The maker of Rascal Scooters agreed to pay $100,000 as a civil penalty to settle a complaint filed by the FTC alleging that Rascal Scooters violated the FTC Act and the FTC’s Telemarketing Sales Rule.
On April 27, 2010, the Federal Trade Commission announced separate settlements with women’s clothing retailer Talbots and its telemarketer SmartReply, Inc. for violations of the Telemarketing Sales Rule (“TSR”). The FTC alleged that SmartReply’s robocalls for Talbots did not allow consumers to opt out of future calls until they had listened to almost all of the prerecorded solicitation or failed to provide opt out instructions; did not immediately disconnect consumers that chose to opt out; and failed to notify live call recipients of their right to opt out at any time during the call.
Effective September 1, 2009, companies subject to FTC jurisdiction will not be able to make interstate prerecorded telemarketing calls to EBR consumers absent the prior express written agreement of the consumer. Effective December 1, 2008, any company that continues to make such calls must comply with new restrictions that will continue even after September 1, 2009 when prior express written consent of the consumer is mandatory.