Putting Cold Calls on Ice
While many telephone sales calls are
made on behalf of legitimate organizations offering bona fide products and services, some
unsolicited phone sales calls can be frauds. That’s why the Federal Trade Commission
encourages you to be skeptical when you get a "cold call."
Fraudulent telemarketers may get your phone number from a telephone directory, mailing
list, or "sucker list," a directory of consumers who have already lost money to
fraudulent prize promotions or merchandise sales. Sucker lists include names, addresses,
phone numbers — even how much money you may have spent on telemarketing scams.
Unscrupulous promoters buy and sell sucker lists on the theory that consumers who have
been deceived once are easy prey for additional scams.
The FTC’s Telemarketing Sales Rule helps protect you from abusive and deceptive
telephone sales practices. The Rule restricts calling times to the hours between 8 a.m.
and 9 p.m., and puts other limits on telemarketers, too. For example:
- Telemarketers must tell you it’s a sales call, the name of the seller, and what
they’re selling before they make their pitch. If they’re pitching a prize
promotion, they must tell you that no purchase or payment is necessary to enter or win.
- It’s illegal for telemarketers to lie about their goods or services; earnings
potential, profitability, risk, or liquidity of an investment; or the nature of a prize in
a prize-promotion scheme.
- Before you pay, telemarketers must tell you the total cost of the goods they’re
selling; any restrictions on getting or using them; and if a sale is final or
non-refundable. In a prize promotion, they must tell you the odds of winning, that no
purchase or payment is necessary to win, and any restrictions or conditions of receiving
the prize.
- It’s illegal for a telemarketer to withdraw money from your checking account
without your express, verifiable authorization.
- Telemarketers cannot lie to get you to pay, no matter what method of payment you use.
- You do not have to pay for credit repair, recovery room, or advance-fee loan or credit
services until these services have been delivered.
- It’s illegal for a telemarketer to call you if you have asked not to be called.
You may not be able to put a freeze on cold calls, but you can learn how to spot those
that spell f-r-a-u-d. Here’s how:
- Say no to high pressure sales tactics. Legitimate businesses respect the fact that
you’re not interested.
- Tell callers if you don’t want to hear from them again. If they call back,
they’re breaking the law. You can feel comfortable hanging up.
- Take your time when you’re presented with a sales "opportunity." Ask for
written information about the product, service, investment opportunity, or charity
that’s being pitched. Don’t talk with a salesperson if it’s not convenient
for you. A reputable salesperson should be willing to call you back at a time you choose.
- Talk to a friend, relative, or financial advisor before you respond to a cold call. Any
investment you make may have serious financial consequences for you — and the people
you care about.
- Hang up if you’re asked to pay for a prize. Free is free.
- Don’t send money — cash, check, or money order — by courier, overnight
delivery, or wire to anyone who insists on immediate payment.
- Keep information about your bank accounts and credit cards to yourself — unless you
know who you’re dealing with.
- Hang up if a telemarketer calls before 8 a.m. or after 9 p.m. That’s a tip off to a
rip off.
- Check out the company with your state and local consumer protection office before you
buy any product or service, or donate money.
- If you suspect a scam, call your state Attorney General.
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