IV
103D CONGRESS
2D SESSION
H. RES. 488
Providing for the concurrence by the House, with an amendment, in the
amendment by the Senate to the bill H.R. 868.
IN THE HOUSE OF REPRESENTATIVES
JULY 25, 1994
Mr. SWIFT submitted the following resolution; which was considered under
suspension of the rules and agreed to
RESOLUTION
Providing for the concurrence by the House, with an amend-
ment, in the amendment by the Senate to the bill H.R.
868.
Resolved, That, upon adoption of this resolution, the
bill (H.R. 868) to strengthen the authority of the Federal
Trade Commission to protect consumers in connection
with sales made with a telephone, and for other purposes,
with the Senate amendment thereto, shall be considered
to have been taken from the Speaker’s table, and the same
are hereby agreed to with an amendment as follows:
In lieu of the matter proposed to be inserted by the
Senate, insert the following:
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SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Telemarketing and
Consumer Fraud and Abuse Prevention 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 with the consumer.
Telemarketers also can 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 en-
sure adequate consumer protection from such fraud.
(3) Consumers and others are estimated to lose
$40 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 and abuse.
SEC. 3. TELEMARKETING RULES.
(a) IN GENERAL.—
(1) The Commission shall prescribe rules pro-
hibiting deceptive telemarketing acts or practices
and other abusive telemarketing acts or practices.
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(2) The Commission shall include in such rules
respecting deceptive telemarketing acts or practices
a definition of deceptive telemarketing acts or prac-
tices which may include acts or practices of entities
or individuals that assist or facilitate deceptive
telemarketing, including credit card laundering.
(3) The Commission shall include in such rules
respecting other abusive telemarketing acts or prac-
tices—
(A) a requirement that telemarketers may
not undertake a pattern of unsolicited telephone
calls which the reasonable consumer would con-
sider coercive or abusive of such consumer’s
right to privacy,
(B) restrictions on the hours of the day
and night when unsolicited telephone calls can
be made to consumers, and
(C) a requirement that any person engaged
in telemarketing for the sale of goods or serv-
ices shall promptly and clearly disclose to the
person receiving the call that the purpose of the
call is to sell goods or services and make such
other disclosures as the Commission deems ap-
propriate, including the nature and price of the
goods and services.
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In prescribing the rules described in this paragraph,
the Commission shall also consider recordkeeping re-
quirements.
(b) RULEMAKING.—The Commission shall prescribe
the rules under subsection (a) within 365 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.
(c) ENFORCEMENT.—Any violation of any rule pre-
scribed under subsection (a) shall be treated as a violation
of a rule under section 18 of the Federal Trade Commis-
sion Act (15 U.S.C. 57a) regarding unfair or deceptive
acts or practices.
(d) SECURITIES
AND
EXCHANGE
COMMISSION
RULES.—
(1) PROMULGATION.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), not later than 6 months
after the effective date of rules promulgated by
the Federal Trade Commission under sub-
section (a), the Securities and Exchange Com-
mission shall promulgate, or require any na-
tional securities exchange or registered securi-
ties association to promulgate, rules substan-
tially similar to such rules to prohibit deceptive
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and other abusive telemarketing acts or prac-
tices by persons described in paragraph (2).
(B) EXCEPTION.—The Securities and Ex-
change Commission is not required to promul-
gate a rule under subparagraph (A) if it deter-
mines that—
(i) Federal securities laws or rules
adopted by the Securities and Exchange
Commission thereunder provide protection
from 
deceptive 
and 
other 
abusive
telemarketing by persons described in
paragraph (2) substantially similar to that
provided by rules promulgated by the Fed-
eral Trade Commission under subsection
(a); or
(ii) such a rule promulgated by the
Securities and Exchange Commission is
not necessary or appropriate in the public
interest, or for the protection of investors,
or would be inconsistent with the mainte-
nance of fair and orderly markets.
If the Securities and Exchange Commission de-
termines that an exception described in clause
(i) or (ii) applies, the Securities and Exchange
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Such an action may be brought to enjoin such
telemarketing, to enforce compliance with any rule of the
Commission under section 3, to obtain damages, or to ob-
tain such further and other relief as the court may deem
appropriate.
(b) NOTICE.—The plaintiff shall serve prior written
notice of the action upon the Commission and provide the
Commission with a copy of its complaint, except in any
case where such prior notice is not feasible, in which case
the person shall serve such notice immediately upon insti-
tuting such action. The Commission shall have the right
(A) to intervene in the action, (B) upon so intervening,
to be heard on all matters arising therein, and (C) to file
petitions for appeal.
(c) ACTION BY THE COMMISSION.—Whenever a civil
action has been instituted by or on behalf of the Commis-
sion for violation of any rule prescribed under section 3,
no person may, during the pendency of such action insti-
tuted by or on behalf of the Commission, institute a civil
action against any defendant named in the complaint in
such action for violation of any rule as alleged in such
complaint.
(d) COST AND FEES.—The court, in issuing any final
order in any action brought under subsection (a), may