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Case 8:23-cv-00698-JWH-ADS Document 54 Filed 10/05/23 

KATHERINE M. AIZPURU (pro hac vice)

kaizpuru@ftc.gov

SAMUEL JACOBSON (pro hac vice)

sjacobson@ftc.gov

MARY WEAVER (pro hac vice application pending) 

mweaver1@ftc.gov

FEDERAL TRADE COMMISSION 

600 Pennsylvania Avenue, N.W.

Mail Stop: CC-10232

Washington, D.C. 20580

(202) 326-2870 

JOHN D. JACOBS, Cal. Bar No. 134154 

Local Counsel 

jjacobs@ftc.gov

FEDERAL TRADE COMMISSION 

10990 Wilshire Boulevard, Suite 400 

Los Angeles, CA 90024

(310) 824-4300

(310) 824-4380 (fax)

Attorneys for Plaintiff 

UNITED STATES DISTRICT COURT 

FOR CENTRAL DISTRICT OF CALIFORNIA 

FEDERAL TRADE COMMISSION 

Plaintiff, 

v. 

SL FINANCE LLC, a California limited 

liability company; 

MICHAEL CASTILLO, individually and as 

an officer of SL FINANCE LLC; and 

CHRISTIAN CASTILLO, individually and 

as an officer of SL FINANCE LLC; 

Defendants. 

Page 1 of 56 Page ID #:1691 

Case No. 8:23-CV-0698-

JWH(ADSx) 

STIPULATION TO ENTRY OF

[PROPOSED] ORDER FOR 

PERMANENT INJUNCTION, 

MONETARY RELIEF, AND 

OTHER RELIEF 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Case 8:23-cv-00698-JWH-ADS Document 54 Filed 10/05/23 Page 2 of 56 Page ID #:1692 

Plaintiff, the Federal Trade Commission (“Commission” or “FTC”), filed its 

Complaint for Permanent Injunction, Monetary Relief, and Other Relief 

(“Complaint”) pursuant to Sections 13(b) and 19 of the Federal Trade Commission 

Act (“FTC Act”), 15 U.S.C. §§ 53(b) and 57b, the Telemarketing and Consumer 

Fraud and Abuse Prevention Act (“Telemarketing Act”), 15 U.S.C. §§ 6101-6108, 

Section 1401(c) of the COVID-19 Consumer Protection Act of the 2021 

Consolidated Appropriations Act, Pub. L. No. 116-260, 134 Stat. 1182, Div. FF, 

Title XIV, § 1401(c), (Prohibiting Deceptive Acts or Practices in Connection With 

the Novel Coronavirus) (“COVID-19 Consumer Protection Act”), and Section 

522(a) of the Gramm-Leach-Bliley Act (“GLB Act”), 15 U.S.C. § 6822(a). The 

Commission and Defendants stipulate to the entry of the concurrently lodged 

Stipulated [Proposed] Order for Permanent Injunction, Monetary Relief, and Other 

Relief (“Order”) to resolve all matters in dispute in this action between them. 

THEREFORE, IT IS ORDERED as follows: 

FINDINGS 

1. This Court has jurisdiction over this matter. 

2. The Complaint charges that Defendants participated in deceptive acts 

or practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), the 

Telemarketing Sales Rule (the “TSR”), 16 C.F.R. Part 310, Section 1401 of the 

COVID-19 Consumer Protection Act of the 2021 Consolidated Appropriations Act 

(the “COVID-19 Act”), Pub. L. No. 116-260, 134 Stat. 1182, Div. FF, Title XIV, § 

1401, and Section 521 of the Gramm-Leach-Bliley Act (the “GLB Act”), 15 U.S.C. 

§ 6821, in the deceptive marketing and sale of student loan debt relief services. 

3. Only for purposes of this action, Defendants admit the facts necessary 

to establish jurisdiction. 

4. Defendants waive any claim that they may have under the Equal 

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Case 8:23-cv-00698-JWH-ADS Document 54 Filed 10/05/23 Page 3 of 56 Page ID #:1693 

Access to Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this action 

through the date of this Order, and agree to bear their own costs and attorney fees. 

5. Defendants waive all rights to appeal or otherwise challenge or 

contest the validity of this Order. 

DEFINITIONS 

For the purpose of this Order, the following definitions apply: 

A. “Assisting Others” includes: 

1. Performing customer service functions, including receiving or 

responding to consumer complaints; 

2. Formulating or providing, or arranging for the formulation or 

provision of, any advertising or marketing material, including any telephone sales 

script, direct mail solicitation, or the design, text, or use of images of any Internet 

website, email, or other electronic communication; 

3. Formulating or providing, or arranging for the formulation or 

provision of, any marketing support material or service, including web or Internet 

Protocol addresses or domain name registration for any Internet websites, affiliate 

marketing services, or media placement services; 

4. Providing names of, or assisting in the generation of, potential 

customers; 

5. Performing marketing, billing, payment processing, or payment 

services of any kind; or 

6. Acting or serving as an owner, officer, director, manager, or 

principal of any entity. 

B. “Defendants” means the Individual Defendants and the Corporate 

Defendants, individually, collectively, or in any combination. 

1. “Corporate Defendant(s)” means SL Finance LLC, and each 

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Case 8:23-cv-00698-JWH-ADS Document 54 Filed 10/05/23 Page 4 of 56 Page ID #:1694 

of its subsidiaries, affiliates successors and assigns. 

2. “Individual Defendants” means Michael Castillo and 

Christian Castillo, individually, collectively, or in any combination. 

C. “National Do Not Call Registry” means the “do-not-call” registry of 

telephone numbers maintained by the Commission pursuant to 16 C.F.R. § 

310.4(b)(1)(iii)(B). 

D. “Outbound Telephone Call” means a telephone call initiated by a 

Telemarketer to induce the purchase of goods or services or to solicit a charitable 

contribution. 

E. “Person” means a natural person, organization, or other legal entity, 

including a corporation, partnership, proprietorship, association, cooperative, or 

any other group or combination acting as an entity. 

F. “Receiver” means Thomas W. McNamara. 

G. “Receivership Entity(ies)” means the Corporate Defendant(s), as 

well as any other entity that has conducted any business related to Defendants’ 

student loan debt relief services business, including receipt of assets derived from 

any activity that is the subject of the Complaint in this matter, and which the 

Receiver has reason to believe is owned or controlled in whole or in part by any 

Defendant. 

H. “Secured or Unsecured Debt Relief Product or Service” means: 

1. With respect to any mortgage, loan, debt, or obligation between 

a person and one or more secured or unsecured creditors or debt collectors, any 

product, service, plan, or program represented, expressly or by implication, to: 

a. stop, prevent, or postpone any mortgage or deed of 

foreclosure sale for a person’s dwelling, any other sale of collateral, any 

repossession of a person’s dwelling or other collateral, or otherwise save a person’s 

dwelling or other collateral from foreclosure or repossession; 

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Case 8:23-cv-00698-JWH-ADS Document 54 Filed 10/05/23 Page 5 of 56 Page ID #:1695 

b. negotiate, obtain, or arrange a modification, or 

renegotiate, settle, reduce, or in any way alter any terms of the mortgage, loan, 

debt, or obligation, including a reduction in the amount of interest, principal 

balance, monthly payments, or fees owed by a person to a secured or unsecured 

creditor or debt collector; 

c. obtain any forbearance or modification in the timing of 

payments from any secured or unsecured holder or servicer of any mortgage, loan, 

debt, or obligation; 

d. negotiate, obtain, or arrange any extension of the period 

of time within which a person may (i) cure his or her default on the mortgage, loan, 

debt, or obligation, (ii) reinstate his or her mortgage, loan, debt, or obligation, (iii) 

redeem a dwelling or other collateral, or (iv) exercise any right to reinstate the 

mortgage, loan, debt, or obligation or redeem a dwelling or other collateral; 

e. obtain any waiver of an acceleration clause or balloon 

payment contained in any promissory note or contract secured by any dwelling or 

other collateral; or 

f. negotiate, obtain, or arrange (i) a short sale of a dwelling 

or other collateral, (ii) a deed-in-lieu of foreclosure, or (iii) any other disposition of 

a mortgage, loan, debt, or obligation other than a sale to a third party that is not the 

secured or unsecured loan holder. 

The foregoing shall include any manner of claimed assistance, including auditing 

or examining a person’s application for the mortgage, loan, debt, or obligation. 

2. With respect to any loan, debt, or obligation between a person 

and one or more unsecured creditors or debt collectors, any product, service, plan, 

or program represented, expressly or by implication, to: 

a. repay one or more unsecured loans, debts, or obligations; 

or 

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Case 8:23-cv-00698-JWH-ADS Document 54 Filed 10/05/23 Page 6 of 56 Page ID #:1696 

b. combine unsecured loans, debts, or obligations into one 

or more new loans, debts, or obligations. 

I. “Seller” means any person who, in connection with a Telemarketing 

transaction, provides, offers to provide, or arranges for others to provide goods or 

services to the customer in exchange for consideration, whether or not such person 

is under the jurisdiction of the Commission. 

J. “Telemarketer” means any person who, in connection with 

Telemarketing, initiates or receives telephone calls to or from a customer or donor, 

whether or not such person is under the jurisdiction of the Commission. 

K. “Telemarketing” means any plan, program, or campaign which is 

conducted to induce the purchase of goods or services by use of one or more 

telephones, and which involves a telephone call, whether or not covered by the 

Telemarketing Sales Rule. 

ORDER 

I. BAN ON SECURED AND UNSECURED 

DEBT RELIEF PRODUCTS AND SERVICES 

IT IS ORDERED that Defendants are permanently restrained and enjoined 

from advertising, marketing, promoting, offering for sale, selling, or Assisting 

Others in the advertising, marketing, promoting, offering for sale, or selling, of any 

Secured or Unsecured Debt Relief Product or Service. 

II. PROHIBITION AGAINST 

MISREPRESENTATIONS RELATING TO ANY 

PRODUCTS OR SERVICES 

IT IS FURTHER ORDERED that Defendants and Defendants’ officers, 

agents, employees, and attorneys, and all other Persons in active concert or 

participation with any of them, who receive actual notice of this Order, whether 

acting directly or indirectly, in connection with the advertising, marketing, 

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Case 8:23-cv-00698-JWH-ADS Document 54 Filed 10/05/23 Page 7 of 56 Page ID #:1697 

promoting, offering for sale, or selling of any product, service, plan, or program 

are permanently restrained and enjoined from misrepresenting, or Assisting Others 

in misrepresenting, expressly or by implication: 

A. Any material aspect of the nature or terms of any refund, cancellation, 

exchange, or repurchase policy, including the likelihood of a consumer obtaining a 

full or partial refund, or the circumstances in which a full or partial refund will be 

granted to the consumer; 

B. That any Person is affiliated with, endorsed or approved by, or 

otherwise connected to any other Person; government entity; public, non-profit, or 

other non-commercial program; or any other program; 

C. Any fact material to consumers concerning any good or service 

associated with the treatment, cure, prevention, mitigation, or diagnosis of 

COVID-19; or any fact material to consumers concerning any government benefit 

related to COVID-19; 

D. The nature, expertise, position, or job title of any Person who provides 

any product, service, plan, or program; 

E. That the ability to improve or otherwise affect a consumer’s credit 

record, credit history, credit rating, or ability to obtain credit, including that a 

consumer’s credit record, credit history, credit rating, or ability to obtain credit can 

be improved by permanently removing negative information from the consumer’s 

credit record or history, even where such information is accurate and not obsolete; 

F. That a consumer will save money; or 

G. Any other fact material to consumers concerning any good or service, 

such as: the total costs; any restrictions, limitations, or conditions; or any aspect of 

its performance, efficacy, nature, or central characteristics. 

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Case 8:23-cv-00698-JWH-ADS Document 54 Filed 10/05/23 Page 8 of 56 Page ID #:1698 

III. PROHIBITION AGAINST 

UNSUBSTANTIATED CLAIMS 

IT IS FURTHER ORDERED that Defendants and Defendants’ officers, 

agents, employees, and attorneys, and all other Persons in active concert or 

participation with any of them, who receive actual notice of this Order, whether 

acting directly or indirectly, in connection with the advertising, marketing, 

promoting, offering for sale, or selling of any product, service, plan, or program 

are permanently restrained and enjoined from making any representation or 

Assisting Others in making any misrepresentation, expressly or by implication, 

about the benefits, performance, or efficacy of any product or service, unless the 

representation is non-misleading, and, at the time such representation is made, that 

Defendant possesses and relies upon competent and reliable evidence that is 

sufficient in quality and quantity based on standards generally accepted in relevant 

fields, when considered in light of the entire body of relevant and reliable 

evidence, to substantiate that the representation is true. 

IV. PROHIBITION AGAINST OBTAINING 

CUSTOMER INFORMATION BY FALSE 

PRETENSES 

IT IS FURTHER ORDERED that Defendants and Defendants’ officers, 

agents, employees, and attorneys, and all other Persons in active concert or 

participation with any of them, who receive actual notice of this Order, whether 

acting directly or indirectly are permanently restrained and enjoined from: 

A. Obtaining, or attempting to obtain customer information of a 

financial institution (including bank account routing number, account number, or 

log-in credentials) from a consumer by making false, fictitious, or fraudulent 

representations to any consumer or financial institution; or 

B. Violating the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801-6809, §§ 

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A. 

Case 8:23-cv-00698-JWH-ADS Document 54 Filed 10/05/23 Page 9 of 56 Page ID #:1699 

6821-6827, a copy of which is attached as ATTACHMENT A. 

V. PROHIBITION AGAINST ABUSIVE TELEMARKETING PRACTICES 

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, 

employees, and attorneys, and all other Persons in active concert or participation 

with any of them, who receive actual notice of this Order, whether acting directly 

or indirectly, in connection with Telemarketing are permanently restrained and 

enjoined from engaging in, or assisting and facilitating others in engaging in, any 

of the following practices: 

A. Initiating any Outbound Telephone Call to a Person when that Person 

has previously stated that he or she does not wish to receive an Outbound 

Telephone Call: 

1. Made by or on behalf of the Seller whose goods or services are 

being offered; or 

2. Made on behalf of a charitable organization for which a 

charitable contribution is being solicited. 

B. Initiating any Outbound Telephone Call to a telephone number within 

a given area code unless the Seller, either directly or through another Person, has 

paid the annual fee for access to the telephone numbers within that area code that 

are included in the National Do Not Call Registry; and 

C. Violating the Telemarketing Sales Rule, 16 C.F.R. Part 310, attached 

as ATTACHMENT B. 

VI. MONETARY JUDGMENT AND PARTIAL 

SUSPENSION 

IT IS FURTHER ORDERED that: 

Judgment in the amount of Five Million, Seven Hundred Ninety-Eight 

Thousand, Nine Hundred Forty-Six Dollars and Thirty-Two Cents ($5,798,946.32) 

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is entered in favor of the Commission against the Individual Defendants and 

Corporate Defendants, jointly and severally, as monetary relief. 

B. The monetary judgment set out in Section VI.A is enforceable against 

any asset, real or personal, whether located within the United States or outside the 

United States, owned jointly or singly by, on behalf of, for the benefit of, in trust 

by or for, or as a deposit for future goods or services to be provided to, any 

Defendant, whether held as tenants in common, joint tenants with or without the 

right of survivorship, tenants by the entirety, and/or community property. 

C. In partial satisfaction of the judgment against Defendants: 

1. Defendants shall, within twenty (20) days after the date of entry of 

this Order, either (a) transfer to the FTC or its designated agent 

cash in the amount of $230,962.95 or (b) transfer to the Receiver 

title to the property located at 

, in which case Defendants shall cooperate fully with the 

Receiver and shall execute any instrument or document presented 

by the Receiver, and do whatever else the Receiver deems 

necessary or desirable to effect such transfer. Upon such transfer, 

the real property shall be an asset of the receivership estate, to be 

governed by Section X of this Order. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Case 8:23-cv-00698-JWH-ADS Document 54 Filed 10/05/23 Page 10 of 56 Page ID #:1700 

2. Defendant Michael Castillo shall, within twenty (20) days after the 

date of entry of this Order, either (a) transfer to the FTC or its 

designated agent cash in the amount of $13,723 or (b) transfer to 

the Receiver title to the 2017 Tesla Model 3 listed on his financial 

statement, in which case Defendants shall cooperate fully with the 

Receiver and shall execute any instrument or document presented 

by the Receiver, and do whatever else the Receiver deems 

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Case 8:23-cv-00698-JWH-ADS Document 54 Filed 10/05/23 Page 11 of 56 Page ID #:1701 

necessary or desirable to effect such transfer. Upon such transfer, 

the 2017 Tesla Model 3 shall be an asset of the receivership estate, 

to be governed by Section X of this Order. 

3. In addition to the amounts set forth in Subsection VI.C.1-2, any 

financial or brokerage institution, escrow agent, title company, 

commodity trading company, business entity, or person, whether 

located within the United States or outside the United States, that 

holds, controls, or maintains accounts or assets of, on behalf of, or 

for the benefit of, any Receivership Entity, whether real or 

personal, whether located within the United States or outside the 

United States, shall, within ten (10) business days from receipt of a 

copy of this Order, turn over such accounts or assets to the 

Receiver or his designated agent. 

4. In addition to the amounts set forth in Subsection IV.C.1-3, any 

financial or brokerage institution, escrow agent, title company, 

commodity trading company, business entity, or person, whether 

located within the United States or outside the United States, that 

holds, controls, or maintains accounts or assets of, on behalf of, or 

for the benefit of, any Individual Defendant, whether real or 

personal, whether located within the United States or outside the 

United States, shall, within ten (10) business days from receipt of a 

copy of this order, liquidate and turn over such account or asset to 

the FTC or its designated agent, including, but not limited to: 

i Bank of America, N.A (“Bank of America”) shall, within 

ten (10) days of receipt of a copy of this Order, transfer 

to the FTC or its designated agent all holdings in account 

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Case 8:23-cv-00698-JWH-ADS Document 54 Filed 10/05/23 Page 12 of 56 Page ID #:1702 

number xxxx4697 in the name of Christian Castillo; 

ii Bank of America shall, within ten (10) days of receipt of 

a copy of this Order, transfer to the FTC or its designated 

agent all holdings in account number xxxx3848 in the 

name of Christian Castillo; 

iii Bank of America shall, within ten (10) days of receipt of 

a copy of this Order, transfer to the FTC or its designated 

agent all holdings in account number xxxx3598 in the 

name of Michael Castillo; 

iv Bank of America shall, within ten (10) days of receipt of 

a copy of this Order, transfer to the FTC or its designated 

agent all holdings in account number xxxx0458 in the 

name of Michael Castillo; 

v JP Morgan Chase Bank (“Chase”) shall, within ten (10) 

days of receipt of a copy of this Order, transfer to the 

FTC or its designated agent all holdings in account 

number xxxx5623 in the name of Christian Castillo; 

vi Chase shall, within ten (10) days of receipt of a copy of 

this Order, transfer to the FTC or its designated agent all 

holdings in account number xxxx8776 in the name of 

Christian Castillo; 

vii Chase shall, within ten (10) days of receipt of a copy of 

this Order, transfer to the FTC or its designated agent all 

holdings in account number xxxx6730 in the name of 

Michael Castillo; 

viii Chase shall, within ten (10) days of receipt of a copy of 

this Order, transfer to the FTC or its designated agent all 

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Case 8:23-cv-00698-JWH-ADS Document 54 Filed 10/05/23 Page 13 of 56 Page ID #:1703 

holdings in account number xxxx1923 in the name of 

Michael Castillo; 

ix Robinhood Markets, Inc. (“Robinhood”) shall, within ten 

(10) days of receipt of a copy of this Order, liquidate and 

transfer to the FTC or its designated agent all holdings in 

account number xxxx5072 and all other holdings in the 

name of Christian Castillo; 

x Robinhood shall, within ten (10) days of receipt of a copy 

of this Order, liquidate and transfer to the FTC or its 

designated agent all holdings in account number 

xxxx6589 and all other holdings in the name of Michael 

Castillo; 

xi Coinbase Global Inc. shall, within ten (10) days of 

receipt of a copy of this Order, liquidate and transfer to 

the FTC or its designated agent all holdings held in the 

name of Christian Castillo; 

xii Webull Corporation shall, within ten (10) days of receipt 

of a copy of this Order, liquidate and transfer to the FTC 

or its designated agent all holdings in account number 

xxxx4689 in the name of Christian Castillo. 

D. Upon such payment and all other asset transfers, as set forth in 

Sections VI.C and VII, the remainder of the judgment is suspended, subject to the 

Subsections below. 

E. The asset freeze is modified to permit the transfers and liquidations 

identified in this Section. Upon completion of those transfers, the asset freeze as 

to Defendants is dissolved. 

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Case 8:23-cv-00698-JWH-ADS Document 54 Filed 10/05/23 Page 14 of 56 Page ID #:1704 

F. The Commission’s agreement to the suspension of part of the 

judgment is expressly premised upon the truthfulness, accuracy, and completeness 

of Defendants’ sworn financial statements and related documents (collectively, 

“financial representations”) submitted to the Commission, namely: 

1. the Financial Statement of Individual Defendant Christian 

Castillo signed on May 19, 2023, including the attachments; 

2. the Financial Statement of Individual Defendant Michael 

Castillo signed on May 17, 2023, including the attachments; 

3. the Financial Statement of Corporate Defendant SL Finance 

LLC signed by Michael Castillo, CEO, on May 19, 2023, including the 

attachments; 

4. The additional documentation submitted by email from 

Defendants’ counsel Karl Kronenberger to Commission counsel Katherine Aizpuru 

dated May 30, 2023 attaching a receipt for deposit of $9,000 into Bank of America 

account xxxx3848 in the name of Christian Castillo; and 

5. The additional documentation submitted by email from 

Defendants’ counsel Karl Kronenberger to Commission counsel Katherine Aizpuru 

dated June 2, 2023, attaching (1) Supplement to Fin. Statement – Indv. (Christian 

Castillo) for Item 11; (2) Supplement to Fin. Statement – Indv. (Michael Castillo) 

for Item 11; (3) Supplement to Fin. Statement – Indv. (Michael Castillo) for Item 

10; (4) bank statements associated with Bank of America accounts in the name of 

Michael Castillo; and (5) a bank statement associated with a Chase account in the 

name of Christian Castillo. 

6. The additional documentation submitted by email from 

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Case 8:23-cv-00698-JWH-ADS Document 54 Filed 10/05/23 Page 15 of 56 Page ID #:1705 

Defendants’ counsel Karl Kronenberger to Commission counsel Katherine Aizpuru 

dated June 8, 2023, attaching (1) account statements associated with a Robinhood 

account in the name of Michael Castillo; (2) account statements associated with a 

Robinhood account in the name of Christian Castillo; (3) transaction reports 

associated with a Coinbase account in the name of Michael Castillo; (4) transaction 

reports associated with a Coinbase account in the name of Christian Castillo; (5) 

account statements associated with a Coinbase account in the name of Michael 

Castillo; and (6) account statements associated with a Coinbase account in the 

name of Christian Castillo. 

G. The suspension of the judgment will be lifted as to any Defendant if, 

upon motion by the Commission, the Court finds that Defendant failed to disclose 

any material asset, materially misstated the value of any asset, or made any other 

material misstatement or omission in the financial representations identified above. 

H. If the suspension of the judgment is lifted, the judgment becomes 

immediately due as to that Defendant in the amount specified in Subsection VI.A 

above (which the parties stipulate, only for purposes of this Section, represents the 

consumer injury alleged in the Complaint), less any payment previously made 

pursuant to this Section, plus interest computed from the date of entry of this 

Order. 

VII. ADDITIONAL MONETARY PROVISIONS 

IT IS FURTHER ORDERED that: 

A. Defendants relinquish dominion and all legal and equitable right, 

title, and interest in all assets transferred pursuant to this Order and may not seek 

the return of any assets. 

B. The facts alleged in the Complaint will be taken as true, without 

further proof, in any subsequent civil litigation by or on behalf of the Commission, 

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including in a proceeding to enforce its rights to any payment or monetary 

judgment pursuant to this Order, such as a nondischargeability complaint in any 

bankruptcy case. 

C. The facts alleged in the Complaint establish all elements necessary to 

sustain an action by the Commission pursuant to Section 523(a)(2)(A) of the 

Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A), and this Order will have collateral 

estoppel effect for such purposes. 

D. Defendants acknowledge that their Taxpayer Identification Numbers 

(Social Security Numbers or Employer Identification Numbers), which 

Defendants previously submitted to the Commission, may be used for collecting 

and reporting on any delinquent amount arising out of this Order, in accordance 

with 31 U.S.C. §7701. 

E. All money received by the Commission pursuant to this Order may be 

deposited into a fund administered by the Commission or its designee to be used 

for consumer relief, such as redress and any attendant expenses for the 

administration of any redress fund. If a representative of the Commission decides 

that direct redress to consumers is wholly or partially impracticable or money 

remains after such redress is completed, the Commission may apply any 

remaining money for such related relief (including consumer information 

remedies) as it determines to be reasonably related to Defendants’ practices 

alleged in the Complaint. Any money not used for relief is to be deposited to the 

U.S. Treasury. Defendants have no right to challenge any actions the Commission 

or its representatives may take pursuant to this Subsection. 

VIII. CUSTOMER INFORMATION 

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, 

employees, attorneys, and all other Persons in active concert or participation with 

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any of them, who receive actual notice of this Order, are permanently restrained 

and enjoined from directly or indirectly: 

A. Failing to provide sufficient customer information to enable the 

Commission to efficiently administer consumer redress. Defendants represent that 

they have provided this redress information to the Commission. If a representative 

of the Commission requests in writing any information related to redress, 

Defendants must provide it, in the form prescribed by the Commission, within 14 

days. 

B. Disclosing, using, or benefitting from customer information, including 

the name, address, telephone number, email address, social security number, FSA 

ID, other identifying information, or any data that enables access to a customer’s 

account (including a student loan account, credit card, bank account, or other 

financial account) that any Defendant obtained prior to entry of this Order in 

connection with the marketing or sale of Secured or Unsecured Debt Relief 

Products or Services; and 

C. Failing to destroy such customer information in all forms in their 

possession, custody, or control within 30 days after receipt of written direction to 

do so from a representative of the Commission. 

Provided, however, that customer information need not be disposed of, and 

may be disclosed, to the extent requested by a government agency or required by 

law, regulation, or court order. 

IX. COOPERATION 

IT IS FURTHER ORDERED that Defendants must fully cooperate with 

representatives of the Commission in this case and in any investigation related to 

or associated with the transactions or the occurrences that are the subject of the 

Complaint. Defendants must provide truthful and complete information, evidence, 

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and testimony. Individual Defendants must appear and Corporate Defendants must 

cause Defendants’ officers, employees, representatives, or agents to appear for 

interviews, discovery, hearings, trials, and any other proceedings that a 

Commission representative may reasonably request upon 5 days written notice, or 

other reasonable notice, at such places and times as a Commission representative 

may designate, without the service of a subpoena. 

X. RECEIVERSHIP TERMINATION 

IT IS FURTHER ORDERED that Thomas McNamara, Esq., shall continue 

as a permanent receiver over the Receivership Entities with full powers of a 

permanent receiver, including but not limited to those powers set forth in the 

Preliminary Injunction (ECF No. 38). The Receiver is directed to wind up the 

Receivership Entities and liquidate all assets within 180 days after entry of this 

Order. Any party or the Receiver may request that the Court extend the Receiver’s 

term for good cause. Upon termination of the receivership and final payment to 

the Receiver of all approved fees, costs, and expenses, the Receiver shall turn over 

to the FTC or its designated agent all remaining assets in the receivership estate. 

XI. ORDER ACKNOWLEDGMENTS 

IT IS FURTHER ORDERED that Defendants obtain acknowledgments of 

receipt of this Order: 

A. Each Defendant, within 7 days of entry of this Order, must submit 

to the Commission an acknowledgment of receipt of this Order sworn under 

penalty of perjury. 

B. For 15 years after entry of this Order, each Individual Defendant for 

any business that such Defendant, individually or collectively with any other 

Defendants, is the majority owner or controls directly or indirectly, and each 

Corporate Defendant, must deliver a copy of this Order to: (1) all principals, 

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officers, directors, and LLC managers and members; (2) all employees having 

managerial responsibilities for Secured or Unsecured Debt Relief Products or 

Services, and all agents and representatives who participate in the Secured or 

Unsecured Debt Relief Products or Services; and (3) any business entity resulting 

from any change in structure as set forth in the Section titled Compliance 

Reporting. Delivery must occur within 7 days of entry of this Order for current 

personnel. For all others, delivery must occur before they assume their 

responsibilities. 

C. From each individual or entity to which a Defendant delivered a 

copy of this Order, that Defendant must obtain, within 30 days, a signed and 

dated acknowledgment of receipt of this Order. 

XII. COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Defendants make timely submissions to 

the Commission: 

A. One year after entry of this Order, each Defendant must submit a 

compliance report, sworn under penalty of perjury: 

1. Each Defendant must: (a) identify the primary physical, postal, 

and email address and telephone number, as designated points of contact, which 

representatives of the Commission may use to communicate with Defendant; (b) 

identify all of that Defendant’s businesses by all of their names, telephone 

numbers, and physical, postal, email, and Internet addresses; (c) describe the 

activities of each business, including the goods and services offered, the means of 

advertising, marketing, and sales, and the involvement of any other Defendant 

(which the Individual Defendants must describe if they know or should know due 

to their own involvement); (d) describe in detail whether and how that Defendant is 

in compliance with each Section of this Order; and (e) provide a copy of each 

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Order Acknowledgment obtained pursuant to this Order, unless previously 

submitted to the Commission. 

2. Additionally, each Individual Defendant must: (a) identify all 

telephone numbers and all physical, postal, email and Internet addresses, including 

all residences; (b) identify all business activities, including any business for which 

such Defendant performs services whether as an employee or otherwise and any 

entity in which such Defendant has any ownership interest; and (c) describe in 

detail such Defendant’s involvement in each such business, including title, role, 

responsibilities, participation, authority, control, and any ownership. 

B. For 15 years after entry of this Order, each Defendant must submit 

a compliance notice, sworn under penalty of perjury, within 14 days of any 

change in the following: 

1. Each Defendant must report any change in: (a) any designated 

point of contact; or (b) the structure of any Corporate Defendant or any entity that 

any Defendant has any ownership interest in or controls directly or indirectly that 

may affect compliance obligations arising under this Order, including: creation, 

merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that 

engages in any acts or practices subject to this Order. 

2. Additionally, each Individual Defendant must report any 

change in: (a) name, including aliases or fictitious name, or residence address; or 

(b) title or role in any business activity, including any business for which such 

Defendant performs services whether as an employee or otherwise and any entity 

in which such Defendant has any ownership interest, and identify the name, 

physical address, and any Internet address of the business or entity. 

C. Each Defendant must submit to the Commission notice of the filing of 

any bankruptcy petition, insolvency proceeding, or similar proceeding by or 

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against such Defendant within 14 days of its filing. 

D. Any submission to the Commission required by this Order to be 

sworn under penalty of perjury must be true and accurate and comply with 28 

U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury under 

the laws of the United States of America that the foregoing is true and correct. 

Executed on: _____” and supplying the date, signatory’s full name, title (if 

applicable), and signature. 

E. Unless otherwise directed by a Commission representative in 

writing, all submissions to the Commission pursuant to this Order must be 

emailed to DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal 

Service) to: Associate Director for Enforcement, Bureau of Consumer Protection, 

Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 

20580. The subject line must begin: FTC v. SL Finance, LLC, et al., X230025. 

XIII. RECORDKEEPING 

IT IS FURTHER ORDERED that Defendants must create certain records for 

15 years after entry of the Order, and retain each such record for 5 years. 

Specifically, each Defendant for any business that such Defendant, individually or 

collectively with any other Defendants, is a majority owner or controls directly or 

indirectly, must create and retain the following records: 

A. accounting records showing the revenues from all goods or 

services sold; 

B. personnel records showing, for each person providing services, 

whether as an employee or otherwise, that person’s: name; addresses; telephone 

numbers; job title or position; dates of service; and (if applicable) the reason for 

termination; 

C. records of all consumer complaints and refund requests, whether 

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received directly or indirectly, such as through a third party, and any response; 

D. all records necessary to demonstrate full compliance with each 

provision of this Order, including all submissions to the Commission; and 

E. a copy of each unique advertisement or other marketing material. 

XIV. COMPLIANCE MONITORING 

IT IS FURTHER ORDERED that, for the purpose of monitoring 

Defendants’ compliance with this Order, including the financial representations 

upon which part of the judgment was suspended and any failure to transfer any 

assets as required by this Order: 

A. Within 14 days of receipt of a written request from a representative of 

the Commission, each Defendant must: submit additional compliance reports or 

other requested information, which must be sworn under penalty of perjury; appear 

for depositions; and produce documents for inspection and copying. The 

Commission is also authorized to obtain discovery, without further leave of court, 

using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 

(including telephonic depositions), 31, 33, 34, 36, 45, and 69. 

B. For matters concerning this Order, the Commission is authorized to 

communicate directly with each Defendant. Defendant must permit 

representatives of the Commission to interview any employee or other Person 

affiliated with any Defendant who has agreed to such an interview. The Person 

interviewed may have counsel present. 

C. The Commission may use all other lawful means, including posing, 

through its representatives as consumers, suppliers, or other individuals or entities, 

to Defendants or any individual or entity affiliated with Defendants, without the 

necessity of identification or prior notice. Nothing in this Order limits the 

Commission’s lawful use of compulsory process, pursuant to Sections 9 and 20 of 

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the FTC Act, 15 U.S.C. §§ 49, 57b-1. 

D. Upon written request from a representative of the Commission, any 

consumer reporting agency must furnish consumer reports concerning Individual 

Defendants, pursuant to Section 604(1) of the Fair Credit Reporting Act, 15 U.S.C. 

§1681b(a)(1). 

XV. RETENTION OF JURISDICTION 

IT IS FURTHER ORDERED that this Court retains jurisdiction of this 

matter for purposes of construction, modification, and enforcement of this Order. 

So Stipulated:

_________________________ Date: __________ 

MICHAEL CASTILLO, individually and as an 

officer of SL FINANCE LLC 

_________________________ Date: __________ 

CHRISTIAN CASTILLO, individually and as an 

officer of SL FINANCE LLC 

_________________________ Date: __________ 

SL FINANCE LLC 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Case 8:23-cv-00698-JWH-ADS Document 54 Filed 10/05/23 

7/18/23 7/18/23

Page 23 of 56 

7/18/2023

Page ID #:1713 

7/18/2023 _________________________ Date: __________ 

Karl Kronenberger 

Kronenberger Rosenfeld, LLP 

150 Post Street, Suite 520 

San Francisco, CA 94108 

415-955-1155 Ext. 114 

karl@kr.law 

Counsel for Defendants Michael Castillo, Christian Castillo, and SL Finance LLC 

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BY: __________________________ 

Christian Castillo
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C e 8:23-cv-00698-JWH-ADS Document 54 Filed 10/05/23 Page 24 of 56 Page ID #: 14 

FOR THE FEDERAL TRADE COMMISSION: 

~~tn. At-~ Date: 9/29/23 

KATHERINE M. AIZPURU (pro hac vice) ------

kaizpuru@ftc.gov 

SAMUEL JACOBSON (pro hac vice) 

sjacobson@ftc.gov 

MARY WEAVER (pro hac vice application pending) 

mweaver l @ftc.gov 

FEDERAL TRADE COMMISSION 

600 Pennsylvania Avenue, N.W. 

Mail Stop: CC-10232 

Washington, D.C. 20580 

(202) 326-2870 

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Case 8:23-cv-00698-JWH-ADS Document 54 Filed 10/05/23 Page 25 of 56 Page ID #:1715 

Attachment A
:r~;lS:23-cv-00698-JWH-ADS Document 54 Filed 10/05/23 Page 26 of 56 Page ID #:1716 

§6781 TITLE 15--COMMERCE AND TRADE Page 2228 

lines broker or agent, insurance consultant, 

limited insurance representative, and any 

other individual or entity that sells, solicits, or negotiates policies of insurance or offers advice, counsel, opinions or services relat ed t o 

insurance. 

(6) Insurer 

The term " insurer" has the meaning as in 

section 313(e)(2)(B) of title 31. 

