Newsletter
TELEMARKETING ALSO REGU-LATED BY FAIR TRADE ACT
New fair trade rules have been designed to pro-tect consumers from misrepresentations and confusing legal issues in telemarketing.
These are timely measures because commercial activities using telemarketing sales promotions have become more and more popular. Operators, backed up by the mature, low-cost technology of the computer voice transacting system, increas-ingly undertake long-distance marketing and transacting through telephones. If an operator fails to provide or a consumer fails to understand important transacting information, disputes are sure to arise. Therefore, the Fair Trade Com-mission (FTC) formulated rules to regulate telemarketing within the authorization of the Fair Trade Act.
The main points of the new rules are stated as follows:
Information disclosure: When engaged in telemarketing, the calling party should reveal his telephone number or other identifying data so that the called party may decide whether to take the call. At the beginning of the call, the caller should allow the called party to decide whether to continuously receive such tele-marketing.
Keeping of records: If telemarketing business is conducted, ads, marketing plans and pro-motional materials in connection with such telemarketing should be kept. Furthermore, any recording or written contract in the course of telemarketing should be stored at the same time.
Five circumstances under which telemarket-ing business violates Article 24 of the Fair Trade Act are enumerated, including the mis-representation of the price, quality and quan-tity of commodities or service; of any restric-tion for purchasing or using such commodities or service; of preferential prices for such commodities or service within a stipulated period; of gift contents or the relationship between the gift and the goods or services marked; and the fawning upon charity or public service activities. The rules also pro-hibit the use of repeated telemarketing to bombard the consumers.
Adjustment period: Business operators should make proper adjustment in their telemarketing activities to comply with the new rules within three months. In case there is no adjustment, the FTC will investigate into the case.
Legal effects: Any business that contravenes the new rules, thus affecting trading order, is likely to be found in violation of Article 24 of the Fair Trade Act.