Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 1 of 37 PageID 85 

UNITED STATES DISTRICT COURT 

MIDDLE DISTRICT OF FLORIDA 

ORLANDO DIVISION 

UNITED STATES OF AMERICA, 

Plaintiff, 

v. Case No: 6:22-cv-798-PGB-GJK 

VOIP TERMINATOR, INC., 

BLMARKETING, INC. and 

MUHAMMAD USMAN KHAN, 

Defendants. 

/ 

ORDER 

Plaintiff, the United States of America, acting upon notification and 

authorization to the Attorney General by the Federal Trade Commission 

(“Commission” or “FTC”), filed its Complaint for a permanent injunction, civil 

penalties, and other relief (“Complaint”), pursuant to Section 5(a), 5(m)(1)(A), 

13(b), and 16(a)(1) of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. §§ 

45(a), 45(m)(1)(A), 53(b), and 56(a)(1), and Section 6 of the Telemarketing and 

Consumer Fraud and Abuse Prevention Act (the “Telemarketing Act”), 15 U.S.C. 

§ 6105. Defendants have waived service of the summons and the Complaint. 

Plaintiff and Defendants stipulate to the entry of this Stipulated Order for 

Permanent Injunction, Civil Penalty Judgment, and Other Relief (“Order”) to 

resolve all matters in dispute in this action between them. 

Therefore, it is ORDERED as follows: 
 

 

 

 

 

 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 2 of 37 PageID 86 

FINDINGS 

1. This Court has jurisdiction over this matter. 

2. The Complaint charges that Defendants participated in acts or practices in 

violation of Section 5 of the FTC Act, 15 U.S.C. § 45 and the FTC’s Telemarketing 

Sales Rule (the “TSR” or “Rule”), as amended, 16 C.F.R. Part 310, by, among other 

things, assisting and facilitating: (a) placing telemarketing calls to consumers that 

delivered prerecorded messages; (b) placing telemarketing calls to consumers 

whose telephone numbers were on the National Do Not Call (“DNC”) Registry; 

and (c) transmitting inaccurate caller ID numbers and names with their 

telemarketing calls. 

3. Defendants neither admit nor deny any of the allegations in the Complaint, 

except as specifically stated in this Order. 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 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 and the Plaintiff 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: 

2 
 

 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 3 of 37 PageID 87 

A. “Assisting” includes, among other conduct, providing or reselling Voice 

over Internet Protocol (“VoIP”) telephony services and providing or 

licensing telephone numbers. 

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

individually, collectively, or in any combination. 

1. “Corporate Defendants” means VoIP Terminator, Inc., and 

BLMarketing, Inc., and their successors and assigns. 

2. “Individual Defendant” means Muhammed Usman Khan. 

C. “Invalid Number” means any caller ID number that is invalid under the 

North American Numbering Plan (“NANP”), including, for example, any 

number that does not contain the requisite number of digits. 

D. “National Do Not Call Registry” means the National Do Not Call 

Registry, which is the “do-not-call” registry maintained by the Commission 

pursuant to 16 C.F.R. § 310.4(b)(1)(iii)(B). 

E. “Person” means any individual, group, unincorporated association, limited 

or general partnership, corporation, or other business entity. 

F. “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. 

G. “Telemarketing” means a plan, program, or campaign which is conducted 

to induce the purchase of goods or services or a charitable contribution, by 

3 
 

 

 

 

 

 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 4 of 37 PageID 88 

use of one or more telephones, and which involves more than one interstate 

telephone call. 

H. “Traceback Request” means any request from: 

1. A telecommunications carrier or voice service provider; 

2. A consortium that conducts privately-led efforts to trace back the 

origin of suspected unlawful robocalls, as contemplated under 

Section 13 of the TRACED Act; or 

3. Any other industry organization comprised of telecommunications 

carriers and/or voice service providers that seek to combat and 

reduce unlawful robocalls to disclose information in order to 

protect the rights or property of such entity, or to protect users of 

telecommunications and voice services and others from 

fraudulent, abusive, or unlawful use of, or subscription to, 

telecommunications services. 