(7) Principal place of business 

The t erm " principal place of business" 

means the State in which an insurance pro­ ducer maintains the headquart ers of the insur­ ance producer and, in the case of a business 

entity, where high-level officers of the entity 

direct, control, and coordinat e the business 

activities of the business entity. 

(8) Principal place of residence 

The term " principal place of residence" 

means the State in which an insurance pro­ ducer resides for the greatest number of days 

during a calendar year. 

(9) State 

The t erm " State" includes any State, the 

District of Columbia, any t erritory of the 

Unit ed States, and Puerto Rico, Guam, Amer­ ican Samoa, the Trust Territory of the Pacific 

Islands, the Virgin Islands, and the Nort hern 

Mariana Islands. 

(10) State law 

(A) In general 

The t erm " State law" includes all laws, 

decisions, rules, regulations, or ot her State 

action having the effect of law, of any State. 

(B ) Laws applicable in the District of Columbia 

A law of the Unit ed States applicable only 

to or within the District of Columbia shall 

be treated as a State law rather than a law 

of the United Stat es. 

(Pub. L. 106-102, title III, §334, as added Pub. L. 114-1, title II, §202(a), Jan. 12, 2015, 129 Stat . 27.) 

Editorial Notes 

PRIOR PROVISIONS 

Provtsions similar to this s ection were c ontained in 

section 6766 of this title , prior to the general amendment of this subchapter by Pub. L. 114-1. 

A prior s ec tion 6764, Pub. L . 106-102, title III, §334, 

Nov. 12, 1999, 113 S tat. 1433, related to coordination With 

other regulators, prior to the general amendment of 

this s ubchapter by Pub. L . 114-1. See s ection 6761 of this 

title. 

A prior s ec tion 6765, Pub. L . 106-102, title III, §335, 

Nov. 12, 1999, 113 S tat. 1433, which related to judicial review, was omitted in the general amendment of this 

subchapter by Pub. L . 114-1. See s ection 6762 of this 

title. 

A prior s ec tion 6766, Pub. L . 106-102, title III, §336, 

Nov. 12, 1999, 113 Stat. 1433, which related to definitions, 

was omitted in the general amendment of this s ubchapter by Pub. L. 114-1. 

SUBCHAPTER IV- RENTAL CAR AGENCY 

INSURANCE ACTIVITIES 

§ 6781. Standard of regulation for motor vehicle 

rentals 

(a) Protection against retroactive application of 

regulatory and legal action 

Except as provided in subsection (b), during 

the 3-year period beginning on November 12, 1999, it shall be a presumption that no State law 

imposes any licensing, appointment, or edu­ cation requirements on any person who solicits 

the purchase of or sells insurance connected 

with, and incidental to, the lease or rental of a 

motor vehicle. 

(b) Preeminence of State insurance law 

No provision of this section shall be construed 

as altering the validity, interpretation, con­ struction, or effect of- (1) any State statute; 

(2) the prospective application of any court 

judgment interpreting or applying any State 

statute; or 

(3) the prospective application of any final 

State regulation, order, bulletin, or other 

statutorily aut horized interpretation or ac­ tion, 

which, by its specific terms, expressly regulates 

or exempts from regulation any person who so­ licits the purchase of or sells insurance con­ nected with, and incidental to, the short-term 

lease or rental of a mot or vehicle. 

(c) Scope of application 

This section shall apply with respect to- (1) the lease or rental of a motor vehicle for 

a t otal period of 90 consecutive days or less; 

and 

(2) insurance which is provided in connection 

with, and incidentally to, such lease or rental 

for a period of consecutive days not exceeding 

the lease or rental period. 

(d) Motor vehicle defined 

For purposes of this section, the term "motor 

vehicle" has the same meaning as in section 

13102 of title 49. 

(Pub. L. 106-102, title III, § 341, Nov. 12, 1999, 113 

Stat. 1434.) 

CHAPTER 94-PRIVACY 

SUBCHAPTER I-DISCLOSURE OF NONPUBLIC 

PERSONAL INFORMATION 

Sec. 

6801. Protec tion of nonpublic personal information. 

6802. Obligations with respect to dis closures of personal information. 

6803. Disclosure of institution privacy policy. 

6804. Rulemaking. 

6805. Enforcement. 

6806. Relation to other provisions. 

6807. Relation to State laws. 

6808. Study of information sharing among financial 

affiliates . 

6809. Definitions. 

SUBCHAPTER II-FRAUDULENT ACCESS TO 

FINANCIAL INFORMATION 

6821. Privacy protection for customer information 

of financial institutions. 

6822. Administrative enforcement. 
Case 8:23-cv-00698-JWH-ADS Document 54 Filed 10/05/23 Page 27 of 56 Page ID #:1717 

Page 2229 TITLE 15—COMMERCE AND TRADE § 6802 

Sec. 

6823. Criminal penalty. 

6824. Relation to State laws. 

6825. Agency guidance. 

6826. Reports. 

6827. Definitions. 

SUBCHAPTER I—DISCLOSURE OF 

NONPUBLIC PERSONAL INFORMATION 

§ 6801. Protection of nonpublic personal information 

(a) Privacy obligation policy 

It is the policy of the Congress that each financial institution has an affirmative and continuing obligation to respect the privacy of its 

customers and to protect the security and confidentiality of those customers’ nonpublic personal information. 

(b) Financial institutions safeguards 

In furtherance of the policy in subsection (a), 

each agency or authority described in section 

6805(a) of this title, other than the Bureau of 

Consumer Financial Protection, shall establish 

appropriate standards for the financial institutions subject to their jurisdiction relating to administrative, technical, and physical safeguards— 

(1) to insure the security and confidentiality 

of customer records and information; 

(2) to protect against any anticipated 

threats or hazards to the security or integrity 

of such records; and 

(3) to protect against unauthorized access to 

or use of such records or information which 

could result in substantial harm or inconvenience to any customer. 

(Pub. L. 106–102, title V, § 501, Nov. 12, 1999, 113 

Stat. 1436; Pub. L. 111–203, title X, § 1093(1), July 

21, 2010, 124 Stat. 2095.) 

Editorial Notes 

AMENDMENTS 

2010—Subsec. (b). Pub. L. 111–203 inserted ‘‘, other 

than the Bureau of Consumer Financial Protection,’’ 

after ‘‘section 6805(a) of this title’’ in introductory provisions. 

Statutory Notes and Related Subsidiaries 

EFFECTIVE DATE OF 2010 AMENDMENT 

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 

111–203, set out as a note under section 552a of Title 5, 

Government Organization and Employees. 

EFFECTIVE DATE 

Pub. L. 106–102, title V, § 510, Nov. 12, 1999, 113 Stat. 

1445, provided that: ‘‘This subtitle [subtitle A 

(§§ 501–510) of title V of Pub. L. 106–102, enacting this 

subchapter and amending section 1681s of this title] 

shall take effect 6 months after the date on which rules 

are required to be prescribed under section 504(a)(3) [15 

U.S.C. 6804(a)(3)], except— 

‘‘(1) to the extent that a later date is specified in 

the rules prescribed under section 504; and 

‘‘(2) that sections 504 [15 U.S.C. 6804] and 506 [enacting section 6806 of this title and amending section 

1681s of this title] shall be effective upon enactment 

[Nov. 12, 1999].’’ 

§ 6802. Obligations with respect to disclosures of 

personal information 

(a) Notice requirements 

Except as otherwise provided in this subchapter, a financial institution may not, directly or through any affiliate, disclose to a 

nonaffiliated third party any nonpublic personal 

information, unless such financial institution 

provides or has provided to the consumer a notice that complies with section 6803 of this title. 

(b) Opt out 

(1) In general 

A financial institution may not disclose 

nonpublic personal information to a nonaffiliated third party unless— 

(A) such financial institution clearly and 

conspicuously discloses to the consumer, in 

writing or in electronic form or other form 

permitted by the regulations prescribed 

under section 6804 of this title, that such information may be disclosed to such third 

party; 

(B) the consumer is given the opportunity, 

before the time that such information is initially disclosed, to direct that such information not be disclosed to such third party; and 

(C) the consumer is given an explanation 

of how the consumer can exercise that nondisclosure option. 

(2) Exception 

This subsection shall not prevent a financial 

institution from providing nonpublic personal 

information to a nonaffiliated third party to 

perform services for or functions on behalf of 

the financial institution, including marketing 

of the financial institution’s own products or 

services, or financial products or services offered pursuant to joint agreements between 

two or more financial institutions that comply with the requirements imposed by the regulations prescribed under section 6804 of this 

title, if the financial institution fully discloses 

the providing of such information and enters 

into a contractual agreement with the third 

party that requires the third party to maintain the confidentiality of such information. 

(c) Limits on reuse of information 

Except as otherwise provided in this subchapter, a nonaffiliated third party that receives from a financial institution nonpublic 

personal information under this section shall 

not, directly or through an affiliate of such receiving third party, disclose such information to 

any other person that is a nonaffiliated third 

party of both the financial institution and such 

receiving third party, unless such disclosure 

would be lawful if made directly to such other 

person by the financial institution. 

(d) Limitations on the sharing of account number information for marketing purposes 

A financial institution shall not disclose, 

other than to a consumer reporting agency, an 

account number or similar form of access number or access code for a credit card account, deposit account, or transaction account of a consumer to any nonaffiliated third party for use in 

telemarketing, direct mail marketing, or other 
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§ 6803 TITLE 15—COMMERCE AND TRADE Page 2230 

marketing through electronic mail to the consumer. 

(e) General exceptions 

Subsections (a) and (b) shall not prohibit the 

disclosure of nonpublic personal information— 

(1) as necessary to effect, administer, or enforce a transaction requested or authorized by 

the consumer, or in connection with— 

(A) servicing or processing a financial 

product or service requested or authorized 

by the consumer; 

(B) maintaining or servicing the consumer’s account with the financial institution, or with another entity as part of a private label credit card program or other extension of credit on behalf of such entity; or 

(C) a proposed or actual securitization, 

secondary market sale (including sales of 

servicing rights), or similar transaction related to a transaction of the consumer; 

(2) with the consent or at the direction of 

the consumer; 

(3)(A) to protect the confidentiality or security of the financial institution’s records pertaining to the consumer, the service or product, or the transaction therein; (B) to protect 

against or prevent actual or potential fraud, 

unauthorized transactions, claims, or other liability; (C) for required institutional risk control, or for resolving customer disputes or inquiries; (D) to persons holding a legal or beneficial interest relating to the consumer; or (E) 

to persons acting in a fiduciary or representative capacity on behalf of the consumer; 

(4) to provide information to insurance rate 

advisory organizations, guaranty funds or 

agencies, applicable rating agencies of the financial institution, persons assessing the institution’s compliance with industry standards, and the institution’s attorneys, accountants, and auditors; 

(5) to the extent specifically permitted or required under other provisions of law and in accordance with the Right to Financial Privacy 

Act of 1978 [12 U.S.C. 3401 et seq.], to law enforcement agencies (including the Bureau of 

Consumer Financial Protection 1 a Federal 

functional regulator, the Secretary of the 

Treasury with respect to subchapter II of 

chapter 53 of title 31, and chapter 2 of title I 

of Public Law 91–508 (12 U.S.C. 1951–1959), a 

State insurance authority, or the Federal 

Trade Commission), self-regulatory organizations, or for an investigation on a matter related to public safety; 

(6)(A) to a consumer reporting agency in accordance with the Fair Credit Reporting Act 

[15 U.S.C. 1681 et seq.], or (B) from a consumer 

report reported by a consumer reporting agency; 

(7) in connection with a proposed or actual 

sale, merger, transfer, or exchange of all or a 

portion of a business or operating unit if the 

disclosure of nonpublic personal information 

concerns solely consumers of such business or 

unit; or 

(8) to comply with Federal, State, or local 

laws, rules, and other applicable legal require1So in original. Probably should be followed by a comma. 

ments; to comply with a properly authorized 

civil, criminal, or regulatory investigation or 

subpoena or summons by Federal, State, or 

local authorities; or to respond to judicial 

process or government regulatory authorities 

having jurisdiction over the financial institution for examination, compliance, or other 

purposes as authorized by law. 

(Pub. L. 106–102, title V, § 502, Nov. 12, 1999, 113 

Stat. 1437; Pub. L. 111–203, title X, § 1093(2), July 

21, 2010, 124 Stat. 2095.) 

Editorial Notes 

REFERENCES IN TEXT 

This subchapter, referred to in subsecs. (a) and (c), 

was in the original ‘‘this subtitle’’, meaning subtitle A 

(§§ 501–510) of title V of Pub. L. 106–102, Nov. 12, 1999, 113 

Stat. 1436, which is classified principally to this subchapter. For complete classification of subtitle A to 

the Code, see Tables. 

The Right to Financial Privacy Act of 1978, referred 

to in subsec. (e)(5), is title XI of Pub. L. 95–630, Nov. 10, 

1978, 92 Stat. 3697, which is classified generally to chapter 35 (§3401 et seq.) of Title 12, Banks and Banking. For 

complete classification of this Act to the Code, see 

Short Title note set out under section 3401 of Title 12 

and Tables. 

Chapter 2 of title I of Public Law 91–508, referred to 

in subsec. (e)(5), is chapter 2 (§§ 121–129) of title I of Pub. 

L. 91–508, Oct. 26, 1970, 84 Stat. 1116, which is classified 

generally to chapter 21 (§ 1951 et seq.) of Title 12, Banks 

and Banking. For complete classification of chapter 2 

to the Code, see Tables. 

The Fair Credit Reporting Act, referred to in subsec. 

(e)(6)(A), is title VI of Pub. L. 90–321, as added by Pub. 

L. 91–508, title VI, §601, Oct. 26, 1970, 84 Stat. 1127, which 

is classified generally to subchapter III (§1681 et seq.) of 

chapter 41 of this title. For complete classification of 

this Act to the Code, see Short Title note set out under 

section 1601 of this title and Tables. 

AMENDMENTS 

2010—Subsec. (e)(5). Pub. L. 111–203 inserted ‘‘the Bureau of Consumer Financial Protection’’ after ‘‘(including’’. 

Statutory Notes and Related Subsidiaries 

EFFECTIVE DATE OF 2010 AMENDMENT 

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 

111–203, set out as a note under section 552a of Title 5, 

Government Organization and Employees. 

§ 6803. Disclosure of institution privacy policy 

(a) Disclosure required 

At the time of establishing a customer relationship with a consumer and not less than annually during the continuation of such relationship, a financial institution shall provide a clear 

and conspicuous disclosure to such consumer, in 

writing or in electronic form or other form permitted by the regulations prescribed under section 6804 of this title, of such financial institution’s policies and practices with respect to— 

(1) disclosing nonpublic personal information to affiliates and nonaffiliated third parties, consistent with section 6802 of this title, 

including the categories of information that 

may be disclosed; 

(2) disclosing nonpublic personal information of persons who have ceased to be customers of the financial institution; and 
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Page 2231 TITLE 15—COMMERCE AND TRADE § 6803 

(3) protecting the nonpublic personal information of consumers. 

(b) Regulations 

Disclosures required by subsection (a) shall be 

made in accordance with the regulations prescribed under section 6804 of this title. 

(c) Information to be included 

The disclosure required by subsection (a) shall 

include— 

(1) the policies and practices of the institution with respect to disclosing nonpublic personal information to nonaffiliated third parties, other than agents of the institution, consistent with section 6802 of this title, and including— 

(A) the categories of persons to whom the 

information is or may be disclosed, other 

than the persons to whom the information 

may be provided pursuant to section 6802(e) 

of this title; and 

(B) the policies and practices of the institution with respect to disclosing of nonpublic personal information of persons who 

have ceased to be customers of the financial 

institution; 

(2) the categories of nonpublic personal information that are collected by the financial 

institution; 

(3) the policies that the institution maintains to protect the confidentiality and security of nonpublic personal information in accordance with section 6801 of this title; and 

(4) the disclosures required, if any, under 

section 1681a(d)(2)(A)(iii) of this title. 

(d) Exemption for certified public accountants 

(1) In general 

The disclosure requirements of subsection 

(a) do not apply to any person, to the extent 

that the person is— 

(A) a certified public accountant; 

(B) certified or licensed for such purpose 

by a State; and 

(C) subject to any provision of law, rule, or 

regulation issued by a legislative or regulatory body of the State, including rules of 

professional conduct or ethics, that prohibits disclosure of nonpublic personal information without the knowing and expressed 

consent of the consumer. 

(2) Limitation 

Nothing in this subsection shall be construed to exempt or otherwise exclude any financial institution that is affiliated or becomes affiliated with a certified public accountant described in paragraph (1) from any 

provision of this section. 

(3) Definitions 

For purposes of this subsection, the term 

‘‘State’’ means any State or territory of the 

United States, the District of Columbia, Puerto Rico, Guam, American Samoa, the Trust 

Territory of the Pacific Islands, the Virgin Islands, or the Northern Mariana Islands. 

(e) Model forms 

(1) In general 

The agencies referred to in section 6804(a)(1) 

of this title shall jointly develop a model form 

which may be used, at the option of the financial institution, for the provision of disclosures under this section. 

(2) Format 

A model form developed under paragraph (1) 

shall— 

(A) be comprehensible to consumers, with 

a clear format and design; 

(B) provide for clear and conspicuous disclosures; 

(C) enable consumers easily to identify the 

sharing practices of a financial institution 

and to compare privacy practices among financial institutions; and 

(D) be succinct, and use an easily readable 

type font. 

(3) Timing 

A model form required to be developed by 

this subsection shall be issued in proposed 

form for public comment not later than 180 

days after October 13, 2006. 

(4) Safe harbor 

Any financial institution that elects to provide the model form developed by the agencies 

under this subsection shall be deemed to be in 

compliance with the disclosures required 

under this section. 

(f) Exception to annual notice requirement 

A financial institution that— 

(1) provides nonpublic personal information 

only in accordance with the provisions of subsection (b)(2) or (e) of section 6802 of this title 

or regulations prescribed under section 6804(b) 

of this title, and 

(2) has not changed its policies and practices 

with regard to disclosing nonpublic personal 

information from the policies and practices 

that were disclosed in the most recent disclosure sent to consumers in accordance with this 

section, 

shall not be required to provide an annual disclosure under this section until such time as the 

financial institution fails to comply with any 

criteria described in paragraph (1) or (2). 

(Pub. L. 106–102, title V, § 503, Nov. 12, 1999, 113 

Stat. 1439; Pub. L. 109–351, title VI, § 609, title 

VII, § 728, Oct. 13, 2006, 120 Stat. 1983, 2003; Pub. 

L. 114–94, div. G, title LXXV, § 75001, Dec. 4, 2015, 

129 Stat. 1787.) 

Editorial Notes 

AMENDMENTS 

2015—Subsec. (f). Pub. L. 114–94 added subsec. (f). 

2006—Pub. L. 109–351 designated concluding provisions 

of subsec. (a) as (b), inserted heading, substituted ‘‘Disclosures required by subsection (a)’’ for ‘‘Such disclosures’’, redesignated former subsec. (b) as (c), and added 

subsecs. (d) and (e). 

Executive Documents 

TERMINATION OF TRUST TERRITORY OF THE PACIFIC 

ISLANDS 

For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title 

48, Territories and Insular Possessions. 
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§ 6804 TITLE 15—COMMERCE AND TRADE Page 2232 

§ 6804. Rulemaking 

(a) Regulatory authority 

(1) Rulemaking 

(A) In general 

Except as provided in subparagraph (C), 

the Bureau of Consumer Financial Protection and the Securities and Exchange Commission shall have authority to prescribe 

such regulations as may be necessary to 

carry out the purposes of this subchapter 

with respect to financial institutions and 

other persons subject to their respective jurisdiction under section 6805 of this title 

(and notwithstanding subtitle B of the Consumer Financial Protection Act of 2010 [12 

U.S.C. 5511 et seq.]), except that the Bureau 

of Consumer Financial Protection shall not 

have authority to prescribe regulations with 

respect to the standards under section 6801 

of this title. 

(B) CFTC 

The Commodity Futures Trading Commission shall have authority to prescribe such 

regulations as may be necessary to carry out 

the purposes of this subchapter with respect 

to financial institutions and other persons 

subject to the jurisdiction of the Commodity 

Futures Trading Commission under section 

7b–2 of title 7. 

(C) Federal Trade Commission authority 

Notwithstanding the authority of the Bureau of Consumer Financial Protection 

under subparagraph (A), the Federal Trade 

Commission shall have authority to prescribe such regulations as may be necessary 

to carry out the purposes of this subchapter 

with respect to any financial institution 

that is a person described in section 1029(a) 

of the Consumer Financial Protection Act of 

2010 [12 U.S.C. 5519(a)]. 

(D) Rule of construction 

Nothing in this paragraph shall be construed to alter, affect, or otherwise limit the 

authority of a State insurance authority to 

adopt regulations to carry out this subchapter. 

(2) Coordination, consistency, and comparability 

Each of the agencies authorized under paragraph (1) to prescribe regulations shall consult 

and coordinate with the other such agencies 

and, as appropriate, and with 1 representatives 

of State insurance authorities designated by 

the National Association of Insurance Commissioners, for the purpose of assuring, to the 

extent possible, that the regulations prescribed by each such agency are consistent and 

comparable with the regulations prescribed by 

the other such agencies. 

(3) Procedures and deadline 

Such regulations shall be prescribed in accordance with applicable requirements of title 

5. 

1So in original. Probably should be ‘‘and, as appropriate, 

with’’. 

(b) Authority to grant exceptions 

The regulations prescribed under subsection 

(a) may include such additional exceptions to 

subsections (a) through (d) of section 6802 of this 

title as are deemed consistent with the purposes 

of this subchapter. 

(Pub. L. 106–102, title V, § 504, Nov. 12, 1999, 113 

Stat. 1439; Pub. L. 111–203, title X, § 1093(3), July 

21, 2010, 124 Stat. 2095.) 

Editorial Notes 

REFERENCES IN TEXT 

This subchapter, referred to in subsecs. (a)(1) and (b), 

was in the original ‘‘this subtitle’’, meaning subtitle A 

(§§ 501–510) of title V of Pub. L. 106–102, Nov. 12, 1999, 113 

Stat. 1436, which is classified principally to this subchapter. For complete classification of subtitle A to 

the Code, see Tables. 

The Consumer Financial Protection Act of 2010, referred to in subsec. (a)(1)(A), is title X of Pub. L. 

111–203, July 21, 2010, 124 Stat. 1955. Subtitle B 

(§§ 1021–1029A) of the Act is classified generally to part 

B (§ 5511 et seq.) of subchapter V of chapter 53 of Title 

12, Banks and Banking. For complete classification of 

subtitle B to the Code, see Tables. 

AMENDMENTS 

2010—Subsec. (a)(1), (2). Pub. L. 111–203, §1093(3)(A), 

added pars. (1) and (2) and struck out former pars. (1) 

and (2) which related, respectively, to rulemaking by 

the Federal banking agencies, the National Credit 

Union Administration, the Secretary of the Treasury, 

the Securities and Exchange Commission, and the Federal Trade Commission, and consultation and coordination among these agencies and authorities to assure 

consistency and comparability of regulations. 

Subsec. (a)(3). Pub. L. 111–203, § 1093(3)(B), struck out 

‘‘and shall be issued in final form not later than 6 

months after November 12, 1999’’ after ‘‘title 5’’. 

Statutory Notes and Related Subsidiaries 

EFFECTIVE DATE OF 2010 AMENDMENT 

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 

111–203, set out as a note under section 552a of Title 5, 

Government Organization and Employees. 

§ 6805. Enforcement 

(a) In general 

Subject to subtitle B of the Consumer Financial Protection Act of 2010 [12 U.S.C. 5511 et 

seq.], this subchapter and the regulations prescribed thereunder shall be enforced by the Bureau of Consumer Financial Protection, the Federal functional regulators, the State insurance 

authorities, and the Federal Trade Commission 

with respect to financial institutions and other 

persons subject to their jurisdiction under applicable law, as follows: 

(1) Under section 1818 of title 12, by the appropriate Federal banking agency, as defined 

in section 1813(q) of title 12, in the case of— 

(A) national banks, Federal branches and 

Federal agencies of foreign banks, and any 

subsidiaries of such entities (except brokers, 

dealers, persons providing insurance, investment companies, and investment advisers); 

(B) member banks of the Federal Reserve 

System (other than national banks), 

branches and agencies of foreign banks 

(other than Federal branches, Federal agen-
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Page 2233 TITLE 15—COMMERCE AND TRADE § 6805 

cies, and insured State branches of foreign 

banks), commercial lending companies 

owned or controlled by foreign banks, organizations operating under section 25 or 25A 

of the Federal Reserve Act [12 U.S.C. 601 et 

seq., 611 et seq.], and bank holding companies and their nonbank subsidiaries or affiliates (except brokers, dealers, persons providing insurance, investment companies, and 

investment advisers); 

(C) banks insured by the Federal Deposit 

Insurance Corporation (other than members 

of the Federal Reserve System), insured 

State branches of foreign banks, and any 

subsidiaries of such entities (except brokers, 

dealers, persons providing insurance, investment companies, and investment advisers); 

and 

(D) savings associations the deposits of 

which are insured by the Federal Deposit Insurance Corporation, and any subsidiaries of 

such savings associations (except brokers, 

dealers, persons providing insurance, investment companies, and investment advisers). 

(2) Under the Federal Credit Union Act [12 

U.S.C. 1751 et seq.], by the Board of the National Credit Union Administration with respect to any federally insured credit union, 

and any subsidiaries of such an entity. 

(3) Under the Securities Exchange Act of 1934 

[15 U.S.C. 78a et seq.], by the Securities and 

Exchange Commission with respect to any 

broker or dealer. 

(4) Under the Investment Company Act of 

1940 [15 U.S.C. 80a–1 et seq.], by the Securities 

and Exchange Commission with respect to investment companies. 

(5) Under the Investment Advisers Act of 

1940 [15 U.S.C. 80b–1 et seq.], by the Securities 

and Exchange Commission with respect to investment advisers registered with the Commission under such Act. 

(6) Under State insurance law, in the case of 

any person engaged in providing insurance, by 

the applicable State insurance authority of 

the State in which the person is domiciled, 

subject to section 6701 of this title. 

(7) Under the Federal Trade Commission Act 

[15 U.S.C. 41 et seq.], by the Federal Trade 

Commission for any other financial institution or other person that is not subject to the 

jurisdiction of any agency or authority under 

paragraphs (1) through (6) of this subsection. 

(8) Under subtitle E of the Consumer Financial Protection Act of 2010 [12 U.S.C. 5561 et 

seq.], by the Bureau of Consumer Financial 

Protection, in the case of any financial institution and other covered person or service provider that is subject to the jurisdiction of the 

Bureau and any person subject to this subchapter, but not with respect to the standards 

under section 6801 of this title. 

(b) Enforcement of section 6801 

(1) In general 

Except as provided in paragraph (2), the 

agencies and authorities described in subsection (a), other than the Bureau of Consumer Financial Protection, shall implement 

the standards prescribed under section 6801(b) 

of this title in the same manner, to the extent 

practicable, as standards prescribed pursuant 

to section 1831p–1(a) of title 12 are implemented pursuant to such section. 

(2) Exception 

The agencies and authorities described in 

paragraphs (3), (4), (5), (6), and (7) of subsection 

(a) shall implement the standards prescribed 

under section 6801(b) of this title by rule with 

respect to the financial institutions and other 

persons subject to their respective jurisdictions under subsection (a). 

(c) Absence of State action 

If a State insurance authority fails to adopt 

regulations to carry out this subchapter, such 

State shall not be eligible to override, pursuant 

to section 1831x(g)(2)(B)(iii) of title 12, the insurance customer protection regulations prescribed 

by a Federal banking agency under section 

1831x(a) of title 12. 

(d) Definitions 

The terms used in subsection (a)(1) that are 

not defined in this subchapter or otherwise defined in section 1813(s) of title 12 shall have the 

same meaning as given in section 3101 of title 12. 

(Pub. L. 106–102, title V, § 505, Nov. 12, 1999, 113 

Stat. 1440; Pub. L. 111–203, title X, § 1093(4), (5), 

July 21, 2010, 124 Stat. 2096, 2097.) 

Editorial Notes 

REFERENCES IN TEXT 

The Consumer Financial Protection Act of 2010, referred to in subsec. (a), is title X of Pub. L. 111–203, July 

21, 2010, 124 Stat. 1955. Subtitles B (§§ 1021–1029A) and E 

(§§ 1051–1058) of the Act are classified generally to parts 

B (§ 5511 et seq.) and E (§ 5561 et seq.), respectively, of 

subchapter V of chapter 53 of Title 12, Banks and Banking. For complete classification of subtitles B and E to 

the Code, see Tables. 

This subchapter, referred to in subsecs. (a), (c), and 

(d), was in the original ‘‘this subtitle’’, meaning subtitle A (§§501–510) of title V of Pub. L. 106–102, Nov. 12, 

1999, 113 Stat. 1436, which is classified principally to 

this subchapter. For complete classification of subtitle 

A to the Code, see Tables. 

Section 25 of the Federal Reserve Act, referred to in 

subsec. (a)(1)(B), is classified to subchapter I (§ 601 et 

seq.) of chapter 6 of Title 12, Banks and Banking. Section 25A of the Federal Reserve Act is classified to subchapter II (§611 et seq.) of chapter 6 of Title 12. 

The Federal Credit Union Act, referred to in subsec. 

(a)(2), is act June 26, 1934, ch. 750, 48 Stat. 1216, which 

is classified generally to chapter 14 (§1751 et seq.) of 

Title 12, Banks and Banking. For complete classification of this Act to the Code, see section 1751 of Title 12 

and Tables. 

The Securities Exchange Act of 1934, referred to in 

subsec. (a)(3), is act June 6, 1934, ch. 404, 48 Stat. 881, 

which is classified principally to chapter 2B (§78a et 

seq.) of this title. For complete classification of this 

Act to the Code, see section 78a of this title and Tables. 

The Investment Company Act of 1940, referred to in 

subsec. (a)(4), is title I of act Aug. 22, 1940, ch. 686, 54 

Stat. 789, which is classified generally to subchapter I 

(§ 80a–1 et seq.) of chapter 2D of this title. For complete 

classification of this Act to the Code, see section 80a–51 

of this title and Tables. 

The Investment Advisers Act of 1940, referred to in 

subsec. (a)(5), is title II of act Aug. 22, 1940, ch. 686, 54 

Stat. 847, which is classified generally to subchapter II 

(§ 80b–1 et seq.) of chapter 2D of this title. For complete 

classification of this Act to the Code, see section 80b–20 

of this title and Tables. 
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§ 6806 TITLE 15—COMMERCE AND TRADE Page 2234 

The Federal Trade Commission Act, referred to in 

subsec. (a)(7), is act Sept. 26, 1914, ch. 311, 38 Stat. 717, 

which is classified generally to subchapter I (§41 et 

seq.) of chapter 2 of this title. For complete classification of this Act to the Code, see section 58 of this title 

and Tables. 

AMENDMENTS 

2010—Subsec. (a). Pub. L. 111–203, §1093(4)(A), substituted ‘‘Subject to subtitle B of the Consumer Financial Protection Act of 2010, this subchapter and the regulations prescribed thereunder shall be enforced by the 

Bureau of Consumer Financial Protection, the Federal 

functional regulators, the State insurance authorities, 

and the Federal Trade Commission with respect to financial institutions and other persons subject to their 

jurisdiction under applicable law, as follows:’’ for ‘‘This 

subchapter and the regulations prescribed thereunder 

shall be enforced by the Federal functional regulators, 

the State insurance authorities, and the Federal Trade 

Commission with respect to financial institutions and 

other persons subject to their jurisdiction under applicable law, as follows:’’. 

Subsec. (a)(1). Pub. L. 111–203, § 1093(4)(B)(i), inserted 

‘‘by the appropriate Federal banking agency, as defined 

in section 1813(q) of title 12,’’ before ‘‘in the case of—’’. 

Subsec. (a)(1)(A). Pub. L. 111–203, §1093(4)(B)(ii), 

struck out ‘‘, by the Office of the Comptroller of the 

Currency’’ before semicolon at end. 

Subsec. (a)(1)(B). Pub. L. 111–203, §1093(4)(B)(iii), 

struck out ‘‘, by the Board of Governors of the Federal 

Reserve System’’ before semicolon at end. 

Subsec. (a)(1)(C). Pub. L. 111–203, §1093(4)(B)(iv), 

struck out ‘‘, by the Board of Directors of the Federal 

Deposit Insurance Corporation’’ before ‘‘; and’’. 

Subsec. (a)(1)(D). Pub. L. 111–203, §1093(4)(B)(v), 

struck out ‘‘, by the Director of the Office of Thrift Supervision’’ before period at end. 

Subsec. (a)(8). Pub. L. 111–203, §1093(4)(C), added par. 

(8). 

Subsec. (b)(1). Pub. L. 111–203, § 1093(5), inserted 

‘‘, other than the Bureau of Consumer Financial Protection,’’ before ‘‘shall implement the standards’’. 

Statutory Notes and Related Subsidiaries 

EFFECTIVE DATE OF 2010 AMENDMENT 

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 

111–203, set out as a note under section 552a of Title 5, 

Government Organization and Employees. 

§ 6806. Relation to other provisions 

Except for the amendments made by subsections (a) and (b), nothing in this chapter shall 

be construed to modify, limit, or supersede the 

operation of the Fair Credit Reporting Act [15 

U.S.C. 1681 et seq.], and no inference shall be 

drawn on the basis of the provisions of this 

chapter regarding whether information is transaction or experience information under section 

603 of such Act [15 U.S.C. 1681a]. 

(Pub. L. 106–102, title V, § 506(c), Nov. 12, 1999, 113 

Stat. 1442.) 

Editorial Notes 

REFERENCES IN TEXT 

Amendments made by subsections (a) and (b), referred to in text, means amendments made by section 

506(a) and (b) of Pub. L. 106–102, which amended section 

1681s of this title. 

This chapter, referred to in text, was in the original 

‘‘this title’’, meaning title V of Pub. L. 106–102, Nov. 12, 

1999, 113 Stat. 1436, as amended, which enacted this 

chapter and amended section 1681s of this title. For 

complete classification of title V to the Code, see Tables. 

The Fair Credit Reporting Act, referred to in text, is 

title VI of Pub. L. 90–321, as added by Pub. L. 91–508, 

title VI, § 601, Oct. 26, 1970, 84 Stat. 1127, as amended, 

which is classified generally to subchapter III (§ 1681 et 

seq.) of chapter 41 of this title. For complete classification of this Act to the Code, see Short Title note set 

out under section 1601 of this title and Tables. 

§ 6807. Relation to State laws 

(a) In general 

This subchapter and the amendments made by 

this subchapter shall not be construed as superseding, altering, or affecting any statute, regulation, order, or interpretation in effect in any 

State, except to the extent that such statute, 

regulation, order, or interpretation is inconsistent with the provisions of this subchapter, 

and then only to the extent of the inconsistency. 

(b) Greater protection under State law 

For purposes of this section, a State statute, 

regulation, order, or interpretation is not inconsistent with the provisions of this subchapter if 

the protection such statute, regulation, order, 

or interpretation affords any person is greater 

than the protection provided under this subchapter and the amendments made by this subchapter, as determined by the Bureau of Consumer Financial Protection, after consultation 

with the agency or authority with jurisdiction 

under section 6805(a) of this title of either the 

person that initiated the complaint or that is 

the subject of the complaint, on its own motion 

or upon the petition of any interested party. 

(Pub. L. 106–102, title V, § 507, Nov. 12, 1999, 113 

Stat. 1442; Pub. L. 111–203, title X, § 1093(6), July 

21, 2010, 124 Stat. 2097.) 

Editorial Notes 

REFERENCES IN TEXT 

This subchapter, referred to in text, was in the original ‘‘this subtitle’’, meaning subtitle A (§§501–510) of 

title V of Pub. L. 106–102, Nov. 12, 1999, 113 Stat. 1436, 

which is classified principally to this subchapter. For 

complete classification of subtitle A to the Code, see 

Tables. 

AMENDMENTS 

2010—Subsec. (b). Pub. L. 111–203 substituted ‘‘Bureau 

of Consumer Financial Protection’’ for ‘‘Federal Trade 

Commission’’. 

Statutory Notes and Related Subsidiaries 

EFFECTIVE DATE OF 2010 AMENDMENT 

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 

111–203, set out as a note under section 552a of Title 5, 

Government Organization and Employees. 

