The Federal Trade Commission (FTC) has finalized amendments to its Telemarketing Sales Rule (TSR), expanding the rule's coverage to include "inbound" telemarketing calls for technical support services. This change targets calls initiated by consumers in response to advertisements or direct mail solicitations offering technical support.
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, stated, “The Commission will not sit idle as older consumers continue to report tech support scams as a leading driver of fraud losses. 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.”
According to a recent FTC report to Congress, individuals aged 60 and above were five times more likely than younger people to lose money in tech support scams last year. Older consumers reported over $175 million in losses due to these scams.
In April 2024, the FTC sought public input on extending TSR coverage to inbound telemarketing calls related to technical support services. Many scams lure consumers into calling them using pop-up alerts and other tactics that falsely claim their devices are infected with malware or other issues.
These scams often involve convincing callers to pay for unnecessary services through difficult-to-reverse payment methods such as wiring money, gift cards, prepaid cards, cryptocurrency, or money transfer apps. In 2024 alone, reported consumer losses from tech support scams have exceeded $165 million.
Since its inception in 2000, the TSR has undergone several updates: creating the national Do Not Call Registry in 2003; addressing pre-recorded telemarketing calls and debt collection services in 2008 and 2010 respectively; and prohibiting deception between businesses in March 2024. The final rule announced today follows an evaluation of public comments received earlier this year.
The Federal Register notice detailing the final rule summarizes received comments, addresses concerns raised during the process, and proposes one modification regarding the definition of technical support services while adopting previously proposed amendments.
The new rule defines technical support services 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...including any software or application run on such a device." It also adds these services to categories excluded from TSR exemptions for inbound calls made "in response to an advertisement through any medium."
The Commission approved publishing this notice with a vote of 4-1. Commissioner Andrew Ferguson voted against it and issued a dissenting statement while Commissioner Melissa Holyoak provided a separate concurring statement. Most provisions will take effect 60 days post-publication.
Benjamin Davidson from the FTC’s Bureau of Consumer Protection developed this final rule. The FTC continues its mission of promoting competition while protecting and educating consumers about various topics at consumer.ftc.gov. Fraud reports can be submitted at ReportFraud.ftc.gov.