I. “Unassigned Number” means any caller ID number for which the 

administrator of NANP has never opened: 

1. The NPA area code for carrier number assignments; or 

2. The NPA-NXX central office code for carrier number assignments. 

ORDER 

I. PROHIBITION ON ASSISTING AND FACILITATING ABUSIVE 

TELEMARKETING 

IT IS ORDERED that Defendants, their officers, agents, employees, and 

attorneys, and all other persons in active concert or participation with any of them, 

4 
 

 

 

 

 

 

 

 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 5 of 37 PageID 89 

whether acting directly or indirectly, are permanently restrained and enjoined 

from Assisting or providing substantial assistance or support to any Person that 

Defendants know, or should know, is engaged in, causing others to engage in, or 

assisting others engaging in, any of the following practices: 

A. Initiating, causing the initiation of, or transmitting Telemarketing 

calls that: (1) deliver prerecorded messages; or (2) are placed to 

numbers on the Do Not Call Registry; or 

B. Initiating, causing the initiation of, or transmitting any telephone call 

displaying a caller ID number that the calling party does not have legal 

authority to use. 

II. PROHIBTION ON VIOLATING THE TELEMARKETING SALES 

RULE 

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

employees, 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, causing others to engage in, or Assisting others engaging in violating 

the Telemarketing Sales Rule, 16 C.F.R. Part 310, a copy of which is attached to this 

Order as Attachment A. 

III. BAN ON CERTAIN TELEPHONE CALLS 

IT IS FURTHER ORDERED that Defendants, whether acting directly or 

through an intermediary, are permanently restrained and enjoined from providing 

interconnected VoIP telephony services or provisioning or assigning telephone 

5 
 

 

 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 6 of 37 PageID 90 

numbers without having ongoing automated procedures in place to block calls 

that: 

A. Display as the caller ID number any Unassigned Number, or any 

Invalid Number; or 

B. Are not authenticated through the Federal Communications 

Commission’s STIR/SHAKEN Authentication Framework, or a 

successor authentication framework if subsequently mandated by 

applicable federal law or regulation. 

Provided, however, that Section III shall not apply to inbound calls dialed 

to Defendants’ Customers by Persons who are not Defendants’ Customers. 

IV. SCREENING OF CURRENT AND PROSPECTIVE CUSTOMERS 

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

employees, 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 providing VoIP telephony services 

or telephone numbers to any new or prospective customer, without first engaging 

in a reasonable screening of that customer. For new or prospective customers, such 

reasonable screening must occur and be completed before beginning to provide 

services to the new customer. For existing customers, such reasonable screening 

must occur and be completed within 60 days of the entry of this Order. For all 

customers, such reasonable screening must recur annually. Such reasonable 

screening must include, but not be limited to: 

6 
 

 

 

 

 

 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 7 of 37 PageID 91 

A. Obtaining from each prospective or current customer (including the 

principal(s) and controlling Person(s) with a majority interest in the 

entity, and any alter egos, corporate DBAnames, trade name, fictious 

name or aliases under which such Person(s) conduct or have 

conducted the business) the following information: 

1. A description of the nature of the prospective customer’s 

business, including describing the nature of the goods and 

services sold and methods of sale. For prospective customers 

who describe their business as involving Telemarketing or 

telephone calls to solicit the purchase of goods or services or 

charitable contributions, confirmation that the prospective 

customer will use software or other means to filter out 

numbers on the Do Not Call Registry; 

2. The name of the principal(s) and controlling Person(s) of the 

entity, and Person(s) with a majority ownership interest in 

the entity; 

3. The name of the entity’s employee responsible for 

compliance with the Telemarketing Sales Rule and other 

state and federal laws governing Telemarketing and 

automated dialing; 

7 
 

 

 

 

 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 8 of 37 PageID 92 

4. A list of all business and trade names, fictitious names, 

DBAs, and Internet websites under or through which the 

customer has transacted business; 

5. Each physical address at which the prospective customer has 

conducted business or will conduct the business(es) 

identified pursuant to subsection (1) of this Section IV.A; 

6. The billing address and email address associated with the 

customer’s means and source of payment for Defendants’ 

services, as well as the name of the Person or entity paying 

for Defendants’ services; 

7. For U.S.-domiciled companies, the customer’s federal 

taxpayer identification number; 

