Case 2:26-cv-06306-KML

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Russell Deitch (CA Bar No. 138713)

Sung W. Kim (DC Bar No. 1048330)

Federal Trade Commission

600 Pennsylvania Ave., NW

Washington, DC 20580

(202) 326-2585 / rdeitch@ftc.gov

(202) 326-2211 / skim6@ftc.gov

(202) 326-3395 (Fax)

Attorneys For Plaintiff

UNITED STATES DISTRICT COURT

DISTRICT OF ARIZONA

8 Federal Trade Commission,

No. 2:26-cv-06306

Plaintiff,

STIPULATED ORDER FOR

PERMANENT INJUNCTION,

MONETARY JUDGMENT, AND

OTHER RELIEF

11 Nuvei Corporation, et al.,

Defendants.

Plaintiff, the Federal Trade Commission (“Commission” or “FTC”), filed its

15 Complaint for a Permanent Injunction, Monetary Judgment, and other Relief

16 (“Complaint”) for a permanent injunction, monetary judgment, and other relief in this

17 matter, pursuant to Sections 13(b) and 19 of the Federal Trade Commission Act (“FTC

18 Act”), 15 U.S.C. §§ 53(b), and 57b, and the Telemarketing Sales Rule (“TSR”), 16

19 C.F.R. Part 310. The Commission and Defendants stipulate to the entry of this Stipulated

20 Order for Permanent Injunction, Monetary Judgment, and Other Relief (“Order”) to

21 resolve all matters in dispute in this action between them.

THEREFORE, IT IS ORDERED as follows:

FINDINGS

This Court has jurisdiction over this matter.

The Complaint charges that the Defendants participated in deceptive and

26 unfair acts or practices in violation of Section 5 of the FTC Act, 15 U.S.C. § 45, and the

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Telemarketing Sales Rule (“TSR”), 16 C.F.R. Part 310, by engaging in unfair payment

processing practices, and assisting and facilitating deceptive telemarketing.

Defendants neither admit nor deny any of the allegations in the Complaint,

except as specifically stated in this Order. Only for purposes of this action, Defendants

admit the facts necessary to establish jurisdiction.

Defendants waive any claim that they may have under the Equal Access to

Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this action through the date

of this Order, and agree to bear their own costs and attorney fees,

Defendants and the Commission waive all rights to appeal or otherwise

challenge or contest the validity of this Order.

DEFINITIONS

For the purpose of this Order, the following definitions apply:

“ACH Debit” means any completed or attempted debit to a Person’s

account at a Financial Institution that is processed electronically through the Automated

Clearing House Network.

“ACH Transaction” means any transaction involving a Person’s account

at a Financial Institution that is processed electronically through the ACH Network.

“Acquirer” means a business organization, Financial Institution, or an

agent of a business organization or Financial Institution that has authority from an

organization that operates or licenses a Credit Card Network to authorize Merchants to

accept, transmit, or process payments by credit card through the Credit Card Network,

for money, goods, services, or anything else of value.

“Automated Clearing House Network” or “ACH Network” means the

electronic funds transfer system governed by the NACHA Rules that provide for the

interbank clearing of credit and debit entries to accounts at financial institutions.

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“Business Coaching Program” means any product or service, including

any program or plan, that is represented, expressly or by implication, to train or teach a

consumer how to establish, operate, or improve a business.

(1) a seller solicits a prospective purchaser to enter into a new business; and

(2) the prospective purchaser makes a required payment; and

(3) the seller, expressly or by implication, orally or in writing, represents that the

“Business Opportunity” means a commercial arrangement in which:

seller or one or more designated Persons will: (i) provide locations for the use or

operation of equipment, displays, vending machines, or similar devices, owned, leased,

controlled, or paid for by the purchaser; or (ii) provide outlets, accounts, or customers,

including, but not limited to, Internet outlets, accounts, or customers, for the purchaser’s

goods or services; or (iii) buy back any or all of the goods or services that the purchaser

makes, produces, fabricates, grows, breeds, modifies, or provides, including but not

limited to providing payment for such services as, for example, stuffing envelopes from

the purchaser’s home.

