1 

UNITED STATES DISTRICT COURT

MIDDLE DISTRICT OF TENNESSEE

NASHVILLE DIVISION

FEDERAL TRADE COMMISSION, 

Plaintiff,

v. 

TRAFFIC AND FUNNELS, LLC, a limited 

liability company;

WE CAPITAL, LLC, a limited liability company, 

also d/b/a The Sales Mentor and The Sales 

Mentor, LLC; 

EVANS AND WELCH, INC., a corporation; 

EVANS AND WELCH HOLDINGS, LLC, a 

limited liability company;

and

TAYLOR A. WELCH, individually and as an 

officer of Traffic and Funnels, LLC; WE Capital, 

LLC; Evans and Welch, Inc.; and Evans and 

Welch Holdings, LLC; 

CHRISTOPHER A. EVANS, individually and as 

an officer of Traffic and Funnels, LLC; WE 

Capital, LLC; Evans and Welch, Inc.; and Evans 

and Welch Holdings, LLC; 

PAYTON WELCH, individually; and 

ASHTON SHANKS, individually and as an 

officer of Evans and Welch, Inc., 

Defendants.

Case No. ____________ 3:23-cv-01277

STIPULATED ORDER FOR 

PERMANENT INJUNCTION, 

MONETARY JUDGMENT, AND 

OTHER RELIEF AS TO 

DEFENDANT CHRISTOPHER A. 

EVANS

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

for Permanent Injunction, Monetary Relief, and Other Relief (“Complaint”) for a permanent 

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injunction, monetary relief, and other relief in this matter, pursuant to Sections 13(b) and 19 of

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

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

6108. The Commission and Defendant Christopher A. Evans (“Evans”) stipulate to the entry of 

this Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief (“Order”) 

to resolve all matters in dispute in this action between them. The other Defendants in this action, 

Traffic and Funnels, LLC; WE Capital, LLC; Evans and Welch, Inc.; Evans and Welch 

Holdings, LLC; Taylor A. Welch; Payton Welch; and Ashton Shanks, stipulate to a separate

order in this case. 

THEREFORE, IT IS ORDERED as follows:

FINDINGS

1. This Court has jurisdiction over this matter.

2. The Complaint charges that Defendants participated in deceptive and unfair acts

or practices in violation of Section 5 of the FTC Act, 15 U.S.C. § 45; the Telemarketing Act, 15 

U.S.C. §§ 6101-08; and the Telemarketing Sales Rule, 16 C.F.R. Part 310, in connection with the 

advertising, marketing, distribution, promotion, and sale of goods and services, including moneymaking opportunities and sales training programs throughout the United States. The Complaint 

alleges that these deceptive acts or practices included claiming falsely or without substantiation 

that consumers who purchased Defendants’ money-making opportunities would earn or were 

likely to earn substantial income. 

3. Evans neither admits nor denies any of the allegations in the Complaint, except as

specifically stated in this Order. Only for purposes of this action, Evans admits the facts 

necessary to establish jurisdiction. 

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4. Evans waives any claim that he 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 

agrees to bear his own costs and attorney fees. 

5. Evans and the Commission waive all rights to appeal or otherwise challenge or 

contest the validity of this Order. 

DEFINITIONS

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

A. “Clearly and Conspicuously” means that a required disclosure is difficult to 

miss (i.e., easily noticeable) and easily understandable by ordinary consumers, including in all of 

the following ways: 

1. In any communication that is solely visual or solely audible, the disclosure 

must be made through the same means through which the communication 

is presented. In any communication made through both visual and audible 

means, such as a television advertisement, the disclosure must be 

presented simultaneously in both the visual and audible portions of the 

communication even if the representation requiring the disclosure is made 

in only one means. 

2. A visual disclosure, by its size, contrast, location, the length of time it 

appears, and other characteristics, must stand out from any accompanying 

text or other visual elements so that it is easily noticed, read, and 

understood. 

3. An audible disclosure, including by telephone or streaming video, must be 

delivered in a volume, speed, and cadence sufficient for ordinary 

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consumers to easily hear and understand it.

4. In any communication using an interactive electronic medium, such as the 

Internet or software, the disclosure must be unavoidable.

5. The disclosure must use diction and syntax understandable to ordinary 

consumers and must appear in each language in which the representation 

that requires the disclosure appears.

6. The disclosure must comply with these requirements in each medium 

through which it is received, including all electronic devices and face-toface communications.

7. The disclosure must not be contradicted or mitigated by, or inconsistent 

with, anything else in the communication.

8. This disclosure must not be presented to the consumer through a 

hyperlink.

9. When the representation or sales practice targets a specific audience, such 

as children, the elderly, or the terminally ill, “ordinary consumers” 

includes reasonable members of that group.

B. “Defendant(s)” means all of the Defendants, individually, collectively, or in any 

combination.

C. “Earnings Claim(s)” means any representation, specific or general, about 

income, revenues, financial gains, percentage gains, profit, net profit, gross profit, or return on 

investment. Earnings Claims include, but are not limited to: (a) any chart, table, or 

mathematical calculation that demonstrates possible results based upon a combination of 

variables; (b) any statements from which a prospective purchaser can reasonably infer that he or 

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she will earn a minimum level of income (e.g., “earn enough money to buy a Porsche,” “earn a 

six-figure income,” or “earn your investment back within one year”); and (c) any statements, 

claims, success stories, endorsements, or testimonials about the performance or profitability of 

representatives, endorsers, instructors, or customers. 

D. “Investment Opportunity” includes 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.

E. “Telemarketing” means any plan, program, or campaign which is conducted to 

induce the purchase of goods or services by use of one or more telephones, and which involves a 

telephone call, whether or not covered by the Telemarketing Sales Rule. 

ORDER

I. PROHIBITION CONCERNING EARNINGS CLAIMS

IT IS ORDERED that Evans, his agents, employees, and attorneys, and all other persons 

in active concert or participation with any of them, who receive actual notice of this Order, 

whether acting directly or indirectly, in connection with promoting or offering for sale any good 

or service, are permanently restrained and enjoined from making any Earnings Claims or 

assisting others in making any Earnings Claims, directly or indirectly, expressly or by 

implication, including the representation that consumers who purchase Evans’ goods or services 

will earn or are likely to earn substantial income, unless: 

A. The Earnings Claims are non-misleading; 

B. At the time the Earnings Claims are made, Evans has a reasonable basis for the 

claims and has in his possession written materials that substantiate them;

C. To the extent that the Earnings Claims concern the performance or profitability of 

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specific representatives, endorsers, instructors, or customers: 

1. Evans must Clearly and Conspicuously disclose typical customer results 

and have written substantiation for such typical results; and 

2. If Evans makes any statements characterizing or qualifying the typical 

results (by saying, for example, “most students do not earn income 

because they do not complete the program”), Evans must have written 

substantiation for those statements as well;

D. Evans makes the written substantiation for Earnings Claims available upon 

request to the consumer, potential purchaser, and the FTC; and

E. Any of Evans’ earnings that form the basis for the Earnings Claims were achieved 

in compliance with the law.

II. PROHIBITION AGAINST MISREPRESENTATIONS

IT IS FURTHER ORDERED that Evans, his agents, employees, and attorneys, and all 

other persons in active concert or participation with any of them, who receive actual notice of 

this Order, whether acting directly or indirectly, in connection with the advertising, marketing, 

promoting, offering for sale, or selling of any good or service, are permanently restrained and 

enjoined from misrepresenting or assisting others in misrepresenting, expressly or by 

implication:

A. The description of the good or service; 

B. That any past performance referenced in Evans’ advertising, marketing, promoting, 

offering for sale, or selling of any good or service is indicative of future results; 

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C. That any testimonials Evans uses in the advertising, marketing, promoting, offering 

for sale, or selling of any good or service reflect the experience that consumers are 

likely to have using his goods or services; 

D. That purchasers or users of Evans’ goods or services will or are likely to achieve 

substantial profits or earnings;

E. The risk, earnings potential, or profitability of goods or services that are the subject of 

a sales offer;

F. The background, expertise, or other information about the skills or accomplishments 

of any person whose name or likeness is used in promoting Evans’ goods or services 

to prospective purchasers;

G. The level of experience required for consumers to effectively use Evans’ goods or 

services;

H. The time or effort required for consumers to effectively use Evans’ goods or services;

I. That Evans’ goods or services will be sold to only a limited number of prospective 

participants, when in fact sales are not restricted to only a limited number of prospective 

participants; 

J. Any material aspect of the nature or terms of a refund, cancellation, or exchange 

policy for the good or service; or

K. Any other fact material to consumers concerning any good or service, such as: the 

total costs; any material restrictions, limitations, or conditions; or any material aspect 

of its performance, efficacy, nature, or central characteristics.