8. The customer’s state or country of incorporation; 

9. If the customer engages in Telemarketing, a list of all caller 

ID numbers and callback numbers the customer will use, 

substantiated by proof that the customer has authorization 

to use each such phone number; and 

10. Whether the prospective customer (including the 

principal(s), controlling Person(s) of the entity, and any 

Person(s) with a majority ownership interest in the entity) 

has ever been the subject of a lawsuit alleging claims under 

the TSR, the Telephone Consumer Protection Act of 1991, or 

8 
 

 

 

 

 

 

 

 

 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 9 of 37 PageID 93 

any other lawsuit regarding illegal robocalling, illegal 

automated dialing, calls to the federal or any state Do Not 

Call registry, or spoofed caller IDs. 

B. Reviewing whether Defendants have received subpoenas, civil 

investigative demands, or other complaints about the customer or its 

principal(s), and any alter egos, corporate DBA names, trade name, 

fictitious name or aliases under which such customer or Person(s) 

conduct or have conducted business; and 

C. Taking reasonable steps to review and assess the accuracy of the 

information provided pursuant to Section IV.A of this Order, 

including but not limited to: (1) reviewing the websites used by the 

customer; (2) searching the FTC’s website to determine if the 

customer or its control Persons have been the subject of FTC 

enforcement action; (3) reviewing all formal written inquiries, 

subpoenas, civil investigative demands, Traceback Requests, and 

complaints about the customer or calls dialed, originated, routed, or 

transmitted by the customer, sent to or shared with Defendants to (a) 

determine whether the call was spoofed, (b) review and listen to 

prerecorded messages that are identified in or are the subject of such 

requests, (c) determine whether copies of such prerecorded messages 

are found in the request itself or in public databases that compile 

recordings of such messages, and (d) determine if the customer is 

9 
 

 

 

 

 

 

 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 10 of 37 PageID 94 

sending, routing, transmitting, dialing, originating, or terminating 

calls that deliver a message that misrepresents that the call is from a 

government agency or law enforcement; and (4) performing internet 

searches about the customer and its control Persons. 

V. CLIENT REIVEW AND TERMINATION 

IT IS FURTHER ORDERED that: 

A. Defendants must immediately terminate, or refrain from entering 

into, any business relationship with a customer if a review under 

Section IV reveals that the customer: 

1. Engages in Telemarketing without a Subscription Account 

Number for accessing the DNC Registry or otherwise checking 

numbers against the DNC Registry; 

2. Is offering VoIP telephony services, the provisioning and/or 

assignment of telephone numbers, or any other 

telecommunications or information services, without a current, 

valid Universal Service Fund registration Number; 

3. States it does not have a taxpayer identification number if it is 

a U.S.-domiciled company; 

4. Has provided false, inaccurate, or misleading information in 

response to Defendants’ screening process pursuant to Section 

IV and declined to correct that information upon request; 

10 
 

 

 

 

 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 11 of 37 PageID 95 

5. Refuses to provide any of the information described in Section 

IV; 

6. Is a customer that has been the subject of, or calls dialed, 

originated, transmitted, or routed by the customer have been 

the subject of, a total of three (3) or more federal or state 

government agency subpoena or civil investigative demands to 

Defendants or otherwise shared with Defendants; 

7. Is a customer that has been the subject of, or calls dialed, 

originated, transmitted, or routed by the customer have been 

the subject of a total of three (3) or more Traceback Requests or 

upstream or downstream carrier complaints sent to or shared 

with Defendants during any sixty (60) day period. 

B. Defendants must also immediately terminate, or refrain from 

entering into, any business relationship with a customer if Defendants 

become aware of or obtain any information suggesting that the 

customer is engaging in conduct prohibited in Sections I, II, or III of 

this Order. 

VI. MONETARY JUDGMENT FOR CIVIL PENALTY AND PARTIAL 

SUSPENSION 

IT IS FURTHER ORDERED that: 

A. Judgment in the amount of Three Million Two Hundred Fifty-Six 

Thousand One Hundred Ninety Dollars ($3,256,190) is entered in 

favor of Plaintiff against Individual Defendant and Corporate 

11 
 

 

 

 

 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 12 of 37 PageID 96 

Defendants, jointly and severally, as a civil penalty. The judgment is 

suspended subject to the Subsections below. 

