IB
Union Calendar No. 9
103D CONGRESS
1ST SESSION
H. R. 868
[Report No. 103–20]
To strengthen the authority of the Federal Trade Commission to protect
consumers in connection with sales made with a telephone, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 4, 1993
Mr. SWIFT (for himself, Mr. OXLEY, Ms. LAMBERT, and Mr. GILLMOR) intro-
duced the following bill; which was referred to the Committee on Energy
and Commerce
FEBRUARY 24, 1993
Committed to the Committee of the Whole House on the State of the Union
and ordered to be printed
A BILL
To strengthen the authority of the Federal Trade Commis-
sion to protect consumers in connection with sales made
with a telephone, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Consumer Protection
Telemarketing Act’’.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) Telemarketing differs from other sales ac-
tivities in that it can be carried out by sellers across
State lines without direct contact. Telemarketers can
also be very mobile, easily moving from State to
State.
(2) Interstate telemarketing fraud has become a
problem of such magnitude that the resources of the
Federal Trade Commission are not sufficient to in-
sure adequate consumer protection from such fraud.
(3) Consumers and others are estimated to lose
$10 billion a year in telemarketing fraud.
(4) Consumers are victimized by other forms of
telemarketing deception and abuse.
(5) Consequently, Congress should enact legis-
lation that will offer consumers necessary protection
from telemarketing deception (including fraud) and
abuse.
SEC. 3. TELEMARKETING RULES.
(a) IN GENERAL.—
(1) The Commission shall prescribe rules pro-
hibiting 
deceptive 
(including 
fraudulent)
telemarketing 
activities 
and 
other 
abusive
telemarketing activities.
(2) The Commission shall include in such rules
respecting deceptive telemarketing activities—
(A) a definition of deceptive telemarketing
activities, and
(B) criteria that are symptomatic of decep-
tive telemarketing as distinguished from ordi-
nary telemarketing business practices.
(3) The Commission shall include in such rules
respecting other abusive telemarketing activities a
requirement that telemarketers may not undertake a
pattern of unsolicited telephone calls which the rea-
sonable consumer would consider coercive or abusive
of such consumer’s right to privacy. In prescribing
the rules described in this paragraph, the Commis-
sion shall consider—
(A) including a requirement that goods or
services offered by telemarketing be shipped or
provided within a specified period and that if
the goods or services are not shipped or pro-
vided within such period, a refund be required,
and
(B) including, where practicable, authority
for a person who orders a good or service
through telemarketing to cancel the order with-
in a specified period.
(b) RULEMAKING.—
(1) The Commission shall prescribe the rules
under subsection (a) within 270 days after the date
of enactment of this Act. Such rules shall be pre-
scribed in accordance with section 553 of title 5,
United States Code.
(2) A rule issued under subsection (a) shall be
considered a rule issued under section 18(a)(1)(B)
of the Federal Trade Commission Act.
(c) ENFORCEMENT.—Any violation of any rule pre-
scribed under subsection (a) shall be treated as a violation
of a rule under section 5 of the Federal Trade Commission
Act (15 U.S.C. 45) regarding unfair or deceptive acts or
practices.
SEC. 4. ACTIONS BY STATES.
(a) IN GENERAL.—Whenever an attorney general of
any State has reason to believe that the interests of the
residents of that State have been or are being threatened
or adversely affected because any person has engaged or
is engaging in a pattern or practice of telemarketing which
violates any rule of the Commission under section 3, the
State may bring a civil action on behalf of its residents
in an appropriate district court of the United States to
enjoin such telemarketing, to enforce compliance with such
rule of the Commission, to obtain damages, restitution, or
other compensation on behalf of residents of such State,
or to obtain such further and other relief as the court may
deem appropriate.
(b) NOTICE.—The State shall serve prior written no-
tice of any civil action under subsection (a) upon the Com-
mission and provide the Commission with a copy of its
complaint, except that if it is not feasible for the State
to provide such prior notice, the State shall serve such
notice immediately upon instituting such action. Upon re-
ceiving a notice respecting a civil action, the Commission
shall have the right (1) to intervene in such action, (2)
upon so intervening, to be heard on all matters arising
therein, and (3) to file petitions for appeal.
(c) CONSTRUCTION.—For purposes of bringing any
civil action under subsection (a), nothing in this Act shall
prevent an attorney general from exercising the powers
conferred on the attorney general by the laws of such
State to conduct investigations or to administer oaths or
affirmations or to compel the attendance of witnesses or
the production of documentary and other evidence.
(d) ACTIONS BY THE COMMISSION.—Whenever the
Commission has instituted a civil action for violation of
any rule prescribed under section 3, no State may, during