III. PROHIBITIONS REGARDING TELEMARKETING

IT IS FURTHER ORDERED that Evans, his agents, and employees, and all other 

persons in active concert or participation with them, who receive actual notice of this Order, 

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whether acting directly or indirectly, in connection with the Telemarketing of any goods or 

services are permanently restrained and enjoined from:

A. misrepresenting the risk, earnings potential, or profitability of the good or service;

B. misrepresenting any material aspect of an Investment Opportunity;

C. misrepresenting any material aspect of the performance, efficacy, nature, or central

characteristics of goods or services that are the subject of a sales offer;

D. making a false or misleading statement to induce any person to pay for goods or

services;

E. violating any provision of the TSR, 16 C.F.R. Part 310, attached as Attachment A.

IV. JUDGMENT FOR MONETARY RELIEF AND PARTIAL SUSPENSION

IT IS FURTHER ORDERED that: 

Judgment in the amount of Sixteen Million Three Hundred Sixty-Three Thousand 

Seventy Three and 11/100 Dollars ($16,363,073.11) is entered in favor of the Commission

against Evans as monetary relief. This judgment is joint and several with the judgment against 

Traffic and Funnels, LLC; WE Capital, LLC; Evans and Welch, Inc.; Evans and Welch 

Holdings, LLC; Taylor A. Welch; and Payton Welch by separate order. 

Evans is ordered to pay to the Commission the amount of Four Hundred 

Thousand Dollars ($400,000), which, as Evans stipulates, his undersigned counsel holds in 

escrow for no purpose other than payment to the Commission. Such payment must be made 

within 7 days of entry of this Order by electronic fund transfer in accordance with instructions 

previously provided by a representative of the Commission. Upon such payment, the remainder 

of the judgment is suspended, subject to the Subsections below. 

The Commission’s agreement to the suspension of part of the judgment is 

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expressly premised upon the truthfulness, accuracy, and completeness of Evans’ sworn financial 

statements and related documents (collectively, “financial representations”) submitted to the 

Commission, namely: 

1. the Financial Statement of Christopher A. Evans, signed on May 18, 2023, 

including the addenda and attachments;

2. the additional documents submitted by email from Evans’ counsel G. 

James Christiansen to Commission Counsel Virginia Rosa and Frances Kern dated May 

16, 2023; 

3. the additional information and documents submitted by email from Evans’ 

counsel G. James Christiansen to Commission Counsel Virginia Rosa and Frances Kern 

dated May 18, 2023; 

4. the additional information submitted by letter from Evans’ counsel G. 

James Christiansen to Commission Counsel Virginia Rosa and Frances Kern dated June 

20, 2023; and

5. the additional information submitted by email from Evans’ counsel G. 

James Christiansen to Commission Counsel Virginia Rosa and Frances Kern dated June 

26, 2023. 

The suspension of the judgment will be lifted if, upon motion by the Commission, 

the Court finds that Evans failed to disclose any material asset, materially misstated the value of 

any asset, or made any other material misstatement or omission in the financial representations 

identified above. 

If the suspension of the judgment is lifted, the judgment becomes immediately 

due in the amount specified in Subsection A above (which the parties stipulate only for purposes 

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of this Section represents the consumer injury alleged in the Complaint), less any payment 

previously made pursuant to this Section or any judgment against any other Defendant in this 

case, plus interest computed from the date of entry of this Order. 

V. ADDITIONAL MONETARY PROVISIONS

IT IS FURTHER ORDERED that: 

Evans relinquishes dominion and all legal and equitable right, title, and interest in 

all assets transferred pursuant to this Order and may not seek the return of any assets. 

The facts alleged in the Complaint will be taken as true, without further proof, in 

any subsequent civil litigation by or on behalf of the Commission, including in a proceeding to 

enforce its rights to any payment or monetary judgment pursuant to this Order, such as a 

nondischargeability complaint in any bankruptcy case. 

The facts alleged in the Complaint establish all elements necessary to sustain an 

action by the Commission pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, 11 U.S.C. 

§ 523(a)(2)(A), and this Order will have collateral estoppel effect for such purposes. 

Evans acknowledges that his Taxpayer Identification Number (Social Security 

Number), which Evans previously submitted to the Commission, may be used for collecting and 

reporting on any delinquent amount arising out of this Order, in accordance with 31 U.S.C. 

§ 7701. 

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

into a fund administered by the Commission or its designee to be used for consumer relief, such 

as redress and any attendant expenses for the administration of any redress fund. If a 

representative of the Commission decides that direct redress to consumers is wholly or partially 

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

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remaining money for such related relief (including consumer information remedies) as it 

determines to be reasonably related to Evans’ practices alleged in the Complaint. Any money 

not used for relief is to be deposited to the U.S. Treasury. Evans has no right to challenge any 

actions the Commission or its representatives may take pursuant to this Subsection. 

VI. CUSTOMER INFORMATION

IT IS FURTHER ORDERED that Evans, his agents, employees, and attorneys, and all 

other persons in active concert or participation with any of them, who receive actual notice of 

this Order, are permanently restrained and enjoined from directly or indirectly: 

A. failing to provide sufficient customer information to enable the Commission to 

efficiently administer consumer redress. Evans represents that he has provided this redress 

information to the Commission. If a representative of the Commission requests in writing any 

information related to redress, Evans must provide it, in the form prescribed by the Commission, 

within 14 days; 

B. disclosing, using, or benefitting from customer information, including the name, 

address, telephone number, email address, social security number, other identifying information, 

or any data that enables access to a customer’s account (including a credit card, bank account, or 

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

with the marketing or sale of money-making opportunities or sales training programs; and

C. failing to destroy such customer information in all forms in their possession, 

custody, or control within 30 days after receipt of written direction to do so from a representative 

of the Commission. 

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VII. COOPERATION

IT IS FURTHER ORDERED that Evans must fully cooperate with representatives of 

the Commission in this case and in any investigation related to or associated with the 

transactions or the occurrences that are the subject of the Complaint. Evans must provide 

truthful and complete information, evidence, and testimony. Evans must appear for interviews, 

discovery, hearings, trials, and any other proceedings that a Commission representative may 

reasonably request upon 5 days written notice, or other reasonable notice, at such places and 

times as a Commission representative may designate, without the service of a subpoena. 

VIII. NOTICE TO CUSTOMERS

IT IS FURTHER ORDERED that, within 7 days of entry of this Order, Evans shall

cooperate with the other Defendants in sending an email notice in the form shown in

Attachment B to all persons who purchased Defendants’ goods or services of any type at any

time between January 1, 2018, and the date of the entry of this Order with the subject line “What

the FTC Settlement Means for Customers of The Sales Mentor, Inbound Closer, and Sales Pro

Academy.” Evans shall also cooperate with the other Defendants in mailing, within 15 days of 

entry of this Order, the form shown in Attachment B via first class mail, postage prepaid with

address forwarding requested, to the last known mailing address of any intended email recipient

whose emailed message delivery fails. No information other than that contained in Attachment

B shall be included in or added to the notice required by this Section, nor shall any other 

materials be transmitted with the notice.

IX. ORDER ACKNOWLEDGMENTS

IT IS FURTHER ORDERED that Evans obtain acknowledgments of receipt of this 

Order:

Evans, within 7 days of entry of this Order, must submit to the Commission an 

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acknowledgment of receipt of this Order sworn under penalty of perjury. 

For 10 years after entry of this Order, Evans for any business that such Evans, 

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

or indirectly, 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 

7 days of entry of this Order for current personnel. For all others, delivery must occur before 

they assume their responsibilities.

From each individual or entity to which Evans delivered a copy of this Order, 

Evans must obtain, within 30 days, a signed and dated acknowledgment of receipt of this Order. 

X. COMPLIANCE REPORTING

IT IS FURTHER ORDERED that Evans make timely submissions to the Commission:

One year after entry of this Order, Evans must submit a compliance report, sworn 

under penalty of perjury: 

1. Evans must: (a) identify the primary physical, postal, and email address 

and telephone number, as designated points of contact, which representatives of the 

Commission may use to communicate with Evans; (b) identify all of Evans’ 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 Evans must describe if he knows or should know due to his own 

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involvement); (d) describe in detail whether and how Evans 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, Evans 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 Evans performs services whether as 

an employee or otherwise and any entity in which Evans has any ownership interest; and 

(c) describe in detail Evans’ involvement in each such business, including title, role, 

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

For 10 years after entry of this Order, Evans must submit a compliance notice, 

sworn under penalty of perjury, within 14 days of any change in the following: 

1. Evans must report any change in: (a) any designated point of contact; or 

(b) the structure of any entity that Evans 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, Evans 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 Evans performs services whether as an employee or 

otherwise and any entity in which Evans has any ownership interest, and identify the 

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

Evans must submit to the Commission notice of the filing of any bankruptcy 

petition, insolvency proceeding, or similar proceeding by or against Evans within 14 days of its 

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filing.

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.

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. Traffic and Funnels. 

XI. RECORDKEEPING

IT IS FURTHER ORDERED that Evans must create certain records for 10 years after 

entry of the Order and retain each such record for 5 years. Specifically, Evans, for any business 

that Evans, individually or collectively with any other Defendants, is a majority owner or 

controls directly or indirectly, must create and retain the following records: 

accounting records showing the revenues from all goods or services sold; 

personnel records showing, for each person providing services, whether as an 

employee or otherwise, that person’s: name; addresses; telephone numbers; job title or position; 

dates of service; and (if applicable) the reason for termination;

records of all consumer complaints and refund requests, whether received directly 

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

all records necessary to demonstrate full compliance with each provision of this 

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Order, including all submissions to the Commission; and 

a copy of each unique advertisement or other marketing material.