B. The Commission’s and Plaintiff’s agreement to the suspension 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 VoIP Teminator, Inc., signed by 

Muhammed Usman Khan on February 8, 2022; 

2. The Financial Statement of BLMarketing, Inc., signed by 

Muhammed Usman Khan on February 8, 2022; 

3. The Financial Statement of Muhammed Usman Khan signed by 

Muhammed Usman Khan on February 8, 2022. 

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

upon motion by the Commission or Plaintiff, 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. 

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

immediately due as to that Defendant in the amount specified 

Subsection A. above (which the parties stipulate only for purposes of 

this Section represents the amount of the civil penalty for the 

12 
 

 

 

 

 

 

 

 

 

 

 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 13 of 37 PageID 97 

violations alleged in the Complaint), less any payment previously 

made pursuant to this Section, plus interest computed from the date 

of entry of this Order. 

E. 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. 

F. 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. 

G. 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. 

H. Defendants agree that the judgment represents a civil penalty owed to 

the government of the United States, is not compensation for actual 

pecuniary loss, and therefore it is not subject to discharge under the 

Bankruptcy Code pursuant to 11 U.S.C. § 523(a)(7). 

VII. COOPERATION 

IT IS FURTHER ORDERED that Defendants must fully cooperate with 

representative of Plaintiff and the Commission in this case and in any investigation 

related to or associated with the transactions or the occurrences that are the 

13 
 

 

 

 

 

 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 14 of 37 PageID 98 

subject of the Complaint. Defendants must provide truthful and complete 

information, evidence, and testimony. Defendants must appear, and must cause 

their officers, employees, representatives, or agents to appear, for interviews, 

discovery, hearings, trials, and any other proceedings that a Plaintiff or 

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

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

representative may designate, without the service of a subpoena. 

Further, to assist the Commission with any investigation related to or 

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

Complaint, and with monitoring Defendants’ compliance with this Order, 

Defendants consent, for purposes of the Electronic Communications Privacy Act, 

to the disclosure, by electronic communications service providers and remote 

computing service providers, of the contents of their auto-dialed, telemarketing, or 

pre-recorded telephone communications and records or other information 

pertaining to their autodialed, telemarketing, or pre-recorded telephone 

communications. Defendants further agree to execute, within five days of a request 

from the Commission, any forms or other documents evidencing their consent that 

may be required by such electronic communications service providers or remote 

computing service providers. 

VIII. ORDER ACKNOWLEDGMENTS 

IT IS FURTHER ORDERED that Defendants obtain acknowledgments 

of receipt of this Order: 

14 
 

 

 

 

 

 

 

 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 15 of 37 PageID 99 

A. Each Defendant, within seven (7) days of entry of this Order, must 

submit to the Commission an acknowledgement of receipt of this 

Order sworn under penalty of perjury. 

B. For 5 years after entry of this Order, Individual Defendant, for any 

business that he, individually or collectively with any other 

Defendant, 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 conduct related to 

the subject matter of the Order and all agents and representatives who 

participate in conduct related to the subject matter of the Order; and 

(3) any business entity resulting from any change in structure as set 

forth in the Section titled Compliance Reporting. Delivery must occur 

within seven (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. 

IX. COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Defendants make timely submissions 

to the Commission: 

15 
 

 

 

 

 

 

 

 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 16 of 37 PageID 100 

A. One year after the 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 and 

Plaintiff 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 Individual Defendant must describe if he 

knows or should know due to his 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. 

2. Additionally, each 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 

16 
 

 

 

 

 

 

 

 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 17 of 37 PageID 101 

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 10 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 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, 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 he performs services whether as an 

employee or otherwise and any entity in which he has any 

ownership interest, and identify the name, physical address, 

and any Internet address of the business or entity. 

17 
 

 

 

 

 

 

 

 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 18 of 37 PageID 102 

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

any bankruptcy petition, insolvency proceeding, or similar proceeding 

by or against it 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. VoIP Terminator, Inc. 

X. RECORDKEEPING 

IT IS FURTHER ORDERED that Defendants must create certain records 

for 10 years after entry of the Order, and retain each such record for five (5) years. 