§ 6808. Study of information sharing among financial affiliates 

(a) In general 

The Secretary of the Treasury, in conjunction 

with the Federal functional regulators and the 

Federal Trade Commission, shall conduct a 

study of information sharing practices among financial institutions and their affiliates. Such 

study shall include— 
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Page 2235 TITLE 15—COMMERCE AND TRADE § 6809 

(1) the purposes for the sharing of confidential customer information with affiliates or 

with nonaffiliated third parties; 

(2) the extent and adequacy of security protections for such information; 

(3) the potential risks for customer privacy 

of such sharing of information; 

(4) the potential benefits for financial institutions and affiliates of such sharing of information; 

(5) the potential benefits for customers of 

such sharing of information; 

(6) the adequacy of existing laws to protect 

customer privacy; 

(7) the adequacy of financial institution privacy policy and privacy rights disclosure 

under existing law; 

(8) the feasibility of different approaches, including opt-out and opt-in, to permit customers to direct that confidential information 

not be shared with affiliates and nonaffiliated 

third parties; and 

(9) the feasibility of restricting sharing of 

information for specific uses or of permitting 

customers to direct the uses for which information may be shared. 

(b) Consultation 

The Secretary shall consult with representatives of State insurance authorities designated 

by the National Association of Insurance Commissioners, and also with financial services industry, consumer organizations and privacy 

groups, and other representatives of the general 

public, in formulating and conducting the study 

required by subsection (a). 

(c) Report 

On or before January 1, 2002, the Secretary 

shall submit a report to the Congress containing 

the findings and conclusions of the study required under subsection (a), together with such 

recommendations for legislative or administrative action as may be appropriate. 

(Pub. L. 106–102, title V, § 508, Nov. 12, 1999, 113 

Stat. 1442.) 

§ 6809. Definitions 

As used in this subchapter: 

(1) Federal banking agency 

The term ‘‘Federal banking agency’’ has the 

same meaning as given in section 1813 of title 

12. 

(2) Federal functional regulator 

The term ‘‘Federal functional regulator’’ 

means— 

(A) the Board of Governors of the Federal 

Reserve System; 

(B) the Office of the Comptroller of the 

Currency; 

(C) the Board of Directors of the Federal 

Deposit Insurance Corporation; 

(D) the Director of the Office of Thrift Supervision; 

(E) the National Credit Union Administration Board; and 

(F) the Securities and Exchange Commission. 

(3) Financial institution 

(A) In general 

The term ‘‘financial institution’’ means 

any institution the business of which is engaging in financial activities as described in 

section 1843(k) of title 12. 

(B) Persons subject to CFTC regulation 

Notwithstanding subparagraph (A), the 

term ‘‘financial institution’’ does not include any person or entity with respect to 

any financial activity that is subject to the 

jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act [7 U.S.C. 1 et seq.]. 

(C) Farm credit institutions 

Notwithstanding subparagraph (A), the 

term ‘‘financial institution’’ does not include the Federal Agricultural Mortgage 

Corporation or any entity chartered and operating under the Farm Credit Act of 1971 [12 

U.S.C. 2001 et seq.]. 

(D) Other secondary market institutions 

Notwithstanding subparagraph (A), the 

term ‘‘financial institution’’ does not include institutions chartered by Congress 

specifically to engage in transactions described in section 6802(e)(1)(C) of this title, 

as long as such institutions do not sell or 

transfer nonpublic personal information to a 

nonaffiliated third party. 

(4) Nonpublic personal information 

(A) The term ‘‘nonpublic personal information’’ means personally identifiable financial 

information— 

(i) provided by a consumer to a financial 

institution; 

(ii) resulting from any transaction with 

the consumer or any service performed for 

the consumer; or 

(iii) otherwise obtained by the financial institution. 

(B) Such term does not include publicly 

available information, as such term is defined 

by the regulations prescribed under section 

6804 of this title. 

(C) Notwithstanding subparagraph (B), such 

term— 

(i) shall include any list, description, or 

other grouping of consumers (and publicly 

available information pertaining to them) 

that is derived using any nonpublic personal 

information other than publicly available 

information; but 

(ii) shall not include any list, description, 

or other grouping of consumers (and publicly 

available information pertaining to them) 

that is derived without using any nonpublic 

personal information. 

(5) Nonaffiliated third party 

The term ‘‘nonaffiliated third party’’ means 

any entity that is not an affiliate of, or related by common ownership or affiliated by 

corporate control with, the financial institution, but does not include a joint employee of 

such institution. 

(6) Affiliate 

The term ‘‘affiliate’’ means any company 

that controls, is controlled by, or is under 

common control with another company. 

(7) Necessary to effect, administer, or enforce 

The term ‘‘as necessary to effect, administer, or enforce the transaction’’ means— 
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§ 6821 TITLE 15—COMMERCE AND TRADE Page 2236 

(A) the disclosure is required, or is a usual, 

appropriate, or acceptable method, to carry 

out the transaction or the product or service 

business of which the transaction is a part, 

and record or service or maintain the consumer’s account in the ordinary course of 

providing the financial service or financial 

product, or to administer or service benefits 

or claims relating to the transaction or the 

product or service business of which it is a 

part, and includes— 

(i) providing the consumer or the consumer’s agent or broker with a confirmation, statement, or other record of the 

transaction, or information on the status 

or value of the financial service or financial product; and 

(ii) the accrual or recognition of incentives or bonuses associated with the transaction that are provided by the financial 

institution or any other party; 

(B) the disclosure is required, or is one of 

the lawful or appropriate methods, to enforce the rights of the financial institution 

or of other persons engaged in carrying out 

the financial transaction, or providing the 

product or service; 

(C) the disclosure is required, or is a usual, 

appropriate, or acceptable method, for insurance underwriting at the consumer’s request 

or for reinsurance purposes, or for any of the 

following purposes as they relate to a consumer’s insurance: Account administration, 

reporting, investigating, or preventing fraud 

or material misrepresentation, processing 

premium payments, processing insurance 

claims, administering insurance benefits (including utilization review activities), participating in research projects, or as otherwise required or specifically permitted by 

Federal or State law; or 

(D) the disclosure is required, or is a usual, 

appropriate or acceptable method, in connection with— 

(i) the authorization, settlement, billing, 

processing, clearing, transferring, reconciling, or collection of amounts charged, 

debited, or otherwise paid using a debit, 

credit or other payment card, check, or account number, or by other payment 

means; 

(ii) the transfer of receivables, accounts 

or interests therein; or 

(iii) the audit of debit, credit or other 

payment information. 

(8) State insurance authority 

The term ‘‘State insurance authority’’ 

means, in the case of any person engaged in 

providing insurance, the State insurance authority of the State in which the person is 

domiciled. 

(9) Consumer 

The term ‘‘consumer’’ means an individual 

who obtains, from a financial institution, financial products or services which are to be 

used primarily for personal, family, or household purposes, and also means the legal representative of such an individual. 

(10) Joint agreement 

The term ‘‘joint agreement’’ means a formal 

written contract pursuant to which two or 

more financial institutions jointly offer, endorse, or sponsor a financial product or service, and as may be further defined in the regulations prescribed under section 6804 of this 

title. 

(11) Customer relationship 

The term ‘‘time of establishing a customer 

relationship’’ shall be defined by the regulations prescribed under section 6804 of this 

title, and shall, in the case of a financial institution engaged in extending credit directly to 

consumers to finance purchases of goods or 

services, mean the time of establishing the 

credit relationship with the consumer. 

(Pub. L. 106–102, title V, § 509, Nov. 12, 1999, 113 

Stat. 1443.) 

Editorial Notes 

REFERENCES IN TEXT 

This subchapter, referred to in text, was in the original ‘‘this subtitle’’, meaning subtitle A (§§501–510) of 

title V of Pub. L. 106–102, Nov. 12, 1999, 113 Stat. 1436, 

which is classified principally to this subchapter. For 

complete classification of subtitle A to the Code, see 

Tables. 

The Commodity Exchange Act, referred to in par. 

(3)(B), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, as 

amended, which is classified generally to chapter 1 (§1 

et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and 

Tables. 

The Farm Credit Act of 1971, referred to in par. (3)(C), 

is Pub. L. 92–181, Dec. 10, 1971, 85 Stat. 583, as amended, 

which is classified generally to chapter 23 (§2001 et seq.) 

of Title 12, Banks and Banking. For complete classification of this Act to the Code, see Short Title note 

set out under section 2001 of Title 12 and Tables. 

SUBCHAPTER II—FRAUDULENT ACCESS TO 

FINANCIAL INFORMATION 

§ 6821. Privacy protection for customer information of financial institutions 

(a) Prohibition on obtaining customer information by false pretenses 

It shall be a violation of this subchapter for 

any person to obtain or attempt to obtain, or 

cause to be disclosed or attempt to cause to be 

disclosed to any person, customer information 

of a financial institution relating to another 

person— 

(1) by making a false, fictitious, or fraudulent statement or representation to an officer, 

employee, or agent of a financial institution; 

(2) by making a false, fictitious, or fraudulent statement or representation to a customer of a financial institution; or 

(3) by providing any document to an officer, 

employee, or agent of a financial institution, 

knowing that the document is forged, counterfeit, lost, or stolen, was fraudulently obtained, 

or contains a false, fictitious, or fraudulent 

statement or representation. 

(b) Prohibition on solicitation of a person to obtain customer information from financial institution under false pretenses 

It shall be a violation of this subchapter to request a person to obtain customer information 
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Page 2237 TITLE 15—COMMERCE AND TRADE § 6822 

of a financial institution, knowing that the person will obtain, or attempt to obtain, the information from the institution in any manner described in subsection (a). 

(c) Nonapplicability to law enforcement agencies 

No provision of this section shall be construed 

so as to prevent any action by a law enforcement agency, or any officer, employee, or agent 

of such agency, to obtain customer information 

of a financial institution in connection with the 

performance of the official duties of the agency. 

(d) Nonapplicability to financial institutions in 

certain cases 

No provision of this section shall be construed 

so as to prevent any financial institution, or any 

officer, employee, or agent of a financial institution, from obtaining customer information of 

such financial institution in the course of— 

(1) testing the security procedures or systems of such institution for maintaining the 

confidentiality of customer information; 

(2) investigating allegations of misconduct 

or negligence on the part of any officer, employee, or agent of the financial institution; or 

(3) recovering customer information of the 

financial institution which was obtained or received by another person in any manner described in subsection (a) or (b). 

(e) Nonapplicability to insurance institutions for 

investigation of insurance fraud 

No provision of this section shall be construed 

so as to prevent any insurance institution, or 

any officer, employee, or agency of an insurance 

institution, from obtaining information as part 

of an insurance investigation into criminal activity, fraud, material misrepresentation, or 

material nondisclosure that is authorized for 

such institution under State law, regulation, interpretation, or order. 

(f) Nonapplicability to certain types of customer 

information of financial institutions 

No provision of this section shall be construed 

so as to prevent any person from obtaining customer information of a financial institution 

that otherwise is available as a public record 

filed pursuant to the securities laws (as defined 

in section 78c(a)(47) of this title). 

(g) Nonapplicability to collection of child support judgments 

No provision of this section shall be construed 

to prevent any State-licensed private investigator, or any officer, employee, or agent of such 

private investigator, from obtaining customer 

information of a financial institution, to the extent reasonably necessary to collect child support from a person adjudged to have been delinquent in his or her obligations by a Federal or 

State court, and to the extent that such action 

by a State-licensed private investigator is not 

unlawful under any other Federal or State law 

or regulation, and has been authorized by an 

order or judgment of a court of competent jurisdiction. 

(Pub. L. 106–102, title V, § 521, Nov. 12, 1999, 113 

Stat. 1446.) 

§ 6822. Administrative enforcement 

(a) Enforcement by Federal Trade Commission 

Except as provided in subsection (b), compliance with this subchapter shall be enforced by 

the Federal Trade Commission in the same manner and with the same power and authority as 

the Commission has under the Fair Debt Collection Practices Act [15 U.S.C. 1692 et seq.] to enforce compliance with such Act. 

(b) Enforcement by other agencies in certain 

cases 

(1) In general 

Compliance with this subchapter shall be enforced under— 

(A) section 8 of the Federal Deposit Insurance Act [12 U.S.C. 1818], in the case of— 

(i) national banks, and Federal branches 

and Federal agencies of foreign banks, by 

the Office of the Comptroller of the Currency; 

(ii) member banks of the Federal Reserve 

System (other than national banks), 

branches and agencies of foreign banks 

(other than Federal branches, Federal 

agencies, and insured State branches of 

foreign banks), commercial lending companies owned or controlled by foreign 

banks, and organizations operating under 

section 25 or 25A of the Federal Reserve 

Act [12 U.S.C. 601 et seq., 611 et seq.], by 

the Board; 

(iii) banks insured by the Federal Deposit Insurance Corporation (other than 

members of the Federal Reserve System 

and national nonmember banks) and insured State branches of foreign banks, by 

the Board of Directors of the Federal Deposit Insurance Corporation; and 

(iv) savings associations the deposits of 

which are insured by the Federal Deposit 

Insurance Corporation, by the Director of 

the Office of Thrift Supervision; and 

(B) the Federal Credit Union Act [12 U.S.C. 

1751 et seq.], by the Administrator of the National Credit Union Administration with respect to any Federal credit union. 

(2) Violations of this subchapter treated as violations of other laws 

For the purpose of the exercise by any agency referred to in paragraph (1) of its powers 

under any Act referred to in that paragraph, a 

violation of this subchapter shall be deemed to 

be a violation of a requirement imposed under 

that Act. In addition to its powers under any 

provision of law specifically referred to in 

paragraph (1), each of the agencies referred to 

in that paragraph may exercise, for the purpose of enforcing compliance with this subchapter, any other authority conferred on 

such agency by law. 

(Pub. L. 106–102, title V, § 522, Nov. 12, 1999, 113 

Stat. 1447.) 

Editorial Notes 

REFERENCES IN TEXT 

The Fair Debt Collection Practices Act, referred to in 

subsec. (a), is title VIII of Pub. L. 90–321, as added by 
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§ 6823 TITLE 15—COMMERCE AND TRADE Page 2238 

Pub. L. 95–109, Sept. 20, 1977, 91 Stat. 874, as amended, 

which is classified generally to subchapter V (§ 1692 et 

seq.) of chapter 41 of this title. For complete classification of this Act to the Code, see Short Title note set 

out under section 1601 of this title and Tables. 

Section 25 of the Federal Reserve Act, referred to in 

subsec. (b)(1)(A)(ii), is classified to subchapter I (§601 et 

seq.) of chapter 6 of Title 12, Banks and Banking. Section 25A of the Federal Reserve Act is classified to subchapter II (§611 et seq.) of chapter 6 of Title 12. 

The Federal Credit Union Act, referred to in subsec. 

(b)(1)(B), is act June 26, 1934, ch. 750, 48 Stat. 1216, as 

amended, which is classified generally to chapter 14 

(§ 1751 et seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code, see section 

1751 of Title 12 and Tables. 

Statutory Notes and Related Subsidiaries 

TRANSFER OF FUNCTIONS 

Functions vested in Administrator of National Credit 

Union Administration transferred and vested in National Credit Union Administration Board pursuant to 

section 1752a of Title 12, Banks and Banking. 

§ 6823. Criminal penalty 

(a) In general 

Whoever knowingly and intentionally violates, or knowingly and intentionally attempts 

to violate, section 6821 of this title shall be fined 

in accordance with title 18 or imprisoned for not 

more than 5 years, or both. 

(b) Enhanced penalty for aggravated cases 

Whoever violates, or attempts to violate, section 6821 of this title while violating another 

law of the United States or as part of a pattern 

of any illegal activity involving more than 

$100,000 in a 12-month period shall be fined twice 

the amount provided in subsection (b)(3) or (c)(3) 

(as the case may be) of section 3571 of title 18, 

imprisoned for not more than 10 years, or both. 

(Pub. L. 106–102, title V, § 523, Nov. 12, 1999, 113 

Stat. 1448.) 

§ 6824. Relation to State laws 

(a) In general 

This subchapter shall not be construed as superseding, altering, or affecting the statutes, 

regulations, orders, or interpretations in effect 

in any State, except to the extent that such 

statutes, regulations, orders, or interpretations 

are inconsistent with the provisions of this subchapter, and then only to the extent of the inconsistency. 

(b) Greater protection under State law 

For purposes of this section, a State statute, 

regulation, order, or interpretation is not inconsistent with the provisions of this subchapter if 

the protection such statute, regulation, order, 

or interpretation affords any person is greater 

than the protection provided under this subchapter as determined by the Federal Trade 

Commission, after consultation with the agency 

or authority with jurisdiction under section 6822 

of this title of either the person that initiated 

the complaint or that is the subject of the complaint, on its own motion or upon the petition of 

any interested party. 

(Pub. L. 106–102, title V, § 524, Nov. 12, 1999, 113 

Stat. 1448.) 

§ 6825. Agency guidance 

In furtherance of the objectives of this subchapter, each Federal banking agency (as defined in section 1813(z) of title 12), the National 

Credit Union Administration, and the Securities 

and Exchange Commission or self-regulatory organizations, as appropriate, shall review regulations and guidelines applicable to financial institutions under their respective jurisdictions 

and shall prescribe such revisions to such regulations and guidelines as may be necessary to 

ensure that such financial institutions have 

policies, procedures, and controls in place to 

prevent the unauthorized disclosure of customer 

financial information and to deter and detect 

activities proscribed under section 6821 of this 

title. 

(Pub. L. 106–102, title V, § 525, Nov. 12, 1999, 113 

Stat. 1448.) 

§ 6826. Reports 

(a) Report to the Congress 

Before the end of the 18-month period beginning on November 12, 1999, the Comptroller General, in consultation with the Federal Trade 

Commission, Federal banking agencies, the National Credit Union Administration, the Securities and Exchange Commission, appropriate Federal law enforcement agencies, and appropriate 

State insurance regulators, shall submit to the 

Congress a report on the following: 

(1) The efficacy and adequacy of the remedies provided in this subchapter in addressing 

attempts to obtain financial information by 

fraudulent means or by false pretenses. 

(2) Any recommendations for additional legislative or regulatory action to address 

threats to the privacy of financial information 

created by attempts to obtain information by 

fraudulent means or false pretenses. 

(b) Annual report by administering agencies 

The Federal Trade Commission and the Attorney General shall submit to Congress an annual 

report on number and disposition of all enforcement actions taken pursuant to this subchapter. 

(Pub. L. 106–102, title V, § 526, Nov. 12, 1999, 113 

Stat. 1448.) 

§ 6827. Definitions 

For purposes of this subchapter, the following 

definitions shall apply: 

(1) Customer 

The term ‘‘customer’’ means, with respect to 

a financial institution, any person (or authorized representative of a person) to whom the 

financial institution provides a product or 

service, including that of acting as a fiduciary. 

(2) Customer information of a financial institution 

The term ‘‘customer information of a financial institution’’ means any information maintained by or for a financial institution which 

is derived from the relationship between the 

financial institution and a customer of the financial institution and is identified with the 

customer. 
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Page 2239 TITLE 15—COMMERCE AND TRADE § 6901 

(3) Document 

The term ‘‘document’’ means any information in any form. 

(4) Financial institution 

(A) In general 

The term ‘‘financial institution’’ means 

any institution engaged in the business of 

providing financial services to customers 

who maintain a credit, deposit, trust, or 

other financial account or relationship with 

the institution. 

(B) Certain financial institutions specifically 

included 

The term ‘‘financial institution’’ includes 

any depository institution (as defined in section 461(b)(1)(A) of title 12), any broker or 

dealer, any investment adviser or investment company, any insurance company, any 

loan or finance company, any credit card 

issuer or operator of a credit card system, 

and any consumer reporting agency that 

compiles and maintains files on consumers 

on a nationwide basis (as defined in section 

1681a(p) of this title). 

(C) Securities institutions 

For purposes of subparagraph (B)— 

(i) the terms ‘‘broker’’ and ‘‘dealer’’ have 

the same meanings as given in section 78c 

of this title; 

(ii) the term ‘‘investment adviser’’ has 

the same meaning as given in section 

80b–2(a)(11) of this title; and 

(iii) the term ‘‘investment company’’ has 

the same meaning as given in section 80a–3 

of this title. 

(D) Certain persons and entities specifically 

excluded 

The term ‘‘financial institution’’ does not 

include any person or entity with respect to 

any financial activity that is subject to the 

jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act [7 U.S.C. 1 et seq.] and does not 

include the Federal Agricultural Mortgage 

Corporation or any entity chartered and operating under the Farm Credit Act of 1971 [12 

U.S.C. 2001 et seq.]. 

(E) Further definition by regulation 

The Federal Trade Commission, after consultation with Federal banking agencies and 

the Securities and Exchange Commission, 

may prescribe regulations clarifying or describing the types of institutions which shall 

be treated as financial institutions for purposes of this subchapter. 

(Pub. L. 106–102, title V, § 527, Nov. 12, 1999, 113 

Stat. 1449.) 

Editorial Notes 

REFERENCES IN TEXT 

The Commodity Exchange Act, referred to in par. 

(4)(D), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, as 

amended, which is classified generally to chapter 1 (§1 

et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and 

Tables. 

The Farm Credit Act of 1971, referred to in par. (4)(D), 

is Pub. L. 92–181, Dec. 10, 1971, 85 Stat. 583, as amended, 

which is classified generally to chapter 23 (§2001 et seq.) 

of Title 12, Banks and Banking. For complete classification of this Act to the Code, see Short Title note 

set out under section 2001 of Title 12 and Tables. 

CHAPTER 95—MICROENTERPRISE TECHNICAL ASSISTANCE AND CAPACITY BUILDING PROGRAM 

Sec. 

6901. Definitions. 

6902. Establishment of program. 

6903. Uses of assistance. 

6904. Qualified organizations. 

6905. Allocation of assistance; subgrants. 

6906. Matching requirements. 

6907. Applications for assistance. 

6908. Recordkeeping. 

6909. Authorization. 

6910. Implementation. 

§ 6901. Definitions 

For purposes of this chapter, the following 

definitions shall apply: 

(1) Administration 

The term ‘‘Administration’’ means the 

Small Business Administration. 

(2) Administrator 

The term ‘‘Administrator’’ means the Administrator of the Small Business Administration. 

(3) Capacity building services 

The term ‘‘capacity building services’’ 

means services provided to an organization 

that is, or that is in the process of becoming, 

a microenterprise development organization 

or program, for the purpose of enhancing its 

ability to provide training and services to disadvantaged entrepreneurs. 

(4) Collaborative 

The term ‘‘collaborative’’ means 2 or more 

nonprofit entities that agree to act jointly as 

a qualified organization under this chapter. 

(5) Disadvantaged entrepreneur 

The term ‘‘disadvantaged entrepreneur’’ 

means a microentrepreneur that is— 

(A) a low-income person; 

(B) a very low-income person; or 

(C) an entrepreneur that lacks adequate 

access to capital or other resources essential 

for business success, or is economically disadvantaged, as determined by the Administrator. 

(6) Indian tribe 

The term ‘‘Indian tribe’’ has the meaning 

given the term in section 4702 of title 12. 

(7) Intermediary 

The term ‘‘intermediary’’ means a private, 

nonprofit entity that seeks to serve microenterprise development organizations and programs as authorized under section 6904 of this 

title. 

(8) Low-income person 

The term ‘‘low-income person’’ has the 

meaning given the term in section 4702 of title 

12. 
Case 8:23-cv-00698-JWH-ADS Document 54 Filed 10/05/23 Page 38 of 56 Page ID #:1728 

Attachment B
.

.

16&i,~&p'tt9~ ~§s'6W~ Document 54 Filed 10/05/23 Page 39 of 56 Page ID #:1729 

Telemarketing SalesRule 16CFR Part 310 (July 11, 2023) 

This content is from the eCFR and is authoritative but unofficial. 

Title16 -Commercial Practices 

Chapter I -FederalTrade Commission 

SubchapterC-Regulations Under Specific Acts ofCongress 

Part 310 Tel_emarketi_ng..Sales...Ru_l_e 

§ 310.1 Scope_of..regulations..in.. th_is..part . 

§ 310.2 .P..~.f.!.n.l!!.2n.~.:. 

§ 310.3 .P..!:.~.~ptive tele~~-~-~~!!.n.9...~~ts or P.E_~ctices. 

§ 310.4 Abusive..telema_rketing..acts..o_r_pract_ices. 

§ 310.5 .~ecordk~_!:.P.i..~.9..E.!:.9.~.!Tements.:. 

§ 310.6 _Exemptions. 

§ 310.7 Actio~~---~.Y....~tates ..PE,\yate persons . 

§ 310.8 _Fee..fo_r..access..to..the..Natio_nal..Do..N_ot..Call..Registry. 

§ 310.9 Severability._ 

PART 310-TELEMARKETING SALES RULE 

Source: 75..FR_4851_6, Aug. 10, 2010, unless otherwise noted. 

§ 310.1Scope ofregulations in this part. 

This part implements the Telemarketing and Consumer Fraud and Abuse Prevention Act, 1.s..u.s.c,. ..610_1_-61_08, as 

amended. 

§ 310.2 Definitions. 

(a) Acquirer means a business organization, financial institution, or an agent of a business organization or 

financial institution that has authority from an organization that operates or licenses a credit card system 

to authorize merchants to accept, transmit, or process payment by credit card through the credit card 

system for money, goods or services, or anything else of value. 

(b) Attorney General means the chief legal officer of a state. 

(c) Billing information means any data that enables any person to access a customer's or donor's account, 

such as a credit card, checking, savings, share or similar account, utility bill, mortgage loan account, or 

debit card. 

(d) Caller identification service means a service that allows a telephone subscriber to have the telephone 

number, and, where available, name of the calling party transmitted contemporaneously with the 

telephone call, and displayed on a device in or connected to the subscriber's telephone. 

16 CFR 310.2(d) (enhanced display) page1of18 
16&ip~a!ft9~ ~§s'6W~ Document 54 Filed 10/05/23 Page 40 of 56 Page ID #:1730 

up 16 CFR 310.2(e) Telemarketing Sales Rule 

(e) Cardholder means a person to whom a credit card is issued or who is authorized to use a credit card on 

behalf of or in addition to the person to whom the credit card is issued. 

(f) Cash-to-cash money transfer means the electronic (as defined in section 106(2) of the Electronic 

Signatures in Global and National Commerce Act (15 U.S.C. 7006(~)) transfer of the value of cash 

received from one person to another person in a different location that is sent by a money transfer 

provider and received in the form of cash. For purposes of this definition, money transfer provider means 

any person or financial institution that provides cash-to-cash money transfers for a person in the normal 

course of its business, whether or not the person holds an account with such person or financial 

institution. The term cash-to-cash money transfer includes a remittance transfer, as defined in section 

919(g)(2) of the Electronic Fund Transfer Act ("EFTA"), 15 U.S.C. 1693a, that is a cash-to-cash transaction; 

however it does not include any transaction that is: 

(1) An electronic fund transfer as defined in section 903 of the EFTA; 

(2) Covered by Regulation E, 1.2 ..CFR..1_005.20, pertaining to gift cards; or 

(3) Subject to the Truth in Lending Act, 1_5..U.S.C...1_601 _et seq. 

(g) Cash reload mechanism is a device, authorization code, personal identification number, or other security 

measure that makes it possible for a person to convert cash into an electronic (as defined in section 

106(2) of the Electronic Signatures in Global and National Commerce Act 0..?...~.:.?..:.~:...?..99.?.(?.)) form that 

can be used to add funds to a general-use prepaid card, as defined in Regulation E, 12 CFR 1005.2, or an 

account with a payment intermediary. For purposes of this definit ion, a cash reload mechanism is not 

itself a general-use prepaid debit card or a swipe reload process or similar method in which funds are 

added directly onto a person's own general-use prepaid card or account with a payment intermediary. 

(h) Charitable contribution means any donation or gift of money or any other thing of value. 

(i) Commission means the Federal Trade Commission. 

0) Credit means the right granted by a creditor to a debtor to defer payment of debt or to incur debt and defer 

its payment. 

(k) Credit card means any card, plate, coupon book, or other credit device existing for the purpose of 

obtaining money, property, labor, or services on credit. 

(I) Credit card sales draft means any record or evidence of a credit card transaction. 

(m) Credit card system means any method or procedure used to process credit card transactions involving 

credit cards issued or licensed by the operator of that system. 

(n) Customer means any person who is or may be required to pay for goods or services offered through 

telemarketing. 

(o) Debt relief service means any program or service represented, directly or by implication, to renegotiate, 

settle, or in any way alter the terms of payment or other terms of the debt between a person and one or 

more unsecured creditors or debt collectors, including, but not limited to, a reduction in the balance, 

interest rate, or fees owed by a person to an unsecured creditor or debt collector. 

(p) Donor means any person solicited to make a charitable contribution. 

(q) Established business relationship means a relationship between a seller and a consumer based on: 

16 CFR 310.2(q) (enhanced display) page2of18 
16&i,~&p'tt9~ ~§s'6W~ Document 54 Filed 10/05/23 Page 41 of 56 Page ID #:1731 

Telemarketing Sales Rule 16 CFR 310.2(q)(1) 

(1) the consumer's purchase, rental, or lease of the seller's goods or services or a financial transaction 

between the consumer and seller, within the eighteen (18) months immediately preceding the date of 

a telemarketing call; or 

(2) the consumer's inquiry or application regarding a product or service offered by the seller, within the 

three 

(3) months immediately preceding the date of a telemarketing call. 

(r) Free-to-pay conversion means, in an offer or agreement to sell or provide any goods or services, a 

provision under which a customer receives a product or service for free for an initial period and will incur 

an obligation to pay for the product or service if he or she does not take affirmative action to cancel 

before the end of that period. 

(s) Investment opportunity means anything, tangible or intangible, that is offered, offered for sale, sold, or 

traded based wholly or in part on representations, either express or implied, about past, present, or future 

income, profit, or appreciation. 

(t) Material means likely to affect a person's choice of, or conduct regarding, goods or services or a 

charitable contribution. 

(u) Merchant means a person who is authorized under a written contract with an acquirer to honor or accept 

credit cards, or to transmit or process for payment credit card payments, for the purchase of goods or 

services or a charitable contribution. 

(v) Merchant agreement means a written contract between a merchant and an acquirer to honor or accept 

credit cards, or to transmit or process for payment credit card payments, for the purchase of goods or 

services or a charitable contribution. 

(w) Negative option feature means, in an offer or agreement to sell or provide any goods or services, a 

provision under which the customer's silence or failure to take an affirmative action to reject goods or 

services or to cancel the agreement is interpreted by the seller as acceptance of the offer. 

(x) Outbound telephone call means a telephone call initiated by a telemarketer to induce the purchase of 

goods or services or to solicit a charitable contribution. 

(y) Person means any individual, group, unincorporated association, limited or general partnership, 

corporation, or other business entity. 

(z) Preacquired account information means any information that enables a seller or telemarketer to cause a 

charge to be placed against a customer's or donor's account without obtaining the account number 

directly from the customer or donor during the telemarketing transaction pursuant to which the account 

will be charged. 

(aa) Prize means anything offered, or purportedly offered, and given, or purportedly given, to a person by 

chance. For purposes of this definit ion, chance exists if a person is guaranteed to receive an item and, at 

the time of the offer or purported offer, the telemarketer does not identify the specific item that the person 

will receive. 

(bb) Prize promotion means: 

(1) A sweepstakes or other game of chance; or 

(2) An oral or written express or implied representation that a person has won, has been selected to 

receive, or may be el igible to receive a prize or purported prize. 

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up 16 CFR 310.2(cc) Telemarketing Sales Rule 

(cc) Remotely created payment order means any payment instruction or order drawn on a person's account 

that is created by the payee or the payee's agent and deposited into or cleared through the check clearing 

system. The term includes, without limitation, a "remotely created check; as defined in Regulation CC, 

Availability of Funds and Collection of Checks, .]..?...9,FR 229.2.(f.f.ft but does not include a payment order 

cleared through an Automated Clearinghouse (ACH) Network or subject to the Truth in Lending Act, .~..?. 

.~.:.?..:.q:.J ?.9.].. et seq., and Regulation Z, .~.?...g,.~-~.J?.~E! ...~.9.?.?· 

( dd) Seller means any person who, in connection with a telemarketing transaction, provides, offers to provide, 

or arranges for others to provide goods or services to the customer in exchange for consideration. 

(ee) State means any state of the United States, the District of Columbia, Puerto Rico, the Northern Mariana 

Islands, and any territory or possession of the United States. 

(ff) Telemarketer means any person who, in connection with telemarketing, initiates or receives telephone 

calls to or from a customer or donor. 

(gg) Telemarketing means a plan, program, or campaign which is conducted to induce the purchase of goods 

or services or a charitable contribution, by use of one or more telephones and which involves more than 

one interstate telephone call. The term does not include the solicitation of sales through the mailing of a 

catalog which: contains a written description or illustration of the goods or services offered for sale; 

includes the business address of the seller; includes multiple pages of written material or illustrations; 

and has been issued not less frequently than once a year, when the person making the solicitation does 

not solicit customers by telephone but only receives calls initiated by customers in response to the 

catalog and during those calls takes orders only without further solicitation. For purposes of the previous 

sentence, the term "further solicitationn does not include providing the customer with information about, 

or attempting to sell, any other item included in the same catalog which prompted the customer's call or 

in a substantially similar catalog. 

(hh) Upselling means soliciting the purchase of goods or services following an initial transaction during a 

single telephone call. The upsell is a separate telemarketing transaction, not a continuation of the initial 

transaction. An "external upselr is a sol icitation made by or on behalf of a seller different from the seller 

in the init ial transaction, regardless of whether the initial transaction and the subsequent solicitation are 

made by the same telemarketer. An "internal upsell" is a solicitation made by or on behalf of the same 

seller as in the initial transaction, regardless of whether the initial transaction and subsequent solicitation 

are made by the same telemarketer. 

f?.~..E!J...1§..~.?.?.!Aug. 10, 2010, as amended at §..Q..E!J..?!..~~?!Dec. 14, 2015] 

§ 310.3 Deceptive telemarketing acts or practices. 

(a) Prohibited deceptive telemarketing acts or practices. It is a deceptive telemarketing act or practice and a 

violation of this Rule for any seller or telemarketer to engage in the following conduct: 

(1) Before a customer consents to payl.?.?.?.l for goods or services offered, fail ing to disclose truthfu lly, in a 

clear and conspicuous manner, the following material information: 

(i) The total costs to purchase, receive, or use, and the quantity of, any goods or services that are 

the subject of the sales offer;l.?.~9.1 

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Telemarketing Sales Rule 16 CFR 310.3(a)(1}(ii) 

(ii) All material restrictions, limitations, or conditions to purchase, receive, or use the goods or 

services that are the subject of the sales offer; 

(iii) If the seller has a policy of not making refunds, cancellations, exchanges, or repurchases, a 

statement informing the customer that this is the seller's policy; or, if the seller or telemarketer 

makes a representation about a refund, cancellation, exchange, or repurchase policy, a 

statement of all material terms and condit ions of such policy; 

(iv) In any prize promotion, the odds of being able to receive the prize, and, if the odds are not 

calculable in advance, the factors used in calculating the odds; that no purchase or payment is 

required to win a prize or to participate in a prize promotion and that any purchase or payment 

will not increase the person's chances of winning; and the no-purchase/ no-payment method of 

participating in the prize promotion with either instructions on how to participate or an address 

or local or toll-free telephone number to which customers may write or call for information on 

how to participate; 

(v) All material costs or conditions to receive or redeem a prize that is the subject of the prize 

promotion; 

(vi) In the sale of any goods or services represented to protect, insure, or otherwise limit a 

customer's liability in the event of unauthorized use of the customer's credit card, the limits on 

a cardholder's liabil ity for unauthorized use of a credit card pursuant to 1.5 ..U.S.C ...1_643; 

(vii) If the offer includes a negative option feature, all material terms and conditions of the negative 

option feature, including, but not limited to, the fact that the customer's account will be charged 

unless the customer takes an affirmative action to avoid the charge(s), the date(s) the 

charge(s) will be submitted for payment, and the specific steps the customer must take to 

avoid the charge(s); and 

(viii) In the sale of any debt relief service: 

(A) the amount of time necessary to achieve the represented results, and to the extent that the 

service may include a settlement offer to any of the customer's creditors or debt 

collectors, the time by which the debt relief service provider will make a bona fide 

settlement offer to each of them; 

(B) to the extent that the service may include a settlement offer to any of the customer's 

creditors or debt collectors, the amount of money or the percentage of each outstanding 

debt that the customer must accumulate before the debt relief service provider wil l make 

a bona fide settlement offer to each of them; 

............................................................................................................................................................______............................................................................................................................................................... 

