In January the Eleventh Circuit vacated the Federal Communication Commission’s (FCC) one-to-one consent rule, finding that the agency exceeded its statutory authority under the Telephone Consumer Protection Act (TCPA). The latest development is that on February 19, 2025, the National Consumers League and some small business owners filed a motion to intervene in the case
Telemarketing
Telemarketing Sales Rule Amendment Sparks Debate Between FTC Republicans Ahead of Administration Transition
Just before Thanksgiving, the Federal Trade Commission (FTC) announced a Final Rule significantly expanding the coverage of the Telemarketing Sales Rule (TSR). The amendment extends the TSR’s prohibition against deceptive practices to cover inbound telemarketing calls for technical support services.
Under the amendment, technical support services are 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, such as a computer, smartphone, tablet, or smart home product, including any software or application run on such device.”Continue Reading Telemarketing Sales Rule Amendment Sparks Debate Between FTC Republicans Ahead of Administration Transition
FCC Proposes $8 Million in Fines Against Telecom Company and Political Consultant for Using Deepfake Generative Artificial Intelligence
In a pair of Notices of Apparent Liability for Forfeiture this week, the Federal Communications Commission (FCC) has proposed a collective $8 million in fines against telecommunications company Lingo Telecom and political consultant Steven Kramer.
Robocalls, Generative AI, and Deepfakes
The FCC alleges Kramer violated the Truth in Caller ID Act. According to the FCC, two days before the New Hampshire 2024 presidential primary election, Kramer orchestrated a campaign of illegally spoofed and malicious robocalls that carried a deepfake audio recording of President Biden’s cloned voice telling prospective voters not to vote in the upcoming primary.
To transmit the calls, he worked with voice service provider Lingo Telecom, which incorrectly labeled the calls with the highest level of caller ID attestation, making it less likely that other telecommunications providers would detect the calls as potentially spoofed. For this reason, the FCC is also pursuing forfeiture against Lingo, alleging a violation of the STIR/SHAKEN rules for failing to use reasonable “Know Your Customer” protocols to verify caller ID information in connection with Kramer’s alleged illegal robocalls.Continue Reading FCC Proposes $8 Million in Fines Against Telecom Company and Political Consultant for Using Deepfake Generative Artificial Intelligence
Telemarketing Trial: Defendant Sweeps All Six Claims Against the FTC and Pennsylvania AG
It’s not often we see defendants win a resounding victory against the Federal Trade Commission (FTC) and/or state attorneys general, especially after trial. But a recent opinion out of the Eastern District of Pennsylvania provides us with just that. On March 29, 2024 the court issued a 55-page opinion following a 15-day bench trial on the FTC and Pennsylvania attorney general’s claims against American Future Systems, Inc. and its two co-defendants, finding in favor of the defendants on all six counts.
The FTC and Pennsylvania AG challenged telemarketing for print publications, claiming defendants deliberately misled consumers when defendants:Continue Reading Telemarketing Trial: Defendant Sweeps All Six Claims Against the FTC and Pennsylvania AG
Telemarketing and Texting: An Excerpt from the Advertising Law Tool Kit
Join us as we spotlight select chapters of Venable’s popular Advertising Law Tool Kit, which helps marketing teams navigate their organization’s legal risk. Click here to download the entire Tool Kit, and tune in to the Ad Law Tool Kit Show podcast, to hear an author of this chapter dive deeper into telemarketing and texting in this week’s episode.
Telephone and text message marketing poses private litigation risks and regulatory hurdles that should be considered before any campaign. The Federal Trade Commission (FTC), the Federal Communications Commission (FCC), and states enforce do-not-call (DNC) laws and impose multiple other requirements regarding calling manner, disclosures, consent, opt-out, calling hour limits, caller identification, and telemarketer registration. Calls and texts made to cell phones, using certain types of dialing technology (including autodialers) and prerecorded messages (so-called robocalls), require particular attention, as much of the enforcement and litigation in this area involve texting and robocalling.Continue Reading Telemarketing and Texting: An Excerpt from the Advertising Law Tool Kit
Listen to Episode 12 of Venable’s Ad Law Tool Kit Show – “Telemarketing and Texting”
Episode 12 of the Ad Law Tool Kit Show, “Telemarketing and Texting,” is now available. Listen here, or search for it in your favorite podcast player.
