Federal Trade Commission Q Bureau of Consumer Protection Q Office of Consumer and Business Education

FTC Consumer Alert

Putting Cold Calls on Ice

While many telephone sales calls are made on behalf of legitimate organizations offering bona fide

products and services, some unsolicited phone sales calls can be frauds. That’s why the Federal Trade

Commission encourages you to be skeptical when you get a “cold call.”

Fraudulent telemarketers may get your phone number from a telephone directory, mailing list, or

“sucker list,” a directory of consumers who have already lost money to fraudulent prize promotions or

merchandise sales. Sucker lists include names, addresses, phone numbers — even how much money you

may have spent on telemarketing scams. Unscrupulous promoters buy and sell sucker lists on the theory

that consumers who have been deceived once are easy prey for additional scams.

The FTC’s Telemarketing Sales Rule helps protect you from abusive and deceptive telephone sales

practices. The Rule restricts calling times to the hours between 8 a.m. and 9 p.m., and puts other limits

on telemarketers, too. For example:

• Telemarketers must tell you it’s a sales call, the name of the seller, and what they’re selling before

they make their pitch. If they’re pitching a prize promotion, they must tell you that no purchase or

payment is necessary to enter or win. The federal government has created the National Do Not Call

Registry — the free, easy way to reduce the telemarketing calls you get at home. To register, or to

get information, visit www.donotcall.gov, or call 1-888-382-1222 from the phone you want to

register. You will receive fewer telemarketing calls wwithin three months of registering your number. It will stay in the registry for five years or until it is disconected or you take it off the registry.

After five years, you will be able to renew your registration.

• It’s illegal for telemarketers to lie about their goods or services; earnings potential, profitability,

risk, or liquidity of an investment; or the nature of a prize in a prize-promotion scheme.

• Before you pay, telemarketers must tell you the total cost of the goods they’re selling; any restrictions on getting or using them; and if a sale is final or non-refundable. In a prize promotion, they

must tell you the odds of winning, that no purchase or payment is necessary to win, and any restrictions or conditions of receiving the prize.

• It’s illegal for a telemarketer to withdraw money from your checking account without your express,

verifiable authorization.

• Telemarketers cannot lie to get you to pay, no matter what method of payment you use.

• You do not have to pay for credit repair, recovery room, or advance-fee loan or credit services until

these services have been delivered.

• It’s illegal for a telemarketer to call you if you have asked not to be called.
You may not be able to put a freeze on cold calls, but you can learn how to spot those that spell

 f-r-a-u-d. Here’s how:

• Say no to high pressure sales tactics. Legitimate businesses respect the fact that you’re not interested.

• Tell callers if you don’t want to hear from them again. If they call back, they’re breaking the law.

You can feel comfortable hanging up.

• Take your time when you’re presented with a sales “opportunity.” Ask for written information about

the product, service, investment opportunity, or charity that’s being pitched. Don’t talk with a

salesperson if it’s not convenient for you. A reputable salesperson should be willing to call you back

at a time you choose.

• Talk to a friend, relative, or financial advisor before you respond to a cold call. Any investment you

make may have serious financial consequences for you — and the people you care about.

• Hang up if you’re asked to pay for a prize. Free is free.

• Don’t send money — cash, check, or money order — by courier, overnight delivery, or wire to

anyone who insists on immediate payment.

• Keep information about your bank accounts and credit cards to yourself — unless you know who

you’re dealing with.

• Hang up if a telemarketer calls before 8 a.m. or after 9 p.m. That’s a tip off to a rip off.

• Check out the company with your state and local consumer protection office before you buy any

product or service, or donate money.

• If you suspect a scam, call your state Attorney General.

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the

marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint,

or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-

382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraudrelated complaints into Consumer Sentinel, a secure online database available to hundreds of civil and

criminal law enforcement agencies in the U.S. and abroad.

February 2004

F C EDERAL RADE OMMISSION T FTC OR HE ONSUMER

1-877-FTC-HELP www.ftc.gov