XII. COMPLIANCE MONITORING

IT IS FURTHER ORDERED that, for the purpose of monitoring Evans’ 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, Evans must: submit additional compliance reports or other requested information, 

which must be sworn under penalty of perjury; appear for depositions; and produce documents 

for inspection and copying. The Commission is also authorized to obtain discovery, without 

further leave of court, using any of the procedures prescribed by Federal Rules of Civil 

Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69. 

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

directly with Evans. Evans must permit representatives of the Commission to interview any 

employee or other person affiliated with Evans who has agreed to such an interview. The person 

interviewed may have counsel present.

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

representatives, as consumers, suppliers, or other individuals or entities, to Evans or any 

individual or entity affiliated with Evans, 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. 

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

reporting agency must furnish consumer reports concerning Individual Defendants pursuant to 

Section 604(1) of the Fair Credit Reporting Act, 15 U.S.C. § 1681b(a)(1). 

XIII. RETENTION OF JURISDICTION

IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for 

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

SO ORDERED this day of , 202__.

_______________________________ 

UNITED STATES DISTRICT JUDGE

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SO STIPULATED AND AGREED:

FOR PLAINTIFF: 

FEDERAL TRADE COMMISSION

Date: 

Virginia Rosa 

Frances L. Kern

Attorneys 

Federal Trade Commission

600 Pennsylvania Ave., N.W. 

Washington, DC 20580 

202-326-3068 / vrosa@ftc.gov (Rosa)

202-326-2391 / fkern@ftc.gov (Kern)

202-326-3395 facsimile

December 5, 2023

Case 3:23-cv-01277 Document 11-1 Filed 12/11/23 Page 18 of 19 PageID #: 96
Case 3:23-cv-01277 Document 11-1 Filed 12/11/23 Page 19 of 19 PageID #: 97

FOR DEFENDANT CHRISTOPHER A. EV ANS: 

• ate: _,_/--'--'- I '~I 

I I l~•o'----"' ·':, __

833 E. Pioneer Road, Suite 102 

Draper, UT 84020 

844-409-1122 

801-407-1712 facsimile 

greg@guardianlaw.com 

COUNSEL FOR Christopher A. Evans 

DEFENDANT: 

Christopher A. Evans 

19 
ATTACHMENT A

Case 3:23-cv-01277 Document 11-2 Filed 12/11/23 Page 1 of 15 PageID #: 98

AUTHENTICATE.~ V.S. COVERNM ENT 

INFORMATION 

GPO 

pt_ 309, App. A 

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 anyt hing 

otherwise noted. else of value. 

16 CFR Ch. I (1-1-22 Edition) 

398 
Federal Trade Commission § 310.2

(b) Attorney General means the chief that can be used to add funds to a genlegal officer of a state. eral-use prepaid card, as defined in 

(c) Billing information means any data Regulation E, 12 CFR 1005.2, or an acthat enables any person to access a count with a payment intermediary. 

customer’s or donor’s account, such as For purposes of this definition, a cash 

a credit card, checking, savings, share reload mechanism is not itself a genor similar account, utility bill, mort- eral-use prepaid debit card or a swipe 

gage loan account, or debit card. reload process or similar method in 

(d) Caller identification service means a which funds are added directly onto a 

service that allows a telephone sub- person’s own general-use prepaid card 

scriber to have the telephone number, or account with a payment inter- and, where available, name of the call- mediary. ing party transmitted contempora- (h) Charitable contribution means any neously with the telephone call, and donation or gift of money or any other displayed on a device in or connected thing of value. to the subscriber’s telephone. (i) Commission means the Federal (e) Cardholder means a person to Trade Commission. whom a credit card is issued or who is (j) Credit means the right granted by authorized to use a credit card on be- a creditor to a debtor to defer payment half of or in addition to the person to 

whom the credit card is issued. of debt or to incur debt and defer its 

payment. (f) Cash-to-cash money transfer means

the electronic (as defined in section (k) Credit card means any card, plate,

106(2) of the Electronic Signatures in coupon book, or other credit device exGlobal and National Commerce Act (15 isting for the purpose of obtaining 

U.S.C. 7006(2)) transfer of the value of money, property, labor, or services on 

cash received from one person to an- credit. 

other person in a different location (l) Credit card sales draft means any

that is sent by a money transfer pro- record or evidence of a credit card 

vider and received in the form of cash. transaction. 

For purposes of this definition, money (m) Credit card system means any

transfer provider means any person or method or procedure used to process 

financial institution that provides credit card transactions involving credcash-to-cash money transfers for a per- it cards issued or licensed by the operson in the normal course of its busi- ator of that system. 

ness, whether or not the person holds (n) Customer means any person who is an account with such person or finan- or may be required to pay for goods or cial institution. The term cash-to-cash services offered through tele- money transfer includes a remittance marketing. transfer, as defined in section 919(g)(2) (o) Debt relief service means any pro- of the Electronic Fund Transfer Act gram or service represented, directly or (‘‘EFTA’’), 15 U.S.C. 1693a, that is a by implication, to renegotiate, settle, cash-to-cash transaction; however it or in any way alter the terms of pay- does not include any transaction that ment or other terms of the debt be- is: tween a person and one or more unse- (1) An electronic fund transfer as de- cured creditors or debt collectors, in- fined in section 903 of the EFTA; cluding, but not limited to, a reduction (2) Covered by Regulation E, 12 CFR in the balance, interest rate, or fees 1005.20, pertaining to gift cards; or owed by a person to an unsecured cred- (3) Subject to the Truth in Lending itor or debt collector. Act, 15 U.S.C. 1601 et seq. (p) Donor means any person solicited (g) Cash reload mechanism is a device,

authorization code, personal identifica- to make a charitable contribution. 

tion number, or other security measure (q) Established business relationship

that makes it possible for a person to means a relationship between a seller 

convert cash into an electronic (as de- and a consumer based on: 

fined in section 106(2) of the Electronic (1) the consumer’s purchase, rental,

Signatures in Global and National or lease of the seller’s goods or services 

Commerce Act (15 U.S.C. 7006(2)) form or a financial transaction between the 

399 

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§ 310.2 16 CFR Ch. I (1–1–22 Edition) 

consumer and seller, within the eight- (z) Preacquired account information 

een (18) months immediately preceding means any information that enables a 

the date of a telemarketing call; or seller or telemarketer to cause a 

(2) the consumer’s inquiry or applica- charge to be placed against a custion regarding a product or service of- tomer’s or donor’s account without obfered by the seller, within the three (3) taining the account number directly 

months immediately preceding the from the customer or donor during the 

date of a telemarketing call. telemarketing transaction pursuant to 

(r) Free-to-pay conversion means, in an which the account will be charged. 

offer or agreement to sell or provide (aa) Prize means anything offered, or 

any goods or services, a provision purportedly offered, and given, or purunder which a customer receives a portedly given, to a person by chance. 

product or service for free for an initial For purposes of this definition, chance 

period and will incur an obligation to exists if a person is guaranteed to repay for the product or service if he or ceive an item and, at the time of the 

she does not take affirmative action to offer or purported offer, the telecancel before the end of that period. marketer does not identify the specific 

(s) Investment opportunity means any- item that the person will receive. 

thing, tangible or intangible, that is of- (bb) Prize promotion means: 

fered, offered for sale, sold, or traded (1) A sweepstakes or other game of 

based wholly or in part on representa- chance; or 

tions, either express or implied, about (2) An oral or written express or impast, present, or future income, profit, plied representation that a person has 

or appreciation. won, has been selected to receive, or 

(t) Material means likely to affect a may be eligible to receive a prize or 

person’s choice of, or conduct regard- purported prize. 

ing, goods or services or a charitable (cc) Remotely created payment order 

contribution. means any payment instruction or 

(u) Merchant means a person who is order drawn on a person’s account that 

authorized under a written contract is created by the payee or the payee’s 

with an acquirer to honor or accept agent and deposited into or cleared 

credit cards, or to transmit or process through the check clearing system. 

for payment credit card payments, for The term includes, without limitation, 

the purchase of goods or services or a a ‘‘remotely created check,’’ as defined 

charitable contribution. in Regulation CC, Availability of 

(v) Merchant agreement means a writ- Funds and Collection of Checks, 12 CFR 

ten contract between a merchant and 229.2(fff), but does not include a payan acquirer to honor or accept credit ment order cleared through an Autocards, or to transmit or process for mated Clearinghouse (ACH) Network or 

payment credit card payments, for the subject to the Truth in Lending Act, 15 

purchase of goods or services or a char- U.S.C. 1601 et seq., and Regulation Z, 12 

itable contribution. CFR part 1026. 

