WASHINGTON, D.C. — The Federal Trade Commission (FTC) announced its recent approval of final amendments to the Telemarketing Sales Rule (TSR), officially extending its coverage to include inbound telemarketing calls for technical support services. This move is designed to bolster protections against tech support scams, which disproportionately impact older consumers and have led to significant financial losses.
Background and Reasoning Behind the Amendments
Over the last two decades, the TSR has undergone several updates to combat evolving threats in telemarketing fraud. Originally adopted in 1995, the rule has incorporated changes such as the creation of the national Do Not Call Registry in 2003, restrictions on pre-recorded telemarketing calls in 2008, and amendments targeting debt collection in 2010. The FTC’s latest decision continues this trend of adapting consumer protections to address modern challenges, specifically those posed by tech support scams.
Tech support scams frequently manipulate consumers into placing calls to fraudulent operators by displaying deceptive pop-up notifications and other warnings that claim devices are infected with malware or other issues. Once the consumer engages, scammers sell unnecessary or bogus services and request payment through irreversible methods such as wire transfers, gift cards, or cryptocurrency.
The FTC has consistently reported high levels of consumer losses from such scams. According to the agency, individuals aged 60 and older are five times more likely than younger people to report financial harm from fraudulent tech support services. Last year, older consumers reported losses exceeding $175 million, while overall related losses reported by all consumers this year have already surpassed $165 million.
“The Commission will not sit idle as older consumers continue to report tech support scams as a leading driver of fraud losses,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Expanding the TSR to make sure calls for tech support services are covered will help us hold businesses accountable and get money back for injured consumers.”
Details of the New Rule and its Scope
Under the updated rule, technical support services are explicitly defined as “any plan, program, software, or service that is marketed to repair, maintain, or improve the performance or security of any device on which code can be downloaded, installed, run, or otherwise used.” This definition encompasses devices such as computers, smartphones, tablets, and smart home products, including any associated software or applications.
The final rule also modifies the TSR exemptions that previously applied to inbound telemarketing calls. Affected calls fall under two specific categories:
- Calls made in response to advertisements in any medium.
- Calls following direct mail solicitations, including email.
By applying these provisions to inbound calls for technical support services, the FTC intends to neutralize the methods scammers commonly deploy.
The amendments were finalized after a public comment period initiated in April 2024. According to the FTC’s Federal Register notice, 25 submissions from experts, businesses, and interested parties were reviewed. The agency outlined all feedback and addressed concerns, making one modification to clarify the definition of technical support services while otherwise adopting the proposed amendments without further changes.
Implications for Consumers and Businesses
The FTC’s expansion of the TSR aligns with its commitment to protecting vulnerable populations, reinforcing its ability to combat deceptive practices in the fast-growing realm of technical support services. Consumers now gain greater protection when interacting with telemarketers offering such services. Enhanced regulatory oversight is expected to reduce fraud opportunities and provide clearer recourse for victims.
On the business side, legitimate technical support service providers must comply with the updated restrictions, ensuring that their advertising and telemarketing practices are transparent and verifiable. The broader scope of the TSR also emphasizes the importance of self-regulation within the industry to maintain trust and credibility among consumers.
Looking Ahead
The FTC’s amendments continue the evolution of the Telemarketing Sales Rule as a key mechanism for protecting consumers from fraud. By encompassing inbound calls for technical support services, the updated rule addresses a pressing need for greater transparency and accountability in a sector that has seen rampant abuse. The Commission’s action serves as another significant step toward reducing financial losses tied to telemarketing scams and ensuring fair practices for consumers nationwide.
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