Question 136 - CIPP-US discussion

More than half of U.S. states require telemarketers to register with the state before conducting telemarketing activities. These registration requirements are part of state-level consumer protection laws aimed at regulating telemarketing practices to prevent fraud and abusive practices.

Why State Registration is Required:

Telemarketing registration requirements allow states to monitor and regulate telemarketers operating within their jurisdiction.

Registration ensures that telemarketers comply with state-specific rules, such as 'Do Not Call' list regulations or prohibitions on deceptive practices.

States like Florida, New York, and California are examples of jurisdictions with telemarketing registration laws.

Explanation of Options:

A. Identify themselves at the beginning of a call: This is a requirement under the Federal Trade Commission's (FTC) Telemarketing Sales Rule (TSR), but it is not unique to state requirements.

B. Obtain written consent from potential customers: While obtaining consent may be required in specific situations (e.g., under the Telephone Consumer Protection Act - TCPA for autodialed calls), it is not the most common state-level requirement.

C. Register with the state before conducting business: This is correct. Registration with the state is one of the most common requirements for telemarketers under state laws.

D. Provide written contracts for customer transactions: Written contracts are not universally required for telemarketing; this depends on the type of product or service being sold.

Reference from CIPP/US Materials:

FTC Telemarketing Sales Rule (TSR): Covers general telemarketing rules but acknowledges additional state-specific requirements, such as registration.

State Telemarketing Laws: Examples include Florida's Telemarketing Act, which requires state registration.