Better Off Without It: FTC Telemarketing Sales Rule Amended to Ban Abusive Payment Methods

The amended rule now bans four previously allowed methods of payment that the FTC determined were commonly used in abusive telemarketing operations. The banned forms of payment include: remotely created checks, remotely created payment orders, cash-to-cash money transfers, and cash reload mechanisms. The amendments also require that a description of the goods or services purchased must be included in the verification recording of a consumer’s agreement to purchase them.