“Chargeback” means a procedure whereby an issuing bank or other

financial institution charges all or part of an amount of a Person’s credit card transaction

back to the Acquirer or merchant bank.

“Chargeback Rate” means, for any month, the number of chargebacks out

of the total number of credit or debit card transactions (expressed as a percentage).

“Client” means any Person who obtains Payment Processing from any

Defendant.

“Computer Software” means any business engaged in the retail trade of

computer software solutions to individual consumers.

(1) markets, promotes, offers to sell or sells any goods or services to individual

“Covered Client” means any Client that:

consumers through Outbound Telemarketing;

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(2) markets, promotes, offers to sell or sells any (i) Technical Support Product or

Service, (ii) Computer Software, (iii) Business Opportunity, (iv) Business Coaching

Program, (v) product or service with a Negative Option Feature, (vi) Healthcare-Related

Product, or (vii) Debt Relief Service; or

(3) in the past ten (10) years has been named in a public complaint, settlement, or

assurance of voluntary compliance involving the Federal Trade Commission, another

federal law enforcement agency, or a state attorney general in a case or matter involving

fraud, or unfair, deceptive, or abusive practices, including but not limited to Section 5 of

the FTC Act, 15 U.S.C. § 45 and the TSR.

“Credit Card Network” means any organization that operates or licenses

a system (e.g., Visa, MasterCard, American Express, and Discover) that permits

Merchants to accept, transmit, or process payment by credit card through the system for

money, goods or services, or anything else of value.

“Debt Relief Product or Service” means any product or service

represented, directly or by implication, to renegotiate, settle, or in any way alter the terms

of payment or other terms of the debt between a consumer and one or more creditors or

debt collectors, including, but not limited to, a reduction in the balance, penalties, or

interest owed by a consumer to the Internal Revenue Service or state or local taxation

authority.

“Defendants” means Nuvei Corporation, Nuvei International Group

Limited (formerly known as SafeCharge International Group Limited), Nuvei Limited

(formerly known as SafeCharge Limited), SafeCharge Digital Limited, Nuvei

Technologies, Inc., and their successors and assigns.

“Electronic Device” means any cell phone, handheld device, smartphone,

tablet, laptop, computer, desktop computer, or any other device on which a software

program, code, script, or other content can be downloaded, installed or run.

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“Financial Institution” means any institution the business of which is

engaging in financial activities as described in section 4(k) of the Bank Holding Act of

1956, 12 U.S.C. Section 1843(k). An institution that is significantly engaged in financial

activity is a Financial Institution.

“Healthcare-Related Product” means any program, plan, membership,

partnership (limited or otherwise), card, product, insurance policy, or other good or

service that offers or purports to offer: health insurance or a healthcare-related risk-

pooling framework; healthcare, prescription, or other healthcare-related discounts,

savings, or benefits; access to health insurance, discounts, savings, or benefits; or access

to healthcare providers or networks, virtually or in-person. “Healthcare-Related Product”

includes, but is not limited to, health discount plans; indemnity, critical illness, accident,

or short-term medical insurance; healthcare sharing ministries; or other supplemental or

non-major medical insurance.

“Independent Sales Organization” or “ISO” means any Person

corporation, organization, or other entity that solicits, matches, arranges, or refers

Payment Processing services for Clients, or that solicits, matches, arranges, or refers

Clients for Payment Processing services, or is registered as an ISO or merchant service

provider with Visa, MasterCard, or any Credit Card Network.

“Merchant” means a Person who is authorized under a written contract

with an Acquirer or Payment Processor to honor or accept credit cards, or to transmit or

process for payment credit card payments for the purchase of goods or services or a

charitable contribution.

“Merchant Account” means any account with an Acquirer or other

Financial Institution, Payment Processor, or other entity that enables an individual, a

business, or other organization to accept payment of any kind.