Specifically, Defendants for any business that they, individually or collectively with 

any other Defendants, is a majority owner or controls directly or indirectly, must 

create and retain the following records: 

18 
 

 

 

 

 

 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 19 of 37 PageID 103 

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 

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, among other documents and 

information; 

1. All submissions to Plaintiff or the Commission; 

2. Records of all Telephone Calls dialed by Defendants or dialed 

on behalf of Defendants or their businesses by their vendors, 

contractors, or Representatives, including for each call: (a) the 

number called; (b) the caller ID number displayed; (c) the time 

and date of the call; (d) the duration of the call; and (e) any 

telephone number or IP address to which the call was 

forwarded or transferred; and 

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

19 
 

 

 

 

 

 

 

 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 20 of 37 PageID 104 

XI. 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 or Plaintiff, Defendants 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 and Plaintiff 

are 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 and Plaintiff are 

authorized to communicate directly with each Defendant. Defendants 

must permit representatives of the Commission and Plaintiff to 

interview any employee or other person affiliated with him who has 

agreed to such an interview. The person interviewed may have counsel 

present. 

C. The Commission and Plaintiff may use all other lawful means, 

including posing, through its representatives as consumers, suppliers, 

20 
 

 

 

 

 

 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 21 of 37 PageID 105 

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. 

XII. RETENTION OF JURISDICTION 

IT IS ORDERED THAT this Court retains jurisdiction of this matter for 

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

DONE AND ORDERED in Orlando, Florida on May 4, 2022. 

Copies furnished to: 

Counsel of Record 

Unrepresented Parties 

21 
Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 22 of 37 PageID 106 

Attachment A 
v.,

A

s 

U

.. 

THE

covNTI, CATE.D ~ 

INFOR1' 

Federal Trade Commission §310.2 

APPENDIX A TO PART 309---FIGURES FOR PART 309 

HYDROGEN 

MINIMUM MINIMUM 

90°/o 98°/o 

METHANE HYDROGEN 

Figu re l Fi gur e 2 

ELECTRICITY 

9.6 kW 

240 vac/40 amps 

CONDUCTIVE 

l"igure 3 

[60 FR 26955, May 19, 1995, as amended at 69 FR 55339, Sept. 14, 2004; 78 FR 23835, Apr. 23, 2013] 

PART 310-TELEMARKETING SALES §310.1 Scope of regulations in this 

RULE part. 

This part implements the TeleSec. marketing and Consumer Fraud and 

310.1 Scope of regulations in this part. Abuse Prevention Act, 15 U.S.C. 6101-

310.2 Definitions. 6108, as amended. 

310.3 Deceptive telemarketing acts or practices. § 310.2 Definitions. 

310.4 Abusive telemarketing acts or prac- (a ) Acquirer means a business organi­ tices. zation, financial institution, or an 310.5 Recordkeeping requirements. agent of a business organization or fi­ 310.6 Exemptions. nancial institution that has authority 310.7 Actions by s tates and private persons. from an organization that operates or 310.8 Fee for access to the National Do Not 

Call Registry. licenses a credit card system to author310.9 Severab111ty. ize merchants to accept, transmit, or 

process payment by credit card 

AUTHORITY: 15 U.S.C. 6101~ 108. through the credit card system for 

SOURCE: 75 FR 48516, Aug. 10, 2010, unless money, goods or services, or anything 

otherwise noted. else of value. 

385 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 23 of 37 PageID 107 
 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 24 of 37 PageID 108 

§ 310.2 

(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. 

(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(2)) 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, 12 CFR 

1005.20, pertaining to gift cards; or 

(3) Subject to the Truth in Lending 

Act, 15 U.S.C. 1601 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 (15 U.S.C. 7006(2)) form 

16 CFR Ch. I (1–1–21 Edition) 

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 definition, 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. 

(j) 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. 

(l) 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: 

(1) the consumer’s purchase, rental, 

or lease of the seller’s goods or services 

or a financial transaction between the 

386 
 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 25 of 37 PageID 109 

Federal Trade Commission 

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. 

§ 310.2 

(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 definition, 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 eligible to receive a prize or 

purported prize. 

(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, 12 CFR 

229.2(fff), but does not include a payment order cleared through an Automated Clearinghouse (ACH) Network or 

subject to the Truth in Lending Act, 15 

U.S.C. 1601 et seq., and Regulation Z, 12 

CFR part 1026. 

