Telemarketing and Consumer Fraud and Abuse Prevention Act
PL 103-297 (H.R.868), enacted 08/16/1994

PUBLIC LAW 103-297—AUG. 16, 1994 
108 STAT. 1545 
Public Law 103-297 
103d Congress 
An Act 
To strengthen the authority of the Federal Trade Commission to protect consumers 
in connection with sales made with a telephone, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
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 activities 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 ensure 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 legislation that 
will offer consumers necessary protection from telemarketing 
deception and abuse. 
SEC. 3. TELEMARKETING RULES. 
(a) IN GENERAL.— 
(1) The Commission shall prescribe rules prohibiting decep-
tive telemarketing acts or practices and other 
abusive 
telemarketing acts or practices. 
(2) The Commission shall include in such rules respecting 
deceptive telemarketing acts or practices a definition of decep-
tive telemarketing acts or practices 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 practices— 
(A) a requirement that telemarketers may not under-
take a pattern of unsolicited telephone calls which the 
reasonable consumer would consider coercive or abusive 
of such consumer's right to privacy. 
Aug. 16, 1994 
[H.R. 868] 
Telemarketing 
and Consumer 
Fraud and 
Abuse 
Prevention Act. 
15 u s e 6101 
note. 
15 u s e 6101. 
15 u s e 6102. 
108 STAT. 1546 
PUBLIC LAW 103-297—AUG. 16, 1994 
(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 services 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 
appropriate, including the nature and price of the goods 
and services. 
In prescribing the rules described in this paragraph, the 
Commission shall also consider recordkeeping requirements. 
(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 prescribed in accordance with 
section 553 of title 5, United States Code. 
(c) ENFORCEMENT.—^Any violation of any rule prescribed under 
subsection (a) shall be treated as a violation of a rule under section 
18 of the Federal Trade Commission 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 
subsection (a), the Securities and Exchange Commission 
shall promulgate, or require any national 
securities 
exchange or registered securities association to promulgate, 
rules substantially similar to such rules to prohibit decep-
tive and other abusive telemarketing acts or practices by 
persons described in paragraph (2). 
(B) 
EXCEPTION.—The 
Securities 
and 
Exchange 
Commission is not required to promulgate a rule under 
subparagraph (A) if it determines that— 
(i) Federal securities laws or rules adopted by the 
Securities and Exchange Commission thereunder pro-
vide protection from deceptive and other abusive 
telemarketing by persons described in paragraph (2) 
substantially similar to that provided by rules promul-
gated by the Federal Trade Commission under sub-
, section (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 maintenance of fair 
and orderly markets. 
Federal 
If the Securities and Exchange Commission determines 
nnhlfrafinn 
^^^^ ^^ exccptlon dcscribed in clause (i) or (ii) applies, 
the Securities and Exchange Commission shall publish in 
the Federal Register its determination with the reasons 
for it. 
(2) APPLICATION.— 
(A) IN GENERAL.—The rules promulgated by the Securi-
ties and Exchange Commission under paragraph (1)(A) 
shall apply to a broker, dealer, transfer agent, municipal 
securities dealer, municipal securities broker, government 
securities broker, government securities dealer, investment 
publication. 
PUBLIC LAW 103-297—AUG. 16, 1994 
108 STAT. 1547 
adviser or investment company, or any individual asso-
ciated with a broker, dealer, transfer agent, municipal se-
curities dealer, municipal securities broker, government 
securities broker, government securities dealer, investment 
adviser or investment company. The rules promulgated 
by the Federal Trade Commission under subsection (a) 
shall not apply to persons described in the preceding 
sentence. 
(B) DEFINITIONS.—^For purposes of subparagraph (A)— 
(i) the terms "broker", "dealer", "transfer agent", 
"municipal securities dealer", "municipal securities 
broker", "government securities broker", and "govern-
ment securities dealer" have the meanings given such 
terms by paragraphs (4), (5), (25), (30), (31), (43), and 
(44) of section 3(a) of the Securities and Exchange 
Act of 1934 (15 U.S.C. 78c(a)(4), (5), (25), (30), (31), 
(43), and (44)); 
(ii) the term "investment adviser" has the meaning 
given such term by section 202(a)(ll) of the Investment 
Advisers Act of 1940 (15 U.S.C. 80b-2(a)(ll)); and 
(iii) the term "investment company" has the mean-
ing given such term by section 3(a) of the Investment 
Company Act of 1940 (15 U.S.C. 80a-3(a)). 
(e) COMMODITY FUTURES TRADING COMMISSION RULES.— 
(1) APPLICATION.—The rules promulgated by the Federal 
Trade Commission under subsection (a) shall not apply to per-
sons described in subsection (f)(1) of section 6 of the Commodity 
Exchange Act (7 U.S.C. 8, 9, 15, 13b, 9a). 