“Negative Option Feature” means a provision of a contract under which

the consumer’s silence or failure to take affirmative action to reject a good or service or

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to cancel the agreement is interpreted by the seller or provider as acceptance (or

continuing acceptance) of the offer.

“ODFI” or “Originating Depository Financial Institution” means a

financial institution that submits ACH Transactions into the ACH Network.

“Outbound Telemarketing” means any plan, program, or campaign

which is conducted to induce the purchase of goods or services by use of one or more

telephones, and which involves a telephone call initiated by a Person other than the

consumer, whether or not covered by the TSR.

“Payment Facilitator” means an entity that is registered with a Credit

Card Network by an Acquirer to facilitate transactions on behalf of Sponsored

Merchants.

“Payment Processing” means transmitting sales transaction data on behalf

of a Merchant or providing a Person, directly or indirectly, with the means used to charge

debit or credit accounts through the use of any payment method or mechanism,

including, but not limited to, credit cards, debit cards, prepaid cards, store valued cards,

ACH transactions, and ACH debits. Whether accomplished through the use of software

or otherwise, Payment Processing includes, among other things: (a) reviewing and

approving Merchant applications for Payment Processing services; (b) transmitting

Merchants’ sales transaction data or providing the means to transmit Merchants’ sales

transaction data to Acquirers, ODFI’s, Payment Processors, ISOs, or other Financial

Institutions; (c) clearing, settling, or distributing proceeds of sales transactions from

Acquirers or Financial Institutions to Merchants, directly or indirectly; (d) processing

ACH Transactions, refunds, credit card transactions, or Chargebacks; or (e) signing a

merchant acceptance agreement on behalf of an Acquirer, or receiving settlement of

transaction proceeds from an Acquirer, on behalf of a Sponsored Merchant.

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“Payment Processor” means any Person providing Payment Processing in

connection with another Person’s sale of goods or services, or in connection with any

charitable donation.

AA.

“Person” means any natural person or any entity, corporation, partnership,

or association of persons, except that no provision of this Order shall apply to any

foreign entity to the extent that its conduct does not fall within the Commission’s

jurisdiction.

BB.

“Prevented Chargeback” means a consumer-initiated chargeback that is

resolved by the Merchant issuing the consumer a refund before the chargeback is

transmitted through the Credit Card Network.

CC.

“Sales Agent” means a Person that matches, arranges, or refers

prospective Clients or Clients to a Payment Processor or ISO for Payment Processing,

but does not hold any contractual liability in the event of losses related to the Payment

Processing activities conducted by or on behalf of Clients. As such, a Sales Agent may

be involved in recommending a particular Payment Processor or ISO to a prospective

Client, forwarding to the Payment Processor or ISO a prospective Client’s or Client’s

merchant application, or negotiating rates and fees charged by a Payment Processor or

ISO, but a Sales Agent may not be involved in any Payment Processing and may not act

as an ISO.

DD.

“Sponsored Merchant” means any Person to whom a Payment Facilitator

agrees to provide Payment Processing services.

EE.

“Technical Support Product or Service” means any plan, program,

software, or service marketed to repair, maintain, or improve the performance or security

of an Electronic Device, including registry cleaners, anti-virus programs, and computer

or software diagnostic and repair services, without regard to whether the plan, program,

software, or service is being offered by Persons communicating by an inbound or

outbound telephone call, online or in-person. Technical Support Product or Service

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excludes customer support or any tutorial offered by a software provider to enable the

use of its software program, unless that software program purports to repair, maintain, or

improve the performance or security of any Electronic Device (e.g., customer support for

bookkeeping software).

FF.

“Telemarketing” means any plan, program, or campaign which is

conducted to induce the purchase of goods or services by use of one or more telephones,

and which involves a telephone call, whether or not covered by the TSR.

GG.

“Telemarketing Sales Rule” or “TSR” means 16 C.F.R. Part 310.

HH.

