Chapter 11: Telecommunications and Marketing
TSR Misrepresentations, Material Omissions and Payment Authorization
The TSR bars misrepresentations and material omissions across ten categories (cost, restrictions, refund policy, prize/investment terms, etc.). When payment is by a non-card method, the seller must obtain express verifiable authorization.
Telemarketers must give accurate, complete information and may not omit material facts. There are ten broad categories that must always be disclosed.
- Cost and quantity
- Material restrictions, limitations or conditions
- Performance, efficacy or central characteristics
- Refund, repurchase or cancellation policies
- Material aspects of prize promotions
- Material aspects of investment opportunities
- Affiliations, endorsements or sponsorships
- Credit card loss protection
- Negative option features
- Debt relief services
Non-card payments need more
When a consumer pays by a method other than a credit or debit card (such as phone or utility billing), the seller must obtain express verifiable authorization, because such methods may lack the unauthorized-charge protections of card transactions.
Key terms - quick answers
What is “Express verifiable authorization”?
The heightened proof of consent the TSR requires when a consumer pays by a method other than credit or debit card (e.g., phone or utility billing).
What is “Negative option feature”?
An offer in which the consumer's silence or inaction is treated as acceptance of goods or services - one of the material categories that must be disclosed.