1.~.~~.l When a seller or telemarketer uses, or directs a customer to use, a courier to transport payment, the seller 

or telemarketer must make the disclosures required by§ 31_0._3(a)(1) before sending a courier to pick up 

payment or authorization for payment, or directing a customer to have a courier pick up payment or 

authorization for payment. In the case of debt relief services, the seller or telemarketer must make the 

disclosures required by .§..?..~.9.:}.(~)0). before the consumer enrolls in an offered program. 

1.~?.9.1For offers of consumer credit products subject to the Truth in Lending Act, 1_5..U.S.C...1_601_et seq., and 

Regulation Z, 1.2 ..CFR.226, compliance with the disclosure requirements under the Truth in Lending Act and 

Regulation Z shall constitute compliance with .§ 310.3(~).(J.2.CQ.of this Rule. 

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Telemarketing Sales Rule 16 CFR 310.3(a)(1}(vili)(C) 

(C) to the extent that any aspect of the debt relief service relies upon or results in the 

customer's failure to make timely payments to creditors or debt collectors, that the use of 

the debt relief service wi ll likely adversely affect the customer's creditworthiness, may 

result in the customer being subject to collections or sued by creditors or debt collectors, 

and may increase the amount of money the customer owes due to the accrual of fees and 

interest; and 

(D) to the extent that the debt rel ief service requests or requires the customer to place funds 

in an account at an insured financial institution, that the customer owns the funds held in 

the account, the customer may withdraw from the debt relief service at any time without 

penalty, and, if the customer withdraws, the customer must receive all funds in the 

account, other than funds earned by the debt relief service in compliance with.§. 

}.J.9.:.1{~.)(!?,)(i).(~). through _(g). 

(2) Misrepresenting, directly or by implication, in the sale of goods or services any of the following 

material information: 

(i) The total costs to purchase, receive, or use, and the quantity of, any goods or services that are 

the subject of a sales offer; 

(ii) Any material restriction, limitation, or condition to purchase, receive, or use goods or services 

that are the subject of a sales offer; 

(iii) Any material aspect of the performance, efficacy, nature, or central characteristics of goods or 

services that are the subject of a sales offer; 

(iv) Any material aspect of the nature or terms of the seller's refund, cancellation, exchange, or 

repurchase policies; 

(v) Any material aspect of a prize promotion including, but not limited to, the odds of being able to 

receive a prize, the nature or value of a prize, or that a purchase or payment is required to win a 

prize or to participate in a prize promotion; 

(vi) Any material aspect of an investment opportunity including, but not limited to, risk, liquidity, 

earnings potential, or profitability; 

(vii) A seller's or telemarketer's affiliation with, or endorsement or sponsorship by, any person or 

government entity; 

(viii) That any customer needs offered goods or services to provide protections a customer already 

has pursuant to 1_s..u_.s .c_. ..1_643; 

(ix) Any material aspect of a negative option feature including, but not limited to, the fact that the 

customer's account wi ll be charged unless the customer takes an affirmative action to avoid 

the charge(s), the date(s) the charge(s) will be submitted for payment, and the specific steps 

the customer must take to avoid the charge(s); or 

(x) Any material aspect of any debt relief service, including, but not limited to, the amount of money 

or the percentage of the debt amount that a customer may save by using such service; the 

amount of time necessary to achieve the represented results; the amount of money or the 

percentage of each outstanding debt that the customer must accumulate before the provider of 

the debt relief service wi ll initiate attempts with the customer's creditors or debt collectors or 

make a bona fide offer to negotiate, settle, or modify the terms of the customer's debt; the 

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Telemarketing Sales Rule 16 CFR 310.3(a}(3) 

effect of the service on a customer's creditworthiness; the effect of the service on collection 

efforts of the customer's creditors or debt collectors; the percentage or number of customers 

who attain the represented results; and whether a debt relief service is offered or provided by a 

non-profit entity. 

(3) Causing billing information to be submitted for payment, or collecting or attempting to collect 

payment for goods or services or a charitable contribution, directly or indirectly, without the 

customer's or donor's express verifiable authorization, except when the method of payment used is a 

credit card subject to protections of the Truth in Lending Act and Regulation z,1.~~~.1or a debit card 

subject to the protections of the Electronic Fund Transfer Act and Regulation E.1?.?.?I Such 

authorization shall be deemed verifiable if any of the following means is employed: 

(i) Express written authorization by the customer or donor, which includes the customer's or 

donor's signature;l.~§~J 

(ii) Express oral authorization which is audio-recorded and made avai lable upon request to the 

customer or donor, and the customer's or donor's bank or other billing entity, and which 

evidences clearly both the customer's or donor's authorization of payment for the goods or 

services or charitable contribution that are the subject of the telemarketing transaction and the 

customer's or donor's receipt of all of the following information: 

(A) An accurate description, clearly and conspicuously stated, of the goods or services or 

charitable contribution for which payment authorization is sought; 

(B) The number of debits, charges, or payments (if more than one); 

(C) The date(s) the debit(s), charge(s), or payment(s) will be submitted for payment; 

(D) The amount(s) of the debit(s), charge(s), or payment(s); 

(E) The customer's or donor's name; 

(F) The customer's or donor's billing information, identified with sufficient specificity such that 

the customer or donor understands what account will be used to collect payment for the 

goods or services or charitable contribution that are the subject of the telemarketing 

transaction; 

(G) A telephone number for customer or donor inquiry that is answered during normal 

business hours; and 

(H) The date of the customer's or donor's oral authorization; or 

l.~§?.I Electronic Fund Transfer Act, .J..?...~.S.C. l.?.~.~-et seq., and Regulation E, .J..?...gfg..P~.~..?.9.§.-

1.~~~.1 Truth in Lending Act, .J..?...~:.?.:.~.:...J.?9.].. et seq., and Regulation Z, .J..?...~.~g.J?.~.~..?.?.?· 

1.~~~I For purposes of this Rule, the term "signaturen shall include an electronic or digital form of signature, to 

the extent that such form of signature is recognized as a valid signature under applicable federal law or state 

contract law. 

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Telemarketing Sales Rule 16 CFR 310.3(a){3)(iii) 

(iii) Written confirmation of the transaction, identified in a clear and conspicuous manner as such 

on the outside of the envelope, sent to the customer or donor via first class mail prior to the 

submission for payment of the customer's or donor's billing information, and that includes all of 

the information contained in §.§...?.J..9..-.?.{~)..(?,).(iJ).(AH§). and a clear and conspicuous statement of 

the procedures by which the customer or donor can obtain a refund from the seller or 

telemarketer or charitable organization in the event the confirmation is inaccurate; provided, 

however, that this means of authorization shall not be deemed verifiable in instances in which 

goods or services are offered in a transaction involving a free-to-pay conversion and 

preacquired account information. 

(4) Making a false or misleading statement to induce any person to pay for goods or services or to 

induce a charitable contribution. 

(b) Assisting and facilitating. It is a deceptive telemarketing act or practice and a violation of this Ru le for a 

person to provide substantial assistance or support to any seller or telemarketer when that person knows 

or consciously avoids knowing that the seller or telemarketer is engaged in any act or practice that 

violates .§.§..}}9.:?.(~)., ('?) or (~)., or .§..?..).9.:.~ of this Rule. 

(c) Credit card laundering. Except as expressly permitted by the applicable credit card system, it is a 

deceptive telemarketing act or practice and a violation of this Rule for: 

(1) A merchant to present to or deposit into, or cause another to present to or deposit into, the credit 

card system for payment, a credit card sales draft generated by a telemarketing transaction that is 

not the result of a telemarketing credit card transaction between the cardholder and the merchant; 

(2) Any person to employ, solicit, or otherwise cause a merchant, or an employee, representative, or 

agent of the merchant, to present to or deposit into the credit card system for payment, a credit card 

sales draft generated by a telemarketing transaction that is not the result of a telemarketing credit 

card transaction between the cardholder and the merchant; or 

(3) Any person to obtain access to the credit card system through the use of a business relationship or 

an affiliation with a merchant, when such access is not authorized by the merchant agreement or the 

appl icable credit card system. 

(d) Prohibited deceptive acts or practices in the solicitation of charitable contributions. It is a fraudulent 

charitable solicitation, a deceptive telemarketing act or practice, and a violation of this Rule for any 

telemarketer soliciting charitable contributions to misrepresent, directly or by implication, any of the 

following material information: 

(1) The nature, purpose, or mission of any entity on behalf of which a charitable contribution is being 

requested; 

(2) That any charitable contribution is tax deductible in whole or in part; 

(3) The purpose for which any charitable contribution will be used; 

(4) The percentage or amount of any charitable contribution that wi ll go to a charitable organization or 

to any particular charitable program; 

(5) Any material aspect of a prize promotion including, but not limited to: the odds of being able to 

receive a prize; the nature or value of a prize; or that a charitable contribution is required to win a 

prize or to participate in a prize promotion; or 

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Telemarketing Sales Rule 16CFR 310.3(d)(6) 

(6) A charitable organization's or telemarketer's affiliation with, or endorsement or sponsorship by, any 

person or government entity. 

§ 310.4 Abusive telemarketing acts or practices. 

(a) Abusive conduct generally. It is an abusive telemarketing act or practice and a violation of this Rule for any 

seller or telemarketer to engage in the following conduct: 

(1) Threats, intimidation, or the use of profane or obscene language; 

(2) Requesting or receiving payment of any fee or consideration for goods or services represented to 

remove derogatory information from, or improve, a person's credit history, credit record, or credit 

rating until: 

(i) The time frame in which the seller has represented all of the goods or services will be provided 

to that person has expired; and 

(ii) The seller has provided the person with documentation in the form of a consumer report from a 

consumer reporting agency demonstrating that the promised results have been achieved, such 

report having been issued more than six months after the results were achieved. Nothing in this 

Rule should be construed to affect the requirement in the Fair Credit Reporting Act, 1.5 ..U._S._C. 

1_681, that a consumer report may only be obtained for a specified permissible purpose; 

(3) Requesting or receiving payment of any fee or consideration from a person for goods or services 

represented to recover or otherwise assist in the return of money or any other item of value paid for 

by, or promised to, that person in a previous transaction, until seven (7) business days after such 

money or other item is delivered to that person. This provision shall not apply to goods or services 

provided to a person by a licensed attorney; 

(4) Requesting or receiving payment of any fee or consideration in advance of obtaining a loan or other 

extension of credit when the seller or telemarketer has guaranteed or represented a high likelihood 

of success in obtaining or arranging a loan or other extension of credit for a person; 

(5) 

(i) Requesting or receiving payment of any fee or consideration for any debt relief service until and 

unless: 

(A) The seller or telemarketer has renegotiated, settled, reduced, or otherwise altered the 

terms of at least one debt pursuant to a settlement agreement, debt management plan, or 

other such valid contractual agreement executed by the customer; 

(B) The customer has made at least one payment pursuant to that settlement agreement, debt 

management plan, or other valid contractual agreement between the customer and the 

creditor or debt collector; and 

(C) To the extent that debts enrolled in a service are renegotiated, settled, reduced, or 

otherwise altered individually, the fee or consideration either: 

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up 16 CFR 310.4 Telemarketing SalesRule 

(7) Bears the same proportional relationship to the total fee for renegotiating, settling, 

reducing, or altering the terms of the entire debt balance as the individual debt 

amount bears to the entire debt amount. The individual debt amount and the entire 

debt amount are those owed at the time the debt was enrolled in the service; or 

(2) Is a percentage of the amount saved as a result of the renegotiation, settlement, 

reduction, or alteration. The percentage charged cannot change from one individual 

debt to another. The amount saved is the difference between the amount owed at the 

time the debt was enrolled in the service and the amount actually paid to satisfy the 

debt. 

(ii) Nothing in .§ 310.4(~K?)(!). prohibits requesting or requiring the customer to place funds in an 

account to be used for the debt relief provider's fees and for payments to creditors or debt 

collectors in connection with the renegotiation, settlement, reduction, or other alteration of the 

terms of payment or other terms of a debt, provided that: 

(A) The funds are held in an account at an insured financial institution; 

(B) The customer owns the funds held in the account and is paid accrued interest on the 

account, if any; 

(C) The entity administering the account is not owned or controlled by, or in any way affil iated 

with, the debt relief service; 

(D) The entity administering the account does not give or accept any money or other 

compensation in exchange for referrals of business involving the debt relief service; and 

(E) The customer may withdraw from the debt relief service at any time without penalty, and 

must receive all funds in the account, other than funds earned by the debt relief service in 

compliance with .§...~.~.9.:.:H~)(?,)Q)..(~). through (g), within seven (7) business days of the 

customer's request. 

(6) Disclosing or receiving, for consideration, unencrypted consumer account numbers for use in 

telemarketing; provided, however, that this paragraph shall not apply to the disclosure or receipt of a 

customer's or donor's billing information to process a payment for goods or services or a charitable 

contribution pursuant to a transaction; 

(7) Causing billing information to be submitted for payment, directly or indirectly, without the express 

informed consent of the customer or donor. In any telemarketing transaction, the seller or 

telemarketer must obtain the express informed consent of the customer or donor to be charged for 

the goods or services or charitable contribution and to be charged using the identified account. In 

any telemarketing transaction involving preacquired account information, the requirements in 

p~r.,~~.r.~.P.~.~..(~).(?.)(!) through Q!) of this section must be met to evidence express informed consent. 

(i) In any telemarketing transaction involving preacquired account information and a free-to-pay 

conversion feature, the seller or telemarketer must: 

(A) Obtain from the customer, at a minimum, the last four (4) digits of the account number to 

be charged; 

(B) Obtain from the customer his or her express agreement to be charged for the goods or 

services and to be charged using the account number pursuant to p~_r.~~E~.P.~...(~)(?.).(.i.)(~).of 

this section; and, 

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up 16 CFR 310.4 Telemarketing Sales Rule 

(C) Make and maintain an audio recording of the entire telemarketing transaction. 

(ii) In any other telemarketing transaction involving preacquired account information not described 

in .P..~E~.~.r.~.P.~..(~).(?.)(Q_of this section, the seller or telemarketer must: 

(A) At a minimum, identify the account to be charged with sufficient specificity for the 

customer or donor to understand what account will be charged; and 

(B) Obtain from the customer or donor his or her express agreement to be charged for the 

goods or services and to be charged using the account number identified pursuant to 

.P..~r.~9E~.P.~..(~).(?.)_Q_i).(~). of this section; 

(8) Failing to transmit or cause to be transmitted the telephone number, and, when made available by the 

telemarketer's carrier, the name of the telemarketer, to any caller identification service in use by a 

recipient of a telemarketing call; provided that it shall not be a violation to substitute (for the name 

and phone number used in, or billed for, making the call) the name of the seller or charitable 

organization on behalf of which a telemarketing call is placed, and the seller's or charitable 

organization's customer or donor service telephone number, which is answered during regular 

business hours; 

(9) Creating or causing to be created, directly or indirectly, a remotely created payment order as payment 

for goods or services offered or sold through telemarketing or as a charitable contribution solicited 

or sought through telemarketing; or 

(10) Accepting from a customer or donor, directly or indirectly, a cash-to-cash money transfer or cash 

reload mechanism as payment for goods or services offered or sold through telemarketing or as a 

charitable contribution solicited or sought through telemarketing. 

(b) Pattern ofcalls. 

(1) It is an abusive telemarketing act or practice and a violation of this Rule for a telemarketer to engage 

in, or for a seller to cause a telemarketer to engage in, the following conduct: 

(i) Causing any telephone to ring, or engaging any person in telephone conversation, repeatedly or 

continuously with intent to annoy, abuse, or harass any person at the called number; 

(ii) Denying or interfering in any way, directly or indirectly, with a person's right to be placed on any 

registry of names and/or telephone numbers of persons who do not wish to receive outbound 

telephone calls established to comply with paragraph (b)(1 )(iii)(A) of this section, including, but 

not limited to, harassing any person who makes such a request; hanging up on that person; 

failing to honor the request; requiring the person to listen to a sales pitch before accepting the 

request; assessing a charge or fee for honoring the request; requiring a person to call a 

different number to submit the request; and requiring the person to identify the seller making 

the call or on whose behalf the call is made; 

(iii) Initiating any outbound telephone call to a person when: 

(A) That person previously has stated that he or she does not wish to receive an outbound 

telephone call made by or on behalf of the seller whose goods or services are being 

offered or made on behalf of the charitable organization for which a charitable 

contribution is being solicited; or 

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up 16 CFR 310.4 Telemarketing SalesRule 

(B) That person's telephone number is on the "do-not-cal In registry, maintained by the 

Commission, of persons who do not wish to receive outbound telephone calls to induce 

the purchase of goods or services unless the seller or telemarketer: 

(7) Can demonstrate that the seller has obtained the express agreement, in writing, of 

such person to place calls to that person. Such written agreement shall clearly 

evidence such person's authorization that calls made by or on behalf of a specific 

party may be placed to that person, and shall include the telephone number to which 

the calls may be placed and the signature!.~~)of that person; or 

(2) Can demonstrate that the seller has an established business relationship with such 

person, and that person has not stated that he or she does not wish to receive 

outbound telephone calls under paragraph_(b)(1)(i_ii)(A) of this section; or 

(iv) Abandoning any outbound telephone call. An outbound telephone call is "abandoned" under this 

section if a person answers it and the telemarketer does not connect the call to a sales 

representative within two (2) seconds of the person's completed greeting. 

(v) Initiating any outbound telephone call that delivers a prerecorded message, other than a 

prerecorded message permitted for compliance with the call abandonment safe harbor in §. 

31_0.4(b)(4)(iii), unless: 

(A) In any such call to induce the purchase of any good or service, the seller has obtained 

from the recipient of the call an express agreement, in writing, that: 

(i) The seller obtained only after a clear and conspicuous disclosure that the purpose of the 

agreement is to authorize the seller to place prerecorded calls to such person; 

(ii) The seller obtained without requiring, directly or indirectly, that the agreement be executed as a 

condition of purchasing any good or service; 

(iii) Evidences the willingness of the recipient of the call to receive calls that deliver prerecorded 

messages by or on behalf of a specific seller; and 

(iv) Includes such person's telephone number and signature;!,~§~ and 

(B) In any such call to induce the purchase of any good or service, or to induce a charitable 

contribution from a member of, or previous donor to, a non-profit charitable organization 

on whose behalf the call is made, the seller or telemarketer: 

(i) Allows the telephone to ring for at least fifteen (15) seconds or four (4) rings before 

disconnecting an unanswered call; and 

____..................................................___________, ___________..................................................____ 

1.~?.~l For purposes of this Rule, the term "signaturen shall include an electronic or digital form of signature, to 

the extent that such form of signature is recognized as a valid signature under applicable federal law or state 

contract law. 

1.~?.:?.l For purposes of this Rule, the term "signaturen shall include an electronic or digital form of signature, to 

the extent that such form of signature is recognized as a valid signature under applicable federal law or state 

contract law. 

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up 16 CFR 310.4 Telemarketing SalesRule 

(ii) Within two (2) seconds after the completed greeting of the person called, plays a prerecorded 

message that promptly provides the disclosures required by .§..?.J.9..:~(~). or (~).. followed 

immediately by a disclosure of one or both of the following: 

(A) In the case of a call that could be answered in person by a consumer, that the person 

called can use an automated interactive voice and/or keypress-activated opt-out 

mechanism to assert a Do Not Call request pursuant to §...?..)..9..:.~(~2.(J).(i.!.i)(A). at any time 

during the message. The mechanism must: 

(1) Automatically add the number called to the seller's ent ity-specific Do Not Call list; 

(2) Once invoked, immediately disconnect the call; and 

(3) Be available for use at any time during the message; and 

(B) In the case of a call that could be answered by an answering machine or voicemail service, 

that the person called can use a toll-free telephone number to assert a Do Not Call request 

pursuant to§ 31_0.4(b)(1)(iii)(A). The number provided must connect directly to an 

automated interactive voice or keypress-activated opt-out mechanism that: 

(1) Automatically adds the number called to the seller's entity-specific Do Not Call list; 

(2) Immediately thereafter disconnects the call; and 

(3) Is accessible at any time throughout the duration of the telemarketing campaign; and 

(iii) Complies with all other requirements of this part and other applicable federal and state laws. 

(C) Any call that complies with all applicable requirements of this paragraph (v) shall not be 

deemed to violate §..?..}.9.:.~(~).(]..)(!Y.)..?.f..~.~-i.~.J?..~r.!• 

(D) This paragraph (v) shall not apply to any outbound telephone call that delivers a 

prerecorded healthcare message made by, or on behalf of, a covered entity or its business 

associate, as those terms are defined in the HIPAA Privacy Rule, 45..CFR..1_60.1_03. 

(2) It is an abusive telemarketing act or practice and a violation of this Rule for any person to sell, rent, 

lease, purchase, or use any list established to comply with .§..?..}.9..:.~.(~)(J.)(i_!.Q.(A)., or maintained by the 

Commission pursuant to §...?..}.9..:.~(~)(J).(i_!.Q.(~)., for any purpose except compliance with the provisions 

of this Rule or otherwise to prevent telephone calls to telephone numbers on such lists. 

(3) A seller or telemarketer will not be liable for violating §..?.J.9..:.~(~)(J).(i_i)_and (!.i.Q if it can demonstrate 

that, as part of the seller's or telemarketer's routine business practice: 

(i) It has established and implemented written procedures to comply with § ..?..J.9.:.~{~).(D(i.D. and .C!.i.!); 

(ii) It has trained its personnel, and any entity assisting in its compliance, in the procedures 

establ ished pursuant to §..?..J.9.:.~(~).(~).(!).; 

(iii) The seller, or a telemarketer or another person acting on behalf of the seller or charitable 

organization, has maintained and recorded a list of telephone numbers the seller or charitable 

organization may not contact, in compliance with § 31_0.4(b)(1)(iii)(A); 

16 CFR 310.4 (enhanceddisplay) page13of18 
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up 16 CFR 310.4 Telemarketing SalesRule 

(iv) The seller or a telemarketer uses a process to prevent telemarketing to any telephone number 

on any list established pursuant to §..?..).9.:.~.(~)(~)Q!.!) or } .).9.:.1.(~).(D(i.!,i){~).. employing a version 

of the "do-not-call" registry obtained from the Commission no more than thirty-one (31) days 

prior to the date any call is made, and maintains records documenting this process; 

(v) The seller or a telemarketer or another person acting on behalf of the seller or charitable 

organization, monitors and enforces compliance with the procedures established pursuant to.§. 

31_0.4(b)(3)(i); and 

(vi) Any subsequent call otherwise violating p~,r.~~E~.P..~...(~)()).QQ.or Q_i,!) of this section is the result of 

error and not of failure to obtain any information necessary to comply with a request pursuant 

to paragraph_(b)(1.)(ii i)(A) of this section not to receive further calls by or on behalf of a seller or 

charitable organization. 

(4) A seller or telemarketer will not be liable for violating§ _31_0._4(b )(1)(iv) if: 

(i) The seller or telemarketer employs technology that ensures abandonment of no more than 

three (3) percent of all calls answered by a person, measured over the duration of a single 

calling campaign, if less than 30 days, or separately over each successive 30-day period or 

portion thereof that the campaign continues. 

(ii) The seller or telemarketer, for each telemarketing call placed, allows the telephone to ring for at 

least fifteen (15) seconds or four (4) rings before disconnecting an unanswered call; 

(iii) Whenever a sales representative is not available to speak with the person answering the call 

within two (2) seconds after the person's completed greeting, the seller or telemarketer 

promptly plays a recorded message that states the name and telephone number of the seller on 

whose behalf the call was placedl~.~~l ; and 

(iv) The seller or telemarketer, in accordance with § 31_0._S(b)-(d), retains records establishing 

compliance with .§..?.).9.:.1(~)(~).(!).~Qm,. 

(c) Calling time restrictions. Without the prior consent of a person, it is an abusive telemarketing act or 

practice and a violation of this Rule for a telemarketer to engage in outbound telephone calls to a person's 

residence at any time other than between 8:00 a.m. and 9:00 p.m. local time at the called person's 

location. 

(d) Required oral disclosures in the sale ofgoods or services. It is an abusive telemarketing act or practice 

and a violation of this Rule for a telemarketer in an outbound telephone call or internal or external upsell 

to induce the purchase of goods or services to fail to disclose truthfully, promptly, and in a clear and 

conspicuous manner to the person receiving the call, the following information: 

(1) The identity of the seller; 

(2) That the purpose of the call is to sell goods or services; 

(3) The nature of the goods or services; and 

l.~§~.l This provision does not affect any seller's or telemarketer's obligation to comply with relevant state and 

federal laws, including but not limited to the TCPA, ~?..~.:~.:g.:..?.?.?., and ~?,_g_~-~..P.~r.!..?..~.:.).?.9.9..-

16 CFR 310.4 (enhanceddisplay) page14of18 
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up 16 CFR 310.5 Telemarketing Sales Rule 

(4) That no purchase or payment is necessary to be able to win a prize or participate in a prize 

promotion if a prize promotion is offered and that any purchase or payment will not increase the 

person's chances of winning. This disclosure must be made before or in conjunction with the 

description of the prize to the person called. If requested by that person, the telemarketer must 

disclose the no-purchase/ no-payment entry method for the prize promotion; provided, however, that, 

in any internal upsell for the sale of goods or services, the seller or telemarketer must provide the 

disclosures listed in this section only to the extent that the information in the upsell differs from the 

disclosures provided in the init ial telemarketing transaction. 

(e) Required oral disclosures in charitable solicitations. It is an abusive telemarketing act or practice and a 

violation of this Rule for a telemarketer, in an outbound telephone call to induce a charitable contribution, 

to fail to disclose truthfully, promptly, and in a clear and conspicuous manner to the person receiving the 

call, the following information: 

(1) The identity of the charitable organization on behalf of which the request is being made; and 

(2) That the purpose of the call is to solicit a charitable contribution. 

f?.§...E.R..1.?..~!§!Aug. 10, 2010, as amended at ?~..E.R..§.?..!..?..9! Sept. 22, 2011; .?.9...E.R..!.?§§.?.! Dec. 14, 2015) 

§ 310.5 Recordkeeping requirements. 

(a) Any seller or telemarketer shall keep, for a period of 24 months from the date the record is produced, the 

following records relating to its telemarketing activit ies: 

(1) All substantially different advertising, brochures, telemarketing scripts, and promotional materials; 

(2) The name and last known address of each prize recipient and the prize awarded for prizes that are 

represented, directly or by implication, to have a value of $25.00 or more; 

(3) The name and last known address of each customer, the goods or services purchased, the date such 

goods or services were shipped or provided, and the amount paid by the customer for the goods or 

services;l.?.~?.l 

(4) The name, any fictitious name used, the last known home address and telephone number, and the 

job title(s) for all current and former employees directly involved in telephone sales or solicitations; 

provided, however, that if the seller or telemarketer permits fictitious names to be used by 

employees, each fictitious name must be traceable to only one specific employee; and 

(5) All verifiable authorizations or records of express informed consent or express agreement required 

to be provided or received under this Rule. 

(b) A seller or telemarketer may keep the records required by .§..?J.9.:.?.(~). in any form, and in the same manner, 

format, or place as they keep such records in the ordinary course of business. Failure to keep all records 

required by§_31_0._5(a) shall be a violation of this Ru le. 

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1.?.~?.l For offers of consumer credit products subject to the Truth in Lending Act, 1.5 ..U.S.C...1_601_et seq., and 

Regulation Z, 1.2 ..CFR.226, compliance with the recordkeeping requirements under the Truth in Lending Act, 

and Regulation Z, shall constitute compliance with §..?..~.9.:.?..(~)(~). of this Rule. 

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up 16 CFR 310.S(c) Telemarketing Sales Rule 

(c) The seller and the telemarketer calling on behalf of the seller may, by written agreement, allocate 

responsibility between themselves for the recordkeeping required by this Section. When a seller and 

telemarketer have entered into such an agreement, the terms of that agreement shall govern, and the 

seller or telemarketer, as the case may be, need not keep records that duplicate those of the other. If the 

agreement is unclear as to who must maintain any required record(s), or if no such agreement exists, the 

seller shall be responsible for complying with .§.§..} .J.9..-.?.(~).01(?.). and ( ?,); the telemarketer shall be 

responsible for complying with§ 31_0._5(a)(4). 

(d) In the event of any dissolution or termination of the seller's or telemarketer's business, the principal of that 

seller or telemarketer shall maintain all records as required under this section. In the event of any sale, 

assignment, or other change in ownership of the seller's or telemarketer's business, the successor 

business shall maintain all records required under this section. 

§ 310.6 Exemptions. 

(a) Solicitations to induce charitable contributions via outbound telephone calls are not covered by .§ . 

.?..J.9.:.1{~).(J)(i.!.Q.(~). of this Ru le. 

(b) The following acts or practices are exempt from this Rule: 

(1) The sale of pay-per-call services subject to the Commission's Rule entitled "Trade Regulation Rule 

Pursuant to the Telephone Disclosure and Dispute Resolution Act of 1992," 1_6..CFR..part _308, 

provided, however, that this exemption does not apply to the requirements of .§.§...?..J..9.:.:H~).(]J, .(~).(?.). 

.(~)., and (<?); 

(2) The sale of franchises subject to the Commission's Rule entitled "Disclosure Requirements and 

Prohibitions Concerning Franchising;' ("Franchise Rule") 1.6 ..CFR part.436, and the sale of business 

opportunit ies subject to the Commission's Rule entitled "Disclosure Requirements and Prohibitions 

Concerning Business Opportunities," ("Business Opportunity Rule#) 1_6..CFR..part _437, provided, 

however, that this exemption does not apply to the requirements of .§.§...?..J.9.:.1.(~}(~.)., .(~){?.)., (~)., and 

('?); 

(3) Telephone calls in which the sale of goods or services or charitable solicitation is not completed, and 

payment or authorization of payment is not required, until after a face-to-face sales or donation 

presentation by the seller or charitable organization, provided, however, that this exemption does not 

apply to the requirements of .§.§...?..J.9.:.1.(~).(~J .(~)..(?.), .(~)! and {'?); 

(4) Telephone calls initiated by a customer or donor that are not the result of any solicitation by a seller, 

charitable organization, or telemarketer, provided, however, that this exemption does not apply to any 

instances of upselling included in such telephone calls; 

(5) Telephone calls initiated by a customer or donor in response to an advertisement through any 

medium, other than direct mail solicitation, provided, however, that this exemption does not apply to: 

(i) Calls initiated by a customer or donor in response to an advertisement relating to investment 

opportunit ies, debt relief services, business opportunities other than business arrangements 

covered by the Franchise Rule or Business Opportunity Rule, or advertisements involving offers 

for goods or services described in .§...?..J.9..:.~{~)(U(Y.!) or .§...?..1.9..A(~)(?.). through H); 

(ii) The requirements of .§..?.J.9.:.1.(~)(?.). or 0.9); or 

(iii) Any instances of upselling included in such telephone calls; 

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Telemarketing Sales Rule 16CFR 310.6(bX6) 

(6) Telephone calls initiated by a customer or donor in response to a direct mail solicitation, including 

solicitations via the U.S. Postal Service, facsimile transmission, electronic mail, and other similar 

methods of delivery in which a solicitation is directed to specific address(es) or person(s), that 

clearly, conspicuously, and truthfully discloses all material information listed in § 31_0.3(a)(1 ), for any 

goods or services offered in the direct mail solicitation, and that contains no material 

misrepresentation regarding any item contained in .§..?.J..9.:.?.(~). for any requested charitable 

contribution; provided, however, that this exemption does not apply to: 

(i) Calls initiated by a customer in response to a direct mai l solicitation relating to prize 

promotions, investment opportunities, debt relief services, business opportunities other than 

business arrangements covered by the Franchise Rule or Business Opportunity Rule, or goods 

or services described in .§...?..J.9.:} .(~)(J.)(yQ_or .§...?..~.9.:.1(~)(?.). through (1); 

(ii) The requirements of .§...?..~.9.:.1.(~).(?.). or .0..9.); or 

(iii) Any instances of upselling included in such telephone calls; and 

(7) Telephone calls between a telemarketer and any business to induce the purchase of goods or 

services or a charitable contribution by the business, except calls to induce the retail sale of 

nondurable office or cleaning supplies; provided, however, that .§.§}J..9.:~(~)(J.)(i.!.i)(~). and ?..J.9.:.? shall 

not apply to sellers or telemarketers of nondurable office or cleaning supplies. 

f?.§..E.R..1.?..~!§!Aug. 10, 2010, as amended at §..9...E.R..!.?..~§.?.! Dec. 14, 2015] 

§ 310.7 Actions by states and private persons. 

(a) Any attorney general or other officer of a state authorized by the state to bring an action under the 

Telemarketing and Consumer Fraud and Abuse Prevention Act, and any private person who brings an 

action under that Act, shall serve written notice of its action on the Commission, if feasible, prior to its 

initiating an action under this Rule. The notice shall be sent to the Office of the Director, Bureau of 

Consumer Protection, Federal Trade Commission, Washington, DC 20580, and shall include a copy of the 

state's or private person's complaint and any other pleadings to be filed with the court. If prior notice is not 

feasible, the state or private person shall serve the Commission with the required notice immediately 

upon instituting its action. 

(b) Nothing contained in this Section shall prohibit any attorney general or other authorized state official from 

proceeding in state court on the basis of an alleged violation of any civil or criminal statute of such state. 

§ 310.8 Fee for access to the National Do Not Call Registry. 

(a) It is a violation of this Ru le for any seller to initiate, or cause any telemarketer to initiate, an outbound 

telephone call to any person whose telephone number is within a given area code unless such seller, 

either directly or through another person, first has paid the annual fee, required by§ 31_0.S(c), for access 

to telephone numbers within that area code that are included in the National Do Not Call Registry 

maintained by the Commission under .§...?..J.9.:.1(~).(J.)(.i_!.i)(~).; provided, however, that such payment is not 

necessary if the seller initiates, or causes a telemarketer to initiate, calls solely to persons pursuant to §.§. 

.?..J.9.:.~(~)(J.)(\i!)(~).(i). or .QQ, and the seller does not access the National Do Not Call Registry for any other 

purpose. 

(b) It is a violation of this Ru le for any telemarketer, on behalf of any seller, to initiate an outbound telephone 

call to any person whose telephone number is within a given area code unless that seller, either directly or 

through another person, first has paid the annual fee, required by .§...?..~..9.:.~(~)., for access to the telephone 

16 CFR 310.S(b) (enhanced display) page 17 of18 
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up 16CFR 310.S(c) Telemarketing SalesRule 

numbers within that area code that are included in the National Do Not Call Registry; provided, however, 

that such payment is not necessary if the seller initiates, or causes a telemarketer to initiate, calls solely 

to persons pursuant to .§.§...?..J.9..-.1(~).0}(!iQ(~).(i)_ or .QQ, and the seller does not access the National Do Not 

Call Registry for any other purpose. 

(c) The annual fee, which must be paid by any person prior to obtaining access to the National Do Not Call 

Registry, is $75 for each area code of data accessed, up to a maximum of $20,740; provided, however, that 

there shall be no charge to any person for accessing the first five area codes of data, and provided further, 

that there shall be no charge to any person engaging in or causing others to engage in outbound 

telephone calls to consumers and who is accessing area codes of data in the National Do Not Call 

Registry if the person is permitted to access, but is not required to access, the National Do Not Call 

Registry under 47__CFR__ 64.1_200, or any other Federal regulation or law. No person may participate in any 

arrangement to share the cost of accessing the National Do Not Call Registry, including any arrangement 

with any telemarketer or service provider to divide the costs to access the registry among various cl ients 

of that telemarketer or service provider. 

(d) Each person who pays, either directly or through another person, the annual fee set forth in paragraph (c) 

of this section, each person excepted under paragraph (c) from paying the annual fee, and each person 

excepted from paying an annual fee under .§...?..J.9..:.~.(~)(J.)(.i_!.i).(~)., will be provided a unique account number 

that will allow that person to access the registry data for the selected area codes at any t ime for the 

twelve month period beginning on the first day of the month in which the person paid the fee ("the annual 

period"). To obtain access to additional area codes of data during the first six months of the annual 

period, each person required to pay the fee underparagraph (c) of this section must first pay $75 for each 

additional area code of data not init ially selected. To obtain access to additional area codes of data 

during the second six months of the annual period, each person required to pay the fee under paragraph 

{~). of this section must first pay $38 for each additional area code of data not initially selected. The 

payment of the additional fee will permit the person to access the additional area codes of data for the 

remainder of the annual period. 

