Which entities must comply with the Telemarketing Sales Rule?
Which entities must comply with the Telemarketing Sales Rule?
The Telemarketing Sales Rule (TSR) primarily applies to for-profit organizations and for-profit telefunders, especially when they are involved in charitable solicitations. Nonprofit organizations calling on their own behalf are generally exempt from this rule. The TSR does not typically cover nonprofit organizations or affiliates unless they are engaging the services of a for-profit telemarketing company for fundraising. Therefore, for-profit organizations and for-profit telefunders handling charitable solicitations must comply with the TSR.
Some types of businesses are not covered by the TSR even though they conduct telemarketing campaigns that may involve some interstate telephone calls to sell goods or services. These three types of entities are not subject to the FTC’s jurisdiction, and are not covered by the TSR: 1. banks, federal credit unions, and federal savings and loans. 2. common carriers — such as long-distance telephone companies and airlines — when they are engaging in common carrier activity. 3. NON-PROFIT ORGANIZATIONS — those entities that are not organized to carry on business for their own, or their members’, profit. https://www.ftc.gov/business-guidance/resources/complying-telemarketing-sales-rule#comply
Answer A is correct. IAPP book page 278
A is the right answer
DNC rules apply to for-profit organizations and cover charitable solicitations placed by for-profit telefunders. Exceptions to the DNC Rules - DNC rules do not apply to: (i) Nonprofits calling on their own behalf (ii) Calls to customers with an existing relationship within the last 18 months (iii) Inbound calls, provided that there is no “upsell” of additional products or services (iv) Most business-to-business calls