(w) Negative option feature means, in (dd) Seller means any person who, in 

an offer or agreement to sell or provide connection with a telemarketing transany goods or services, a provision action, provides, offers to provide, or 

under which the customer’s silence or arranges for others to provide goods or 

failure to take an affirmative action to services to the customer in exchange 

reject goods or services or to cancel the for consideration. 

agreement is interpreted by the seller (ee) State means any state of the 

as acceptance of the offer. United States, the District of Colum-

(x) Outbound telephone call means a bia, Puerto Rico, the Northern Mariana 

telephone call initiated by a tele- Islands, and any territory or possession 

marketer to induce the purchase of of the United States. 

goods or services or to solicit a chari- (ff) Telemarketer means any person 

table contribution. who, in connection with telemarketing, 

(y) Person means any individual, initiates or receives telephone calls to 

group, unincorporated association, lim- or from a customer or donor. 

ited or general partnership, corpora- (gg) Telemarketing means a plan, protion, or other business entity. gram, or campaign which is conducted 

 

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Federal Trade Commission § 310.3 

to induce the purchase of goods or serv- (1) Before a customer consents to 

ices or a charitable contribution, by pay659 for goods or services offered, 

use of one or more telephones and failing to disclose truthfully, in a clear 

which involves more than one inter- and conspicuous manner, the following 

state telephone call. The term does not material information: 

include the solicitation of sales (i) The total costs to purchase, rethrough the mailing of a catalog ceive, or use, and the quantity of, any which: contains a written description goods or services that are the subject or illustration of the goods or services of the sales offer; 660

offered for sale; includes the business (ii) All material restrictions, limita- address of the seller; includes multiple tions, or conditions to purchase, re- pages of written material or illustra- ceive, or use the goods or services that tions; and has been issued not less fre- are the subject of the sales offer; quently than once a year, when the (iii) If the seller has a policy of not person making the solicitation does making refunds, cancellations, ex- not solicit customers by telephone but changes, or repurchases, a statement only receives calls initiated by customers in response to the catalog and informing the customer that this is the 

during those calls takes orders only seller’s policy; or, if the seller or telewithout further solicitation. For pur- marketer makes a representation 

poses of the previous sentence, the about a refund, cancellation, exchange, 

term ‘‘further solicitation’’ does not or repurchase policy, a statement of all 

include providing the customer with material terms and conditions of such 

information about, or attempting to policy; 

sell, any other item included in the (iv) In any prize promotion, the odds 

same catalog which prompted the cus- of being able to receive the prize, and, 

tomer’s call or in a substantially simi- if the odds are not calculable in adlar catalog. vance, the factors used in calculating 

(hh) Upselling means soliciting the the odds; that no purchase or payment 

purchase of goods or services following is required to win a prize or to partician initial transaction during a single pate in a prize promotion and that any 

telephone call. The upsell is a separate purchase or payment will not increase 

telemarketing transaction, not a con- the person’s chances of winning; and tinuation of the initial transaction. An the no-purchase/no-payment method of ‘‘external upsell’’ is a solicitation participating in the prize promotion made by or on behalf of a seller dif- with either instructions on how to par- ferent from the seller in the initial ticipate or an address or local or toll- transaction, regardless of whether the free telephone number to which cus- initial transaction and the subsequent tomers may write or call for informa- solicitation are made by the same tele- tion on how to participate; marketer. An ‘‘internal upsell’’ is a solicitation made by or on behalf of the 

same seller as in the initial trans- 659 When a seller or telemarketer uses, or 

action, regardless of whether the ini- directs a customer to use, a courier to transport payment, the seller or telemarketer tial transaction and subsequent solici- must make the disclosures required by tation are made by the same tele- §310.3(a)(1) before sending a courier to pick marketer. up payment or authorization for payment, or 

directing a customer to have a courier pick [75 FR 48516, Aug. 10, 2010, as amended at 80 up payment or authorization for payment. In FR 77557, Dec. 14, 2015] the case of debt relief services, the seller or 

telemarketer must make the disclosures re- § 310.3 Deceptive telemarketing acts or quired by §310.3(a)(1) before the consumer en- practices. rolls in an offered program. 

(a) Prohibited deceptive telemarketing 660 For offers of consumer credit products 

acts or practices. It is a deceptive tele- subject to the Truth in Lending Act, 15 

marketing act or practice and a viola- U.S.C. 1601 et seq., and Regulation Z, 12 CFR 

226, compliance with the disclosure require- tion of this Rule for any seller or tele- ments under the Truth in Lending Act and marketer to engage in the following Regulation Z shall constitute compliance conduct: with §310.3(a)(1)(i) of this Rule. 

 

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§ 310.3 16 CFR Ch. I (1–1–22 Edition) 

(v) All material costs or conditions the account, the customer may withto receive or redeem a prize that is the draw from the debt relief service at any 

subject of the prize promotion; time without penalty, and, if the cus-

(vi) In the sale of any goods or serv- tomer withdraws, the customer must 

ices represented to protect, insure, or receive all funds in the account, other 

otherwise limit a customer’s liability than funds earned by the debt relief 

in the event of unauthorized use of the service in compliance with 

customer’s credit card, the limits on a §310.4(a)(5)(i)(A) through (C). cardholder’s liability for unauthorized (2) Misrepresenting, directly or by use of a credit card pursuant to 15 implication, in the sale of goods or U.S.C. 1643; services any of the following material (vii) If the offer includes a negative information: option feature, all material terms and (i) The total costs to purchase, re- conditions of the negative option fea- ceive, or use, and the quantity of, any ture, including, but not limited to, the goods or services that are the subject fact that the customer’s account will of a sales offer; be charged unless the customer takes (ii) Any material restriction, limita- an affirmative action to avoid the 

tion, or condition to purchase, receive, charge(s), the date(s) the charge(s) will or use goods or services that are the be submitted for payment, and the spe- subject of a sales offer; cific steps the customer must take to 

avoid the charge(s); and (iii) Any material aspect of the per-

(viii) In the sale of any debt relief formance, efficacy, nature, or central 

service: characteristics of goods or services 

(A) the amount of time necessary to that are the subject of a sales offer; 

achieve the represented results, and to (iv) Any material aspect of the nathe extent that the service may include ture or terms of the seller’s refund, 

a settlement offer to any of the cus- cancellation, exchange, or repurchase 

tomer’s creditors or debt collectors, policies; 

the time by which the debt relief serv- (v) Any material aspect of a prize 

ice provider will make a bona fide set- promotion including, but not limited 

tlement offer to each of them; to, the odds of being able to receive a 

(B) to the extent that the service prize, the nature or value of a prize, or 

may include a settlement offer to any that a purchase or payment is required 

of the customer’s creditors or debt col- to win a prize or to participate in a 

lectors, the amount of money or the prize promotion; percentage of each outstanding debt (vi) Any material aspect of an invest- that the customer must accumulate be- ment opportunity including, but not fore the debt relief service provider limited to, risk, liquidity, earnings po- will make a bona fide settlement offer tential, or profitability; to each of them; (vii) A seller’s or telemarketer’s af- (C) to the extent that any aspect of filiation with, or endorsement or spon- the debt relief service relies upon or re- sorship by, any person or government sults in the customer’s failure to make entity; timely payments to creditors or debt (viii) That any customer needs of- collectors, that the use of the debt re- fered goods or services to provide pro- lief service will likely adversely affect tections a customer already has pursu- the customer’s creditworthiness, may ant to 15 U.S.C. 1643; result in the customer being subject to 

collections or sued by creditors or debt (ix) Any material aspect of a negacollectors, and may increase the tive option feature including, but not 

amount of money the customer owes limited to, the fact that the customer’s 

due to the accrual of fees and interest; account will be charged unless the cusand tomer takes an affirmative action to 

(D) to the extent that the debt relief avoid the charge(s), the date(s) the 

service requests or requires the cus- charge(s) will be submitted for paytomer to place funds in an account at ment, and the specific steps the cusan insured financial institution, that tomer must take to avoid the 

the customer owns the funds held in charge(s); or 

 

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Federal Trade Commission § 310.3 

(x) Any material aspect of any debt donor’s authorization of payment for 

relief service, including, but not lim- the goods or services or charitable conited to, the amount of money or the tribution that are the subject of the 

percentage of the debt amount that a telemarketing transaction and the cuscustomer may save by using such serv- tomer’s or donor’s receipt of all of the 

ice; the amount of time necessary to following information: 

achieve the represented results; the (A) An accurate description, clearly 

amount of money or the percentage of and conspicuously stated, of the goods 

each outstanding debt that the cus- or services or charitable contribution 

tomer must accumulate before the pro- for which payment authorization is 

vider of the debt relief service will ini- sought; 

tiate attempts with the customer’s (B) The number of debits, charges, or creditors or debt collectors or make a payments (if more than one); bona fide offer to negotiate, settle, or (C) The date(s) the debit(s), charge(s), modify the terms of the customer’s or payment(s) will be submitted for debt; the effect of the service on a cus- payment; tomer’s creditworthiness; the effect of (D) The amount(s) of the debit(s), the service on collection efforts of the charge(s), or payment(s); customer’s creditors or debt collectors; (E) The customer’s or donor’s name; the percentage or number of customers 

who attain the represented results; and (F) The customer’s or donor’s billing 

whether a debt relief service is offered information, identified with sufficient 

specificity such that the customer or or provided by a non-profit entity. donor understands what account will (3) Causing billing information to be be used to collect payment for the submitted for payment, or collecting or goods or services or charitable con- attempting to collect payment for tribution that are the subject of the goods or services or a charitable con- telemarketing transaction; tribution, directly or indirectly, without the customer’s or donor’s express (G) A telephone number for customer 

verifiable authorization, except when or donor inquiry that is answered during normal business hours; and the method of payment used is a credit 

card subject to protections of the (H) The date of the customer’s or doTruth in Lending Act and Regulation nor’s oral authorization; or 