“Total Return Rate” means the proportion (expressed as a percentage) of

all attempted ACH Debit transactions that are returned through the banking system for

any reason, whether before or after payment, out of the total number of such attempted

transactions, calculated separately for each type of transaction.

ORDER

BAN ON CERTAIN MERCHANT CATEGORIES

IT IS ORDERED that Defendants, Defendants’ officers, agents, employees, and

all other Persons in active concert or participation with any of them, who receive actual

notice of this Order, whether acting directly or indirectly, are permanently restrained and

enjoined from Payment Processing for any Person:

Offering to sell, selling, promoting, or marketing a Technical Support

Product or Service by (1) Telemarketing or (2) pop-up messages relating to security or

performance issues on a particular Electronic Device; or

That Defendants know or have reason to know is listed on the MasterCard

Member Alert to Control High-Risk Merchants (MATCH) list for any of the following

reasons: excessive Chargebacks, fraud, fraud conviction, laundering, identification as a

Questionable Merchant per the Mastercard Questionable Merchant Audit Program,

merchant collusion, or illegal transactions.

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II.

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PROHIBITIONS RELATING TO PROVIDING

PAYMENT PROCESSING SERVICES

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents,

employees, and all other Persons in active concert or participation with any of them, who

receive actual notice of this Order, whether acting directly or indirectly, are permanently

restrained and enjoined from:

Making, or assisting others in making, directly or by implication, any false

or misleading statement to obtain Merchant Accounts or Payment Processing services; or

Engaging in any tactics to avoid fraud and risk monitoring programs, or

risk management systems established by a Financial Institution, Acquirer, or the

operators of any payment system, including, but not limited to: balancing or distributing

sales transaction volume or activity among multiple Merchant Accounts or multiple

billing descriptors; using shell companies to apply for additional Merchant Accounts;

submitting sales transactions where no goods or services are exchanged (also known as

“friendlies,” “microtransactions,” or “value added propositions”); splitting a single sales

transaction into multiple smaller transactions; or attempting to reduce excessive

Chargeback Rates through the use of services that allow Merchants to create Prevented

Chargebacks without also assessing the cause of the excessive Chargeback Rate.

III.

PROHIBITION AGAINST ASSISTING AND FACILITATING

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents,

employees, and all other Persons in active concert or participation with any of them, who

receive actual notice of this Order, whether acting directly or indirectly, in connection

with promoting or offering for sale any good or service are permanently restrained and

enjoined from providing substantial assistance or support to any Person that they know,

or should know, is engaged in:

Misrepresenting, or assisting others in misrepresenting, directly or by

implication, the performance or security of an Electronic Device,

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Misrepresenting, or assisting others in misrepresenting, directly or by

implication, any fact material to consumers concerning any good or service, such as: the

total costs; any material restrictions, limitations, or conditions; the name of the service

provider; or any material aspect of its performance, efficacy, nature, or central

characteristics,

Misrepresenting, directly or by implication, any material aspect of the

nature or terms of any refund, cancellation, exchange, or repurchase policies;

The unauthorized debiting or charging of consumer bank or credit card

accounts; or

Any deceptive, unfair, or abusive act or practice prohibited by Section 5 of

the FTC Act or the TSR (a copy of which is attached hereto as Attachment A).

IV.

SCREENING OF PROSPECTIVE COVERED CLIENTS

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents,

employees, and all other Persons in active concert or participation with any of them, who

receive actual notice of this Order, whether acting directly or indirectly, are permanently

restrained and enjoined from acting as an Acquirer, Payment Processor, Payment

Facilitator, ISO, or Sales Agent for any prospective Covered Client without first

engaging in a reasonable screening of the prospective Covered Client to determine

whether the prospective Covered Client’s business practices are, or are likely to be,

deceptive or unfair within the meaning of Section 5 of the FTC Act or a violation of the

TSR. Such reasonable screening shall include, but not be limited to:

Establishing and maintaining policies and procedures reasonably designed

to identify prospective Merchants who are, or are likely to become, Covered Clients;