(e) Access to the National Do Not Call Registry is limited to telemarketers, sellers, others engaged in or 

causing others to engage in telephone calls to consumers, service providers acting on behalf of such 

persons, and any government agency that has law enforcement authority. Prior to accessing the National 

Do Not Call Registry, a person must provide the identifying information required by the operator of the 

registry to collect the fee, and must certify, under penalty of law, that the person is accessing the registry 

solely to comply with the provisions of this Rule or to otherwise prevent telephone calls to telephone 

numbers on the registry. If the person is accessing the registry on behalf of sellers, that person also must 

identify each of the sellers on whose behalf it is accessing the registry, must provide each seller's unique 

account number for access to the national registry, and must certify, under penalty of law, that the sellers 

will be using the information gathered from the registry solely to comply with the provisions of this Rule or 

otherwise to prevent telephone calls to telephone numbers on the registry. 

f?.§...E.R..1.?..§.!§!Aug. 10, 2010; ?§...E.R§?..?..~1!Aug. 24, 2010, as amended at Z!...E.R§!.9.?.Z!Aug. 27, 2012; Z?...E.R..§.~.?.1~!Aug. 30, 2013; 

??...E.R§?..1.!.?.!Aug. 29, 2014; ?9...E.R..!.Z§.~g Dec. 14, 2016; .?J...E.R§?..?1.§! Aug. 31, 2016; .??...E.R.}?..§.~1! Aug. 21, 2017; .?~..E.R..1.~.§.1.g 

Sept. 14, 2018; .?1...E.R..1.1.§.?..!.!Aug. 27, 2019; .?§...E.R..9.?..§.?..!.!Oct. 5, 2020; ?tE.R..1.?.}Q..!!Aug. 30, 2021; ?!...E.R..§.~}!.~!Aug. 31, 2022] 

§ 310.9 Severability. 

The provisions of this Ru le are separate and severable from one another. If any provision is stayed or determined to 

be invalid, it is the Commission's intention that the remaining provisions shall continue in effect. 

16 CFR 310.9 (enhanced display) page18of18 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Case 8:23-cv-00698-JWH-ADS Document 54-1 Filed 10/05/23 Page 1 of 54 Page ID 

#:1747 

UNITED STATES DISTRICT COURT 

FOR CENTRAL DISTRICT OF CALIFORNIA 

FEDERAL TRADE COMMISSION 

Plaintiff, 

v. 

SL FINANCE LLC, a California limited 

liability company; 

MICHAEL CASTILLO, individually and as 

an officer of SL FINANCE LLC; and 

CHRISTIAN CASTILLO, individually and 

as an officer of SL FINANCE LLC; 

Defendants. 

Case No. 8:23-CV-0698-

JWH(ADSx) 

[PROPOSED] ORDER FOR 

PERMANENT INJUNCTION, 

MONETARY RELIEF, AND 

OTHER RELIEF 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Case 8:23-cv-00698-JWH-ADS Document 54-1 Filed 10/05/23 Page 2 of 54 Page ID 

#:1748 

Plaintiff, the Federal Trade Commission (“Commission” or “FTC”), filed its 

Complaint for Permanent Injunction, Monetary Relief, and Other Relief 

(“Complaint”) pursuant to Sections 13(b) and 19 of the Federal Trade Commission 

Act (“FTC Act”), 15 U.S.C. §§ 53(b) and 57b, the Telemarketing and Consumer 

Fraud and Abuse Prevention Act (“Telemarketing Act”), 15 U.S.C. §§ 6101-6108, 

Section 1401(c) of the COVID-19 Consumer Protection Act of the 2021 

Consolidated Appropriations Act, Pub. L. No. 116-260, 134 Stat. 1182, Div. FF, 

Title XIV, § 1401(c), (Prohibiting Deceptive Acts or Practices in Connection With 

the Novel Coronavirus) (“COVID-19 Consumer Protection Act”), and Section 

522(a) of the Gramm-Leach-Bliley Act (“GLB Act”), 15 U.S.C. § 6822(a). The 

Commission and Defendants stipulate to the entry of this [Proposed] Order for 

Permanent Injunction, Monetary Relief, and Other Relief (“Order”) to resolve all 

matters in dispute in this action between them. 

THEREFORE, IT IS ORDERED as follows: 

FINDINGS 

1. This Court has jurisdiction over this matter. 

2. The Complaint charges that Defendants participated in deceptive acts 

or practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), the 

Telemarketing Sales Rule (the “TSR”), 16 C.F.R. Part 310, Section 1401 of the 

COVID-19 Consumer Protection Act of the 2021 Consolidated Appropriations Act 

(the “COVID-19 Act”), Pub. L. No. 116-260, 134 Stat. 1182, Div. FF, Title XIV, § 

1401, and Section 521 of the Gramm-Leach-Bliley Act (the “GLB Act”), 15 

U.S.C. § 6821, in the deceptive marketing and sale of student loan debt relief 

services. 

3. Only for purposes of this action, Defendants admit the facts necessary 

to establish jurisdiction. 

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Case 8:23-cv-00698-JWH-ADS Document 54-1 Filed 10/05/23 Page 3 of 54 Page ID 

#:1749 

4. Defendants waive any claim that they may have under the Equal 

Access to Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this action 

through the date of this Order, and agree to bear their own costs and attorney fees. 

5. Defendants waive all rights to appeal or otherwise challenge or 

contest the validity of this Order. 

DEFINITIONS 

For the purpose of this Order, the following definitions apply: 

A. “Assisting Others” includes: 

1. Performing customer service functions, including receiving or 

responding to consumer complaints; 

2. Formulating or providing, or arranging for the formulation or 

provision of, any advertising or marketing material, including any telephone sales 

script, direct mail solicitation, or the design, text, or use of images of any Internet 

website, email, or other electronic communication; 

3. Formulating or providing, or arranging for the formulation or 

provision of, any marketing support material or service, including web or Internet 

Protocol addresses or domain name registration for any Internet websites, affiliate 

marketing services, or media placement services; 

4. Providing names of, or assisting in the generation of, potential 

customers; 

5. Performing marketing, billing, payment processing, or payment 

services of any kind; or 

6. Acting or serving as an owner, officer, director, manager, or 

principal of any entity. 

B. “Defendants” means the Individual Defendants and the Corporate 

Defendants, individually, collectively, or in any combination. 

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Case 8:23-cv-00698-JWH-ADS Document 54-1 Filed 10/05/23 Page 4 of 54 Page ID 

#:1750 

1. “Corporate Defendant(s)” means SL Finance LLC, and each 

of its subsidiaries, affiliates successors and assigns. 

2. “Individual Defendants” means Michael Castillo and 

Christian Castillo, individually, collectively, or in any combination. 

C. “National Do Not Call Registry” means the “do-not-call” registry of 

telephone numbers maintained by the Commission pursuant to 16 C.F.R. § 

310.4(b)(1)(iii)(B). 

D. “Outbound Telephone Call” means a telephone call initiated by a 

Telemarketer to induce the purchase of goods or services or to solicit a charitable 

contribution. 

E. “Person” means a natural person, organization, or other legal entity, 

including a corporation, partnership, proprietorship, association, cooperative, or 

any other group or combination acting as an entity. 

F. “Receiver” means Thomas W. McNamara. 

G. “Receivership Entity(ies)” means the Corporate Defendant(s), as 

well as any other entity that has conducted any business related to Defendants’ 

student loan debt relief services business, including receipt of assets derived from 

any activity that is the subject of the Complaint in this matter, and which the 

Receiver has reason to believe is owned or controlled in whole or in part by any 

Defendant. 

H. “Secured or Unsecured Debt Relief Product or Service” means: 

1. With respect to any mortgage, loan, debt, or obligation between 

a person and one or more secured or unsecured creditors or debt collectors, any 

product, service, plan, or program represented, expressly or by implication, to: 

a. stop, prevent, or postpone any mortgage or deed of 

foreclosure sale for a person’s dwelling, any other sale of collateral, any 

repossession of a person’s dwelling or other collateral, or otherwise save a person’s 

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dwelling or other collateral from foreclosure or repossession; 

b. negotiate, obtain, or arrange a modification, or 

renegotiate, settle, reduce, or in any way alter any terms of the mortgage, loan, 

debt, or obligation, including a reduction in the amount of interest, principal 

balance, monthly payments, or fees owed by a person to a secured or unsecured 

creditor or debt collector; 

c. obtain any forbearance or modification in the timing of 

payments from any secured or unsecured holder or servicer of any mortgage, loan, 

debt, or obligation; 

d. negotiate, obtain, or arrange any extension of the period 

of time within which a person may (i) cure his or her default on the mortgage, loan, 

debt, or obligation, (ii) reinstate his or her mortgage, loan, debt, or obligation, (iii) 

redeem a dwelling or other collateral, or (iv) exercise any right to reinstate the 

mortgage, loan, debt, or obligation or redeem a dwelling or other collateral; 

e. obtain any waiver of an acceleration clause or balloon 

payment contained in any promissory note or contract secured by any dwelling or 

other collateral; or 

f. negotiate, obtain, or arrange (i) a short sale of a dwelling 

or other collateral, (ii) a deed-in-lieu of foreclosure, or (iii) any other disposition of 

a mortgage, loan, debt, or obligation other than a sale to a third party that is not the 

secured or unsecured loan holder. 

The foregoing shall include any manner of claimed assistance, including auditing 

or examining a person’s application for the mortgage, loan, debt, or obligation. 

2. With respect to any loan, debt, or obligation between a person 

and one or more unsecured creditors or debt collectors, any product, service, plan, 

or program represented, expressly or by implication, to: 

a. repay one or more unsecured loans, debts, or obligations; 

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or 

b. combine unsecured loans, debts, or obligations into one 

or more new loans, debts, or obligations. 

I. “Seller” means any person who, in connection with a Telemarketing 

transaction, provides, offers to provide, or arranges for others to provide goods or 

services to the customer in exchange for consideration, whether or not such person 

is under the jurisdiction of the Commission. 

J. “Telemarketer” means any person who, in connection with 

Telemarketing, initiates or receives telephone calls to or from a customer or donor, 

whether or not such person is under the jurisdiction of the Commission. 

K. “Telemarketing” means any plan, program, or campaign which is 

conducted to induce the purchase of goods or services by use of one or more 

telephones, and which involves a telephone call, whether or not covered by the 

Telemarketing Sales Rule. 

ORDER 

I. BAN ON SECURED AND UNSECURED 

DEBT RELIEF PRODUCTS AND SERVICES 

IT IS ORDERED that Defendants are permanently restrained and enjoined 

from advertising, marketing, promoting, offering for sale, selling, or Assisting 

Others in the advertising, marketing, promoting, offering for sale, or selling, of any 

Secured or Unsecured Debt Relief Product or Service. 

II. PROHIBITION AGAINST 

MISREPRESENTATIONS RELATING TO ANY 

PRODUCTS OR SERVICES 

IT IS FURTHER ORDERED that Defendants and Defendants’ officers, 

agents, employees, and attorneys, and all other Persons in active concert or 

participation with any of them, who receive actual notice of this Order, whether 

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acting directly or indirectly, in connection with the advertising, marketing, 

promoting, offering for sale, or selling of any product, service, plan, or program 

are permanently restrained and enjoined from misrepresenting, or Assisting Others 

in misrepresenting, expressly or by implication: 

A. Any material aspect of the nature or terms of any refund, cancellation, 

exchange, or repurchase policy, including the likelihood of a consumer obtaining a 

full or partial refund, or the circumstances in which a full or partial refund will be 

granted to the consumer; 

B. That any Person is affiliated with, endorsed or approved by, or 

otherwise connected to any other Person; government entity; public, non-profit, or 

other non-commercial program; or any other program; 

C. Any fact material to consumers concerning any good or service 

associated with the treatment, cure, prevention, mitigation, or diagnosis of 

COVID-19; or any fact material to consumers concerning any government benefit 

related to COVID-19; 

D. The nature, expertise, position, or job title of any Person who provides 

any product, service, plan, or program; 

E. That the ability to improve or otherwise affect a consumer’s credit 

record, credit history, credit rating, or ability to obtain credit, including that a 

consumer’s credit record, credit history, credit rating, or ability to obtain credit can 

be improved by permanently removing negative information from the consumer’s 

credit record or history, even where such information is accurate and not obsolete; 

F. That a consumer will save money; or 

G. Any other fact material to consumers concerning any good or service, 

such as: the total costs; any restrictions, limitations, or conditions; or any aspect of 

its performance, efficacy, nature, or central characteristics. 

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III. PROHIBITION AGAINST 

UNSUBSTANTIATED CLAIMS 

IT IS FURTHER ORDERED that Defendants and Defendants’ officers, agents, 

employees, and attorneys, and all other Persons in active concert or participation 

with any of them, who receive actual notice of this Order, whether acting directly 

or indirectly, in connection with the advertising, marketing, promoting, offering for 

sale, or selling of any product, service, plan, or program are permanently restrained 

and enjoined from making any representation or Assisting Others in making any 

misrepresentation, expressly or by implication, about the benefits, performance, or 

efficacy of any product or service, unless the representation is non-misleading, 

and, at the time such representation is made, that Defendant possesses and relies 

upon competent and reliable evidence that is sufficient in quality and quantity 

based on standards generally accepted in relevant fields, when considered in light 

of the entire body of relevant and reliable evidence, to substantiate that the 

representation is true. 

IV. PROHIBITION AGAINST OBTAINING 

CUSTOMER INFORMATION BY FALSE 

PRETENSES 

IT IS FURTHER ORDERED that Defendants and Defendants’ officers, agents, 

employees, and attorneys, and all other Persons in active concert or participation 

with any of them, who receive actual notice of this Order, whether acting directly 

or indirectly are permanently restrained and enjoined from: 

A. Obtaining, or attempting to obtain customer information of a 

financial institution (including bank account routing number, account number, or 

log-in credentials) from a consumer by making false, fictitious, or fraudulent 

representations to any consumer or financial institution; or 

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B. Violating the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801-6809, §§ 

6821-6827, a copy of which is attached as ATTACHMENT A. 

V. PROHIBITION AGAINST ABUSIVE TELEMARKETING PRACTICES 

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, 

employees, and attorneys, and all other Persons in active concert or participation 

with any of them, who receive actual notice of this Order, whether acting directly 

or indirectly, in connection with Telemarketing are permanently restrained and 

enjoined from engaging in, or assisting and facilitating others in engaging in, any 

of the following practices: 

A. Initiating any Outbound Telephone Call to a Person when that Person 

has previously stated that he or she does not wish to receive an Outbound 

Telephone Call: 

1. Made by or on behalf of the Seller whose goods or services are 

being offered; or 

2. Made on behalf of a charitable organization for which a 

charitable contribution is being solicited. 

B. Initiating any Outbound Telephone Call to a telephone number within 

a given area code unless the Seller, either directly or through another Person, has 

paid the annual fee for access to the telephone numbers within that area code that 

are included in the National Do Not Call Registry; and 

C. Violating the Telemarketing Sales Rule, 16 C.F.R. Part 310, attached 

as ATTACHMENT B. 

VI. MONETARY JUDGMENT AND PARTIAL 

SUSPENSION 

IT IS FURTHER ORDERED that: 

Judgment in the amount of Five Million, Seven Hundred Ninety-Eight 

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B. 

C. 

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Thousand, Nine Hundred Forty-Six Dollars and Thirty-Two Cents ($5,798,946.32) 

is entered in favor of the Commission against the Individual Defendants and 

Corporate Defendants, jointly and severally, as monetary relief. 

The monetary judgment set out in Section VI.A is enforceable against 

any asset, real or personal, whether located within the United States or outside the 

United States, owned jointly or singly by, on behalf of, for the benefit of, in trust 

by or for, or as a deposit for future goods or services to be provided to, any 

Defendant, whether held as tenants in common, joint tenants with or without the 

right of survivorship, tenants by the entirety, and/or community property. 

In partial satisfaction of the judgment against Defendants: 

, in which case Defendants shall cooperate fully with the 

Receiver and shall execute any instrument or document presented 

by the Receiver, and do whatever else the Receiver deems 

necessary or desirable to effect such transfer. Upon such transfer, 

the real property shall be an asset of the receivership estate, to be 

governed by Section X of this Order. 

1. Defendants shall, within twenty (20) days after the date of entry of 

this Order, either (a) transfer to the FTC or its designated agent 

cash in the amount of $230,962.95 or (b) transfer to the Receiver 

title to the property located at 

2. Defendant Michael Castillo shall, within twenty (20) days after the 

date of entry of this Order, either (a) transfer to the FTC or its 

designated agent cash in the amount of $13,723 or (b) transfer to 

the Receiver title to the 2017 Tesla Model 3 listed on his financial 

statement, in which case Defendants shall cooperate fully with the 

Receiver and shall execute any instrument or document presented 

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by the Receiver, and do whatever else the Receiver deems 

necessary or desirable to effect such transfer. Upon such transfer, 

the 2017 Tesla Model 3 shall be an asset of the receivership estate, 

to be governed by Section X of this Order. 

3. In addition to the amounts set forth in Subsection VI.C.1-2, any 

financial or brokerage institution, escrow agent, title company, 

commodity trading company, business entity, or person, whether 

located within the United States or outside the United States, that 

holds, controls, or maintains accounts or assets of, on behalf of, or 

for the benefit of, any Receivership Entity, whether real or 

personal, whether located within the United States or outside the 

United States, shall, within ten (10) business days from receipt of a 

copy of this Order, turn over such accounts or assets to the 

Receiver or his designated agent. 

4. In addition to the amounts set forth in Subsection IV.C.1-3, any 

financial or brokerage institution, escrow agent, title company, 

commodity trading company, business entity, or person, whether 

located within the United States or outside the United States, that 

holds, controls, or maintains accounts or assets of, on behalf of, or 

for the benefit of, any Individual Defendant, whether real or 

personal, whether located within the United States or outside the 

United States, shall, within ten (10) business days from receipt of a 

copy of this order, liquidate and turn over such account or asset to 

the FTC or its designated agent, including, but not limited to: 

i Bank of America, N.A (“Bank of America”) shall, within 

ten (10) days of receipt of a copy of this Order, transfer 

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to the FTC or its designated agent all holdings in account 

number xxxx4697 in the name of Christian Castillo; 

ii Bank of America shall, within ten (10) days of receipt of 

a copy of this Order, transfer to the FTC or its designated 

agent all holdings in account number xxxx3848 in the 

name of Christian Castillo; 

iii Bank of America shall, within ten (10) days of receipt of 

a copy of this Order, transfer to the FTC or its designated 

agent all holdings in account number xxxx3598 in the 

name of Michael Castillo; 

iv Bank of America shall, within ten (10) days of receipt of 

a copy of this Order, transfer to the FTC or its designated 

agent all holdings in account number xxxx0458 in the 

name of Michael Castillo; 

v JP Morgan Chase Bank (“Chase”) shall, within ten (10) 

days of receipt of a copy of this Order, transfer to the 

FTC or its designated agent all holdings in account 

number xxxx5623 in the name of Christian Castillo; 

vi Chase shall, within ten (10) days of receipt of a copy of 

this Order, transfer to the FTC or its designated agent all 

holdings in account number xxxx8776 in the name of 

Christian Castillo; 

vii Chase shall, within ten (10) days of receipt of a copy of 

this Order, transfer to the FTC or its designated agent all 

holdings in account number xxxx6730 in the name of 

Michael Castillo; 

viii Chase shall, within ten (10) days of receipt of a copy of 

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D. 

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this Order, transfer to the FTC or its designated agent all 

holdings in account number xxxx1923 in the name of 

Michael Castillo; 

ix Robinhood Markets, Inc. (“Robinhood”) shall, within ten 

(10) days of receipt of a copy of this Order, liquidate and 

transfer to the FTC or its designated agent all holdings in 

account number xxxx5072 and all other holdings in the 

name of Christian Castillo; 

x Robinhood shall, within ten (10) days of receipt of a copy 

of this Order, liquidate and transfer to the FTC or its 

designated agent all holdings in account number 

xxxx6589 and all other holdings in the name of Michael 

Castillo; 

xi Coinbase Global Inc. shall, within ten (10) days of 

receipt of a copy of this Order, liquidate and transfer to 

the FTC or its designated agent all holdings held in the 

name of Christian Castillo; 

xii Webull Corporation shall, within ten (10) days of receipt 

of a copy of this Order, liquidate and transfer to the FTC 

or its designated agent all holdings in account number 

xxxx4689 in the name of Christian Castillo. 

Upon such payment and all other asset transfers, as set forth in 

Sections VI.C and VII, the remainder of the judgment is suspended, subject to the 

Subsections below. 

The asset freeze is modified to permit the transfers and liquidations 

identified in this Section. Upon completion of those transfers, the asset freeze as to 

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F. 

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Defendants is dissolved. 

The Commission’s agreement to the suspension of part of the 

judgment is expressly premised upon the truthfulness, accuracy, and completeness 

of Defendants’ sworn financial statements and related documents (collectively, 

“financial representations”) submitted to the Commission, namely: 

1. the Financial Statement of Individual Defendant Christian 

Castillo signed on May 19, 2023, including the attachments; 

2. the Financial Statement of Individual Defendant Michael 

Castillo signed on May 17, 2023, including the attachments; 

3. the Financial Statement of Corporate Defendant SL Finance 

LLC signed by Michael Castillo, CEO, on May 19, 2023, including the 

attachments; 

4. The additional documentation submitted by email from 

Defendants’ counsel Karl Kronenberger to Commission counsel Katherine Aizpuru 

dated May 30, 2023 attaching a receipt for deposit of $9,000 into Bank of America 

account xxxx3848 in the name of Christian Castillo; and 

5. The additional documentation submitted by email from 

Defendants’ counsel Karl Kronenberger to Commission counsel Katherine Aizpuru 

dated June 2, 2023, attaching (1) Supplement to Fin. Statement – Indv. (Christian 

Castillo) for Item 11; (2) Supplement to Fin. Statement – Indv. (Michael Castillo) 

for Item 11; (3) Supplement to Fin. Statement – Indv. (Michael Castillo) for Item 

10; (4) bank statements associated with Bank of America accounts in the name of 

Michael Castillo; and (5) a bank statement associated with a Chase account in the 

name of Christian Castillo. 

6. The additional documentation submitted by email from 

Defendants’ counsel Karl Kronenberger to Commission counsel Katherine Aizpuru 

dated June 8, 2023, attaching (1) account statements associated with a Robinhood 

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account in the name of Michael Castillo; (2) account statements associated with a 

Robinhood account in the name of Christian Castillo; (3) transaction reports 

associated with a Coinbase account in the name of Michael Castillo; (4) transaction 

reports associated with a Coinbase account in the name of Christian Castillo; (5) 

account statements associated with a Coinbase account in the name of Michael 

Castillo; and (6) account statements associated with a Coinbase account in the 

name of Christian Castillo. 

The suspension of the judgment will be lifted as to any Defendant if, 

upon motion by the Commission, the Court finds that Defendant failed to disclose 

any material asset, materially misstated the value of any asset, or made any other 

material misstatement or omission in the financial representations identified above. 

If the suspension of the judgment is lifted, the judgment becomes 

immediately due as to that Defendant in the amount specified in Subsection VI.A 

above (which the parties stipulate, only for purposes of this Section, represents the 

consumer injury alleged in the Complaint), less any payment previously made 

pursuant to this Section, plus interest computed from the date of entry of this 

Order. 

VII. ADDITIONAL MONETARY PROVISIONS 

IT IS FURTHER ORDERED that: 

Defendants relinquish dominion and all legal and equitable right, title, 

and interest in all assets transferred pursuant to this Order and may not seek the 

return of any assets. 

The facts alleged in the Complaint will be taken as true, without 

further proof, in any subsequent civil litigation by or on behalf of the Commission, 

including in a proceeding to enforce its rights to any payment or monetary 

judgment pursuant to this Order, such as a nondischargeability complaint in any 

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C. 

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bankruptcy case. 

The facts alleged in the Complaint establish all elements necessary to 

sustain an action by the Commission pursuant to Section 523(a)(2)(A) of the 

Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A), and this Order will have collateral 

estoppel effect for such purposes. 

Defendants acknowledge that their Taxpayer Identification Numbers 

(Social Security Numbers or Employer Identification Numbers), which Defendants 

previously submitted to the Commission, may be used for collecting and reporting 

on any delinquent amount arising out of this Order, in accordance with 31 U.S.C. 

§7701. 

All money received by the Commission pursuant to this Order may be 

deposited into a fund administered by the Commission or its designee to be used 

for consumer relief, such as redress and any attendant expenses for the 

administration of any redress fund. If a representative of the Commission decides 

that direct redress to consumers is wholly or partially impracticable or money 

remains after such redress is completed, the Commission may apply any remaining 

money for such related relief (including consumer information remedies) as it 

determines to be reasonably related to Defendants’ practices alleged in the 

Complaint. Any money not used for relief is to be deposited to the U.S. Treasury. 

Defendants have no right to challenge any actions the Commission or its 

representatives may take pursuant to this Subsection. 

VIII. CUSTOMER INFORMATION 

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, 

employees, attorneys, and all other Persons in active concert or participation with 

any of them, who receive actual notice of this Order, are permanently restrained 

and enjoined from directly or indirectly: 

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A. Failing to provide sufficient customer information to enable the 

Commission to efficiently administer consumer redress. Defendants represent that 

they have provided this redress information to the Commission. If a representative 

of the Commission requests in writing any information related to redress, 

Defendants must provide it, in the form prescribed by the Commission, within 14 

days. 

B. Disclosing, using, or benefitting from customer information, including 

the name, address, telephone number, email address, social security number, FSA 

ID, other identifying information, or any data that enables access to a customer’s 

account (including a student loan account, credit card, bank account, or other 

financial account) that any Defendant obtained prior to entry of this Order in 

connection with the marketing or sale of Secured or Unsecured Debt Relief 

Products or Services; and 

C. Failing to destroy such customer information in all forms in their 

possession, custody, or control within 30 days after receipt of written direction to 

do so from a representative of the Commission. 

Provided, however, that customer information need not be disposed of, and 

may be disclosed, to the extent requested by a government agency or required by 

law, regulation, or court order. 

IX. COOPERATION 

IT IS FURTHER ORDERED that Defendants must fully cooperate with 

representatives of the Commission in this case and in any investigation related to 

or associated with the transactions or the occurrences that are the subject of the 

Complaint. Defendants must provide truthful and complete information, evidence, 

and testimony. Individual Defendants must appear and Corporate Defendants must 

cause Defendants’ officers, employees, representatives, or agents to appear for 

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interviews, discovery, hearings, trials, and any other proceedings that a 

Commission representative may reasonably request upon 5 days written notice, or 

other reasonable notice, at such places and times as a Commission representative 

may designate, without the service of a subpoena. 

X. RECEIVERSHIP TERMINATION 

IT IS FURTHER ORDERED that Thomas McNamara, Esq., shall continue 

as a permanent receiver over the Receivership Entities with full powers of a 

permanent receiver, including but not limited to those powers set forth in the 

Preliminary Injunction (ECF No. 38). The Receiver is directed to wind up the 

Receivership Entities and liquidate all assets within 180 days after entry of this 

Order. Any party or the Receiver may request that the Court extend the Receiver’s 

term for good cause. Upon termination of the receivership and final payment to 

the Receiver of all approved fees, costs, and expenses, the Receiver shall turn over 

to the FTC or its designated agent all remaining assets in the receivership estate. 

XI. ORDER ACKNOWLEDGMENTS 

IT IS FURTHER ORDERED that Defendants obtain acknowledgments of 

receipt of this Order: 

Each Defendant, within 7 days of entry of this Order, must submit to 

the Commission an acknowledgment of receipt of this Order sworn under penalty 

of perjury. 

For 15 years after entry of this Order, each Individual Defendant for 

any business that such Defendant, individually or collectively with any other 

Defendants, is the majority owner or controls directly or indirectly, and each 

Corporate Defendant, must deliver a copy of this Order to: (1) all principals, 

officers, directors, and LLC managers and members; (2) all employees having 

managerial responsibilities for Secured or Unsecured Debt Relief Products or 

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Services, and all agents and representatives who participate in the Secured or 

Unsecured Debt Relief Products or Services; and (3) any business entity resulting 

from any change in structure as set forth in the Section titled Compliance 

Reporting. Delivery must occur within 7 days of entry of this Order for current 

personnel. For all others, delivery must occur before they assume their 

responsibilities. 

From each individual or entity to which a Defendant delivered a copy 

of this Order, that Defendant must obtain, within 30 days, a signed and dated 

acknowledgment of receipt of this Order. 

XII. COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Defendants make timely submissions to 

the Commission: 

One year after entry of this Order, each Defendant must submit a 

compliance report, sworn under penalty of perjury: 

1. Each Defendant must: (a) identify the primary physical, postal, 

and email address and telephone number, as designated points of contact, which 

representatives of the Commission may use to communicate with Defendant; (b) 

identify all of that Defendant’s businesses by all of their names, telephone 

numbers, and physical, postal, email, and Internet addresses; (c) describe the 

activities of each business, including the goods and services offered, the means of 

advertising, marketing, and sales, and the involvement of any other Defendant 

(which the Individual Defendants must describe if they know or should know due 

to their own involvement); (d) describe in detail whether and how that Defendant is 

in compliance with each Section of this Order; and (e) provide a copy of each 

Order Acknowledgment obtained pursuant to this Order, unless previously 

submitted to the Commission. 

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2. Additionally, each Individual Defendant must: (a) identify all 

telephone numbers and all physical, postal, email and Internet addresses, including 

all residences; (b) identify all business activities, including any business for which 

such Defendant performs services whether as an employee or otherwise and any 

entity in which such Defendant has any ownership interest; and (c) describe in 

detail such Defendant’s involvement in each such business, including title, role, 

responsibilities, participation, authority, control, and any ownership. 

For 15 years after entry of this Order, each Defendant must submit a 

compliance notice, sworn under penalty of perjury, within 14 days of any change 

in the following: 

1. Each Defendant must report any change in: (a) any designated 

point of contact; or (b) the structure of any Corporate Defendant or any entity that 

any Defendant has any ownership interest in or controls directly or indirectly that 

may affect compliance obligations arising under this Order, including: creation, 

merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that 

engages in any acts or practices subject to this Order. 

2. Additionally, each Individual Defendant must report any 

change in: (a) name, including aliases or fictitious name, or residence address; or 

(b) title or role in any business activity, including any business for which such 

Defendant performs services whether as an employee or otherwise and any entity 

in which such Defendant has any ownership interest, and identify the name, 

physical address, and any Internet address of the business or entity. 

Each Defendant must submit to the Commission notice of the filing of 

any bankruptcy petition, insolvency proceeding, or similar proceeding by or 

against such Defendant within 14 days of its filing. 

Any submission to the Commission required by this Order to be 

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sworn under penalty of perjury must be true and accurate and comply with 28 

U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury under 

the laws of the United States of America that the foregoing is true and correct. 

Executed on: _____” and supplying the date, signatory’s full name, title (if 

applicable), and signature. 

Unless otherwise directed by a Commission representative in writing, 

all submissions to the Commission pursuant to this Order must be emailed to 

DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to: 

Associate Director for Enforcement, Bureau of Consumer Protection, Federal 

Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The 

subject line must begin: FTC v. SL Finance, LLC, et al., X230025. 

XIII. RECORDKEEPING 

IT IS FURTHER ORDERED that Defendants must create certain records for 

15 years after entry of the Order, and retain each such record for 5 years. 

Specifically, each Defendant for any business that such Defendant, individually or 

collectively with any other Defendants, is a majority owner or controls directly or 

indirectly, must create and retain the following records: 

accounting records showing the revenues from all goods or services 

sold; 

personnel records showing, for each person providing services, 

whether as an employee or otherwise, that person’s: name; addresses; telephone 

numbers; job title or position; dates of service; and (if applicable) the reason for 

termination; 

records of all consumer complaints and refund requests, whether 

received directly or indirectly, such as through a third party, and any response; 

all records necessary to demonstrate full compliance with each 

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provision of this Order, including all submissions to the Commission; and 

a copy of each unique advertisement or other marketing material. 

XIV. COMPLIANCE MONITORING 

IT IS FURTHER ORDERED that, for the purpose of monitoring 

Defendants’ compliance with this Order, including the financial representations 

upon which part of the judgment was suspended and any failure to transfer any 

assets as required by this Order: 

A. Within 14 days of receipt of a written request from a representative of 

the Commission, each Defendant must: submit additional compliance reports or 

other requested information, which must be sworn under penalty of perjury; appear 

for depositions; and produce documents for inspection and copying. The 

Commission is also authorized to obtain discovery, without further leave of court, 

using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 

(including telephonic depositions), 31, 33, 34, 36, 45, and 69. 

B. For matters concerning this Order, the Commission is authorized to 

communicate directly with each Defendant. Defendant must permit 

representatives of the Commission to interview any employee or other Person 

affiliated with any Defendant who has agreed to such an interview. The Person 

interviewed may have counsel present. 

C. The Commission may use all other lawful means, including posing, 

through its representatives as consumers, suppliers, or other individuals or entities, 

to Defendants or any individual or entity affiliated with Defendants, without the 

necessity of identification or prior notice. Nothing in this Order limits the 

Commission’s lawful use of compulsory process, pursuant to Sections 9 and 20 of 

the FTC Act, 15 U.S.C. §§ 49, 57b-1. 

D. Upon written request from a representative of the Commission, any 

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consumer reporting agency must furnish consumer reports concerning Individual 

Defendants, pursuant to Section 604(1) of the Fair Credit Reporting Act, 15 U.S.C. 

§1681b(a)(1). 

XV. RETENTION OF JURISDICTION 

IT IS FURTHER ORDERED that this Court retains jurisdiction of this 

matter for purposes of construction, modification, and enforcement of this Order. 

IT IS SO ORDERED. 

Dated: 

John W. Holcomb 

UNITED STATES DISTRICT JUDGE 

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Attachment A
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§6781 TITLE 15--COMMERCE AND TRADE Page 2228 

lines broker or agent, insurance consultant, 

limited insurance representative, and any 

other individual or entity that sells, solicits, or negotiates policies of insurance or offers advice, counsel, opinions or services relat ed t o 

insurance. 

(6) Insurer 

The term " insurer" has the meaning as in 

section 313(e)(2)(B) of title 31. 

(7) Principal place of business 

The t erm " principal place of business" 

means the State in which an insurance pro­ ducer maintains the headquart ers of the insur­ ance producer and, in the case of a business 

entity, where high-level officers of the entity 

direct, control, and coordinat e the business 

activities of the business entity. 

(8) Principal place of residence 

The term " principal place of residence" 

means the State in which an insurance pro­ ducer resides for the greatest number of days 

during a calendar year. 

(9) State 

The t erm " State" includes any State, the 

District of Columbia, any t erritory of the 

Unit ed States, and Puerto Rico, Guam, Amer­ ican Samoa, the Trust Territory of the Pacific 

Islands, the Virgin Islands, and the Nort hern 

Mariana Islands. 

(10) State law 

(A) In general 

The t erm " State law" includes all laws, 

decisions, rules, regulations, or ot her State 

action having the effect of law, of any State. 

(B ) Laws applicable in the District of Columbia 

A law of the Unit ed States applicable only 

to or within the District of Columbia shall 

be treated as a State law rather than a law 

of the United Stat es. 

(Pub. L. 106-102, title III, §334, as added Pub. L. 114-1, title II, §202(a), Jan. 12, 2015, 129 Stat . 27.) 

Editorial Notes 

PRIOR PROVISIONS 

Provtsions similar to this s ection were c ontained in 

section 6766 of this title , prior to the general amendment of this subchapter by Pub. L. 114-1. 

A prior s ec tion 6764, Pub. L . 106-102, title III, §334, 

Nov. 12, 1999, 113 S tat. 1433, related to coordination With 

other regulators, prior to the general amendment of 

this s ubchapter by Pub. L . 114-1. See s ection 6761 of this 

title. 