Z,661 or a debit card subject to the pro- (iii) Written confirmation of the 

tections of the Electronic Fund Trans- transaction, identified in a clear and 

fer Act and Regulation E.662 Such au- conspicuous manner as such on the 

thorization shall be deemed verifiable outside of the envelope, sent to the 

if any of the following means is em- customer or donor via first class mail 

ployed: prior to the submission for payment of 

(i) Express written authorization by the customer’s or donor’s billing inforthe customer or donor, which includes mation, and that includes all of the inthe customer’s or donor’s signature;663 formation contained in 

(ii) Express oral authorization which §§310.3(a)(3)(ii)(A)-(G) and a clear and 

is audio-recorded and made available conspicuous statement of the proceupon request to the customer or donor, dures by which the customer or donor 

and the customer’s or donor’s bank or can obtain a refund from the seller or 

other billing entity, and which evi- telemarketer or charitable organizadences clearly both the customer’s or tion in the event the confirmation is 

inaccurate; provided, however, that 

661 Truth in Lending Act, 15 U.S.C. 1601 et this means of authorization shall not 

seq., and Regulation Z, 12 CFR part 226. be deemed verifiable in instances in 662 Electronic Fund Transfer Act, 15 U.S.C. which goods or services are offered in a 

1693 et seq., and Regulation E, 12 CFR part transaction involving a free-to-pay 

205. conversion and preacquired account in- 663 For purposes of this Rule, the term formation. ‘‘signature’’ shall include an electronic or (4) Making a false or misleading digital form of signature, to the extent that 

such form of signature is recognized as a statement to induce any person to pay 

valid signature under applicable federal law for goods or services or to induce a 

or state contract law. charitable contribution. 

 

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§ 310.4 16 CFR Ch. I (1–1–22 Edition) 

(b) Assisting and facilitating. It is a de- a charitable organization or to any 

ceptive telemarketing act or practice particular charitable program; 

and a violation of this Rule for a per- (5) Any material aspect of a prize 

son to provide substantial assistance or promotion including, but not limited 

support to any seller or telemarketer to: the odds of being able to receive a 

when that person knows or consciously prize; the nature or value of a prize; or 

avoids knowing that the seller or tele- that a charitable contribution is remarketer is engaged in any act or prac- quired to win a prize or to participate 

tice that violates §§310.3(a), (c) or (d), in a prize promotion; or 

or §310.4 of this Rule. (6) A charitable organization’s or 

(c) Credit card laundering. Except as telemarketer’s affiliation with, or enexpressly permitted by the applicable dorsement or sponsorship by, any percredit card system, it is a deceptive son or government entity. 

telemarketing act or practice and a [75 FR 48516, Aug. 10, 2010, as amended at 80 violation of this Rule for: FR 77558, Dec. 14, 2015] (1) A merchant to present to or deposit into, or cause another to present § 310.4 Abusive telemarketing acts or to or deposit into, the credit card sys- practices. tem for payment, a credit card sales (a) Abusive conduct generally. It is an draft generated by a telemarketing abusive telemarketing act or practice transaction that is not the result of a 

and a violation of this Rule for any telemarketing credit card transaction seller or telemarketer to engage in the between the cardholder and the merfollowing conduct: chant; (1) Threats, intimidation, or the use (2) Any person to employ, solicit, or 

otherwise cause a merchant, or an em- of profane or obscene language; 

ployee, representative, or agent of the (2) Requesting or receiving payment 

merchant, to present to or deposit into of any fee or consideration for goods or 

the credit card system for payment, a services represented to remove derogacredit card sales draft generated by a tory information from, or improve, a 

telemarketing transaction that is not person’s credit history, credit record, 

the result of a telemarketing credit or credit rating until: 

card transaction between the card- (i) The time frame in which the seller 

holder and the merchant; or has represented all of the goods or 

(3) Any person to obtain access to the services will be provided to that person 

credit card system through the use of a has expired; and 

business relationship or an affiliation (ii) The seller has provided the person 

with a merchant, when such access is with documentation in the form of a 

not authorized by the merchant agree- consumer report from a consumer rement or the applicable credit card sys- porting agency demonstrating that the 

tem. promised results have been achieved, 

(d) Prohibited deceptive acts or prac- such report having been issued more 

tices in the solicitation of charitable con- than six months after the results were 

tributions. It is a fraudulent charitable achieved. Nothing in this Rule should 

solicitation, a deceptive telemarketing be construed to affect the requirement 

act or practice, and a violation of this in the Fair Credit Reporting Act, 15 

Rule for any telemarketer soliciting U.S.C. 1681, that a consumer report 

charitable contributions to misrepre- may only be obtained for a specified 

sent, directly or by implication, any of permissible purpose; 

the following material information: (3) Requesting or receiving payment 

(1) The nature, purpose, or mission of of any fee or consideration from a perany entity on behalf of which a chari- son for goods or services represented to 

table contribution is being requested; recover or otherwise assist in the re-

(2) That any charitable contribution turn of money or any other item of 

is tax deductible in whole or in part; value paid for by, or promised to, that 

(3) The purpose for which any chari- person in a previous transaction, until 

table contribution will be used; seven (7) business days after such 

(4) The percentage or amount of any money or other item is delivered to 

charitable contribution that will go to that person. This provision shall not 

 

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Federal Trade Commission § 310.4

apply to goods or services provided to a (A) The funds are held in an account

person by a licensed attorney; at an insured financial institution; 

(4) Requesting or receiving payment (B) The customer owns the funds held

of any fee or consideration in advance in the account and is paid accrued inof obtaining a loan or other extension terest on the account, if any; 

of credit when the seller or tele- (C) The entity administering the acmarketer has guaranteed or rep- count is not owned or controlled by, or 

resented a high likelihood of success in in any way affiliated with, the debt reobtaining or arranging a loan or other lief service; 

extension of credit for a person; (D) The entity administering the ac-

(5)(i) Requesting or receiving pay- count does not give or accept any 

ment of any fee or consideration for money or other compensation in exany debt relief service until and unless: change for referrals of business involv-

(A) The seller or telemarketer has re- ing the debt relief service; and 

negotiated, settled, reduced, or other- (E) The customer may withdraw from

wise altered the terms of at least one the debt relief service at any time 

debt pursuant to a settlement agree- without penalty, and must receive all 

ment, debt management plan, or other funds in the account, other than funds 

such valid contractual agreement exe- earned by the debt relief service in 

cuted by the customer; compliance with §310.4(a)(5)(i)(A) 

(B) The customer has made at least through (C), within seven (7) business 

one payment pursuant to that settle- days of the customer’s request. 

ment agreement, debt management (6) Disclosing or receiving, for conplan, or other valid contractual agree- sideration, unencrypted consumer acment between the customer and the count numbers for use in telecreditor or debt collector; and marketing; provided, however, that 

(C) To the extent that debts enrolled this paragraph shall not apply to the 

in a service are renegotiated, settled, disclosure or receipt of a customer’s or 

reduced, or otherwise altered individ- donor’s billing information to process a 

ually, the fee or consideration either: payment for goods or services or a 

(1) Bears the same proportional rela- charitable contribution pursuant to a 

tionship to the total fee for renegoti- transaction; 

ating, settling, reducing, or altering (7) Causing billing information to be

the terms of the entire debt balance as submitted for payment, directly or inthe individual debt amount bears to directly, without the express informed 

the entire debt amount. The individual consent of the customer or donor. In 

debt amount and the entire debt any telemarketing transaction, the 

amount are those owed at the time the seller or telemarketer must obtain the 

debt was enrolled in the service; or express informed consent of the cus-

(2) Is a percentage of the amount tomer or donor to be charged for the 

saved as a result of the renegotiation, goods or services or charitable consettlement, reduction, or alteration. tribution and to be charged using the 

The percentage charged cannot change identified account. In any telefrom one individual debt to another. marketing transaction involving 

The amount saved is the difference be- preacquired account information, the 

tween the amount owed at the time the requirements in paragraphs (a)(7)(i) 

debt was enrolled in the service and the through (ii) of this section must be met 

amount actually paid to satisfy the to evidence express informed consent. 