Where Defendants receive information that a Merchant may be a

prospective Covered Client, obtaining from each prospective Covered Client, including

the principal(s) and controlling Person(s) of the entity, any Person(s) with a majority

ownership interest in the entity, and any corporate name, trade name, fictitious name, or

alias under which such Person(s) conduct or have conducted business:

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A description of the nature of the prospective Covered Client’s

business, including describing the nature of the goods and services sold and methods of

sale, for which the prospective Covered Client seeks Payment Processing services;

representative sampling of other marketing materials used within the past two (2) years;

Scripts, copies of Internet websites where available, and a

The name of the principal(s) and controlling Person(s) of the entity,

and Person(s) with a majority ownership interest in the entity;

A list of all business and trade names, fictitious names, DBAs, and

Internet websites under or through which the prospective Covered Client has marketed or

intends to market the goods and services for which the prospective Covered Client seeks

Payment Processing services;

Each physical address at which the prospective Covered Client has

conducted business or will conduct the business(es) identified pursuant to subsection (1)

of Section IV.B of this Order;

The name of every Acquirer, Payment Processor, and ODFI used by

the prospective Covered Client during the preceding two (2) years, and where available

all the merchant account numbers or merchant identification numbers used by any such

banks or Payment Processors in connection with the prospective Covered Client (and if

not available, the number of merchant accounts held with any such banks or Payment

Processors in connection with the prospective Covered Client);

The prospective Covered Client’s past Chargeback Rate and Total

Return Rate (if any Defendant proposes to provide Payment Processing services for ACH

Debit transactions) for the preceding five (5) months;

Copies of monthly Payment Processing statements issued by any

bank, Payment Processor, ISO, Sales Agent, or Acquirer used by the Covered Client

during the preceding six (6) months, unless the Covered Client has no prior processing

history;

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Whether the prospective Covered Client, including the principal(s)

and controlling Person(s) of the entity, any Person(s) with a majority ownership interest

in the entity, and any corporate name, trade name, fictitious name, or alias under which

such Person(s) conduct or have conducted business, has ever been:

(a)

program during the preceding two (2) years;

(b)

placed in a Credit Card Network’s Chargeback monitoring

terminated by a Payment Processor, Acquirer, Financial

Institution, or operator of a payment system due to excessively high Chargeback Rates;

(c)

the subject of a public complaint filed by the Commission or

any other state or federal law enforcement agency.

Taking reasonable steps to assess the accuracy of the information provided

pursuant to Section IV.B of this Order, including but not limited to: reviewing the

complete Internet websites used by the prospective Covered Client to market its goods or

services; obtaining and reviewing copies of monthly Payment Processing statements

issued by any bank, Payment Processor, ISO, Sales Agent, or Acquirer used by the

Covered Client during the preceding six (6) months, unless the Covered Client has no

prior processing history; obtaining and reviewing current, representative marketing

materials, including Telemarketing scripts and copies of Internet websites, for each good

or service related to the offer for which Defendants would provide the prospective

Covered Client with Payment Processing, ISO or Sales Agent services; and reviewing

internet search results related to the prospective Covered Client. The purpose of such

steps is to determine whether the prospective Covered Client is engaged in any of the

following acts or practices, in which case Defendants shall not provide Payment

Processing, process ACH Transactions, or act as an ISO or Sales Agent for the

prospective Covered Client:

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Failing to clearly and conspicuously disclose all products and

services that are sold in conjunction with the offered product or service, and the total

cost to purchase, receive, or use any products or services that are the subject of the

sales offer;

Misrepresenting any material aspect of the performance, efficacy,

nature, or central characteristics of goods or services that are the subject of the sales

offer;

conditions of an offer;

Misrepresenting, expressly or by implication, any material aspect of

the prospective Covered Client’s refund, cancellation, exchange, or repurchase policies;

Failing to clearly and conspicuously disclose all material terms and

Causing customer billing information to be submitted for payment

without the customer’s express authorization; or

Violating Section 5 of the FTC Act or the TSR.