A prior s ec tion 6765, Pub. L . 106-102, title III, §335, 

Nov. 12, 1999, 113 S tat. 1433, which related to judicial review, was omitted in the general amendment of this 

subchapter by Pub. L . 114-1. See s ection 6762 of this 

title. 

A prior s ec tion 6766, Pub. L . 106-102, title III, §336, 

Nov. 12, 1999, 113 Stat. 1433, which related to definitions, 

was omitted in the general amendment of this s ubchapter by Pub. L. 114-1. 

SUBCHAPTER IV- RENTAL CAR AGENCY 

INSURANCE ACTIVITIES 

§ 6781. Standard of regulation for motor vehicle 

rentals 

(a) Protection against retroactive application of 

regulatory and legal action 

Except as provided in subsection (b), during 

the 3-year period beginning on November 12, 1999, it shall be a presumption that no State law 

imposes any licensing, appointment, or edu­ cation requirements on any person who solicits 

the purchase of or sells insurance connected 

with, and incidental to, the lease or rental of a 

motor vehicle. 

(b) Preeminence of State insurance law 

No provision of this section shall be construed 

as altering the validity, interpretation, con­ struction, or effect of- (1) any State statute; 

(2) the prospective application of any court 

judgment interpreting or applying any State 

statute; or 

(3) the prospective application of any final 

State regulation, order, bulletin, or other 

statutorily aut horized interpretation or ac­ tion, 

which, by its specific terms, expressly regulates 

or exempts from regulation any person who so­ licits the purchase of or sells insurance con­ nected with, and incidental to, the short-term 

lease or rental of a mot or vehicle. 

(c) Scope of application 

This section shall apply with respect to- (1) the lease or rental of a motor vehicle for 

a t otal period of 90 consecutive days or less; 

and 

(2) insurance which is provided in connection 

with, and incidentally to, such lease or rental 

for a period of consecutive days not exceeding 

the lease or rental period. 

(d) Motor vehicle defined 

For purposes of this section, the term "motor 

vehicle" has the same meaning as in section 

13102 of title 49. 

(Pub. L. 106-102, title III, § 341, Nov. 12, 1999, 113 

Stat. 1434.) 

CHAPTER 94-PRIVACY 

SUBCHAPTER I-DISCLOSURE OF NONPUBLIC 

PERSONAL INFORMATION 

Sec. 

6801. Protec tion of nonpublic personal information. 

6802. Obligations with respect to dis closures of personal information. 

6803. Disclosure of institution privacy policy. 

6804. Rulemaking. 

6805. Enforcement. 

6806. Relation to other provisions. 

6807. Relation to State laws. 

6808. Study of information sharing among financial 

affiliates . 

6809. Definitions. 

SUBCHAPTER II-FRAUDULENT ACCESS TO 

FINANCIAL INFORMATION 

6821. Privacy protection for customer information 

of financial institutions. 

6822. Administrative enforcement. 
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Page 2229 TITLE 15—COMMERCE AND TRADE § 6802 

Sec. 

6823. Criminal penalty. 

6824. Relation to State laws. 

6825. Agency guidance. 

6826. Reports. 

6827. Definitions. 

SUBCHAPTER I—DISCLOSURE OF 

NONPUBLIC PERSONAL INFORMATION 

§ 6801. Protection of nonpublic personal information 

(a) Privacy obligation policy 

It is the policy of the Congress that each financial institution has an affirmative and continuing obligation to respect the privacy of its 

customers and to protect the security and confidentiality of those customers’ nonpublic personal information. 

(b) Financial institutions safeguards 

In furtherance of the policy in subsection (a), 

each agency or authority described in section 

6805(a) of this title, other than the Bureau of 

Consumer Financial Protection, shall establish 

appropriate standards for the financial institutions subject to their jurisdiction relating to administrative, technical, and physical safeguards— 

(1) to insure the security and confidentiality 

of customer records and information; 

(2) to protect against any anticipated 

threats or hazards to the security or integrity 

of such records; and 

(3) to protect against unauthorized access to 

or use of such records or information which 

could result in substantial harm or inconvenience to any customer. 

(Pub. L. 106–102, title V, § 501, Nov. 12, 1999, 113 

Stat. 1436; Pub. L. 111–203, title X, § 1093(1), July 

21, 2010, 124 Stat. 2095.) 

Editorial Notes 

AMENDMENTS 

2010—Subsec. (b). Pub. L. 111–203 inserted ‘‘, other 

than the Bureau of Consumer Financial Protection,’’ 

after ‘‘section 6805(a) of this title’’ in introductory provisions. 

Statutory Notes and Related Subsidiaries 

EFFECTIVE DATE OF 2010 AMENDMENT 

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 

111–203, set out as a note under section 552a of Title 5, 

Government Organization and Employees. 

EFFECTIVE DATE 

Pub. L. 106–102, title V, § 510, Nov. 12, 1999, 113 Stat. 

1445, provided that: ‘‘This subtitle [subtitle A 

(§§ 501–510) of title V of Pub. L. 106–102, enacting this 

subchapter and amending section 1681s of this title] 

shall take effect 6 months after the date on which rules 

are required to be prescribed under section 504(a)(3) [15 

U.S.C. 6804(a)(3)], except— 

‘‘(1) to the extent that a later date is specified in 

the rules prescribed under section 504; and 

‘‘(2) that sections 504 [15 U.S.C. 6804] and 506 [enacting section 6806 of this title and amending section 

1681s of this title] shall be effective upon enactment 

[Nov. 12, 1999].’’ 

§ 6802. Obligations with respect to disclosures of 

personal information 

(a) Notice requirements 

Except as otherwise provided in this subchapter, a financial institution may not, directly or through any affiliate, disclose to a 

nonaffiliated third party any nonpublic personal 

information, unless such financial institution 

provides or has provided to the consumer a notice that complies with section 6803 of this title. 

(b) Opt out 

(1) In general 

A financial institution may not disclose 

nonpublic personal information to a nonaffiliated third party unless— 

(A) such financial institution clearly and 

conspicuously discloses to the consumer, in 

writing or in electronic form or other form 

permitted by the regulations prescribed 

under section 6804 of this title, that such information may be disclosed to such third 

party; 

(B) the consumer is given the opportunity, 

before the time that such information is initially disclosed, to direct that such information not be disclosed to such third party; and 

(C) the consumer is given an explanation 

of how the consumer can exercise that nondisclosure option. 

(2) Exception 

This subsection shall not prevent a financial 

institution from providing nonpublic personal 

information to a nonaffiliated third party to 

perform services for or functions on behalf of 

the financial institution, including marketing 

of the financial institution’s own products or 

services, or financial products or services offered pursuant to joint agreements between 

two or more financial institutions that comply with the requirements imposed by the regulations prescribed under section 6804 of this 

title, if the financial institution fully discloses 

the providing of such information and enters 

into a contractual agreement with the third 

party that requires the third party to maintain the confidentiality of such information. 

(c) Limits on reuse of information 

Except as otherwise provided in this subchapter, a nonaffiliated third party that receives from a financial institution nonpublic 

personal information under this section shall 

not, directly or through an affiliate of such receiving third party, disclose such information to 

any other person that is a nonaffiliated third 

party of both the financial institution and such 

receiving third party, unless such disclosure 

would be lawful if made directly to such other 

person by the financial institution. 

(d) Limitations on the sharing of account number information for marketing purposes 

A financial institution shall not disclose, 

other than to a consumer reporting agency, an 

account number or similar form of access number or access code for a credit card account, deposit account, or transaction account of a consumer to any nonaffiliated third party for use in 

telemarketing, direct mail marketing, or other 
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§ 6803 TITLE 15—COMMERCE AND TRADE Page 2230 

marketing through electronic mail to the consumer. 

(e) General exceptions 

Subsections (a) and (b) shall not prohibit the 

disclosure of nonpublic personal information— 

(1) as necessary to effect, administer, or enforce a transaction requested or authorized by 

the consumer, or in connection with— 

(A) servicing or processing a financial 

product or service requested or authorized 

by the consumer; 

(B) maintaining or servicing the consumer’s account with the financial institution, or with another entity as part of a private label credit card program or other extension of credit on behalf of such entity; or 

(C) a proposed or actual securitization, 

secondary market sale (including sales of 

servicing rights), or similar transaction related to a transaction of the consumer; 

(2) with the consent or at the direction of 

the consumer; 

(3)(A) to protect the confidentiality or security of the financial institution’s records pertaining to the consumer, the service or product, or the transaction therein; (B) to protect 

against or prevent actual or potential fraud, 

unauthorized transactions, claims, or other liability; (C) for required institutional risk control, or for resolving customer disputes or inquiries; (D) to persons holding a legal or beneficial interest relating to the consumer; or (E) 

to persons acting in a fiduciary or representative capacity on behalf of the consumer; 

(4) to provide information to insurance rate 

advisory organizations, guaranty funds or 

agencies, applicable rating agencies of the financial institution, persons assessing the institution’s compliance with industry standards, and the institution’s attorneys, accountants, and auditors; 

(5) to the extent specifically permitted or required under other provisions of law and in accordance with the Right to Financial Privacy 

Act of 1978 [12 U.S.C. 3401 et seq.], to law enforcement agencies (including the Bureau of 

Consumer Financial Protection 1 a Federal 

functional regulator, the Secretary of the 

Treasury with respect to subchapter II of 

chapter 53 of title 31, and chapter 2 of title I 

of Public Law 91–508 (12 U.S.C. 1951–1959), a 

State insurance authority, or the Federal 

Trade Commission), self-regulatory organizations, or for an investigation on a matter related to public safety; 

(6)(A) to a consumer reporting agency in accordance with the Fair Credit Reporting Act 

[15 U.S.C. 1681 et seq.], or (B) from a consumer 

report reported by a consumer reporting agency; 

(7) in connection with a proposed or actual 

sale, merger, transfer, or exchange of all or a 

portion of a business or operating unit if the 

disclosure of nonpublic personal information 

concerns solely consumers of such business or 

unit; or 

(8) to comply with Federal, State, or local 

laws, rules, and other applicable legal require1So in original. Probably should be followed by a comma. 

ments; to comply with a properly authorized 

civil, criminal, or regulatory investigation or 

subpoena or summons by Federal, State, or 

local authorities; or to respond to judicial 

process or government regulatory authorities 

having jurisdiction over the financial institution for examination, compliance, or other 

purposes as authorized by law. 

(Pub. L. 106–102, title V, § 502, Nov. 12, 1999, 113 

Stat. 1437; Pub. L. 111–203, title X, § 1093(2), July 

21, 2010, 124 Stat. 2095.) 

Editorial Notes 

REFERENCES IN TEXT 

This subchapter, referred to in subsecs. (a) and (c), 

was in the original ‘‘this subtitle’’, meaning subtitle A 

(§§ 501–510) of title V of Pub. L. 106–102, Nov. 12, 1999, 113 

Stat. 1436, which is classified principally to this subchapter. For complete classification of subtitle A to 

the Code, see Tables. 

The Right to Financial Privacy Act of 1978, referred 

to in subsec. (e)(5), is title XI of Pub. L. 95–630, Nov. 10, 

1978, 92 Stat. 3697, which is classified generally to chapter 35 (§3401 et seq.) of Title 12, Banks and Banking. For 

complete classification of this Act to the Code, see 

Short Title note set out under section 3401 of Title 12 

and Tables. 

Chapter 2 of title I of Public Law 91–508, referred to 

in subsec. (e)(5), is chapter 2 (§§ 121–129) of title I of Pub. 

L. 91–508, Oct. 26, 1970, 84 Stat. 1116, which is classified 

generally to chapter 21 (§ 1951 et seq.) of Title 12, Banks 

and Banking. For complete classification of chapter 2 

to the Code, see Tables. 

The Fair Credit Reporting Act, referred to in subsec. 

(e)(6)(A), is title VI of Pub. L. 90–321, as added by Pub. 

L. 91–508, title VI, §601, Oct. 26, 1970, 84 Stat. 1127, which 

is classified generally to subchapter III (§1681 et seq.) of 

chapter 41 of this title. For complete classification of 

this Act to the Code, see Short Title note set out under 

section 1601 of this title and Tables. 

AMENDMENTS 

2010—Subsec. (e)(5). Pub. L. 111–203 inserted ‘‘the Bureau of Consumer Financial Protection’’ after ‘‘(including’’. 

Statutory Notes and Related Subsidiaries 

EFFECTIVE DATE OF 2010 AMENDMENT 

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 

111–203, set out as a note under section 552a of Title 5, 

Government Organization and Employees. 

§ 6803. Disclosure of institution privacy policy 

(a) Disclosure required 

At the time of establishing a customer relationship with a consumer and not less than annually during the continuation of such relationship, a financial institution shall provide a clear 

and conspicuous disclosure to such consumer, in 

writing or in electronic form or other form permitted by the regulations prescribed under section 6804 of this title, of such financial institution’s policies and practices with respect to— 

(1) disclosing nonpublic personal information to affiliates and nonaffiliated third parties, consistent with section 6802 of this title, 

including the categories of information that 

may be disclosed; 

(2) disclosing nonpublic personal information of persons who have ceased to be customers of the financial institution; and 
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Page 2231 TITLE 15—COMMERCE AND TRADE § 6803 

(3) protecting the nonpublic personal information of consumers. 

(b) Regulations 

Disclosures required by subsection (a) shall be 

made in accordance with the regulations prescribed under section 6804 of this title. 

(c) Information to be included 

The disclosure required by subsection (a) shall 

include— 

(1) the policies and practices of the institution with respect to disclosing nonpublic personal information to nonaffiliated third parties, other than agents of the institution, consistent with section 6802 of this title, and including— 

(A) the categories of persons to whom the 

information is or may be disclosed, other 

than the persons to whom the information 

may be provided pursuant to section 6802(e) 

of this title; and 

(B) the policies and practices of the institution with respect to disclosing of nonpublic personal information of persons who 

have ceased to be customers of the financial 

institution; 

(2) the categories of nonpublic personal information that are collected by the financial 

institution; 

(3) the policies that the institution maintains to protect the confidentiality and security of nonpublic personal information in accordance with section 6801 of this title; and 

(4) the disclosures required, if any, under 

section 1681a(d)(2)(A)(iii) of this title. 

(d) Exemption for certified public accountants 

(1) In general 

The disclosure requirements of subsection 

(a) do not apply to any person, to the extent 

that the person is— 

(A) a certified public accountant; 

(B) certified or licensed for such purpose 

by a State; and 

(C) subject to any provision of law, rule, or 

regulation issued by a legislative or regulatory body of the State, including rules of 

professional conduct or ethics, that prohibits disclosure of nonpublic personal information without the knowing and expressed 

consent of the consumer. 

(2) Limitation 

Nothing in this subsection shall be construed to exempt or otherwise exclude any financial institution that is affiliated or becomes affiliated with a certified public accountant described in paragraph (1) from any 

provision of this section. 

(3) Definitions 

For purposes of this subsection, the term 

‘‘State’’ means any State or territory of the 

United States, the District of Columbia, Puerto Rico, Guam, American Samoa, the Trust 

Territory of the Pacific Islands, the Virgin Islands, or the Northern Mariana Islands. 

(e) Model forms 

(1) In general 

The agencies referred to in section 6804(a)(1) 

of this title shall jointly develop a model form 

which may be used, at the option of the financial institution, for the provision of disclosures under this section. 

(2) Format 

A model form developed under paragraph (1) 

shall— 

(A) be comprehensible to consumers, with 

a clear format and design; 

(B) provide for clear and conspicuous disclosures; 

(C) enable consumers easily to identify the 

sharing practices of a financial institution 

and to compare privacy practices among financial institutions; and 

(D) be succinct, and use an easily readable 

type font. 

(3) Timing 

A model form required to be developed by 

this subsection shall be issued in proposed 

form for public comment not later than 180 

days after October 13, 2006. 

(4) Safe harbor 

Any financial institution that elects to provide the model form developed by the agencies 

under this subsection shall be deemed to be in 

compliance with the disclosures required 

under this section. 

(f) Exception to annual notice requirement 

A financial institution that— 

(1) provides nonpublic personal information 

only in accordance with the provisions of subsection (b)(2) or (e) of section 6802 of this title 

or regulations prescribed under section 6804(b) 

of this title, and 

(2) has not changed its policies and practices 

with regard to disclosing nonpublic personal 

information from the policies and practices 

that were disclosed in the most recent disclosure sent to consumers in accordance with this 

section, 

shall not be required to provide an annual disclosure under this section until such time as the 

financial institution fails to comply with any 

criteria described in paragraph (1) or (2). 

(Pub. L. 106–102, title V, § 503, Nov. 12, 1999, 113 

Stat. 1439; Pub. L. 109–351, title VI, § 609, title 

VII, § 728, Oct. 13, 2006, 120 Stat. 1983, 2003; Pub. 

L. 114–94, div. G, title LXXV, § 75001, Dec. 4, 2015, 

129 Stat. 1787.) 

Editorial Notes 

AMENDMENTS 

2015—Subsec. (f). Pub. L. 114–94 added subsec. (f). 

2006—Pub. L. 109–351 designated concluding provisions 

of subsec. (a) as (b), inserted heading, substituted ‘‘Disclosures required by subsection (a)’’ for ‘‘Such disclosures’’, redesignated former subsec. (b) as (c), and added 

subsecs. (d) and (e). 

Executive Documents 

TERMINATION OF TRUST TERRITORY OF THE PACIFIC 

ISLANDS 

For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title 

48, Territories and Insular Possessions. 
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§ 6804 TITLE 15—COMMERCE AND TRADE Page 2232 

§ 6804. Rulemaking 

(a) Regulatory authority 

(1) Rulemaking 

(A) In general 

Except as provided in subparagraph (C), 

the Bureau of Consumer Financial Protection and the Securities and Exchange Commission shall have authority to prescribe 

such regulations as may be necessary to 

carry out the purposes of this subchapter 

with respect to financial institutions and 

other persons subject to their respective jurisdiction under section 6805 of this title 

(and notwithstanding subtitle B of the Consumer Financial Protection Act of 2010 [12 

U.S.C. 5511 et seq.]), except that the Bureau 

of Consumer Financial Protection shall not 

have authority to prescribe regulations with 

respect to the standards under section 6801 

of this title. 

(B) CFTC 

The Commodity Futures Trading Commission shall have authority to prescribe such 

regulations as may be necessary to carry out 

the purposes of this subchapter with respect 

to financial institutions and other persons 

subject to the jurisdiction of the Commodity 

Futures Trading Commission under section 

7b–2 of title 7. 

(C) Federal Trade Commission authority 

Notwithstanding the authority of the Bureau of Consumer Financial Protection 

under subparagraph (A), the Federal Trade 

Commission shall have authority to prescribe such regulations as may be necessary 

to carry out the purposes of this subchapter 

with respect to any financial institution 

that is a person described in section 1029(a) 

of the Consumer Financial Protection Act of 

2010 [12 U.S.C. 5519(a)]. 

(D) Rule of construction 

Nothing in this paragraph shall be construed to alter, affect, or otherwise limit the 

authority of a State insurance authority to 

adopt regulations to carry out this subchapter. 

(2) Coordination, consistency, and comparability 

Each of the agencies authorized under paragraph (1) to prescribe regulations shall consult 

and coordinate with the other such agencies 

and, as appropriate, and with 1 representatives 

of State insurance authorities designated by 

the National Association of Insurance Commissioners, for the purpose of assuring, to the 

extent possible, that the regulations prescribed by each such agency are consistent and 

comparable with the regulations prescribed by 

the other such agencies. 

(3) Procedures and deadline 

Such regulations shall be prescribed in accordance with applicable requirements of title 

5. 

1So in original. Probably should be ‘‘and, as appropriate, 

with’’. 

(b) Authority to grant exceptions 

The regulations prescribed under subsection 

(a) may include such additional exceptions to 

subsections (a) through (d) of section 6802 of this 

title as are deemed consistent with the purposes 

of this subchapter. 

(Pub. L. 106–102, title V, § 504, Nov. 12, 1999, 113 

Stat. 1439; Pub. L. 111–203, title X, § 1093(3), July 

21, 2010, 124 Stat. 2095.) 

Editorial Notes 

REFERENCES IN TEXT 

This subchapter, referred to in subsecs. (a)(1) and (b), 

was in the original ‘‘this subtitle’’, meaning subtitle A 

(§§ 501–510) of title V of Pub. L. 106–102, Nov. 12, 1999, 113 

Stat. 1436, which is classified principally to this subchapter. For complete classification of subtitle A to 

the Code, see Tables. 

The Consumer Financial Protection Act of 2010, referred to in subsec. (a)(1)(A), is title X of Pub. L. 

111–203, July 21, 2010, 124 Stat. 1955. Subtitle B 

(§§ 1021–1029A) of the Act is classified generally to part 

B (§ 5511 et seq.) of subchapter V of chapter 53 of Title 

12, Banks and Banking. For complete classification of 

subtitle B to the Code, see Tables. 

AMENDMENTS 

2010—Subsec. (a)(1), (2). Pub. L. 111–203, §1093(3)(A), 

added pars. (1) and (2) and struck out former pars. (1) 

and (2) which related, respectively, to rulemaking by 

the Federal banking agencies, the National Credit 

Union Administration, the Secretary of the Treasury, 

the Securities and Exchange Commission, and the Federal Trade Commission, and consultation and coordination among these agencies and authorities to assure 

consistency and comparability of regulations. 

Subsec. (a)(3). Pub. L. 111–203, § 1093(3)(B), struck out 

‘‘and shall be issued in final form not later than 6 

months after November 12, 1999’’ after ‘‘title 5’’. 

Statutory Notes and Related Subsidiaries 

EFFECTIVE DATE OF 2010 AMENDMENT 

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 

111–203, set out as a note under section 552a of Title 5, 

Government Organization and Employees. 

§ 6805. Enforcement 

(a) In general 

Subject to subtitle B of the Consumer Financial Protection Act of 2010 [12 U.S.C. 5511 et 

seq.], this subchapter and the regulations prescribed thereunder shall be enforced by the Bureau of Consumer Financial Protection, the Federal functional regulators, the State insurance 

authorities, and the Federal Trade Commission 

with respect to financial institutions and other 

persons subject to their jurisdiction under applicable law, as follows: 

(1) Under section 1818 of title 12, by the appropriate Federal banking agency, as defined 

in section 1813(q) of title 12, in the case of— 

(A) national banks, Federal branches and 

Federal agencies of foreign banks, and any 

subsidiaries of such entities (except brokers, 

dealers, persons providing insurance, investment companies, and investment advisers); 

(B) member banks of the Federal Reserve 

System (other than national banks), 

branches and agencies of foreign banks 

(other than Federal branches, Federal agen-
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Page 2233 TITLE 15—COMMERCE AND TRADE § 6805 

cies, and insured State branches of foreign 

banks), commercial lending companies 

owned or controlled by foreign banks, organizations operating under section 25 or 25A 

of the Federal Reserve Act [12 U.S.C. 601 et 

seq., 611 et seq.], and bank holding companies and their nonbank subsidiaries or affiliates (except brokers, dealers, persons providing insurance, investment companies, and 

investment advisers); 

(C) banks insured by the Federal Deposit 

Insurance Corporation (other than members 

of the Federal Reserve System), insured 

State branches of foreign banks, and any 

subsidiaries of such entities (except brokers, 

dealers, persons providing insurance, investment companies, and investment advisers); 

and 

(D) savings associations the deposits of 

which are insured by the Federal Deposit Insurance Corporation, and any subsidiaries of 

such savings associations (except brokers, 

dealers, persons providing insurance, investment companies, and investment advisers). 

(2) Under the Federal Credit Union Act [12 

U.S.C. 1751 et seq.], by the Board of the National Credit Union Administration with respect to any federally insured credit union, 

and any subsidiaries of such an entity. 

(3) Under the Securities Exchange Act of 1934 

[15 U.S.C. 78a et seq.], by the Securities and 

Exchange Commission with respect to any 

broker or dealer. 

(4) Under the Investment Company Act of 

1940 [15 U.S.C. 80a–1 et seq.], by the Securities 

and Exchange Commission with respect to investment companies. 

(5) Under the Investment Advisers Act of 

1940 [15 U.S.C. 80b–1 et seq.], by the Securities 

and Exchange Commission with respect to investment advisers registered with the Commission under such Act. 

(6) Under State insurance law, in the case of 

any person engaged in providing insurance, by 

the applicable State insurance authority of 

the State in which the person is domiciled, 

subject to section 6701 of this title. 

(7) Under the Federal Trade Commission Act 

[15 U.S.C. 41 et seq.], by the Federal Trade 

Commission for any other financial institution or other person that is not subject to the 

jurisdiction of any agency or authority under 

paragraphs (1) through (6) of this subsection. 

(8) Under subtitle E of the Consumer Financial Protection Act of 2010 [12 U.S.C. 5561 et 

seq.], by the Bureau of Consumer Financial 

Protection, in the case of any financial institution and other covered person or service provider that is subject to the jurisdiction of the 

Bureau and any person subject to this subchapter, but not with respect to the standards 

under section 6801 of this title. 

(b) Enforcement of section 6801 

(1) In general 

Except as provided in paragraph (2), the 

agencies and authorities described in subsection (a), other than the Bureau of Consumer Financial Protection, shall implement 

the standards prescribed under section 6801(b) 

of this title in the same manner, to the extent 

practicable, as standards prescribed pursuant 

to section 1831p–1(a) of title 12 are implemented pursuant to such section. 

(2) Exception 

The agencies and authorities described in 

paragraphs (3), (4), (5), (6), and (7) of subsection 

(a) shall implement the standards prescribed 

under section 6801(b) of this title by rule with 

respect to the financial institutions and other 

persons subject to their respective jurisdictions under subsection (a). 

(c) Absence of State action 

If a State insurance authority fails to adopt 

regulations to carry out this subchapter, such 

State shall not be eligible to override, pursuant 

to section 1831x(g)(2)(B)(iii) of title 12, the insurance customer protection regulations prescribed 

by a Federal banking agency under section 

1831x(a) of title 12. 

(d) Definitions 

The terms used in subsection (a)(1) that are 

not defined in this subchapter or otherwise defined in section 1813(s) of title 12 shall have the 

same meaning as given in section 3101 of title 12. 

(Pub. L. 106–102, title V, § 505, Nov. 12, 1999, 113 

Stat. 1440; Pub. L. 111–203, title X, § 1093(4), (5), 

July 21, 2010, 124 Stat. 2096, 2097.) 

Editorial Notes 

REFERENCES IN TEXT 

The Consumer Financial Protection Act of 2010, referred to in subsec. (a), is title X of Pub. L. 111–203, July 

21, 2010, 124 Stat. 1955. Subtitles B (§§ 1021–1029A) and E 

(§§ 1051–1058) of the Act are classified generally to parts 

B (§ 5511 et seq.) and E (§ 5561 et seq.), respectively, of 

subchapter V of chapter 53 of Title 12, Banks and Banking. For complete classification of subtitles B and E to 

the Code, see Tables. 

This subchapter, referred to in subsecs. (a), (c), and 

(d), was in the original ‘‘this subtitle’’, meaning subtitle A (§§501–510) of title V of Pub. L. 106–102, Nov. 12, 

1999, 113 Stat. 1436, which is classified principally to 

this subchapter. For complete classification of subtitle 

A to the Code, see Tables. 

Section 25 of the Federal Reserve Act, referred to in 

subsec. (a)(1)(B), is classified to subchapter I (§ 601 et 

seq.) of chapter 6 of Title 12, Banks and Banking. Section 25A of the Federal Reserve Act is classified to subchapter II (§611 et seq.) of chapter 6 of Title 12. 

The Federal Credit Union Act, referred to in subsec. 

(a)(2), is act June 26, 1934, ch. 750, 48 Stat. 1216, which 

is classified generally to chapter 14 (§1751 et seq.) of 

Title 12, Banks and Banking. For complete classification of this Act to the Code, see section 1751 of Title 12 

and Tables. 

The Securities Exchange Act of 1934, referred to in 

subsec. (a)(3), is act June 6, 1934, ch. 404, 48 Stat. 881, 

which is classified principally to chapter 2B (§78a et 

seq.) of this title. For complete classification of this 

Act to the Code, see section 78a of this title and Tables. 

The Investment Company Act of 1940, referred to in 

subsec. (a)(4), is title I of act Aug. 22, 1940, ch. 686, 54 

Stat. 789, which is classified generally to subchapter I 

(§ 80a–1 et seq.) of chapter 2D of this title. For complete 

classification of this Act to the Code, see section 80a–51 

of this title and Tables. 

The Investment Advisers Act of 1940, referred to in 

subsec. (a)(5), is title II of act Aug. 22, 1940, ch. 686, 54 

Stat. 847, which is classified generally to subchapter II 

(§ 80b–1 et seq.) of chapter 2D of this title. For complete 

classification of this Act to the Code, see section 80b–20 

of this title and Tables. 
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§ 6806 TITLE 15—COMMERCE AND TRADE Page 2234 

The Federal Trade Commission Act, referred to in 

subsec. (a)(7), is act Sept. 26, 1914, ch. 311, 38 Stat. 717, 

which is classified generally to subchapter I (§41 et 

seq.) of chapter 2 of this title. For complete classification of this Act to the Code, see section 58 of this title 

and Tables. 

AMENDMENTS 

2010—Subsec. (a). Pub. L. 111–203, §1093(4)(A), substituted ‘‘Subject to subtitle B of the Consumer Financial Protection Act of 2010, this subchapter and the regulations prescribed thereunder shall be enforced by the 

Bureau of Consumer Financial Protection, the Federal 

functional regulators, the State insurance authorities, 

and the Federal Trade Commission with respect to financial institutions and other persons subject to their 

jurisdiction under applicable law, as follows:’’ for ‘‘This 

subchapter and the regulations prescribed thereunder 

shall be enforced by the Federal functional regulators, 

the State insurance authorities, and the Federal Trade 

Commission with respect to financial institutions and 

other persons subject to their jurisdiction under applicable law, as follows:’’. 

Subsec. (a)(1). Pub. L. 111–203, § 1093(4)(B)(i), inserted 

‘‘by the appropriate Federal banking agency, as defined 

in section 1813(q) of title 12,’’ before ‘‘in the case of—’’. 

Subsec. (a)(1)(A). Pub. L. 111–203, §1093(4)(B)(ii), 

struck out ‘‘, by the Office of the Comptroller of the 

Currency’’ before semicolon at end. 

Subsec. (a)(1)(B). Pub. L. 111–203, §1093(4)(B)(iii), 

struck out ‘‘, by the Board of Governors of the Federal 

Reserve System’’ before semicolon at end. 

Subsec. (a)(1)(C). Pub. L. 111–203, §1093(4)(B)(iv), 

struck out ‘‘, by the Board of Directors of the Federal 

Deposit Insurance Corporation’’ before ‘‘; and’’. 

Subsec. (a)(1)(D). Pub. L. 111–203, §1093(4)(B)(v), 

struck out ‘‘, by the Director of the Office of Thrift Supervision’’ before period at end. 

Subsec. (a)(8). Pub. L. 111–203, §1093(4)(C), added par. 

(8). 

Subsec. (b)(1). Pub. L. 111–203, § 1093(5), inserted 

‘‘, other than the Bureau of Consumer Financial Protection,’’ before ‘‘shall implement the standards’’. 

Statutory Notes and Related Subsidiaries 

EFFECTIVE DATE OF 2010 AMENDMENT 

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 

111–203, set out as a note under section 552a of Title 5, 

Government Organization and Employees. 

§ 6806. Relation to other provisions 

Except for the amendments made by subsections (a) and (b), nothing in this chapter shall 

be construed to modify, limit, or supersede the 

operation of the Fair Credit Reporting Act [15 

U.S.C. 1681 et seq.], and no inference shall be 

drawn on the basis of the provisions of this 

chapter regarding whether information is transaction or experience information under section 

603 of such Act [15 U.S.C. 1681a]. 

(Pub. L. 106–102, title V, § 506(c), Nov. 12, 1999, 113 

Stat. 1442.) 

Editorial Notes 

REFERENCES IN TEXT 

Amendments made by subsections (a) and (b), referred to in text, means amendments made by section 

506(a) and (b) of Pub. L. 106–102, which amended section 

1681s of this title. 

This chapter, referred to in text, was in the original 

‘‘this title’’, meaning title V of Pub. L. 106–102, Nov. 12, 

1999, 113 Stat. 1436, as amended, which enacted this 

chapter and amended section 1681s of this title. For 

complete classification of title V to the Code, see Tables. 

The Fair Credit Reporting Act, referred to in text, is 

title VI of Pub. L. 90–321, as added by Pub. L. 91–508, 

title VI, § 601, Oct. 26, 1970, 84 Stat. 1127, as amended, 

which is classified generally to subchapter III (§ 1681 et 

seq.) of chapter 41 of this title. For complete classification of this Act to the Code, see Short Title note set 

out under section 1601 of this title and Tables. 

§ 6807. Relation to State laws 

(a) In general 

This subchapter and the amendments made by 

this subchapter shall not be construed as superseding, altering, or affecting any statute, regulation, order, or interpretation in effect in any 

State, except to the extent that such statute, 

regulation, order, or interpretation is inconsistent with the provisions of this subchapter, 

and then only to the extent of the inconsistency. 

(b) Greater protection under State law 

For purposes of this section, a State statute, 

regulation, order, or interpretation is not inconsistent with the provisions of this subchapter if 

the protection such statute, regulation, order, 

or interpretation affords any person is greater 

than the protection provided under this subchapter and the amendments made by this subchapter, as determined by the Bureau of Consumer Financial Protection, after consultation 

with the agency or authority with jurisdiction 

under section 6805(a) of this title of either the 

person that initiated the complaint or that is 

the subject of the complaint, on its own motion 

or upon the petition of any interested party. 

(Pub. L. 106–102, title V, § 507, Nov. 12, 1999, 113 

Stat. 1442; Pub. L. 111–203, title X, § 1093(6), July 

21, 2010, 124 Stat. 2097.) 

Editorial Notes 

REFERENCES IN TEXT 

This subchapter, referred to in text, was in the original ‘‘this subtitle’’, meaning subtitle A (§§501–510) of 

title V of Pub. L. 106–102, Nov. 12, 1999, 113 Stat. 1436, 

which is classified principally to this subchapter. For 

complete classification of subtitle A to the Code, see 

Tables. 

AMENDMENTS 

2010—Subsec. (b). Pub. L. 111–203 substituted ‘‘Bureau 

of Consumer Financial Protection’’ for ‘‘Federal Trade 

Commission’’. 

Statutory Notes and Related Subsidiaries 

EFFECTIVE DATE OF 2010 AMENDMENT 

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 

111–203, set out as a note under section 552a of Title 5, 

Government Organization and Employees. 

§ 6808. Study of information sharing among financial affiliates 

(a) In general 

The Secretary of the Treasury, in conjunction 

with the Federal functional regulators and the 

Federal Trade Commission, shall conduct a 

study of information sharing practices among financial institutions and their affiliates. Such 

study shall include— 
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Page 2235 TITLE 15—COMMERCE AND TRADE § 6809 

(1) the purposes for the sharing of confidential customer information with affiliates or 

with nonaffiliated third parties; 

(2) the extent and adequacy of security protections for such information; 

(3) the potential risks for customer privacy 

of such sharing of information; 

(4) the potential benefits for financial institutions and affiliates of such sharing of information; 

(5) the potential benefits for customers of 

such sharing of information; 

(6) the adequacy of existing laws to protect 

customer privacy; 

(7) the adequacy of financial institution privacy policy and privacy rights disclosure 

under existing law; 

(8) the feasibility of different approaches, including opt-out and opt-in, to permit customers to direct that confidential information 

not be shared with affiliates and nonaffiliated 

third parties; and 

(9) the feasibility of restricting sharing of 

information for specific uses or of permitting 

customers to direct the uses for which information may be shared. 

(b) Consultation 

The Secretary shall consult with representatives of State insurance authorities designated 

by the National Association of Insurance Commissioners, and also with financial services industry, consumer organizations and privacy 

groups, and other representatives of the general 

public, in formulating and conducting the study 

required by subsection (a). 

(c) Report 

On or before January 1, 2002, the Secretary 

shall submit a report to the Congress containing 

the findings and conclusions of the study required under subsection (a), together with such 

recommendations for legislative or administrative action as may be appropriate. 

(Pub. L. 106–102, title V, § 508, Nov. 12, 1999, 113 

Stat. 1442.) 