(2) PROMULGATION.—Section 6 of the Commodity Exchange 
Act (7 U.S.C. 8, 9, 15, 13b, 9a) is amended by adding at 
the end the following new subsection: 
"(f)(1) Except as provided in paragraph (2), not later than 
7 USC 9b. 
six months after the effective date of rules promulgated by the 
Federal Trade Commission under section 3(a) of the Telemarketing 
and Consumer Fraud and Abuse Prevention Act, the Commission 
shall promulgate, or require each registered futures association 
to promulgate, rules substantially similar to such rules to prohibit 
deceptive and other abusive telemarketing acts or practices by 
any person registered or exempt from registration under this Act 
in connection with such person's business as a futures commission 
merchant, introducing broker, commodity trading advisor, commod-
ity pool operator, leverage transaction merchant, floor Ijroker, or 
floor trader, or a person associated with any such person. 
"(2) The Commission is not required to promulgate rules under 
paragraph (1) if it determines that— 
"(A) rules adopted by the Commission under this Act pro-
vide protection from deceptive and abusive telemarketing by 
persons described under paragraph (1) substantially similar 
to that provided by rules promulgated by the Federal Trade 
Commission under section 3(a) of the Telemarketing and 
Consumer Fraud and Abuse Prevention Act; or 
"(B) such a rule promulgated by the Commission is not 
necessary or appropriate in the public interest, or for the pro-
tection of customers in the futures and options markets, or 
would be inconsistent with the maintenance of fair and orderly 
markets. 
108 STAT. 1548 
PUBLIC LAW 103-297—AUG. 16, 1994 
Federal 
If the Commission determines that an exception described in 
publSation 
Subparagraph (A) or (B) applies, the Commission shall publish 
in the Federal Register its determination with the reasons for 
it.". 
15 use 6103. 
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, as parens patriae, 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 compli-
ance with such rule of the Commission, to obtain damages, restitu-
tion, 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 notice of any 
civil action under subsection (a) or (f)(2) upon the Commission 
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 receiving 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 gen-
eral 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 a civil action has 
been instituted by or on behalf of the Commission for violation 
of any rule prescribed under section 3, no State may, during the 
pendency of such action instituted by or on behalf of the Commis-
sion, institute a civil action under subsection (a) or (f)(2) against 
any defendant named in the complaint in such action for violation 
of any rule as alleged in such complaint. 
(e) VENUE; SERVICE OF PROCESS.—^Any civil action brought 
under subsection (a) in a district court of the United States may 
be brought in the district in which the defendant is found, is 
an inhabitant, or transacts business or wherever venue is proper 
under section 1391 of title 28, United States Code. Process in 
such an action may be served in any district in which the defendant 
is an inhabitant or in which the defendant may be found. 
(f) ACTIONS BY OTHER STATE OFFICIALS.— 
(1) Nothing contained in this section shall prohibit an 
authorized State official from proceeding in State court on 
the basis of an alleged violation of any civil or criminal statute 
of such State. 
(2) In addition to actions brought by an attorney general 
of a State under subsection (a), such an action may be brought 
by officers of such State who are authorized by the State 
to bring actions in such State on behalf of its residents. 
PUBLIC LAW 103-297—AUG. 16, 1994 
108 STAT. 1549 
SEC. 5. ACTIONS BY PRIVATE PERSONS. 
15 USC 6104. 
(a) IN GENERAL.—^iVny person adversely affected by any pattern 
or practice of telemarketing which violates any rule of the Commis-
sion under section 3, or an authorized person acting on such person's 
behalf, may, within 3 years after discovery of the violation, bring 
a civil action in an appropriate district court of the United States 
against a person who has engaged or is engaging in such pattern 
or practice of telemarketing if the amount in controversy exceeds 
the sum or value of $50,000 in actual damages for each person 
adversely affected by such telemarketing. 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 obtain 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 instituting 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 Commission for violation 
of any rule prescribed under section 3, no person may, during 
the pendency of such action instituted 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 award costs of 
suit and reasonable fees for attorneys and expert witnesses to 
the prevailing party. 
(e) CONSTRUCTION.—Nothing in this section shall restrict any 
right which any person may have under any statute or common 
law. 
(f) VENUE; SERVICE OF PROCESS.—Any civil action brought 
under subsection (a) in a district court of the United States may 
be brought in the district in which the defendant is found, is 
an inhabitant, or transacts business or wherever venue is proper 
under section 1391 of title 28, United States Code. Process in 
such an action may be served in any district in which the defendant 
is an inhabitant or in which the defendant may be found. 
SEC. 6. ADMINISTRATION AND APPLICABILITY OF ACT. 
15 USC 6105. 
(a) IN GENERAL.—Except as otherwise provided in sections 3(d), 
3(e), 4, and 5, this Act shall be enforced by the Commission under 
the Federal Trade Commission Act (15 U.S.C. 41 et seq.). Con-
sequently, no activity which is outside the jurisdiction of that Act 
shall be affected by this Act. 