(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 

387 
 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 26 of 37 PageID 110 

§ 310.3 

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 solicitation’’ 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 upsell’’ is a solicitation 

made by or on behalf of a seller different from the seller in the initial 

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. 

[75 FR 48516, Aug. 10, 2010, as amended at 80 

FR 77557, 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: 

16 CFR Ch. I (1–1–21 Edition) 

(1) Before a customer consents to 

pay 659 for goods or services offered, 

failing 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; 660 

(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 conditions 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 tollfree telephone number to which customers may write or call for information on how to participate; 

659 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 

§ 310.3(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 § 310.3(a)(1) before the consumer enrolls in an offered program. 660 For offers of consumer credit products 

subject to the Truth in Lending Act, 15 

U.S.C. 1601 et seq., and Regulation Z, 12 CFR 

226, compliance with the disclosure requirements under the Truth in Lending Act and 

Regulation Z shall constitute compliance 

with § 310.3(a)(1)(i) of this Rule. 

388 
 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 27 of 37 PageID 111 

Federal Trade Commission 

(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 liability for unauthorized 

use of a credit card pursuant to 15 

U.S.C. 1643; 

(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; 

(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 will 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 relief 

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 

§ 310.3 

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 

§ 310.4(a)(5)(i)(A) through (C). 

(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 15 U.S.C. 1643; 

(ix) Any material aspect of a 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); or 

389 
 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 28 of 37 PageID 112 

§ 310.3 

(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 will 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 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,661 or a debit card subject to the protections of the Electronic Fund Transfer Act and Regulation E.662 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;663 

(ii) Express oral authorization which 

is audio-recorded and made available 

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 

661 Truth in Lending Act, 15 U.S.C. 1601 et 

seq., and Regulation Z, 12 CFR part 226. 662 Electronic Fund Transfer Act, 15 U.S.C. 

1693 et seq., and Regulation E, 12 CFR part 

205. 663 For purposes of this Rule, the term 

‘‘signature’’ 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. 

16 CFR Ch. I (1–1–21 Edition) 

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 

(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 

§§ 310.3(a)(3)(ii)(A)-(G) 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. 

390 
 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 29 of 37 PageID 113 

Federal Trade Commission 

(b) Assisting and facilitating. It is a deceptive telemarketing act or practice 

and a violation of this Rule 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 §§ 310.3(a), (c) or (d), 

or § 310.4 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 applicable 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 will go to 

§ 310.4 

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 

(6) A charitable organization’s or 

telemarketer’s affiliation with, or endorsement or sponsorship by, any person or government entity. 

[75 FR 48516, Aug. 10, 2010, as amended at 80 

FR 77558, Dec. 14, 2015] 

§ 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, 15 

U.S.C. 1681, 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 

391 
 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 30 of 37 PageID 114 

§ 310.4 

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: 

(1) 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(a)(5)(i) 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: 

16 CFR Ch. I (1–1–21 Edition) 

(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 affiliated 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 § 310.4(a)(5)(i)(A) 

through (C), 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 paragraphs (a)(7)(i) 

through (ii) 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 

392 
 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 31 of 37 PageID 115 

Federal Trade Commission 

charged using the account number pursuant to paragraph (a)(7)(i)(A) of this 

section; and, 

(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 paragraph 

(a)(7)(i) 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 paragraph (a)(7)(ii)(A) 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-tocash 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 of calls. (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 

§ 310.4 

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 

(B) That person’s telephone number 

is on the ‘‘do-not-call’’ 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: 

(1) 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 664 of 

that person; or 

664 For purposes of this Rule, the term 

‘‘signature’’ shall include an electronic or 

digital form of signature, to the extent that 

such form of signature is recognized as a 

Continued 

393 
 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 32 of 37 PageID 116 

§ 310.4 

(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)(iii)(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 

§ 310.4(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;665 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 nonprofit 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 

valid signature under applicable federal law 

or state contract law. 665 For purposes of this Rule, the term 

‘‘signature’’ 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. 