debt. (i) In any telemarketing transaction

(ii) Nothing in §310.4(a)(5)(i) prohibits involving preacquired account informarequesting or requiring the customer tion and a free-to-pay conversion feato place funds in an account to be used ture, the seller or telemarketer must: 

for the debt relief provider’s fees and (A) Obtain from the customer, at a

for payments to creditors or debt col- minimum, the last four (4) digits of the 

lectors in connection with the renego- account number to be charged; 

tiation, settlement, reduction, or other (B) Obtain from the customer his or

alteration of the terms of payment or her express agreement to be charged 

other terms of a debt, provided that: for the goods or services and to be 

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§ 310.4 16 CFR Ch. I (1–1–22 Edition) 

charged using the account number pur- to cause a telemarketer to engage in, 

suant to paragraph (a)(7)(i)(A) of this the following conduct: 

section; and, (i) Causing any telephone to ring, or

(C) Make and maintain an audio re- engaging any person in telephone concording of the entire telemarketing versation, repeatedly or continuously 

transaction. with intent to annoy, abuse, or harass 

(ii) In any other telemarketing trans- any person at the called number; 

action involving preacquired account (ii) Denying or interfering in any

information not described in paragraph way, directly or indirectly, with a per-

(a)(7)(i) of this section, the seller or son’s right to be placed on any registry 

telemarketer must: of names and/or telephone numbers of 

persons who do not wish to receive out- (A) At a minimum, identify the ac- bound telephone calls established to count to be charged with sufficient comply with paragraph (b)(1)(iii)(A) of specificity for the customer or donor to this section, including, but not limited understand what account will be 

to, harassing any person who makes charged; and such a request; hanging up on that per- (B) Obtain from the customer or son; failing to honor the request; re- donor his or her express agreement to quiring the person to listen to a sales be charged for the goods or services pitch before accepting the request; as- and to be charged using the account sessing a charge or fee for honoring the number identified pursuant to para- request; requiring a person to call a graph (a)(7)(ii)(A) of this section; different number to submit the re- (8) Failing to transmit or cause to be quest; and requiring the person to iden- transmitted the telephone number, tify the seller making the call or on and, when made available by the tele- whose behalf the call is made; marketer’s carrier, the name of the (iii) Initiating any outbound tele- telemarketer, to any caller identifica- phone call to a person when: tion service in use by a recipient of a (A) That person previously has stated telemarketing call; provided that it that he or she does not wish to receive shall not be a violation to substitute an outbound telephone call made by or (for the name and phone number used on behalf of the seller whose goods or in, or billed for, making the call) the services are being offered or made on name of the seller or charitable organi- behalf of the charitable organization zation on behalf of which a tele- for which a charitable contribution is marketing call is placed, and the sell- being solicited; or er’s or charitable organization’s cus- (B) That person’s telephone number tomer or donor service telephone num- is on the ‘‘do-not-call’’ registry, main- ber, which is answered during regular tained by the Commission, of persons business hours; who do not wish to receive outbound (9) Creating or causing to be created, telephone calls to induce the purchase directly or indirectly, a remotely cre- of goods or services unless the seller or ated payment order as payment for telemarketer: goods or services offered or sold (1) Can demonstrate that the seller through telemarketing or as a chari- has obtained the express agreement, in table contribution solicited or sought writing, of such person to place calls to through telemarketing; or that person. Such written agreement (10) Accepting from a customer or shall clearly evidence such person’s au- donor, directly or indirectly, a cash-to- thorization that calls made by or on cash money transfer or cash reload behalf of a specific party may be placed mechanism as payment for goods or to that person, and shall include the services offered or sold through tele- telephone number to which the calls marketing or as a charitable contribu- may be placed and the signature 664 of 

tion solicited or sought through tele- that person; or marketing. 

(b) Pattern of calls. (1) It is an abusive 664For purposes of this Rule, the term telemarketing act or practice and a ‘‘signature’’ shall include an electronic or 

violation of this Rule for a tele- digital form of signature, to the extent that 

marketer to engage in, or for a seller such form of signature is recognized as a 

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Federal Trade Commission § 310.4 

(2) Can demonstrate that the seller (ii) Within two (2) seconds after the 

has an established business relation- completed greeting of the person 

ship with such person, and that person called, plays a prerecorded message 

has not stated that he or she does not that promptly provides the disclosures 

wish to receive outbound telephone required by §310.4(d) or (e), followed 

calls under paragraph (b)(1)(iii)(A) of immediately by a disclosure of one or 

this section; or both of the following: 

(iv) Abandoning any outbound tele- (A) In the case of a call that could be 

phone call. An outbound telephone call answered in person by a consumer, that 

is ‘‘abandoned’’ under this section if a the person called can use an automated 

person answers it and the telemarketer interactive voice and/or keypress-actidoes not connect the call to a sales rep- vated opt-out mechanism to assert a 

resentative within two (2) seconds of Do Not Call request pursuant to 

the person’s completed greeting. §310.4(b)(1)(iii)(A) at any time during 

(v) Initiating any outbound telephone the message. The mechanism must: 

call that delivers a prerecorded mes- (1) Automatically add the number 

sage, other than a prerecorded message called to the seller’s entity-specific Do 

permitted for compliance with the call Not Call list; 

abandonment safe harbor in (2) Once invoked, immediately dis- §310.4(b)(4)(iii), unless: connect the call; and (A) In any such call to induce the (3) Be available for use at any time purchase of any good or service, the during the message; and seller has obtained from the recipient (B) In the case of a call that could be of the call an express agreement, in answered by an answering machine or writing, that: voicemail service, that the person (i) The seller obtained only after a called can use a toll-free telephone clear and conspicuous disclosure that number to assert a Do Not Call request the purpose of the agreement is to au- pursuant to §310.4(b)(1)(iii)(A). The thorize the seller to place prerecorded number provided must connect directly calls to such person; to an automated interactive voice or 

(ii) The seller obtained without re- keypress-activated opt-out mechanism quiring, directly or indirectly, that the that: 

agreement be executed as a condition (1) Automatically adds the number of purchasing any good or service; called to the seller’s entity-specific Do (iii) Evidences the willingness of the Not Call list; recipient of the call to receive calls (2) Immediately thereafter dis- that deliver prerecorded messages by connects the call; and or on behalf of a specific seller; and (3) Is accessible at any time through- (iv) Includes such person’s telephone out the duration of the telemarketing number and signature;665 and campaign; and (B) In any such call to induce the (iii) Complies with all other require- purchase of any good or service, or to ments of this part and other applicable induce a charitable contribution from a federal and state laws. member of, or previous donor to, a non- (C) Any call that complies with all profit charitable organization on whose applicable requirements of this para- behalf the call is made, the seller or graph (v) shall not be deemed to violate telemarketer: §310.4(b)(1)(iv) of this part. (i) Allows the telephone to ring for at (D) This paragraph (v) shall not apply least fifteen (15) seconds or four (4) to any outbound telephone call that de- rings before disconnecting an unan- livers a prerecorded healthcare mes- swered call; and sage made by, or on behalf of, a covered 

entity or its business associate, as 

valid signature under applicable federal law those terms are defined in the HIPAA 

or state contract law. Privacy Rule, 45 CFR 160.103. 665 For purposes of this Rule, the term (2) It is an abusive telemarketing act ‘‘signature’’ shall include an electronic or or practice and a violation of this Rule digital form of signature, to the extent that 

such form of signature is recognized as a for any person to sell, rent, lease, purvalid signature under applicable federal law chase, or use any list established to 

or state contract law. comply with §310.4(b)(1)(iii)(A), or 

407 

 

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§ 310.4 16 CFR Ch. I (1–1–22 Edition) 

maintained by the Commission pursu- day period or portion thereof that the 

ant to §310.4(b)(1)(iii)(B), for any pur- campaign continues. 

pose except compliance with the provi- (ii) The seller or telemarketer, for 

sions of this Rule or otherwise to pre- each telemarketing call placed, allows 

vent telephone calls to telephone num- the telephone to ring for at least fifbers on such lists. teen (15) seconds or four (4) rings before 

(3) A seller or telemarketer will not disconnecting an unanswered call; 

be liable for violating §310.4(b)(1)(ii) (iii) Whenever a sales representative 

and (iii) if it can demonstrate that, as is not available to speak with the perpart of the seller’s or telemarketer’s son answering the call within two (2) 

routine business practice: seconds after the person’s completed 

(i) It has established and imple- greeting, the seller or telemarketer 

mented written procedures to comply promptly plays a recorded message 

with §310.4(b)(1)(ii) and (iii); that states the name and telephone 

(ii) It has trained its personnel, and number of the seller on whose behalf 

any entity assisting in its compliance, the call was placed666; and 

in the procedures established pursuant (iv) The seller or telemarketer, in acto §310.4(b)(3)(i); cordance with §310.5(b)-(d), retains 

(iii) The seller, or a telemarketer or records establishing compliance with 

another person acting on behalf of the §310.4(b)(4)(i)-(iii). 

(c) Calling time restrictions. Without seller or charitable organization, has 

maintained and recorded a list of tele- the prior consent of a person, it is an 

abusive telemarketing act or practice phone numbers the seller or charitable and a violation of this Rule for a tele- organization may not contact, in com- marketer to engage in outbound tele- pliance with §310.4(b)(1)(iii)(A); phone calls to a person’s residence at (iv) The seller or a telemarketer uses any time other than between 8:00 a.m. a process to prevent telemarketing to and 9:00 p.m. local time at the called any telephone number on any list es- person’s location. tablished pursuant to §310.4(b)(3)(iii) or (d) Required oral disclosures in the sale 310.4(b)(1)(iii)(B), employing a version of goods or services. It is an abusive tele- of the ‘‘do-not-call’’ registry obtained marketing act or practice and a viola- from the Commission no more than tion of this Rule for a telemarketer in thirty-one (31) days prior to the date an outbound telephone call or internal any call is made, and maintains or external upsell to induce the pur- records documenting this process; chase of goods or services to fail to dis- (v) The seller or a telemarketer or close truthfully, promptly, and in a another person acting on behalf of the clear and conspicuous manner to the seller or charitable organization, mon- person receiving the call, the following itors and enforces compliance with the information: procedures established pursuant to (1) The identity of the seller; §310.4(b)(3)(i); and (2) That the purpose of the call is to (vi) Any subsequent call otherwise sell goods or services; violating paragraph (b)(1)(ii) or (iii) of (3) The nature of the goods or serv- this section is the result of error and ices; and not of failure to obtain any informa- (4) That no purchase or payment is tion necessary to comply with a re- necessary to be able to win a prize or quest pursuant to paragraph participate in a prize promotion if a (b)(1)(iii)(A) of this section not to re- prize promotion is offered and that any ceive further calls by or on behalf of a purchase or payment will not increase seller or charitable organization. the person’s chances of winning. This (4) A seller or telemarketer will not disclosure must be made before or in 

be liable for violating §310.4(b)(1)(iv) if: conjunction with the description of the (i) The seller or telemarketer em- prize to the person called. If requested ploys technology that ensures abandonment of no more than three (3) per- 666 This provision does not affect any sell- cent of all calls answered by a person, er’s or telemarketer’s obligation to comply measured over the duration of a single with relevant state and federal laws, includcalling campaign, if less than 30 days, ing but not limited to the TCPA, 47 U.S.C. 

or separately over each successive 30- 227, and 47 CFR part 64.1200. 

