Since its heyday in the 1990s, telemarketing fraud has been scaled back due to increasingly strict regulation and enforcement, including several high-profile sting operations by the FBI. In such an environment, it is now more important than ever for California businesses that transact business over the telephone to ensure compliance with state and federal laws relating to telemarketing.
The risk of running afoul of telemarketing fraud laws is even higher when one transacts business across state lines, as state and local authorities across the country have followed the lead of the FBI. Just a few months ago, a California company, Credexx, was charged with telemarketing fraud in Texas. In particular, the company was charged with violations of the Federal Trade Commission's "Telemarketing Sales Rules." These important rules, codified at 16 C.F.R. §310, provide that telemarketers must:
- Immediately tell the consumer:
- The nature of the call;
- The caller’s name;
- The company’s name; and
- The product’s name.
- Be truthful about the product or service.
- Fully inform the consumer about any restrictions or risks associated with the sale.
- Remove any consumer’s name from their lists within three months of registering on the National Do Not Call List.
As a San Francisco white collar criminal attorney, I realize how easy it can be for even a legitimate business to cross the line. If you have been charged with a violation of telemarketing fraud laws, or if you need advice on compliance with this complex set of laws, call San Francisco white collar criminal attorney Christopher Morales today.