16 CFR Ch. I (1–1–21 Edition) 

(ii) Within two (2) seconds after the 

completed greeting of the person 

called, plays a prerecorded message 

that promptly provides the disclosures 

required by § 310.4(d) or (e), 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 

§ 310.4(b)(1)(iii)(A) at any time during 

the message. The mechanism must: 

(1) Automatically add the number 

called to the seller’s entity-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 § 310.4(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 

§ 310.4(b)(1)(iv) of this part. 

(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 160.103. 

(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 § 310.4(b)(1)(iii)(A), or 

394 
 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 33 of 37 PageID 117 

Federal Trade Commission 

maintained by the Commission pursuant to § 310.4(b)(1)(iii)(B), 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 § 310.4(b)(1)(ii) 

and (iii) 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 § 310.4(b)(1)(ii) and (iii); 

(ii) It has trained its personnel, and 

any entity assisting in its compliance, 

in the procedures established pursuant 

to § 310.4(b)(3)(i); 

(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 § 310.4(b)(1)(iii)(A); 

(iv) The seller or a telemarketer uses 

a process to prevent telemarketing to 

any telephone number on any list established pursuant to § 310.4(b)(3)(iii) or 

310.4(b)(1)(iii)(B), 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 

§ 310.4(b)(3)(i); and 

(vi) Any subsequent call otherwise 

violating paragraph (b)(1)(ii) or (iii) 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)(iii)(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 § 310.4(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-

§ 310.4 

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 placed666; and 

(iv) The seller or telemarketer, in accordance with § 310.5(b)-(d), retains 

records establishing compliance with 

§ 310.4(b)(4)(i)-(iii). 

(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 

of goods 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 

(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 

666 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, 47 U.S.C. 

227, and 47 CFR part 64.1200. 

395 
 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 34 of 37 PageID 118 

§ 310.5 

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 initial 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. 

[75 FR 48516, Aug. 10, 2010, as amended at 76 

FR 58716, Sept. 22, 2011; 80 FR 77559, 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 activities: 

(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;667 

(4) The name, any fictitious name 

used, the last known home address and 

667 For offers of consumer credit products 

subject to the Truth in Lending Act, 15 

U.S.C. 1601 et seq., and Regulation Z, 12 CFR 

226, compliance with the recordkeeping requirements under the Truth in Lending Act, 

and Regulation Z, shall constitute compliance with §310.5(a)(3) of this Rule. 

16 CFR Ch. I (1–1–21 Edition) 

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 § 310.5(a) 

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 § 310.5(a) shall be a violation 

of this 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 

§§ 310.5(a)(1)-(3) and (5); the telemarketer shall be responsible for complying with § 310.5(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 

§ 310.4(b)(1)(iii)(B) of this Rule. 

(b) The following acts or practices 

are exempt from this Rule: 

396 
 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 35 of 37 PageID 119 

Federal Trade Commission 

(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,’’ 16 CFR 

part 308, provided, however, that this 

exemption does not apply to the requirements of §§ 310.4(a)(1), (a)(7), (b), 

and (c); 

(2) The sale of franchises subject to 

the Commission’s Rule entitled ‘‘Disclosure Requirements and Prohibitions 

Concerning Franchising,’’ (‘‘Franchise 

Rule’’) 16 CFR part 436, and the sale of 

business opportunities subject to the 

Commission’s Rule entitled ‘‘Disclosure Requirements and Prohibitions 

Concerning Business Opportunities,’’ 

(‘‘Business Opportunity Rule’’) 16 CFR 

part 437, provided, however, that this 

exemption does not apply to the requirements of §§ 310.4(a)(1), (a)(7), (b), 

and (c); 

(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 

§§ 310.4(a)(1), (a)(7), (b), and (c); 

(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 opportunities, 

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 § 310.3(a)(1)(vi) or 

§ 310.4(a)(2) through (4); 

(ii) The requirements of § 310.4(a)(9) 

or (10); or 

§ 310.7 

(iii) Any instances of upselling included in such telephone calls; 

(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 § 310.3(a)(1), for any goods or services offered in the direct mail solicitation, and that contains no material 

misrepresentation regarding any item 

contained in § 310.3(d) 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 mail 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 § 310.3(a)(1)(vi) or § 310.4(a)(2) 

through (4); 

(ii) The requirements of § 310.4(a)(9) 

or (10); 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 

§§ 310.4(b)(1)(iii)(B) and 310.5 shall not 

apply to sellers or telemarketers of 

nondurable office or cleaning supplies. 

