38 AGs Urge FTC to Prohibit Pre-Acquired Account Information in Telemarketing Rules
Thirty-eight state and territorial attorneys general urged the FTC Monday to prohibit the use of pre-acquired account information in its planned update of its telemarketing sales rule (TSR). The FTC sought comment in August on an update of the TSR…
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and sought comment on whether to revise the TSR’s pre-acquired account information provision to reflect the Restore Online Shoppers’ Confidence Act (see 1410080043). Prohibiting the use of pre-acquired information will ensure a consumer has consented to a transaction, the AGs said in a joint filing via the National Association of Attorneys General. They urged the FTC to better address negative option telemarketing because that type of telemarketing often leads to “outright deception” and confusion. The FTC should also require telemarketers to create and maintain records and ban the use of money transfers and certain other payment methods, the AGs said.