§ 6809. Definitions 

As used in this subchapter: 

(1) Federal banking agency 

The term ‘‘Federal banking agency’’ has the 

same meaning as given in section 1813 of title 

12. 

(2) Federal functional regulator 

The term ‘‘Federal functional regulator’’ 

means— 

(A) the Board of Governors of the Federal 

Reserve System; 

(B) the Office of the Comptroller of the 

Currency; 

(C) the Board of Directors of the Federal 

Deposit Insurance Corporation; 

(D) the Director of the Office of Thrift Supervision; 

(E) the National Credit Union Administration Board; and 

(F) the Securities and Exchange Commission. 

(3) Financial institution 

(A) In general 

The term ‘‘financial institution’’ means 

any institution the business of which is engaging in financial activities as described in 

section 1843(k) of title 12. 

(B) Persons subject to CFTC regulation 

Notwithstanding subparagraph (A), the 

term ‘‘financial institution’’ does not include any person or entity with respect to 

any financial activity that is subject to the 

jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act [7 U.S.C. 1 et seq.]. 

(C) Farm credit institutions 

Notwithstanding subparagraph (A), the 

term ‘‘financial institution’’ does not include the Federal Agricultural Mortgage 

Corporation or any entity chartered and operating under the Farm Credit Act of 1971 [12 

U.S.C. 2001 et seq.]. 

(D) Other secondary market institutions 

Notwithstanding subparagraph (A), the 

term ‘‘financial institution’’ does not include institutions chartered by Congress 

specifically to engage in transactions described in section 6802(e)(1)(C) of this title, 

as long as such institutions do not sell or 

transfer nonpublic personal information to a 

nonaffiliated third party. 

(4) Nonpublic personal information 

(A) The term ‘‘nonpublic personal information’’ means personally identifiable financial 

information— 

(i) provided by a consumer to a financial 

institution; 

(ii) resulting from any transaction with 

the consumer or any service performed for 

the consumer; or 

(iii) otherwise obtained by the financial institution. 

(B) Such term does not include publicly 

available information, as such term is defined 

by the regulations prescribed under section 

6804 of this title. 

(C) Notwithstanding subparagraph (B), such 

term— 

(i) shall include any list, description, or 

other grouping of consumers (and publicly 

available information pertaining to them) 

that is derived using any nonpublic personal 

information other than publicly available 

information; but 

(ii) shall not include any list, description, 

or other grouping of consumers (and publicly 

available information pertaining to them) 

that is derived without using any nonpublic 

personal information. 

(5) Nonaffiliated third party 

The term ‘‘nonaffiliated third party’’ means 

any entity that is not an affiliate of, or related by common ownership or affiliated by 

corporate control with, the financial institution, but does not include a joint employee of 

such institution. 

(6) Affiliate 

The term ‘‘affiliate’’ means any company 

that controls, is controlled by, or is under 

common control with another company. 

(7) Necessary to effect, administer, or enforce 

The term ‘‘as necessary to effect, administer, or enforce the transaction’’ means— 
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§ 6821 TITLE 15—COMMERCE AND TRADE Page 2236 

(A) the disclosure is required, or is a usual, 

appropriate, or acceptable method, to carry 

out the transaction or the product or service 

business of which the transaction is a part, 

and record or service or maintain the consumer’s account in the ordinary course of 

providing the financial service or financial 

product, or to administer or service benefits 

or claims relating to the transaction or the 

product or service business of which it is a 

part, and includes— 

(i) providing the consumer or the consumer’s agent or broker with a confirmation, statement, or other record of the 

transaction, or information on the status 

or value of the financial service or financial product; and 

(ii) the accrual or recognition of incentives or bonuses associated with the transaction that are provided by the financial 

institution or any other party; 

(B) the disclosure is required, or is one of 

the lawful or appropriate methods, to enforce the rights of the financial institution 

or of other persons engaged in carrying out 

the financial transaction, or providing the 

product or service; 

(C) the disclosure is required, or is a usual, 

appropriate, or acceptable method, for insurance underwriting at the consumer’s request 

or for reinsurance purposes, or for any of the 

following purposes as they relate to a consumer’s insurance: Account administration, 

reporting, investigating, or preventing fraud 

or material misrepresentation, processing 

premium payments, processing insurance 

claims, administering insurance benefits (including utilization review activities), participating in research projects, or as otherwise required or specifically permitted by 

Federal or State law; or 

(D) the disclosure is required, or is a usual, 

appropriate or acceptable method, in connection with— 

(i) the authorization, settlement, billing, 

processing, clearing, transferring, reconciling, or collection of amounts charged, 

debited, or otherwise paid using a debit, 

credit or other payment card, check, or account number, or by other payment 

means; 

(ii) the transfer of receivables, accounts 

or interests therein; or 

(iii) the audit of debit, credit or other 

payment information. 

(8) State insurance authority 

The term ‘‘State insurance authority’’ 

means, in the case of any person engaged in 

providing insurance, the State insurance authority of the State in which the person is 

domiciled. 

(9) Consumer 

The term ‘‘consumer’’ means an individual 

who obtains, from a financial institution, financial products or services which are to be 

used primarily for personal, family, or household purposes, and also means the legal representative of such an individual. 

(10) Joint agreement 

The term ‘‘joint agreement’’ means a formal 

written contract pursuant to which two or 

more financial institutions jointly offer, endorse, or sponsor a financial product or service, and as may be further defined in the regulations prescribed under section 6804 of this 

title. 

(11) Customer relationship 

The term ‘‘time of establishing a customer 

relationship’’ shall be defined by the regulations prescribed under section 6804 of this 

title, and shall, in the case of a financial institution engaged in extending credit directly to 

consumers to finance purchases of goods or 

services, mean the time of establishing the 

credit relationship with the consumer. 

(Pub. L. 106–102, title V, § 509, Nov. 12, 1999, 113 

Stat. 1443.) 

Editorial Notes 

REFERENCES IN TEXT 

This subchapter, referred to in text, was in the original ‘‘this subtitle’’, meaning subtitle A (§§501–510) of 

title V of Pub. L. 106–102, Nov. 12, 1999, 113 Stat. 1436, 

which is classified principally to this subchapter. For 

complete classification of subtitle A to the Code, see 

Tables. 

The Commodity Exchange Act, referred to in par. 

(3)(B), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, as 

amended, which is classified generally to chapter 1 (§1 

et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and 

Tables. 

The Farm Credit Act of 1971, referred to in par. (3)(C), 

is Pub. L. 92–181, Dec. 10, 1971, 85 Stat. 583, as amended, 

which is classified generally to chapter 23 (§2001 et seq.) 

of Title 12, Banks and Banking. For complete classification of this Act to the Code, see Short Title note 

set out under section 2001 of Title 12 and Tables. 

SUBCHAPTER II—FRAUDULENT ACCESS TO 

FINANCIAL INFORMATION 

§ 6821. Privacy protection for customer information of financial institutions 

(a) Prohibition on obtaining customer information by false pretenses 

It shall be a violation of this subchapter for 

any person to obtain or attempt to obtain, or 

cause to be disclosed or attempt to cause to be 

disclosed to any person, customer information 

of a financial institution relating to another 

person— 

(1) by making a false, fictitious, or fraudulent statement or representation to an officer, 

employee, or agent of a financial institution; 

(2) by making a false, fictitious, or fraudulent statement or representation to a customer of a financial institution; or 

(3) by providing any document to an officer, 

employee, or agent of a financial institution, 

knowing that the document is forged, counterfeit, lost, or stolen, was fraudulently obtained, 

or contains a false, fictitious, or fraudulent 

statement or representation. 

(b) Prohibition on solicitation of a person to obtain customer information from financial institution under false pretenses 

It shall be a violation of this subchapter to request a person to obtain customer information 
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Page 2237 TITLE 15—COMMERCE AND TRADE § 6822 

of a financial institution, knowing that the person will obtain, or attempt to obtain, the information from the institution in any manner described in subsection (a). 

(c) Nonapplicability to law enforcement agencies 

No provision of this section shall be construed 

so as to prevent any action by a law enforcement agency, or any officer, employee, or agent 

of such agency, to obtain customer information 

of a financial institution in connection with the 

performance of the official duties of the agency. 

(d) Nonapplicability to financial institutions in 

certain cases 

No provision of this section shall be construed 

so as to prevent any financial institution, or any 

officer, employee, or agent of a financial institution, from obtaining customer information of 

such financial institution in the course of— 

(1) testing the security procedures or systems of such institution for maintaining the 

confidentiality of customer information; 

(2) investigating allegations of misconduct 

or negligence on the part of any officer, employee, or agent of the financial institution; or 

(3) recovering customer information of the 

financial institution which was obtained or received by another person in any manner described in subsection (a) or (b). 

(e) Nonapplicability to insurance institutions for 

investigation of insurance fraud 

No provision of this section shall be construed 

so as to prevent any insurance institution, or 

any officer, employee, or agency of an insurance 

institution, from obtaining information as part 

of an insurance investigation into criminal activity, fraud, material misrepresentation, or 

material nondisclosure that is authorized for 

such institution under State law, regulation, interpretation, or order. 

(f) Nonapplicability to certain types of customer 

information of financial institutions 

No provision of this section shall be construed 

so as to prevent any person from obtaining customer information of a financial institution 

that otherwise is available as a public record 

filed pursuant to the securities laws (as defined 

in section 78c(a)(47) of this title). 

(g) Nonapplicability to collection of child support judgments 

No provision of this section shall be construed 

to prevent any State-licensed private investigator, or any officer, employee, or agent of such 

private investigator, from obtaining customer 

information of a financial institution, to the extent reasonably necessary to collect child support from a person adjudged to have been delinquent in his or her obligations by a Federal or 

State court, and to the extent that such action 

by a State-licensed private investigator is not 

unlawful under any other Federal or State law 

or regulation, and has been authorized by an 

order or judgment of a court of competent jurisdiction. 

(Pub. L. 106–102, title V, § 521, Nov. 12, 1999, 113 

Stat. 1446.) 

§ 6822. Administrative enforcement 

(a) Enforcement by Federal Trade Commission 

Except as provided in subsection (b), compliance with this subchapter shall be enforced by 

the Federal Trade Commission in the same manner and with the same power and authority as 

the Commission has under the Fair Debt Collection Practices Act [15 U.S.C. 1692 et seq.] to enforce compliance with such Act. 

(b) Enforcement by other agencies in certain 

cases 

(1) In general 

Compliance with this subchapter shall be enforced under— 

(A) section 8 of the Federal Deposit Insurance Act [12 U.S.C. 1818], in the case of— 

(i) national banks, and Federal branches 

and Federal agencies of foreign banks, by 

the Office of the Comptroller of the Currency; 

(ii) member banks of the Federal Reserve 

System (other than national banks), 

branches and agencies of foreign banks 

(other than Federal branches, Federal 

agencies, and insured State branches of 

foreign banks), commercial lending companies owned or controlled by foreign 

banks, and organizations operating under 

section 25 or 25A of the Federal Reserve 

Act [12 U.S.C. 601 et seq., 611 et seq.], by 

the Board; 

(iii) banks insured by the Federal Deposit Insurance Corporation (other than 

members of the Federal Reserve System 

and national nonmember banks) and insured State branches of foreign banks, by 

the Board of Directors of the Federal Deposit Insurance Corporation; and 

(iv) savings associations the deposits of 

which are insured by the Federal Deposit 

Insurance Corporation, by the Director of 

the Office of Thrift Supervision; and 

(B) the Federal Credit Union Act [12 U.S.C. 

1751 et seq.], by the Administrator of the National Credit Union Administration with respect to any Federal credit union. 

(2) Violations of this subchapter treated as violations of other laws 

For the purpose of the exercise by any agency referred to in paragraph (1) of its powers 

under any Act referred to in that paragraph, a 

violation of this subchapter shall be deemed to 

be a violation of a requirement imposed under 

that Act. In addition to its powers under any 

provision of law specifically referred to in 

paragraph (1), each of the agencies referred to 

in that paragraph may exercise, for the purpose of enforcing compliance with this subchapter, any other authority conferred on 

such agency by law. 

(Pub. L. 106–102, title V, § 522, Nov. 12, 1999, 113 

Stat. 1447.) 

Editorial Notes 

REFERENCES IN TEXT 

The Fair Debt Collection Practices Act, referred to in 

subsec. (a), is title VIII of Pub. L. 90–321, as added by 
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#:1781 

§ 6823 TITLE 15—COMMERCE AND TRADE Page 2238 

Pub. L. 95–109, Sept. 20, 1977, 91 Stat. 874, as amended, 

which is classified generally to subchapter V (§ 1692 et 

seq.) of chapter 41 of this title. For complete classification of this Act to the Code, see Short Title note set 

out under section 1601 of this title and Tables. 

Section 25 of the Federal Reserve Act, referred to in 

subsec. (b)(1)(A)(ii), is classified to subchapter I (§601 et 

seq.) of chapter 6 of Title 12, Banks and Banking. Section 25A of the Federal Reserve Act is classified to subchapter II (§611 et seq.) of chapter 6 of Title 12. 

The Federal Credit Union Act, referred to in subsec. 

(b)(1)(B), is act June 26, 1934, ch. 750, 48 Stat. 1216, as 

amended, which is classified generally to chapter 14 

(§ 1751 et seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code, see section 

1751 of Title 12 and Tables. 

Statutory Notes and Related Subsidiaries 

TRANSFER OF FUNCTIONS 

Functions vested in Administrator of National Credit 

Union Administration transferred and vested in National Credit Union Administration Board pursuant to 

section 1752a of Title 12, Banks and Banking. 

§ 6823. Criminal penalty 

(a) In general 

Whoever knowingly and intentionally violates, or knowingly and intentionally attempts 

to violate, section 6821 of this title shall be fined 

in accordance with title 18 or imprisoned for not 

more than 5 years, or both. 

(b) Enhanced penalty for aggravated cases 

Whoever violates, or attempts to violate, section 6821 of this title while violating another 

law of the United States or as part of a pattern 

of any illegal activity involving more than 

$100,000 in a 12-month period shall be fined twice 

the amount provided in subsection (b)(3) or (c)(3) 

(as the case may be) of section 3571 of title 18, 

imprisoned for not more than 10 years, or both. 

(Pub. L. 106–102, title V, § 523, Nov. 12, 1999, 113 

Stat. 1448.) 

§ 6824. Relation to State laws 

(a) In general 

This subchapter shall not be construed as superseding, altering, or affecting the statutes, 

regulations, orders, or interpretations in effect 

in any State, except to the extent that such 

statutes, regulations, orders, or interpretations 

are inconsistent with the provisions of this subchapter, and then only to the extent of the inconsistency. 

(b) Greater protection under State law 

For purposes of this section, a State statute, 

regulation, order, or interpretation is not inconsistent with the provisions of this subchapter if 

the protection such statute, regulation, order, 

or interpretation affords any person is greater 

than the protection provided under this subchapter as determined by the Federal Trade 

Commission, after consultation with the agency 

or authority with jurisdiction under section 6822 

of this title of either the person that initiated 

the complaint or that is the subject of the complaint, on its own motion or upon the petition of 

any interested party. 

(Pub. L. 106–102, title V, § 524, Nov. 12, 1999, 113 

Stat. 1448.) 

§ 6825. Agency guidance 

In furtherance of the objectives of this subchapter, each Federal banking agency (as defined in section 1813(z) of title 12), the National 

Credit Union Administration, and the Securities 

and Exchange Commission or self-regulatory organizations, as appropriate, shall review regulations and guidelines applicable to financial institutions under their respective jurisdictions 

and shall prescribe such revisions to such regulations and guidelines as may be necessary to 

ensure that such financial institutions have 

policies, procedures, and controls in place to 

prevent the unauthorized disclosure of customer 

financial information and to deter and detect 

activities proscribed under section 6821 of this 

title. 

(Pub. L. 106–102, title V, § 525, Nov. 12, 1999, 113 

Stat. 1448.) 

§ 6826. Reports 

(a) Report to the Congress 

Before the end of the 18-month period beginning on November 12, 1999, the Comptroller General, in consultation with the Federal Trade 

Commission, Federal banking agencies, the National Credit Union Administration, the Securities and Exchange Commission, appropriate Federal law enforcement agencies, and appropriate 

State insurance regulators, shall submit to the 

Congress a report on the following: 

(1) The efficacy and adequacy of the remedies provided in this subchapter in addressing 

attempts to obtain financial information by 

fraudulent means or by false pretenses. 

(2) Any recommendations for additional legislative or regulatory action to address 

threats to the privacy of financial information 

created by attempts to obtain information by 

fraudulent means or false pretenses. 

(b) Annual report by administering agencies 

The Federal Trade Commission and the Attorney General shall submit to Congress an annual 

report on number and disposition of all enforcement actions taken pursuant to this subchapter. 

(Pub. L. 106–102, title V, § 526, Nov. 12, 1999, 113 

Stat. 1448.) 

§ 6827. Definitions 

For purposes of this subchapter, the following 

definitions shall apply: 

(1) Customer 

The term ‘‘customer’’ means, with respect to 

a financial institution, any person (or authorized representative of a person) to whom the 

financial institution provides a product or 

service, including that of acting as a fiduciary. 

(2) Customer information of a financial institution 

The term ‘‘customer information of a financial institution’’ means any information maintained by or for a financial institution which 

is derived from the relationship between the 

financial institution and a customer of the financial institution and is identified with the 

customer. 
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#:1782 

Page 2239 TITLE 15—COMMERCE AND TRADE § 6901 

(3) Document 

The term ‘‘document’’ means any information in any form. 

(4) Financial institution 

(A) In general 

The term ‘‘financial institution’’ means 

any institution engaged in the business of 

providing financial services to customers 

who maintain a credit, deposit, trust, or 

other financial account or relationship with 

the institution. 

(B) Certain financial institutions specifically 

included 

The term ‘‘financial institution’’ includes 

any depository institution (as defined in section 461(b)(1)(A) of title 12), any broker or 

dealer, any investment adviser or investment company, any insurance company, any 

loan or finance company, any credit card 

issuer or operator of a credit card system, 

and any consumer reporting agency that 

compiles and maintains files on consumers 

on a nationwide basis (as defined in section 

1681a(p) of this title). 

(C) Securities institutions 

For purposes of subparagraph (B)— 

(i) the terms ‘‘broker’’ and ‘‘dealer’’ have 

the same meanings as given in section 78c 

of this title; 

(ii) the term ‘‘investment adviser’’ has 

the same meaning as given in section 

80b–2(a)(11) of this title; and 

(iii) the term ‘‘investment company’’ has 

the same meaning as given in section 80a–3 

of this title. 

(D) Certain persons and entities specifically 

excluded 

The term ‘‘financial institution’’ does not 

include any person or entity with respect to 

any financial activity that is subject to the 

jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act [7 U.S.C. 1 et seq.] and does not 

include the Federal Agricultural Mortgage 

Corporation or any entity chartered and operating under the Farm Credit Act of 1971 [12 

U.S.C. 2001 et seq.]. 

(E) Further definition by regulation 

The Federal Trade Commission, after consultation with Federal banking agencies and 

the Securities and Exchange Commission, 

may prescribe regulations clarifying or describing the types of institutions which shall 

be treated as financial institutions for purposes of this subchapter. 

(Pub. L. 106–102, title V, § 527, Nov. 12, 1999, 113 

Stat. 1449.) 

Editorial Notes 

REFERENCES IN TEXT 

The Commodity Exchange Act, referred to in par. 

(4)(D), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, as 

amended, which is classified generally to chapter 1 (§1 

et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and 

Tables. 

The Farm Credit Act of 1971, referred to in par. (4)(D), 

is Pub. L. 92–181, Dec. 10, 1971, 85 Stat. 583, as amended, 

which is classified generally to chapter 23 (§2001 et seq.) 

of Title 12, Banks and Banking. For complete classification of this Act to the Code, see Short Title note 

set out under section 2001 of Title 12 and Tables. 

CHAPTER 95—MICROENTERPRISE TECHNICAL ASSISTANCE AND CAPACITY BUILDING PROGRAM 

Sec. 

6901. Definitions. 

6902. Establishment of program. 

6903. Uses of assistance. 

6904. Qualified organizations. 

6905. Allocation of assistance; subgrants. 

6906. Matching requirements. 

6907. Applications for assistance. 

6908. Recordkeeping. 

6909. Authorization. 

6910. Implementation. 

§ 6901. Definitions 

For purposes of this chapter, the following 

definitions shall apply: 

(1) Administration 

The term ‘‘Administration’’ means the 

Small Business Administration. 

(2) Administrator 

The term ‘‘Administrator’’ means the Administrator of the Small Business Administration. 

(3) Capacity building services 

The term ‘‘capacity building services’’ 

means services provided to an organization 

that is, or that is in the process of becoming, 

a microenterprise development organization 

or program, for the purpose of enhancing its 

ability to provide training and services to disadvantaged entrepreneurs. 

(4) Collaborative 

The term ‘‘collaborative’’ means 2 or more 

nonprofit entities that agree to act jointly as 

a qualified organization under this chapter. 

(5) Disadvantaged entrepreneur 

The term ‘‘disadvantaged entrepreneur’’ 

means a microentrepreneur that is— 

(A) a low-income person; 

(B) a very low-income person; or 

(C) an entrepreneur that lacks adequate 

access to capital or other resources essential 

for business success, or is economically disadvantaged, as determined by the Administrator. 

(6) Indian tribe 

The term ‘‘Indian tribe’’ has the meaning 

given the term in section 4702 of title 12. 

(7) Intermediary 

The term ‘‘intermediary’’ means a private, 

nonprofit entity that seeks to serve microenterprise development organizations and programs as authorized under section 6904 of this 

title. 

(8) Low-income person 

The term ‘‘low-income person’’ has the 

meaning given the term in section 4702 of title 

12. 
.

.

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Telemarketing SalesRule #:1783 16CFR Part 310 (July 11, 2023) 

This content is from the eCFR and is authoritative but unofficial. 

Title16 -Commercial Practices 

Chapter I -FederalTrade Commission 

SubchapterC-Regulations Under Specific Acts ofCongress 

Part 310 Tel_emarketi_ng..Sales...Ru_l_e 

§ 310.1 Scope_of..regulations..in.. this..part . 

§ 310.2 .P..~.f.!.n.l!!.9.n.~.:. 

§ 310.3 .P..~.~-~P.!.!Y.~ telem~-~-~~!!.n.9...~~!~...~E..PE.~Ctices. 

§ 310.4 Abusive..telema_rketing..acts..o_r_pract_ices. 

§ 310.5 _Record~~-~.P.i..~.9..E.~.9.~.!.rements.:. 

§ 310.6 _Exemptions. 

§ 310.7 A.~.!i.~.~~---~.Y....?.tates ..PE.!Y..~.!~..P.~rsons . 

§ 310.8 _Fee..fo_r..access..to..the...Natio_nal..Do..N_ot..Call..Registry. 

§ 310.9 Severability._ 

PART 310-TELEMARKETING SALES RULE 

Source: 75..FR_4851_6, Aug. 10, 2010, unless otherwise noted. 

§ 310.1Scope ofregulations in this part. 

This part implements the Telemarketing and Consumer Fraud and Abuse Prevention Act, 1.s..u.s.c,. ..610_1_-61_08, as 

amended. 

§ 310.2 Definitions. 

(a) Acquirer means a business organization, financial institution, or an agent of a business organization or 

financial institution that has authority from an organization that operates or licenses a credit card system 

to authorize merchants to accept, transmit, or process payment by credit card through the credit card 

system for money, goods or services, or anything else of value. 

(b) Attorney General means the chief legal officer of a state. 

(c) Billing information means any data that enables any person to access a customer's or donor's account, 

such as a credit card, checking, savings, share or similar account, utility bill, mortgage loan account, or 

debit card. 

(d) Caller identification service means a service that allows a telephone subscriber to have the telephone 

number, and, where available, name of the calling party transmitted contemporaneously with the 

telephone call, and displayed on a device in or connected to the subscriber's telephone. 

16 CFR 310.2(d) (enhanced display) page1of18 
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p #·1784 16 CFR 310.2(e) Telemarketing Sales Rule · 

(e) Cardholder means a person to whom a credit card is issued or who is authorized to use a credit card on 

behalf of or in addition to the person to whom the credit card is issued. 

(f) Cash-to-cash money transfer means the electronic (as defined in section 106(2) of the Electronic 

Signatures in Global and National Commerce Act (15 U.S.C. 7006(~)) transfer of the value of cash 

received from one person to another person in a different location that is sent by a money transfer 

provider and received in the form of cash. For purposes of this definition, money transfer provider means 

any person or financial institution that provides cash-to-cash money transfers for a person in the normal 

course of its business, whether or not the person holds an account with such person or financial 

institution. The term cash-to-cash money transfer includes a remittance transfer, as defined in section 

919(g)(2) of the Electronic Fund Transfer Act ("EFTA"), 15 U.S.C. 1693a, that is a cash-to-cash transaction; 

however it does not include any transaction that is: 

(1) An electronic fund transfer as defined in section 903 of the EFTA; 

(2) Covered by Regulation E, 1.2 ..CFR..1_005.20, pertaining to gift cards; or 

(3) Subject to the Truth in Lending Act, 1_5..U.S.C...1_601 _et seq. 

(g) Cash reload mechanism is a device, authorization code, personal identification number, or other security 

measure that makes it possible for a person to convert cash into an electronic (as defined in section 

106(2) of the Electronic Signatures in Global and National Commerce Act 0..?...~.:.?..:.~:...?..99.?.(?.)) form that 

can be used to add funds to a general-use prepaid card, as defined in Regulation E, 12 CFR 1005.2, or an 

account with a payment intermediary. For purposes of this definit ion, a cash reload mechanism is not 

itself a general-use prepaid debit card or a swipe reload process or similar method in which funds are 

added directly onto a person's own general-use prepaid card or account with a payment intermediary. 

(h) Charitable contribution means any donation or gift of money or any other thing of value. 

(i) Commission means the Federal Trade Commission. 

0) Credit means the right granted by a creditor to a debtor to defer payment of debt or to incur debt and defer 

its payment. 

(k) Credit card means any card, plate, coupon book, or other credit device existing for the purpose of 

obtaining money, property, labor, or services on credit. 

(I) Credit card sales draft means any record or evidence of a credit card transaction. 

(m) Credit card system means any method or procedure used to process credit card transactions involving 

credit cards issued or licensed by the operator of that system. 

(n) Customer means any person who is or may be required to pay for goods or services offered through 

telemarketing. 

(o) Debt relief service means any program or service represented, directly or by implication, to renegotiate, 

settle, or in any way alter the terms of payment or other terms of the debt between a person and one or 

more unsecured creditors or debt collectors, including, but not limited to, a reduction in the balance, 

interest rate, or fees owed by a person to an unsecured creditor or debt collector. 

(p) Donor means any person solicited to make a charitable contribution. 

(q) Established business relationship means a relationship between a seller and a consumer based on: 

16 CFR 310.2(q) (enhanced display) page2of18 
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Telemarketing Sales Rule #: 1785 16 CFR 310.2(q)(1) 

(1) the consumer's purchase, rental, or lease of the seller's goods or services or a financial transaction 

between the consumer and seller, within the eighteen (18) months immediately preceding the date of 

a telemarketing call; or 

(2) the consumer's inquiry or application regarding a product or service offered by the seller, within the 

three 

(3) months immediately preceding the date of a telemarketing call. 

(r) Free-to-pay conversion means, in an offer or agreement to sell or provide any goods or services, a 

provision under which a customer receives a product or service for free for an initial period and will incur 

an obligation to pay for the product or service if he or she does not take affirmative action to cancel 

before the end of that period. 

(s) Investment opportunity means anything, tangible or intangible, that is offered, offered for sale, sold, or 

traded based wholly or in part on representations, either express or implied, about past, present, or future 

income, profit, or appreciation. 

(t) Material means likely to affect a person's choice of, or conduct regarding, goods or services or a 

charitable contribution. 

(u) Merchant means a person who is authorized under a written contract with an acquirer to honor or accept 

credit cards, or to transmit or process for payment credit card payments, for the purchase of goods or 

services or a charitable contribution. 

(v) Merchant agreement means a written contract between a merchant and an acquirer to honor or accept 

credit cards, or to transmit or process for payment credit card payments, for the purchase of goods or 

services or a charitable contribution. 

(w) Negative option feature means, in an offer or agreement to sell or provide any goods or services, a 

provision under which the customer's silence or failure to take an affirmative action to reject goods or 

services or to cancel the agreement is interpreted by the seller as acceptance of the offer. 

(x) Outbound telephone call means a telephone call initiated by a telemarketer to induce the purchase of 

goods or services or to solicit a charitable contribution. 

(y) Person means any individual, group, unincorporated association, limited or general partnership, 

corporation, or other business entity. 

(z) Preacquired account information means any information that enables a seller or telemarketer to cause a 

charge to be placed against a customer's or donor's account without obtaining the account number 

directly from the customer or donor during the telemarketing transaction pursuant to which the account 

will be charged. 

(aa) Prize means anything offered, or purportedly offered, and given, or purportedly given, to a person by 

chance. For purposes of this definit ion, chance exists if a person is guaranteed to receive an item and, at 

the time of the offer or purported offer, the telemarketer does not identify the specific item that the person 

will receive. 

(bb) Prize promotion means: 

(1) A sweepstakes or other game of chance; or 

(2) An oral or written express or implied representation that a person has won, has been selected to 

receive, or may be el igible to receive a prize or purported prize. 

16 CFR 310.2(bb)(2) (enhanced display) page3of18 
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kt. Sal Rul #:1786 16 <'.:FR310.2(cc) Tle emar e mg es e 

(cc) Remotely created payment order means any payment instruction or order drawn on a person's account 

that is created by the payee or the payee's agent and deposited into or cleared through the check clearing 

system. The term includes, without limitation, a "remotely created check; as defined in Regulation CC, 

Availability of Funds and Collection of Checks, .]..?...9,FR 229.2.(f.f.f.t but does not include a payment order 

cleared through an Automated Clearinghouse (ACH) Network or subject to the Truth in Lending Act, .~..?. 

.~.:.?..:.q:.J ?.9.].. et seq., and Regulation Z, .~.?...g,.~-~.J?.~E! ...~.9.?.?· 

( dd) Seller means any person who, in connection with a telemarketing transaction, provides, offers to provide, 

or arranges for others to provide goods or services to the customer in exchange for consideration. 

(ee) State means any state of the United States, the District of Columbia, Puerto Rico, the Northern Mariana 

Islands, and any territory or possession of the United States. 

(ff) Telemarketer means any person who, in connection with telemarketing, initiates or receives telephone 

calls to or from a customer or donor. 

(gg) Telemarketing means a plan, program, or campaign which is conducted to induce the purchase of goods 

or services or a charitable contribution, by use of one or more telephones and which involves more than 

one interstate telephone call. The term does not include the solicitation of sales through the mailing of a 

catalog which: contains a written description or illustration of the goods or services offered for sale; 

includes the business address of the seller; includes multiple pages of written material or illustrations; 

and has been issued not less frequently than once a year, when the person making the solicitation does 

not solicit customers by telephone but only receives calls initiated by customers in response to the 

catalog and during those calls takes orders only without further solicitation. For purposes of the previous 

sentence, the term "further solicitationn does not include providing the customer with information about, 

or attempting to sell, any other item included in the same catalog which prompted the customer's call or 

in a substantially similar catalog. 

(hh) Upselling means soliciting the purchase of goods or services following an initial transaction during a 

single telephone call. The upsell is a separate telemarketing transaction, not a continuation of the initial 

transaction. An "external upselr is a sol icitation made by or on behalf of a seller different from the seller 

in the init ial transaction, regardless of whether the initial transaction and the subsequent solicitation are 

made by the same telemarketer. An "internal upsell" is a solicitation made by or on behalf of the same 

seller as in the initial transaction, regardless of whether the initial transaction and subsequent solicitation 

are made by the same telemarketer. 

f?.~..E!J...1§..~.?.?.!Aug. 10, 2010, as amended at §..Q..E!J..?!..~~?!Dec. 14, 2015] 

§ 310.3 Deceptive telemarketing acts or practices. 

(a) Prohibited deceptive telemarketing acts or practices. It is a deceptive telemarketing act or practice and a 

violation of this Rule for any seller or telemarketer to engage in the following conduct: 

(1) Before a customer consents to payl.?.?.?.l for goods or services offered, fail ing to disclose truthfully, in a 

clear and conspicuous manner, the following material information: 

(i) The total costs to purchase, receive, or use, and the quantity of, any goods or services that are 

the subject of the sales offer;l.?.~9.1 

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Telemarketing Sales Rule #: 1787 16 CFR~10.3(a)(1}(ii) 

(ii) All material restrictions, limitations, or conditions to purchase, receive, or use the goods or 

services that are the subject of the sales offer; 

(iii) If the seller has a policy of not making refunds, cancellations, exchanges, or repurchases, a 

statement informing the customer that this is the seller's policy; or, if the seller or telemarketer 

makes a representation about a refund, cancellation, exchange, or repurchase policy, a 

statement of all material terms and condit ions of such policy; 

(iv) In any prize promotion, the odds of being able to receive the prize, and, if the odds are not 

calculable in advance, the factors used in calculating the odds; that no purchase or payment is 

required to win a prize or to participate in a prize promotion and that any purchase or payment 

will not increase the person's chances of winning; and the no-purchase/ no-payment method of 

participating in the prize promotion with either instructions on how to participate or an address 

or local or toll-free telephone number to which customers may write or call for information on 

how to participate; 

(v) All material costs or conditions to receive or redeem a prize that is the subject of the prize 

promotion; 

(vi) In the sale of any goods or services represented to protect, insure, or otherwise limit a 

customer's liability in the event of unauthorized use of the customer's credit card, the limits on 

a cardholder's liabil ity for unauthorized use of a credit card pursuant to 1.5 ..U.S.C ...1_643; 

(vii) If the offer includes a negative option feature, all material terms and conditions of the negative 

option feature, including, but not limited to, the fact that the customer's account will be charged 

unless the customer takes an affirmative action to avoid the charge(s), the date(s) the 

charge(s) will be submitted for payment, and the specific steps the customer must take to 

avoid the charge(s); and 

(viii) In the sale of any debt relief service: 

(A) the amount of time necessary to achieve the represented results, and to the extent that the 

service may include a settlement offer to any of the customer's creditors or debt 

collectors, the time by which the debt relief service provider will make a bona fide 

settlement offer to each of them; 

(B) to the extent that the service may include a settlement offer to any of the customer's 

creditors or debt collectors, the amount of money or the percentage of each outstanding 

debt that the customer must accumulate before the debt relief service provider will make 

a bona fide settlement offer to each of them; 

............................................................................................................................................................______............................................................................................................................................................... 

1.~.~~.l When a seller or telemarketer uses, or directs a customer to use, a courier to transport payment, the seller 

or telemarketer must make the disclosures required by§ 31_0._3(a)(1) before sending a courier to pick up 

payment or authorization for payment, or directing a customer to have a courier pick up payment or 

authorization for payment. In the case of debt relief services, the seller or telemarketer must make the 

disclosures required by .§..?..~.9.:}.(~)0). before the consumer enrolls in an offered program. 

1.~?.9.1For offers of consumer credit products subject to the Truth in Lending Act, 1_5..U.S.C...1_601_et seq., and 

Regulation Z, 1.2 ..CFR.226, compliance with the disclosure requirements under the Truth in Lending Act and 

Regulation Z shall constitute compliance with .§ 310.3(~).(J.2.CQ.of this Rule. 

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Telemarketing Sales Rule #: 1788 16 CFR 310.3(a)(1}(vili)(C) 

(C) to the extent that any aspect of the debt relief service relies upon or results in the 

customer's failure to make timely payments to creditors or debt collectors, that the use of 

the debt relief service wi ll likely adversely affect the customer's creditworthiness, may 

result in the customer being subject to collections or sued by creditors or debt collectors, 

and may increase the amount of money the customer owes due to the accrual of fees and 

interest; and 

(D) to the extent that the debt rel ief service requests or requires the customer to place funds 

in an account at an insured financial institution, that the customer owns the funds held in 

the account, the customer may withdraw from the debt relief service at any time without 

penalty, and, if the customer withdraws, the customer must receive all funds in the 

account, other than funds earned by the debt relief service in compliance with.§. 

}.J.9.:.1{~.)(!?,)(i).(~). through _(g). 