(b) ACTIONS BY THE COMMISSION.—The Commission shall pre-
vent any person from violating a rule of the Commission under 
section 3 in the same manner, by the same means, and with 
the same jurisdiction, powers, and duties as though all applicable 
terms and provisions of the Federal Trade Commission Act (15 
U.S.C. 41 et seq.) were incorporated into and made a part of 
this Act. Any person who violates such rule shall be subject to 
79-194 O—95—27 : QL 3 Part 2 
108 STAT. 1550 
PUBLIC LAW 103-297—AUG. 16, 1994 
the penalties and entitled to the privileges and immunities provided 
in the Federal Trade Commission Act in the same manner, by 
the same means, and with the same jurisdiction, power, and duties 
as though all applicable terms and provisions of the Federal Trade 
Commission Act were incorporated into and made a part of this 
Act. 
(c) EFFECT ON OTHER LAWS.—Nothing contained in this Act 
shall be construed to limit the authority of the Commission under 
any other provision of law. 
15 use 6106. 
SEC. 7. DEFINITIONS. 
For purposes of this Act: 
(1) The term "attorney general" means the chief legal officer 
of a State. 
(2) The term "Commission" means the Federal Trade 
Commission. 
(3) The term "State" means any State of the United States, 
the District of Columbia, Puerto Rico, the Northern Mariana 
Islands, and any territory or possession of the United States. 
(4) The term "telemarketing" means a plan, program, or 
campaign which is conducted to induce purchases of goods 
or services by use of one or more telephones and which involves 
more than one interstate telephone call. The term does not 
include the solicitation of sales through the mailing of a catalog 
which— 
(A) contains a written description, or illustration of 
, 
the goods or services offered for sale, 
(B) includes the business address of the seller, 
(C) includes multiple pages of written material or illus-
trations, and 
(D) has been issued not less frequently than once a 
year, 
where the person making the solicitation does not solicit cus-
tomers by telephone but only receives calls initiated by cus-
tomers in response to the catalog and during those calls takes 
orders only without further solicitation. 
SEC. 8. FALSE ADVERTISEMENTS CONCERNING SERVICES. 
Section 12(a) of the Federal Trade Commission Act (15 U.S.C. 
52(a)) is amended by inserting "services," immediately 
after 
"devices," each place it appears. 
15 use 6107. 
SEC. 9. ENFORCEMENT OF ORDERS. 
(a) GENERAL AUTHORITY.—Subject to subsections (b) and (c), 
the Federal Trade Commission may bring a criminal contempt 
action for violations of orders of the Commission obtained in cases 
brought under section 13(b) of the Federal Trade Commission Act 
(15 U.S.C. 53(b)). 
(b) APPOINTMENT.—^An action authorized by subsection (a) may 
be brought by the Federal Trade Commission only after, and pursu-
ant to, the appointment by the Attorney General of an attorney 
employed by the Commission, as a special assistant United States 
Attorney. 
(c) REQUEST FOR APPOINTMENT.— 
(1) APPOINTMENT UPON REQUEST OR MOTION.—^A special 
assistant United States Attorney may be appointed under sub-
section (b) upon the request of the Federal Trade Commission 
PUBLIC LAW 103-297—AUG. 16, 1994 
108 STAT. 1551 
or the court which has entered the order for which contempt 
is sought or upon the Attorney Greneral's own motion. 
(2) TIMING.—^The Attorney General shall act upon any 
request made under paragraph (1) within 45 days of the receipt 
of the request. 
(d) TERMINATION OF AUTHORITY.—^The authority of the Federal 
Trade Commission to bring a criminal contempt action under sub-
section (a) expires 2 years eifter the date of the first promulgation 
of rules under section 3. The expiration of such authority shall 
have no effect on an action brought before the expiration date. 
SEC. 10. REVIEW. 
Reports. 
15 u s e 6108 
Upon the expiration of 5 years following the date of the first 
promulgation of rules under section 3, the Commission shall review 
the implementation of this Act and its effect on deceptive 
telemarketing acts or practices and report the results of the review 
to the Congress. 
' 
Approved August 16, 1994. 
LEGISLATIVE HISTORY—H.R. 868 (S. 568): 
HOUSE REPORTS: No. 103-20 (Comm. on Energy and Commerce). 
SENATE REPORTS: No. 103-80 accompanying S. 568 (Comm. on Commerce, Science, 
and Transportation). 
CONGRESSIONAL RECORD: 
Vol. 139 (1993): Mar. 2, considered and passed House. 
June 30, considered and passed Senate, amended. 
Vol. 140 (1994): July 25, House concurred in Senate amendment with an 
amendment. 
Aug. 2, Senate concurred in House amendment.