Debt Relief Industry Regulation / Legislation

FTC to FCC: Sellers Responsible for Outside Telemarketers

In a statement made by the FTC to the FCC, the point that end providers are responsible for what outside telemarketers and agents say was reinforced.

This is a very important point to keep in mind if you are using a call room or an outside sales force and you are not monitoring what they are telling consumers.

A sales agent that wanders off script can drag the underlying debt relief company into a mess if they make false, misleading or deceptive statements.

The FTC has said to the FCC that sellers of goods and services should be held responsible for sales calls made by others on their behalf, even if the seller did not physically place the calls. The FTC stressed that the FCC should not allow such sellers to escape liability from federal telemarketing laws designed to protect consumers and their privacy when others place telemarketing calls on their behalf.

In its comment, the FTC urged the FCC to find that: 1) under the Telephone Consumer Protection Act of 1991 (TCPA), a call placed by an entity that markets a seller’s goods and services does indeed qualify as a call made on behalf of, and initiated by, the seller – even if the seller did not place the call; and 2) the plain meaning of “on behalf of” should be used when determining whether a seller should held liable for illegal conduct by its marketers. In addition, the FTC urged the FCC to rule that the TCPA creates a statutory cause of action that imposes liability on the seller or a marketer for its violations, unless the seller or marketer can show that it meets defined “safe harbor” provisions. – Source


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Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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