(2) Misrepresent ing, directly or by implication, in the sale of goods or services any of the following 

material information: 

(i) The total costs to purchase, receive, or use, and the quantity of, any goods or services that are 

the subject of a sales offer; 

(ii) Any material restriction, limitation, or condition to purchase, receive, or use goods or services 

that are the subject of a sales offer; 

(iii) Any material aspect of the performance, efficacy, nature, or central characteristics of goods or 

services that are the subject of a sales offer; 

(iv) Any material aspect of the nature or terms of the seller's refund, cancellation, exchange, or 

repurchase policies; 

(v) Any material aspect of a prize promotion including, but not limited to, the odds of being able to 

receive a prize, the nature or value of a prize, or that a purchase or payment is required to win a 

prize or to participate in a prize promotion; 

(vi) Any material aspect of an investment opportunity including, but not limited to, risk, liquidity, 

earnings potential, or profitability; 

(vii) A seller's or telemarketer's affiliation with, or endorsement or sponsorship by, any person or 

government entity; 

(viii) That any customer needs offered goods or services to provide protections a customer already 

has pursuant to 1_s..u_.s .c_. ..1_643; 

(ix) Any material aspect of a negative option feature including, but not limited to, the fact that the 

customer's account wi ll be charged unless the customer takes an affirmative action to avoid 

the charge(s), the date(s) the charge(s) will be submitted for payment, and the specific steps 

the customer must take to avoid the charge(s); or 

(x) Any material aspect of any debt relief service, including, but not limited to, the amount of money 

or the percentage of the debt amount that a customer may save by using such service; the 

amount of time necessary to achieve the represented results; the amount of money or the 

percentage of each outstanding debt that the customer must accumulate before the provider of 

the debt relief service wi ll initiate attempts with the customer's creditors or debt collectors or 

make a bona fide offer to negotiate, settle, or modify the terms of the customer's debt; the 

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Telemarketing Sales Rule #: 1789 16 CFR 310.3(a}(3) 

effect of the service on a customer's creditworthiness; the effect of the service on collection 

efforts of the customer's creditors or debt collectors; the percentage or number of customers 

who attain the represented results; and whether a debt relief service is offered or provided by a 

non-profit entity. 

(3) Causing billing information to be submitted for payment, or collecting or attempting to collect 

payment for goods or services or a charitable contribution, directly or indirectly, without the 

customer's or donor's express verifiable authorization, except when the method of payment used is a 

credit card subject to protections of the Truth in Lending Act and Regulation z,1.~~~.1or a debit card 

subject to the protections of the Electronic Fund Transfer Act and Regulation E.1~~?1 Such 

authorization shall be deemed verifiable if any of the following means is employed: 

(i) Express written authorization by the customer or donor, which includes the customer's or 

donor's signature;l.~§~J 

(ii) Express oral authorization which is audio-recorded and made avai lable upon request to the 

customer or donor, and the customer's or donor's bank or other billing entity, and which 

evidences clearly both the customer's or donor's authorization of payment for the goods or 

services or charitable contribution that are the subject of the telemarketing transaction and the 

customer's or donor's receipt of all of the following information: 

(A) An accurate description, clearly and conspicuously stated, of the goods or services or 

charitable contribution for which payment authorization is sought; 

(B) The number of debits, charges, or payments (if more than one); 

(C) The date(s) the debit(s), charge(s), or payment(s) will be submitted for payment; 

(D) The amount(s) of the debit(s), charge(s), or payment(s); 

(E) The customer's or donor's name; 

(F) The customer's or donor's billing information, identified with sufficient specificity such that 

the customer or donor understands what account will be used to collect payment for the 

goods or services or charitable contribution that are the subject of the telemarketing 

transaction; 

(G) A telephone number for customer or donor inquiry that is answered during normal 

business hours; and 

(H) The date of the customer's or donor's oral authorization; or 

l.~§?.I Electronic Fund Transfer Act, .J..?...~.S.C. l.?.~.~-et seq., and Regulation E, .J..?...gfg..P~.~..?.9.§.-

1.~~~.1 Truth in Lending Act, .J..?...~:.?.:.~.:...J.?9.].. et seq., and Regulation Z, .J..?...~.~g.J?.~.~..?.?.?· 

1.~~~I For purposes of this Rule, the term "signaturen shall include an electronic or digital form of signature, to 

the extent that such form of signature is recognized as a valid signature under applicable federal law or state 

contract law. 

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Telemarketing Sales Rule #: 1790 16 CFR 310.3(a)(3)(iii) 

(iii) Written confirmation of the transaction, identified in a clear and conspicuous manner as such 

on the outside of the envelope, sent to the customer or donor via first class mail prior to the 

submission for payment of the customer's or donor's billing information, and that includes all of 

the information contained in §.§...?.J..9..-.?.{~)..(?,).(iJ).(AH§). and a clear and conspicuous statement of 

the procedures by which the customer or donor can obtain a refund from the seller or 

telemarketer or charitable organization in the event the confirmation is inaccurate; provided, 

however, that this means of authorization shall not be deemed verifiable in instances in which 

goods or services are offered in a transaction involving a free-to-pay conversion and 

preacquired account information. 

(4) Making a false or misleading statement to induce any person to pay for goods or services or to 

induce a charitable contribution. 

(b) Assisting and facilitating. It is a deceptive telemarketing act or practice and a violation of this Ru le for a 

person to provide substantial assistance or support to any seller or telemarketer when that person knows 

or consciously avoids knowing that the seller or telemarketer is engaged in any act or practice that 

violates .§.§..}}9.:?.(~)., ('?) or (~)! or .§..?..).9.:.~ of this Rule. 

(c) Credit card laundering. Except as expressly permitted by the applicable credit card system, it is a 

deceptive telemarketing act or practice and a violation of this Rule for: 

(1) A merchant to present to or deposit into, or cause another to present to or deposit into, the credit 

card system for payment, a credit card sales draft generated by a telemarketing transaction that is 

not the result of a telemarketing credit card transaction between the cardholder and the merchant; 

(2) Any person to employ, solicit, or otherwise cause a merchant, or an employee, representative, or 

agent of the merchant, to present to or deposit into the credit card system for payment, a credit card 

sales draft generated by a telemarketing transaction that is not the result of a telemarketing credit 

card transaction between the cardholder and the merchant; or 

(3) Any person to obtain access to the credit card system through the use of a business relationship or 

an affiliation with a merchant, when such access is not authorized by the merchant agreement or the 

appl icable credit card system. 

(d) Prohibited deceptive acts or practices in the solicitation of charitable contributions. It is a fraudulent 

charitable solicitation, a deceptive telemarketing act or practice, and a violation of this Rule for any 

telemarketer soliciting charitable contributions to misrepresent, directly or by implication, any of the 

following material information: 

(1) The nature, purpose, or mission of any entity on behalf of which a charitable contribution is being 

requested; 

(2) That any charitable contribution is tax deductible in whole or in part; 

(3) The purpose for which any charitable contribution will be used; 

(4) The percentage or amount of any charitable contribution that wi ll go to a charitable organization or 

to any particular charitable program; 

(5) Any material aspect of a prize promotion including, but not limited to: the odds of being able to 

receive a prize; the nature or value of a prize; or that a charitable contribution is required to win a 

prize or to participate in a prize promotion; or 

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Telemarketing Sales Rule #: 1791 16CFR 310.3(d)(6) 

(6) A charitable organization's or telemarketer's affiliation with, or endorsement or sponsorship by, any 

person or government entity. 

§ 310.4 Abusive telemarketing acts or practices. 

(a) Abusive conduct generally. It is an abusive telemarketing act or practice and a violation of this Rule for any 

seller or telemarketer to engage in the following conduct: 

(1) Threats, intimidation, or the use of profane or obscene language; 

(2) Requesting or receiving payment of any fee or consideration for goods or services represented to 

remove derogatory information from, or improve, a person's credit history, credit record, or credit 

rating until: 

(i) The time frame in which the seller has represented all of the goods or services will be provided 

to that person has expired; and 

(ii) The seller has provided the person with documentation in the form of a consumer report from a 

consumer reporting agency demonstrating that the promised results have been achieved, such 

report having been issued more than six months after the results were achieved. Nothing in this 

Rule should be construed to affect the requirement in the Fair Credit Reporting Act, 1.5 ..U._S._C. 

1_681, that a consumer report may only be obtained for a specified permissible purpose; 

(3) Requesting or receiving payment of any fee or consideration from a person for goods or services 

represented to recover or otherwise assist in the return of money or any other item of value paid for 

by, or promised to, that person in a previous transaction, until seven (7) business days after such 

money or other item is delivered to that person. This provision shall not apply to goods or services 

provided to a person by a licensed attorney; 

(4) Requesting or receiving payment of any fee or consideration in advance of obtaining a loan or other 

extension of credit when the seller or telemarketer has guaranteed or represented a high likelihood 

of success in obtaining or arranging a loan or other extension of credit for a person; 

(5) 

(i) Requesting or receiving payment of any fee or consideration for any debt relief service until and 

unless: 

(A) The seller or telemarketer has renegotiated, settled, reduced, or otherwise altered the 

terms of at least one debt pursuant to a settlement agreement, debt management plan, or 

other such valid contractual agreement executed by the customer; 

(B) The customer has made at least one payment pursuant to that settlement agreement, debt 

management plan, or other valid contractual agreement between the customer and the 

creditor or debt collector; and 

(C) To the extent that debts enrolled in a service are renegotiated, settled, reduced, or 

otherwise altered individually, the fee or consideration either: 

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(7) Bears the same proportional relationship to the total fee for renegotiating, settling, 

reducing, or altering the terms of the entire debt balance as the individual debt 

amount bears to the entire debt amount. The individual debt amount and the entire 

debt amount are those owed at the time the debt was enrolled in the service; or 

(2) Is a percentage of the amount saved as a result of the renegotiation, settlement, 

reduction, or alteration. The percentage charged cannot change from one individual 

debt to another. The amount saved is the difference between the amount owed at the 

time the debt was enrolled in the service and the amount actually paid to satisfy the 

debt. 

(ii) Nothing in .§ 310.4(~K?)(!). prohibits requesting or requiring the customer to place funds in an 

account to be used for the debt relief provider's fees and for payments to creditors or debt 

collectors in connection with the renegotiation, settlement, reduction, or other alteration of the 

terms of payment or other terms of a debt, provided that: 

(A) The funds are held in an account at an insured financial institution; 

(B) The customer owns the funds held in the account and is paid accrued interest on the 

account, if any; 

(C) The entity administering the account is not owned or controlled by, or in any way affil iated 

with, the debt relief service; 

(D) The entity administering the account does not give or accept any money or other 

compensation in exchange for referrals of business involving the debt relief service; and 

(E) The customer may withdraw from the debt relief service at any time without penalty, and 

must receive all funds in the account, other than funds earned by the debt relief service in 

compliance with .§...~.~.9.:.:H~)(?,)Q)..(~).through (g),within seven (7) business days of the 

customer's request. 

(6) Disclosing or receiving, for consideration, unencrypted consumer account numbers for use in 

telemarketing; provided, however, that this paragraph shall not apply to the disclosure or receipt of a 

customer's or donor's billing information to process a payment for goods or services or a charitable 

contribution pursuant to a transaction; 

(7) Causing billing information to be submitted for payment, directly or indirectly, without the express 

informed consent of the customer or donor. In any telemarketing transaction, the seller or 

telemarketer must obtain the express informed consent of the customer or donor to be charged for 

the goods or services or charitable contribution and to be charged using the identified account. In 

any telemarketing transaction involving preacquired account information, the requirements in 

p~r.,~~.r.~.P.~.~..(~).(?.)(!) through Q!) of this section must be met to evidence express informed consent. 

(i) In any telemarketing transaction involving preacquired account information and a free-to-pay 

conversion feature, the seller or telemarketer must: 

(A) Obtain from the customer, at a minimum, the last four (4) digits of the account number to 

be charged; 

(B) Obtain from the customer his or her express agreement to be charged for the goods or 

services and to be charged using the account number pursuant to p~_r.~~E~.P.~...(~)(?.).(.i.)(~).of 

this section; and, 

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p #·1793 16 CFR 310.4 Telemarketing Sales Rule · 

(C) Make and maintain an audio recording of the entire telemarketing transaction. 

(ii) In any other telemarketing transaction involving preacquired account information not described 

in .P..~E~.~.r.~.P.~..(~).(?.)(Q_of this section, the seller or telemarketer must: 

(A) At a minimum, ident ify the account to be charged with sufficient specificity for the 

customer or donor to understand what account will be charged; and 

(B) Obtain from the customer or donor his or her express agreement to be charged for the 

goods or services and to be charged using the account number identified pursuant to 

.P..~r.~9E~.P.~..(~).(?.)_Q_i).(~). of this section; 

(8) Failing to transmit or cause to be transmitted the telephone number, and, when made available by the 

telemarketer's carrier, the name of the telemarketer, to any caller identification service in use by a 

recipient of a telemarketing call; provided that it shall not be a violation to substitute (for the name 

and phone number used in, or billed for, making the call) the name of the seller or charitable 

organization on behalf of which a telemarketing call is placed, and the seller's or charitable 

organization's customer or donor service telephone number, which is answered during regular 

business hours; 

(9) Creating or causing to be created, directly or indirectly, a remotely created payment order as payment 

for goods or services offered or sold through telemarketing or as a charitable contribution solicited 

or sought through telemarketing; or 

(10) Accepting from a customer or donor, directly or indirectly, a cash-to-cash money transfer or cash 

reload mechanism as payment for goods or services offered or sold through telemarketing or as a 

charitable contribution solicited or sought through telemarketing. 

(b) Pattern ofcalls. 

(1) It is an abusive telemarketing act or practice and a violation of this Rule for a telemarketer to engage 

in, or for a seller to cause a telemarketer to engage in, the following conduct: 

(i) Causing any telephone to ring, or engaging any person in telephone conversation, repeatedly or 

continuously with intent to annoy, abuse, or harass any person at the called number; 

(ii) Denying or interfering in any way, directly or indirectly, with a person's right to be placed on any 

registry of names and/or telephone numbers of persons who do not wish to receive outbound 

telephone calls established to comply with paragraph (b)(1 )(iii)(A) of this section, including, but 

not limited to, harassing any person who makes such a request; hanging up on that person; 

failing to honor the request; requiring the person to listen to a sales pitch before accepting the 

request; assessing a charge or fee for honoring the request; requiring a person to call a 

different number to submit the request; and requiring the person to identify the seller making 

the call or on whose behalf the call is made; 

(iii) Initiating any outbound telephone call to a person when: 

(A) That person previously has stated that he or she does not wish to receive an outbound 

telephone call made by or on behalf of the seller whose goods or services are being 

offered or made on behalf of the charitable organization for which a charitable 

contribution is being solicited; or 

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(B) That person's telephone number is on the "do-not-cal In registry, maintained by the 

Commission, of persons who do not wish to receive outbound telephone calls to induce 

the purchase of goods or services unless the seller or telemarketer: 

(7) Can demonstrate that the seller has obtained the express agreement, in writing, of 

such person to place calls to that person. Such written agreement shall clearly 

evidence such person's authorization that calls made by or on behalf of a specific 

party may be placed to that person, and shall include the telephone number to which 

the calls may be placed and the signature!.~~)of that person; or 

(2) Can demonstrate that the seller has an established business relationship with such 

person, and that person has not stated that he or she does not wish to receive 

outbound telephone calls under paragraph_ (b)(1)(i_ii)(A) of this section; or 

(iv) Abandoning any outbound telephone call. An outbound telephone call is "abandoned" under this 

section if a person answers it and the telemarketer does not connect the call to a sales 

representative within two (2) seconds of the person's completed greeting. 

(v) Initiating any outbound telephone call that delivers a prerecorded message, other than a 

prerecorded message permitted for compliance with the call abandonment safe harbor in §. 

31_0.4(b)(4)(iii), unless: 

(A) In any such call to induce the purchase of any good or service, the seller has obtained 

from the recipient of the call an express agreement, in writing, that: 

(i) The seller obtained only after a clear and conspicuous disclosure that the purpose of the 

agreement is to authorize the seller to place prerecorded calls to such person; 

(ii) The seller obtained without requiring, directly or indirectly, that the agreement be executed as a 

condition of purchasing any good or service; 

(iii) Evidences the willingness of the recipient of the call to receive calls that deliver prerecorded 

messages by or on behalf of a specific seller; and 

(iv) Includes such person's telephone number and signature;!.~§~ and 

(B) In any such call to induce the purchase of any good or service, or to induce a charitable 

contribution from a member of, or previous donor to, a non-profit charitable organization 

on whose behalf the call is made, the seller or telemarketer: 

(i) Allows the telephone to ring for at least fifteen (15) seconds or four (4) rings before 

disconnecting an unanswered call; and 

____..................................................___________, ___________..................................................____ 

1.~§~l For purposes of this Rule, the term "signaturen shall include an electronic or digital form of signature, to 

the extent that such form of signature is recognized as a valid signature under applicable federal law or state 

contract law. 

1.~§:?.l For purposes of this Rule, the term "signaturen shall include an electronic or digital form of signature, to 

the extent that such form of signature is recognized as a valid signature under applicable federal law or state 

contract law. 

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(ii) Within two (2) seconds after the completed greeting of the person called, plays a prerecorded 

message that promptly provides the disclosures required by .§..?.J.9..:~(~). or (~).. followed 

immediately by a disclosure of one or both of the following: 

(A) In the case of a call that could be answered in person by a consumer, that the person 

called can use an automated interactive voice and/or keypress-activated opt-out 

mechanism to assert a Do Not Call request pursuant to §...?..)..9..:.~(~2.(J).(i.!.i)(A). at any time 

during the message. The mechanism must: 

(1) Automatically add the number called to the seller's ent ity-specific Do Not Call list; 

(2) Once invoked, immediately disconnect the call; and 

(3) Be available for use at any time during the message; and 

(B) In the case of a call that could be answered by an answering machine or voicemail service, 

that the person called can use a toll-free telephone number to assert a Do Not Call request 

pursuant to§ 31_0.4(b)(1)(iii)(A). The number provided must connect directly to an 

automated interactive voice or keypress-activated opt-out mechanism that: 

(1) Automatically adds the number called to the seller's entity-specific Do Not Call list; 

(2) Immediately thereafter disconnects the call; and 

(3) Is accessible at any time throughout the duration of the telemarketing campaign; and 

(iii) Complies with all other requirements of this part and other applicable federal and state laws. 

(C) Any call that complies with all applicable requirements of this paragraph (v) shall not be 

deemed to violate §..?..}.9.:.~(~).(]..)(!Y.)..?.f..~.~-i.~.J?..~r.!• 

(D) This paragraph (v) shall not apply to any outbound telephone call that delivers a 

prerecorded healthcare message made by, or on behalf of, a covered entity or its business 

associate, as those terms are defined in the HIPAA Privacy Rule, 45..CFR..1_60.1_03. 

(2) It is an abusive telemarketing act or practice and a violation of this Rule for any person to sell, rent, 

lease, purchase, or use any list established to comply with .§..?..}.9..:.~.(~)(J.)(i_!.Q.(A)., or maintained by the 

Commission pursuant to §...?..}.9..:.~(~)(J).(i_!.Q.(~)., for any purpose except compliance with the provisions 

of this Rule or otherwise to prevent telephone calls to telephone numbers on such lists. 

(3) A seller or telemarketer will not be liable for violating §..?.J.9..:.~(~)(J)(i_i)_and (!.i.Q if it can demonstrate 

that, as part of the seller's or telemarketer's routine business practice: 

(i) It has established and implemented written procedures to comply with § ..?..J.9.:.~{~).(D(i.D. and .C!.i.!); 

(ii) It has trained its personnel, and any entity assisting in its compliance, in the procedures 

establ ished pursuant to §..?..J.9.:.~(~).(~).(!).; 

(iii) The seller, or a telemarketer or another person acting on behalf of the seller or charitable 

organization, has maintained and recorded a list of telephone numbers the seller or charitable 

organization may not contact, in compliance with § 31_0.4(b)(1)(iii)(A); 

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(iv) The seller or a telemarketer uses a process to prevent telemarketing to any telephone number 

on any list established pursuant to §..?..).9.:.~.(~)(~)Q!.!) or } .).9.:.1.(~).(D(i.!,i){~).. employing a version 

of the "do-not-call" registry obtained from the Commission no more than thirty-one (31) days 

prior to the date any call is made, and maintains records documenting this process; 

(v) The seller or a telemarketer or another person acting on behalf of the seller or charitable 

organization, monitors and enforces compliance with the procedures established pursuant to.§. 

31_0.4(b)(3)(i); and 

(vi) Any subsequent call otherwise violating p~,r.~~E~.P..~...(~)()).QQ.or Q_i,!) of this section is the result of 

error and not of failure to obtain any information necessary to comply with a request pursuant 

to paragraph_(b)(1.)(ii i)(A) of this section not to receive further calls by or on behalf of a seller or 

charitable organization. 

(4) A seller or telemarketer will not be liable for violating§ _31_0._4(b )(1)(iv) if: 

(i) The seller or telemarketer employs technology that ensures abandonment of no more than 

three (3) percent of all calls answered by a person, measured over the duration of a single 

calling campaign, if less than 30 days, or separately over each successive 30-day period or 

portion thereof that the campaign continues. 

(ii) The seller or telemarketer, for each telemarketing call placed, allows the telephone to ring for at 

least fifteen (15) seconds or four (4) rings before disconnecting an unanswered call; 

(iii) Whenever a sales representative is not available to speak with the person answering the call 

within two (2) seconds after the person's completed greeting, the seller or telemarketer 

promptly plays a recorded message that states the name and telephone number of the seller on 

whose behalf the call was placedl~.~~l ; and 

(iv) The seller or telemarketer, in accordance with § 31_0._S(b)-(d), retains records establishing 

compliance with .§..?.).9.:.1(~)(~).(!).~Qm,. 

(c) Calling time restrictions. Without the prior consent of a person, it is an abusive telemarketing act or 

practice and a violation of this Rule for a telemarketer to engage in outbound telephone calls to a person's 

residence at any time other than between 8:00 a.m. and 9:00 p.m. local time at the called person's 

location. 

(d) Required oral disclosures in the sale ofgoods or services. It is an abusive telemarketing act or practice 

and a violation of this Rule for a telemarketer in an outbound telephone call or internal or external upsell 

to induce the purchase of goods or services to fail to disclose truthfully, promptly, and in a clear and 

conspicuous manner to the person receiving the call, the following information: 

(1) The identity of the seller; 

(2) That the purpose of the call is to sell goods or services; 

(3) The nature of the goods or services; and 

l.~§~.l This provision does not affect any seller's or telemarketer's obligation to comply with relevant state and 

federal laws, including but not limited to the TCPA, ~?..~.:~.:g.:..?.?.?., and ~?,_g_~-~..P.~r.!..?..~.:.).?.9.9..-

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(4) That no purchase or payment is necessary to be able to win a prize or participate in a prize 

promotion if a prize promotion is offered and that any purchase or payment will not increase the 

person's chances of winning. This disclosure must be made before or in conjunction with the 

description of the prize to the person called. If requested by that person, the telemarketer must 

disclose the no-purchase/ no-payment entry method for the prize promotion; provided, however, that, 

in any internal upsell for the sale of goods or services, the seller or telemarketer must provide the 

disclosures listed in this section only to the extent that the information in the upsell differs from the 

disclosures provided in the init ial telemarketing transaction. 

(e) Required oral disclosures in charitable solicitations. It is an abusive telemarketing act or practice and a 

violation of this Rule for a telemarketer, in an outbound telephone call to induce a charitable contribution, 

to fail to disclose truthfully, promptly, and in a clear and conspicuous manner to the person receiving the 

call, the following information: 

(1) The identity of the charitable organization on behalf of which the request is being made; and 

(2) That the purpose of the call is to solicit a charitable contribution. 

f?.§...E.R..1.?..~!§!Aug. 10, 2010, as amended at ?~..E.R..§.?..!..?..9! Sept. 22, 2011; .?.9...E.R..!.?§§.?.! Dec. 14, 2015) 

§ 310.5 Recordkeeping requirements. 

(a) Any seller or telemarketer shall keep, for a period of 24 months from the date the record is produced, the 

following records relating to its telemarketing activit ies: 

(1) All substantially different advertising, brochures, telemarketing scripts, and promotional materials; 

(2) The name and last known address of each prize recipient and the prize awarded for prizes that are 

represented, directly or by implication, to have a value of $25.00 or more; 

(3) The name and last known address of each customer, the goods or services purchased, the date such 

goods or services were shipped or provided, and the amount paid by the customer for the goods or 

services;l.?.~?.l 

(4) The name, any fictitious name used, the last known home address and telephone number, and the 

job title(s) for all current and former employees directly involved in telephone sales or solicitations; 

provided, however, that if the seller or telemarketer permits fictitious names to be used by 

employees, each fictitious name must be traceable to only one specific employee; and 

(5) All verifiable authorizations or records of express informed consent or express agreement required 

to be provided or received under this Rule. 

(b) A seller or telemarketer may keep the records required by .§..?J.9.:.?.(~). in any form, and in the same manner, 

format, or place as they keep such records in the ordinary course of business. Failure to keep all records 

required by§_31_0._5(a) shall be a violation of this Ru le. 

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1.?.~?.l For offers of consumer credit products subject to the Truth in Lending Act, 1.5 ..U.S.C...1_601_et seq., and 

Regulation Z, 1.2 ..CFR.226, compliance with the recordkeeping requirements under the Truth in Lending Act, 

and Regulation Z, shall constitute compliance with §..?..~.9.:.?..(~)(~). of this Rule. 

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Telemarketing Sales Rule #: 1798 16CFR 310.S(c) 

(c) The seller and the telemarketer calling on behalf of the seller may, by written agreement, allocate 

responsibility between themselves for the recordkeeping required by this Section. When a seller and 

telemarketer have entered into such an agreement, the terms of that agreement shall govern, and the 

seller or telemarketer, as the case may be, need not keep records that duplicate those of the other. If the 

agreement is unclear as to who must maintain any required record(s), or if no such agreement exists, the 

seller shall be responsible for complying with .§.§..} .J.9..-.?.(~).01(?.). and ( ?,); the telemarketer shall be 

responsible for complying with§ 31_0._5(a)(4). 

(d) In the event of any dissolution or termination of the seller's or telemarketer's business, the principal of that 

seller or telemarketer shall maintain all records as required under this section. In the event of any sale, 

assignment, or other change in ownership of the seller's or telemarketer's business, the successor 

business shall maintain all records required under this section. 

§ 310.6 Exemptions. 

(a) Solicitations to induce charitable contributions via outbound telephone calls are not covered by .§ . 

.?..J.9.:.1{~).(J)(i.!.Q.(~). of this Ru le. 

(b) The following acts or practices are exempt from this Rule: 

(1) The sale of pay-per-call services subject to the Commission's Rule entitled "Trade Regulation Rule 

Pursuant to the Telephone Disclosure and Dispute Resolution Act of 1992," 1_6..CFR..part _308, 

provided, however, that this exemption does not apply to the requirements of .§.§...?..J..9.:.:H~).(]J,.(~).(?.). 

.(~)., and (<?); 

(2) The sale of franchises subject to the Commission's Rule entitled "Disclosure Requirements and 

Prohibitions Concerning Franchising;' ("Franchise Rule") 1.6 ..CFR part.436, and the sale of business 

opportunit ies subject to the Commission's Rule entitled "Disclosure Requirements and Prohibitions 

Concerning Business Opportunities," ("Business Opportunity Rule#) 1_6..CFR..part _437, provided, 

however, that this exemption does not apply to the requirements of .§.§...?..J.9.:.1.(~}(~.2: .(~){?.)., (~).. and 

('?); 

(3) Telephone calls in which the sale of goods or services or charitable solicitation is not completed, and 

payment or authorization of payment is not required, until after a face-to-face sales or donation 

presentation by the seller or charitable organization, provided, however, that this exemption does not 

apply to the requirements of .§.§...?..J.9.:.1.(~).(~J .(~)..(?.), .(~)! and {'?); 

(4) Telephone calls initiated by a customer or donor that are not the result of any solicitation by a seller, 

charitable organization, or telemarketer, provided, however, that this exemption does not apply to any 

instances of upselling included in such telephone calls; 

(5) Telephone calls initiated by a customer or donor in response to an advertisement through any 

medium, other than direct mail solicitation, provided, however, that this exemption does not apply to: 

(i) Calls initiated by a customer or donor in response to an advertisement relating to investment 

opportunit ies, debt relief services, business opportunities other than business arrangements 

covered by the Franchise Rule or Business Opportunity Rule, or advertisements involving offers 

for goods or services described in .§...?..J.9..:.~{~)(U(Y.!) or .§...?..1.9..A(~)(?.).through H); 

(ii) The requirements of .§..?.J.9.:.1.(~)(?.). or 0.9); or 

(iii) Any instances of upselling included in such telephone calls; 

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Telemarketing Sales Rule #: 1799 16CFR 310.6(bX6) 

(6) Telephone calls initiated by a customer or donor in response to a direct mail solicitation, including 

solicitations via the U.S. Postal Service, facsimile transmission, electronic mail, and other similar 

methods of delivery in which a solicitation is directed to specific address(es) or person(s), that 

clearly, conspicuously, and truthfully discloses all material information listed in § 31_0.3(a)(1 ), for any 

goods or services offered in the direct mail solicitation, and that contains no material 

misrepresentation regarding any item contained in .§..?.J..9.:.?.(~). for any requested charitable 

contribution; provided, however, that this exemption does not apply to: 

(i) Calls initiated by a customer in response to a direct mai l solicitation relating to prize 

promotions, investment opportunities, debt relief services, business opportunities other than 

business arrangements covered by the Franchise Rule or Business Opportunity Rule, or goods 

or services described in .§...?..J.9.:} .(~)(J.)(yQ_or .§...?..~.9.:.1(~)(?.). through (1); 

(ii) The requirements of .§...?..~.9.:.1.(~).(?.). or .0..9.); or 

(iii) Any instances of upselling included in such telephone calls; and 

(7) Telephone calls between a telemarketer and any business to induce the purchase of goods or 

services or a charitable contribution by the business, except calls to induce the retail sale of 

nondurable office or cleaning supplies; provided, however, that .§.§}J..9.:~(~)(J.)(i.!.i)(~). and ?..J.9.:.? shall 

not apply to sellers or telemarketers of nondurable office or cleaning supplies. 

f?.§..E.R..1.?..~!§!Aug. 10, 2010, as amended at §..9...E.R..!.?..~§.?.! Dec. 14, 2015] 

§ 310.7 Actions by states and private persons. 

(a) Any attorney general or other officer of a state authorized by the state to bring an action under the 

Telemarketing and Consumer Fraud and Abuse Prevention Act, and any private person who brings an 

action under that Act, shall serve written notice of its action on the Commission, if feasible, prior to its 

initiating an action under this Rule. The notice shall be sent to the Office of the Director, Bureau of 

Consumer Protection, Federal Trade Commission, Washington, DC 20580, and shall include a copy of the 

state's or private person's complaint and any other pleadings to be filed with the court. If prior notice is not 

feasible, the state or private person shall serve the Commission with the required notice immediately 

upon instituting its action. 

(b) Nothing contained in this Section shall prohibit any attorney general or other authorized state official from 

proceeding in state court on the basis of an alleged violation of any civil or criminal statute of such state. 

§ 310.8 Fee for accessto the National Do Not Call Registry. 

(a) It is a violation of this Ru le for any seller to initiate, or cause any telemarketer to initiate, an outbound 

telephone call to any person whose telephone number is within a given area code unless such seller, 

either directly or through another person, first has paid the annual fee, required by§ 31_0.S(c), for access 

to telephone numbers within that area code that are included in the National Do Not Call Registry 

maintained by the Commission under .§...?..J.9.:.1(~).(J.)(.i_!.i)(~).; provided, however, that such payment is not 

necessary if the seller initiates, or causes a telemarketer to initiate, calls solely to persons pursuant to §.§. 

.?..J.9.:.~(~)(J.)(\i!)(~).(i). or .QQ, and the seller does not access the National Do Not Call Registry for any other 

purpose. 

(b) It is a violation of this Ru le for any telemarketer, on behalf of any seller, to initiate an outbound telephone 

call to any person whose telephone number is within a given area code unless that seller, either directly or 

through another person, first has paid the annual fee, required by .§...?..~..9.:.~(~)., for access to the telephone 

16 CFR 310.S(b) (enhanced display) page 17of18 
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p #'1800 16CFR 310.S(c) Telemarketing SalesRule · 

numbers within that area code that are included in the National Do Not Call Registry; provided, however, 

that such payment is not necessary if the seller initiates, or causes a telemarketer to initiate, calls solely 

to persons pursuant to .§.§...?..J.9..-.1(~).0}(!iQ(~).(i)_ or .QQ, and the seller does not access the National Do Not 

Call Registry for any other purpose. 

(c) The annual fee, which must be paid by any person prior to obtaining access to the National Do Not Call 

Registry, is $75 for each area code of data accessed, up to a maximum of $20,740; provided, however, that 

there shall be no charge to any person for accessing the first five area codes of data, and provided further, 

that there shall be no charge to any person engaging in or causing others to engage in outbound 

telephone calls to consumers and who is accessing area codes of data in the Nat ional Do Not Call 

Registry if the person is permitted to access, but is not required to access, the National Do Not Call 

Registry under 47__CFR__ 64.1_200, or any other Federal regulation or law. No person may participate in any 

arrangement to share the cost of accessing the Nat ional Do Not Call Registry, including any arrangement 

with any telemarketer or service provider to divide the costs to access the registry among various cl ients 

of that telemarketer or service provider. 

(d) Each person who pays, either directly or through another person, the annual fee set forth in paragraph (c) 

of this section, each person excepted under paragraph (c) from paying the annual fee, and each person 

excepted from paying an annual fee under .§...?..J.9..:.~.(~)(J.)(.i_!.i).(~)., will be provided a unique account number 

that will allow that person to access the registry data for the selected area codes at any t ime for the 

twelve month period beginning on the first day of the month in which the person paid the fee ("the annual 

period"). To obtain access to additional area codes of data during the first six months of the annual 

period, each person required to pay the fee underparagraph (c) of this section must first pay $75 for each 

additional area code of data not init ially selected. To obtain access to additional area codes of data 

during the second six months of the annual period, each person required to pay the fee under paragraph 

{~). of this section must first pay $38 for each additional area code of data not initially selected. The 

payment of the additional fee will permit the person to access the additional area codes of data for the 

remainder of the annual period. 

(e) Access to the Nat ional Do Not Call Registry is limited to telemarketers, sellers, others engaged in or 

causing others to engage in telephone calls to consumers, service providers acting on behalf of such 

persons, and any government agency that has law enforcement authority. Prior to accessing the National 

Do Not Call Reg istry, a person must provide the identifying information required by the operator of the 

registry to collect the fee, and must certify, under penalty of law, that the person is accessing the registry 

solely to comply with the provisions of this Rule or to otherwise prevent telephone calls to telephone 

numbers on the registry. If the person is accessing the registry on behalf of sellers, that person also must 

identify each of the sellers on whose behalf it is accessing the registry, must provide each seller's unique 

account number for access to the national registry, and must certify, under penalty of law, that the sellers 

will be using the information gathered from the registry solely to comply with the provisions of this Rule or 

otherwise to prevent telephone calls to telephone numbers on the registry. 

f?.§...E.R..1.?..§.!§!Aug. 10, 2010; ?§...E.R§?..?..~1!Aug. 24, 2010, as amended at Z!...E.R§!.9.?.Z!Aug. 27, 2012; Z?...E.R..§.~.?.1~!Aug. 30, 2013; 

??...E.R§?..1.?.?.!Aug. 29, 2014; ?9...E.R..!.Z§.~g Dec. 14, 2016; .?J...E.R§?..?1.§!Aug. 31, 2016; .??...E.R.}?..§.~1!Aug. 21, 2017; .?~..E.R..1.§.§.1.g 

Sept. 14, 2018; .?1...E.R..1.1.§.?..!.!Aug. 27, 2019; .?§...E.R..9.?..§.?..!.!Oct. 5, 2020; ?tE.R..1.?.}Q..!!Aug. 30, 2021; ?!...E.R..§.~}!.~!Aug. 31, 2022] 

§ 310.9 Severability. 

The provisions of this Rule are separate and severable from one another. If any provision is stayed or determined to 

be invalid, it is the Commission's intention that the remaining provisions shall continue in effect. 

16 CFR 310.9 (enhanced display) page18of18