408 

 

ATTACHMENT A

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Federal Trade Commission § 310.6 

by that person, the telemarketer must telephone number, and the job title(s) 

disclose the no-purchase/no-payment for all current and former employees 

entry method for the prize promotion; directly involved in telephone sales or 

provided, however, that, in any inter- solicitations; provided, however, that if 

nal upsell for the sale of goods or serv- the seller or telemarketer permits ficices, the seller or telemarketer must titious names to be used by employees, provide the disclosures listed in this each fictitious name must be traceable 

section only to the extent that the in- to only one specific employee; and formation in the upsell differs from the (5) All verifiable authorizations or disclosures provided in the initial tele- records of express informed consent or marketing transaction. express agreement required to be pro- (e) Required oral disclosures in chari- vided or received under this Rule. table solicitations. It is an abusive telemarketing act or practice and a viola- (b) A seller or telemarketer may 

keep the records required by §310.5(a) tion of this Rule for a telemarketer, in 

an outbound telephone call to induce a in any form, and in the same manner, 

charitable contribution, to fail to dis- format, or place as they keep such 

close truthfully, promptly, and in a records in the ordinary course of busiclear and conspicuous manner to the ness. Failure to keep all records reperson receiving the call, the following quired by §310.5(a) shall be a violation 

information: of this Rule. 

(1) The identity of the charitable or- (c) The seller and the telemarketer 

ganization on behalf of which the re- calling on behalf of the seller may, by 

quest is being made; and written agreement, allocate responsi-

(2) That the purpose of the call is to bility between themselves for the rec- solicit a charitable contribution. ordkeeping required by this Section. 

[75 FR 48516, Aug. 10, 2010, as amended at 76 When a seller and telemarketer have 

FR 58716, Sept. 22, 2011; 80 FR 77559, Dec. 14, entered into such an agreement, the 

2015] terms of that agreement shall govern, 

and the seller or telemarketer, as the § 310.5 Recordkeeping requirements. case may be, need not keep records 

(a) Any seller or telemarketer shall that duplicate those of the other. If the 

keep, for a period of 24 months from agreement is unclear as to who must 

the date the record is produced, the fol- maintain any required record(s), or if 

lowing records relating to its tele- no such agreement exists, the seller marketing activities: shall be responsible for complying with (1) All substantially different adver- §§310.5(a)(1)-(3) and (5); the tele- tising, brochures, telemarketing marketer shall be responsible for com- scripts, and promotional materials; plying with §310.5(a)(4). (2) The name and last known address (d) In the event of any dissolution or of each prize recipient and the prize termination of the seller’s or tele- awarded for prizes that are rep- marketer’s business, the principal of resented, directly or by implication, to that seller or telemarketer shall main- have a value of $25.00 or more; tain all records as required under this (3) The name and last known address section. In the event of any sale, as- of each customer, the goods or services signment, or other change in ownership purchased, the date such goods or services were shipped or provided, and the of the seller’s or telemarketer’s busiamount paid by the customer for the ness, the successor business shall maingoods or services;667 tain all records required under this sec-

(4) The name, any fictitious name tion. 

used, the last known home address and § 310.6 Exemptions. 

667 For offers of consumer credit products (a) Solicitations to induce charitable 

subject to the Truth in Lending Act, 15 contributions via outbound telephone U.S.C. 1601 et seq., and Regulation Z, 12 CFR calls are not covered by 226, compliance with the recordkeeping re- §310.4(b)(1)(iii)(B) of this Rule. quirements under the Truth in Lending Act, 

and Regulation Z, shall constitute compli- (b) The following acts or practices 

ance with §310.5(a)(3) of this Rule. are exempt from this Rule: 

409 

 

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Case 3:23-cv-01277 Document 11-2 Filed 12/11/23 Page 12 of 15 PageID #: 109
410 

§ 310.7 16 CFR Ch. I (1–1–22 Edition) 

(1) The sale of pay-per-call services (iii) Any instances of upselling insubject to the Commission’s Rule enti- cluded in such telephone calls; 

tled ‘‘Trade Regulation Rule Pursuant (6) Telephone calls initiated by a custo the Telephone Disclosure and Dis- tomer or donor in response to a direct 

pute Resolution Act of 1992,’’ 16 CFR mail solicitation, including solicitapart 308, provided, however, that this tions via the U.S. Postal Service, facexemption does not apply to the re- simile transmission, electronic mail, 

quirements of §§310.4(a)(1), (a)(7), (b), and other similar methods of delivery 

and (c); in which a solicitation is directed to 

(2) The sale of franchises subject to specific address(es) or person(s), that 

the Commission’s Rule entitled ‘‘Dis- clearly, conspicuously, and truthfully 

closure Requirements and Prohibitions discloses all material information listConcerning Franchising,’’ (‘‘Franchise ed in §310.3(a)(1), for any goods or servRule’’) 16 CFR part 436, and the sale of ices offered in the direct mail solicitabusiness opportunities subject to the tion, and that contains no material 

Commission’s Rule entitled ‘‘Disclo- misrepresentation regarding any item 

sure Requirements and Prohibitions contained in §310.3(d) for any requested 

Concerning Business Opportunities,’’ charitable contribution; provided, how-

(‘‘Business Opportunity Rule’’) 16 CFR ever, that this exemption does not 

part 437, provided, however, that this apply to: 

exemption does not apply to the re- (i) Calls initiated by a customer in 

quirements of §§310.4(a)(1), (a)(7), (b), response to a direct mail solicitation 

and (c); relating to prize promotions, invest-

(3) Telephone calls in which the sale ment opportunities, debt relief servof goods or services or charitable solic- ices, business opportunities other than 

itation is not completed, and payment business arrangements covered by the 

or authorization of payment is not re- Franchise Rule or Business Opporquired, until after a face-to-face sales tunity Rule, or goods or services deor donation presentation by the seller scribed in §310.3(a)(1)(vi) or §310.4(a)(2) 

or charitable organization, provided, through (4); 

however, that this exemption does not (ii) The requirements of §310.4(a)(9) 

apply to the requirements of or (10); or 

§§310.4(a)(1), (a)(7), (b), and (c); (iii) Any instances of upselling in-

(4) Telephone calls initiated by a cus- cluded in such telephone calls; and 

(7) Telephone calls between a tele- tomer or donor that are not the result 

of any solicitation by a seller, chari- marketer and any business to induce 

the purchase of goods or services or a table organization, or telemarketer, 

provided, however, that this exemption charitable contribution by the busidoes not apply to any instances of ness, except calls to induce the retail 

upselling included in such telephone sale of nondurable office or cleaning 

supplies; provided, however, that calls; §§310.4(b)(1)(iii)(B) and 310.5 shall not (5) Telephone calls initiated by a cus- apply to sellers or telemarketers of tomer or donor in response to an adver- nondurable office or cleaning supplies. tisement through any medium, other 

than direct mail solicitation, provided, [75 FR 48516, Aug. 10, 2010, as amended at 80 

however, that this exemption does not FR 77559, Dec. 14, 2015] 

apply to: 

(i) Calls initiated by a customer or § 310.7 Actions by states and private 

persons. donor in response to an advertisement 

relating to investment opportunities, (a) Any attorney general or other ofdebt relief services, business opportuni- ficer of a state authorized by the state 

ties other than business arrangements to bring an action under the Telecovered by the Franchise Rule or Busi- marketing and Consumer Fraud and 

ness Opportunity Rule, or advertise- Abuse Prevention Act, and any private 

ments involving offers for goods or person who brings an action under that 

services described in §310.3(a)(1)(vi) or Act, shall serve written notice of its 

§310.4(a)(2) through (4); action on the Commission, if feasible, 

(ii) The requirements of §310.4(a)(9) prior to its initiating an action under 

or (10); or this Rule. The notice shall be sent to 

 

ATTACHMENT A

Case 3:23-cv-01277 Document 11-2 Filed 12/11/23 Page 13 of 15 PageID #: 110
411 

Federal Trade Commission § 310.8 

the Office of the Director, Bureau of Not Call Registry for any other purConsumer Protection, Federal Trade pose. 

