---
title: "What telemarketing practices are considered deceptive under federal rules? Answer in under 100 words. Cite only eCFR (www.ecfr.gov) sources."
canonical: https://www.m-i-n-d.ai/minds/consumer-protection/deceptive-telemarketing-practices
jurisdiction: "US Federal"
last_verified: 2026-08-27
license: CC BY 4.0 — https://creativecommons.org/licenses/by/4.0/
attribution: "Source: MIND (m-i-n-d.ai)"
---

# What telemarketing practices are considered deceptive under federal rules? Answer in under 100 words. Cite only eCFR (www.ecfr.gov) sources.

Under 16 CFR § 310.3, as in effect per amendments through April 16, 2024, it is a deceptive telemarketing act or practice for any seller or telemarketer to fail to disclose material information before the customer consents to pay, or to misrepresent material facts about goods, services, costs, refund policies, prize promotions, investments, affiliations, negative option features, or debt relief services. Submitting billing without express verifiable authorization, credit card laundering, and misrepresenting material facts in charitable solicitations are also prohibited.

## Details / How it works

Section 310.3 prohibits sellers and telemarketers from engaging in specified deceptive telemarketing acts or practices. Key categories include:

- **Failure to disclose material information** (before the customer consents to pay): total costs and quantity; material restrictions; refund/cancellation policies; prize promotion odds, no-purchase methods, and redemption costs; credit card liability limits under 15 U.S.C. 1643; all material terms of any negative option feature; and detailed debt relief service disclosures (timeframes, settlement thresholds, creditworthiness effects, and customer account ownership).
- **Misrepresentations** of the same categories of material information, plus any material aspect of an investment opportunity, affiliation with or endorsement by any person or government entity, or the need for offered goods/services to provide 15 U.S.C. 1643 protections the customer already has.
- **Unauthorized billing**: submitting billing information or collecting payment without the customer's or donor's express verifiable authorization (with exceptions for credit cards under TILA/Regulation Z and debit cards under EFTA/Regulation E).
- **Assisting and facilitating** (§ 310.3(b)): providing substantial assistance to a seller or telemarketer known to violate §§ 310.3(a), (c), (d), or § 310.4.
- **Credit card laundering** (§ 310.3(c)).
- **Fraudulent charitable solicitations** (§ 310.3(d)): misrepresenting the nature/mission of the entity, tax-deductibility, the use of contributions, the percentage going to charity, prize promotions in solicitations, or affiliations.

## Numbers & thresholds

| Disclosure / Prohibition | Source | Key threshold or item |
|---|---|---|
| Pre-purchase disclosure timing | § 310.3(a)(1) | Disclosures must be made truthfully, in a clear and conspicuous manner, **before a customer consents to pay** (or, for debt relief services, **before the consumer enrolls**; for courier-collected payments, **before the courier is dispatched**). |
| Credit card liability disclosure | § 310.3(a)(1)(vi) | Disclose limits on cardholder liability for unauthorized use under **15 U.S.C. 1643**. |
| Debt relief time-frame disclosure | § 310.3(a)(1)(viii)(A) | Disclose amount of time necessary to achieve represented results and timing of any bona fide settlement offer. |
| Express verifiable authorization | § 310.3(a)(3) | Required via express written authorization, audio-recorded express oral authorization containing items (A)–(H), or written confirmation sent by first-class mail before billing submission (not valid for free-to-pay conversions with preacquired account information). |
| Oral authorization content | § 310.3(a)(3)(ii) | Must include 8 elements, e.g., description of goods/services, number/date(s)/amount of debits, customer name, billing information, inquiry phone number, and date of authorization. |
| Charitable solicitation misrepresentation categories | § 310.3(d)(1)–(6) | Six enumerated categories of material information that may not be misrepresented. |

## Exceptions & edge cases

- **TILA/Regulation Z safe harbor for credit offers**: For consumer credit products subject to the Truth in Lending Act and Regulation Z, compliance with those disclosures satisfies the total-cost and quantity disclosure requirement of § 310.3(a)(1)(i).
- **Payment-method carve-outs**: The express verifiable authorization requirement does not apply when payment is made by a credit card subject to TILA/Regulation Z or a debit card subject to the Electronic Fund Transfer Act and Regulation E.
- **Signature form**: The term "signature" expressly includes electronic or digital forms recognized under applicable federal or state contract law.
- **Written-confirmation limit**: This authorization method is **not** deemed verifiable in free-to-pay-conversion transactions involving preacquired account information.

## Sources

- [1] U.S. Government Publishing Office / Federal Trade Commission — 16 CFR 310.3 — Telemarketing Sales Rule — deceptive telemarketing acts or practices · https://www.ecfr.gov/current/title-16/section-310.3 · as of 2026-08-27