[75 FR 48516, Aug. 10, 2010, as amended at 80 

FR 77559, 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 

397 
 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 36 of 37 PageID 120 

§ 310.8 

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 Rule 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 

§ 310.8(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 § 310.4(b)(1)(iii)(B); provided, 

however, that such payment is not necessary if the seller initiates, or causes 

a telemarketer to initiate, calls solely 

to persons pursuant to 

§§ 310.4(b)(1)(iii)(B)(i) or (ii), and the 

seller does not access the National Do 

Not Call Registry for any other purpose. 

(b) It is a violation of this Rule 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 § 310.8(c), 

for access to the telephone 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 

§§ 310.4(b)(1)(iii)(B)(i) or (ii), and the 

seller does not access the National Do 

16 CFR Ch. I (1–1–21 Edition) 

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 $66 for each area code of 

data accessed, up to a maximum of 

$18,044; 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 this Rule, 47 

CFR 64.1200, 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 clients 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 

§ 310.4(b)(1)(iii)(B), will be provided a 

unique account number that will allow 

that person to access the registry data 

for the selected area codes at any time 

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 under paragraph (c) of this section must first pay 

$66 for each additional area code of 

data not initially 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 (c) of this 

section must first pay $33 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. 

398 
 

Case 6:22-cv-00798-PGB-GJK Document 8 Filed 05/04/22 Page 37 of 37 PageID 121 

Federal Trade Commission 

(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. 

[75 FR 48516, Aug. 10, 2010; 75 FR 51934, Aug. 

24, 2010, as amended at 77 FR 51697, Aug. 27, 

2012; 78 FR 53643, Aug. 30, 2013; 79 FR 51478, 

Aug. 29, 2014; 80 FR 77560, Dec. 14, 2016; 81 FR 

59845, Aug. 31, 2016; 82 FR 39534, Aug. 21, 2017; 

83 FR 46640, Sept. 14, 2018; 84 FR 44687, Aug. 

27, 2019; 85 FR 62597, Oct. 5, 2020] 

§ 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. 

PART 311—TEST PROCEDURES AND 

LABELING STANDARDS FOR RECYCLED OIL 

Sec. 

311.1 Definitions. 

311.2 Stayed or invalid parts. 

311.3 Preemption. 

311.4 Testing. 

311.5 Labeling. 

311.6 Prohibited acts. 

AUTHORITY: 42 U.S.C. 6363(d). 

§ 311.3 

SOURCE: 60 FR 55421, Oct. 31, 1995, unless 

otherwise noted. 

§ 311.1 Definitions. 

As used in this part: 

(a) Manufacturer means any person 

who re-refines or otherwise processes 

used oil to remove physical or chemical impurities acquired through use or 

who blends such re-refined or otherwise 

processed used oil with new oil or additives. 

(b) New oil means any synthetic oil or 

oil that has been refined from crude oil 

and which has not been used and may 

or may not contain additives. Such 

term does not include used oil or recycled oil. 

(c) Processed used oil means re-refined 

or otherwise processed used oil or blend 

of oil, consisting of such re-refined or 

otherwise processed used oil and new 

oil or additives. 

(d) Recycled oil means processed used 

oil that the manufacturer has determined, pursuant to section 311.4 of this 

part, is substantially equivalent to new 

oil for use as engine oil. 

(e) Used oil means any synthetic oil 

or oil that has been refined from crude 

oil, which has been used and, as a result of such use, has been contaminated by physical or chemical impurities. 

(f) Re-refined oil means used oil from 

which physical and chemical contaminants acquired through use have been 

removed. 

§ 311.2 Stayed or invalid parts. 

If any part of this rule is stayed or 

held invalid, the rest of it will remain 

in force. 

§ 311.3 Preemption. 

No law, regulation, or order of any 

State or political subdivision thereof 

may apply, or remain applicable, to 

any container of recycled oil, if such 

law, regulation, or order requires any 

container of recycled oil, which container bears a label in accordance with 

the terms of § 311.5 of this part, to bear 

any label with respect to the comparative characteristics of such recycled oil 

with new oil that is not identical to 

that permitted by § 311.5 of this part. 

399