Telephone and text marketing is ubiquitous these days. But those tools also pose private litigation risks and regulatory hurdles that marketers should be aware of at the outset of any campaign. They involve legal and regulatory complexities, including do-not-call laws enforced by the FTC, FCC, and states.Continue Reading Listen to Episode 12 of Venable’s Ad Law Tool Kit Show – “Telemarketing and Texting”
The Power of Customer Calls: Maryland Supreme Court Upholds Public Service Commission’s Interpretation of the Maryland Telephone Solicitations Act
Last month, the Supreme Court of Maryland delivered a pivotal ruling defining the scope of the Maryland Telephone Solicitations Act (MTSA), holding that the act extended to inbound calls initiated by consumers who engaged with merchant advertisements. The Maryland Supreme Court also confirmed that the Maryland Public Service Commission can enforce the MTSA against covered entities.
The case, In the Matter of Smart Energy Holdings, LLC D/B/A SmartEnergy, originated in response to customer complaints to the Public Service Commission’s Consumer Affairs Division (CAD) alleging that their bills were excessive and that they were unable to cancel their service with SmartEnergy, a provider of 100% green energy. After proceedings before an administrative law judge, the Public Service Commission held:Continue Reading The Power of Customer Calls: Maryland Supreme Court Upholds Public Service Commission’s Interpretation of the Maryland Telephone Solicitations Act
Event in Review: 10th Advertising Law Symposium
Venable’s Advertising and Marketing Group hosted its 10th Advertising Law Symposium on March 21 in Washington, DC. The group welcomed in-house counsel, advertising executives, and marketing professionals for a full day of sessions on the latest developments in advertising law and what to watch for soon.
Here are some highlights:
Patchwork of Privacy Laws Makes Compliance a Challenge
Frequent data breaches and incidents like the 2018 Cambridge Analytica scandal have increased criticism of the United States’ approach to regulating privacy through a patchwork of federal and state laws and industry self-regulatory codes. But even harsh critiques have not been enough to spur Congress to pass a preemptive privacy law that would supersede the jumble of state laws and regulations and streamline things. Partner Rob Hartwell and associate Allie Monticollo said marketers and advertisers should watch what’s happening in the states and mitigate risk accordingly.Continue Reading Event in Review: 10th Advertising Law Symposium
FTC Piles on Additional Recordkeeping Requirements and Business-to-Business Protections
The Rule-A-Palooza continues at the FTC. On March 7, 2024, the Federal Trade Commission (FTC) released a Final Rule that updates the recordkeeping requirements under the Telemarketing Sales Rule (TSR). The Final Rule requires telemarketers and sellers to maintain additional records relating to their telemarketing transactions. The FTC also extended the period for which all records must be kept—now five years instead of two. The Final Rule also extended the prohibition of material misrepresentations and false or misleading statements in business-to-business (B2B) calls.
New Recordkeeping Requirements
According to the FTC, the newly added recordkeeping requirements are meant to help the FTC identify the telemarketer and seller and to link the content of the telemarketing calls with the call detail records to determine TSR violations. The new requirements are as follows:Continue Reading FTC Piles on Additional Recordkeeping Requirements and Business-to-Business Protections
New Bill to Modernize the TCPA Would Significantly Expand Potential Liability
On January 29, 2024, Congressman Frank Pallone, Jr. introduced the Do Not Disturb Act, a bill that would amend the Telephone Consumer Protection Act (TCPA) and “fix” the Supreme Court’s ruling in Duguid that limited the definition of “automatic telephone dialing system” (ATDS).
Robocalls, the New ATDS
The bill would delete the term “automatic telephone dialing system” from the TCPA and would instead replace it with “robocalls.” The bill defines “robocalls” as calls and text messages sent using equipment that makes calls or sends text messages to stored telephone numbers or telephone numbers generated by a random or sequential number generator, or using an artificial or prerecorded voice or an artificially generated message.Continue Reading New Bill to Modernize the TCPA Would Significantly Expand Potential Liability