The Secretary shall determine the means to disseminate information under this section. In making such determination, the Secretary shall consider—
"(1) public service announcements;
"(2) a printed manual or pamphlet;
"(3) an Internet website;
"(4) direct mailings; and
"(5) telephone outreach to individuals whose names appear on so-called 'mooch lists' confiscated from fraudulent marketers.
"(d) Priority .—In disseminating information under this section, the Secretary shall give priority to areas with high incidents of fraud against senior citizens."
CHAPTER 87 -TELEMARKETING AND CONSUMER FRAUD AND ABUSE PREVENTION!@!Sec. 6102 -->
(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 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.
In prescribing the rules described in this paragraph, the Commission shall also consider recordkeeping requirements.
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.
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.
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).
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.
If the Securities and Exchange Commission determines that an exception described in clause (i) or (ii) applies, the Securities and Exchange Commission shall publish in the Federal Register its determination with the reasons for it.
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.
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 .
The rules promulgated by the Federal Trade Commission under subsection (a) shall not apply to persons described in section 9b(1) of title 7 .