Commission, Washington, DC 20580, and (c) The annual fee, which must be 

shall include a copy of the state’s or paid by any person prior to obtaining 

private person’s complaint and any access to the National Do Not Call 

other pleadings to be filed with the Registry, is $69 for each area code of 

court. If prior notice is not feasible, data accessed, up to a maximum of 

the state or private person shall serve $19,017; provided, however, that there 

the Commission with the required no- shall be no charge to any person for actice immediately upon instituting its cessing the first five area codes of data, 

action. and provided further, that there shall be 

(b) Nothing contained in this Section no charge to any person engaging in or 

shall prohibit any attorney general or causing others to engage in outbound 

other authorized state official from telephone calls to consumers and who 

proceeding in state court on the basis is accessing area codes of data in the 

of an alleged violation of any civil or National Do Not Call Registry if the 

criminal statute of such state. person is permitted to access, but is 

not required to access, the National Do § 310.8 Fee for access to the National Not Call Registry under 47 CFR 64.1200, Do Not Call Registry. or any other Federal regulation or law. 

(a) It is a violation of this Rule for No person may participate in any arany seller to initiate, or cause any rangement to share the cost of accesstelemarketer to initiate, an outbound ing the National Do Not Call Registry, 

telephone call to any person whose including any arrangement with any 

telephone number is within a given telemarketer or service provider to diarea code unless such seller, either di- vide the costs to access the registry 

rectly or through another person, first among various clients of that telehas paid the annual fee, required by marketer or service provider. 

§310.8(c), for access to telephone num- (d) Each person who pays, either dibers within that area code that are in- rectly or through another person, the 

cluded in the National Do Not Call annual fee set forth in paragraph (c) of 

Registry maintained by the Commis- this section, each person excepted 

sion under §310.4(b)(1)(iii)(B); provided, under paragraph (c) of this section 

however, that such payment is not nec- from paying the annual fee, and each 

essary if the seller initiates, or causes person excepted from paying an annual 

a telemarketer to initiate, calls solely fee under §310.4(b)(1)(iii)(B), will be 

to persons pursuant to provided a unique account number that 

§§310.4(b)(1)(iii)(B)(i) or (ii), and the will allow that person to access the 

seller does not access the National Do registry data for the selected area 

Not Call Registry for any other pur- codes at any time for the twelve month 

pose. period beginning on the first day of the 

(b) It is a violation of this Rule for month in which the person paid the fee 

any telemarketer, on behalf of any sell- (‘‘the annual period’’). To obtain access 

er, to initiate an outbound telephone to additional area codes of data during 

call to any person whose telephone the first six months of the annual penumber is within a given area code un- riod, each person required to pay the 

less that seller, either directly or fee under paragraph (c) of this section 

through another person, first has paid must first pay $69 for each additional 

the annual fee, required by §310.8(c), area code of data not initially selected. 

for access to the telephone numbers To obtain access to additional area 

within that area code that are included codes of data during the second six 

in the National Do Not Call Registry; months of the annual period, each perprovided, however, that such payment son required to pay the fee under parais not necessary if the seller initiates, graph (c) of this section must first pay 

or causes a telemarketer to initiate, $35 for each additional area code of 

calls solely to persons pursuant to data not initially selected. The pay-

§§310.4(b)(1)(iii)(B)(i) or (ii), and the ment of the additional fee will permit 

seller does not access the National Do the person to access the additional 

 

ATTACHMENT A

Case 3:23-cv-01277 Document 11-2 Filed 12/11/23 Page 14 of 15 PageID #: 111
412 

§ 310.9 16 CFR Ch. I (1–1–22 Edition) 

area codes of data for the remainder of 311.6 Prohibited acts. 

the annual period. AUTHORITY: 42 U.S.C. 6363(d). (e) Access to the National Do Not

Call Registry is limited to tele- SOURCE: 60 FR 55421, Oct. 31, 1995, unless 

marketers, sellers, others engaged in or otherwise noted. 

causing others to engage in telephone § 311.1 Definitions. calls to consumers, service providers 

acting on behalf of such persons, and As used in this part:

any government agency that has law (a) Manufacturer means any person

enforcement authority. Prior to access- who re-refines or otherwise processes 

ing the National Do Not Call Registry, used oil to remove physical or chema person must provide the identifying ical impurities acquired through use or 

information required by the operator of who blends such re-refined or otherwise 

the registry to collect the fee, and processed used oil with new oil or addimust certify, under penalty of law, tives. 

that the person is accessing the reg- (b) New oil means any synthetic oil or istry solely to comply with the provi- oil that has been refined from crude oil 

sions of this Rule or to otherwise pre- and which has not been used and may vent telephone calls to telephone num- or may not contain additives. Such bers on the registry. If the person is ac- term does not include used oil or recy- cessing the registry on behalf of sell- cled oil. 

ers, that person also must identify (c) Processed used oil means re-refined each of the sellers on whose behalf it is or otherwise processed used oil or blend accessing the registry, must provide of oil, consisting of such re-refined or each seller’s unique account number otherwise processed used oil and new for access to the national registry, and oil or additives. must certify, under penalty of law, (d) Recycled oil means processed used that the sellers will be using the information gathered from the registry oil that the manufacturer has determined, pursuant to section 311.4 of this solely to comply with the provisions of part, is substantially equivalent to new this Rule or otherwise to prevent tele- oil for use as engine oil. phone calls to telephone numbers on (e) Used oil means any synthetic oil the registry. or oil that has been refined from crude 

[75 FR 48516, Aug. 10, 2010; 75 FR 51934, Aug. oil, which has been used and, as a re- 24, 2010, as amended at 77 FR 51697, Aug. 27, sult of such use, has been contami- 2012; 78 FR 53643, Aug. 30, 2013; 79 FR 51478, nated by physical or chemical impuri- Aug. 29, 2014; 80 FR 77560, Dec. 14, 2016; 81 FR 

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

83 FR 46640, Sept. 14, 2018; 84 FR 44687, Aug. (f) Re-refined oil means used oil from

27, 2019; 85 FR 62597, Oct. 5, 2020; 86 FR 48301, which physical and chemical contamiAug. 30, 2021] nants acquired through use have been 

removed. § 310.9 Severability.

The provisions of this Rule are sepa- § 311.2 Stayed or invalid parts.

rate and severable from one another. If If any part of this rule is stayed or any provision is stayed or determined held invalid, the rest of it will remain to be invalid, it is the Commission’s in- in force. tention that the remaining provisions 

shall continue in effect. § 311.3 Preemption.

PART 311—TEST PROCEDURES AND No law, regulation, or order of any

LABELING STANDARDS FOR RE- State or political subdivision thereof 

may apply, or remain applicable, to CYCLED OIL any container of recycled oil, if such 

law, regulation, or order requires any Sec. container of recycled oil, which con- 311.1 Definitions. tainer bears a label in accordance with 311.2 Stayed or invalid parts. 

311.3 Preemption. the terms of §311.5 of this part, to bear 

311.4 Testing. any label with respect to the compara311.5 Labeling. tive characteristics of such recycled oil 

ATTACHMENT A

Case 3:23-cv-01277 Document 11-2 Filed 12/11/23 Page 15 of 15 PageID #: 112
ATTACHMENT B

Subject: The Sales Mentor, Inbound Closer, and Sales Pro Academy Settlement of FTC Case

Dear <Customer>:

We’re writing to let you know that we settled a lawsuit with the Federal Trade Commission, the 

nation’s consumer protection agency. 

What happened? 

The FTC said we didn’t have sufficient evidence that customers of The Sales Mentor, Inbound 

Closer, and Sales Pro Academy, were likely to earn what we said they could. The settlement 

resolves the FTC’s allegations that claims we made about how much people could earn using 

the Sales Mentor programs were deceptive. 

What we’re doing in response

We are committed to complying with the settlement order, which requires that: 

• We won’t make claims about earnings without written proof. If we make claims about how 

much people can earn, we must have written proof that a typical customer is likely to get that 

kind of result. We also won’t use testimonials that would lead you to believe those experiences 

are typical unless we have written proof that they are. 

• We won’t make claims about the typical experience our customers have without written 

proof. That includes what you’d need to participate in our program, like the time commitment 

and the amount of money or experience required to be successful.

What you should know about money-making offers 

Before you pay for any offer that includes claims about how much money you can make as a 

participant, we and the FTC encourage you to:

• Take your time. 

• Avoid high-pressure sales pitches that require you to act now or risk losing out.

• Be skeptical about success stories and testimonials.

• Do your research. Search online for the company’s name plus words like “review,” “scam,” or 

“complaint.”

We are pleased to have reached an agreement with the FTC and are committed to following the 

requirements of the order. 

For more information about The Sales Mentor’s settlement with the FTC, visit [FTC URL]. 

Case 3:23-cv-01277 Document 11-3 Filed 12/11/23 Page 1 of 2 PageID #: 113
Sincerely, 

[signature for Traffic and Funnels, LLC]

Traffic and Funnels, LLC

[signature for WE Capital, LLC]

WE Capital, LLC

[signature for Welch Equities, LLC]

Evans and Welch, Inc.

[signature for Evans and Welch Holdings, LLC]

Evans and Welch Holdings, LLC

[signature for Taylor A. Welch]

Taylor A. Welch

[signature for Christopher A. Evans]

Christopher A. Evans

[signature for Payton Welch]

Payton Welch

[signature for Ashton Shanks]

Ashton Shanks

Case 3:23-cv-01277 Document 11-3 Filed 12/11/23 Page 2 of 2 PageID #: 114