MONITORING OF COVERED CLIENTS

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents,

employees, and all other Persons in active concert or participation with any of them, who

receive actual notice of this Order, whether acting directly or indirectly, in connection

with Payment Processing, are permanently restrained and enjoined from:

Within sixty (60) days after the effective date of this Order, failing to

monitor the sales activity of all current Clients to identify Clients that should be

designated as Covered Clients requiring additional screening pursuant to Section IV of

this Order, and for all newly-designated and newly-onboarded Covered Clients, failing to

complete the reasonable screening process described in Section IV of the Order.

Failing to monitor each Covered Client’s transactions to determine whether

the Covered Client is engaged in practices that are deceptive or unfair in violation of

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Section 5 of the FTC Act or the TSR. Such monitoring shall include, but not be limited

to, on at least a monthly basis:

Reviewing Covered Clients’ Internet websites from an IP address

that is not associated with Defendants and saving the results of this review;

Reviewing consumer complaints relating to requests for

Chargebacks and complaints found on publicly available complaint mediums (i.e. online

consumer complaint boards) or received from any third party, including Financial

Institutions, Credit Card Networks, Better Business Bureaus, and Payment Processors;

Reviewing each Covered Clients’ Chargeback Rates, Total Return

Rates (if Defendants propose to provide Payment Processing services for ACH Debit

transactions), and reasons provided for these rates, as well as examining any unusual or

suspect transaction patterns, values, and volume;

Clients and reviewing those internet search results; and

Conducting reasonable internet searches related to the Covered

Obtaining, saving, and reviewing reasonably representative samples

of the Covered Client’s marketing materials (including sales scripts).

Failing to conduct test calls to determine what representations are being

made to consumers and what goods or services are being sold by the Covered Clients on

at least a quarterly basis.

Failing to calculate and update at least on a monthly basis for each Covered

Client the Chargeback Rate and Total Return Rate (if Defendants propose to provide

Payment Processing services for ACH Debit transactions). For any Covered Client with

multiple processing accounts with the Defendants, the calculation of the Chargeback

Rate and Total Return Rate shall be made for each of the Covered Client’s individual

processing accounts, and in the aggregate for each Covered Client.

Failing to promptly conduct a reasonable investigation of any Covered

Client (a) who, in any two of the past six (6) months, had a monthly Chargeback Rate in

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excess of 1.0% and more than seventy-five (75) Chargebacks in a month as to any

individual processing account, or in the aggregate for each such Client; or (b) who, in

any two of the past six (6) months, had a Total Return Rate in excess of 2.5% and more

than forty (40) ACH Debit returned transactions in a month as to any individual

processing account, or in the aggregate for each such Client. A reasonable investigation

includes, but is not limited to:

Verifying and updating the truth and accuracy of information

gathered in compliance with Sections IV and V of this Order and any other advertising of

the Covered Client;

Confirming that the Covered Client has obtained required consumer

authorizations for the sales transactions and verifying the legitimacy of such

authorizations;

Contacting Financial Institutions and Better Business Bureaus to

gather detailed information, including complaints and other relevant information,

regarding the Covered Client;

Reviewing from an IP address that is not associated with Defendants

the Internet websites used by the Covered Client to market its goods and services;

Searching publicly available sources for legal actions taken by the

Commission or other state or federal law enforcement agencies against the Covered

Client, including any assurances of voluntary compliance;

Conducting test shopping and test calls to determine the Covered

Client’s sales practices, including what representations are being made to consumers and

what goods or services are being sold; and

Identifying all processing accounts the Client maintains with

Defendants, including accounts through which Defendants provide ACH Transaction

services.

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Within sixty (60) days of commencing an investigation of a Covered Client

pursuant to Subsection V.E of this Order, failing to stop processing sales transactions and

close all processing accounts for such Covered Client, including ACH Transaction

accounts, unless Defendants draft a written report establishing facts that demonstrate, by

clear and convincing evidence, that the Covered Client’s business practices related to the

offer(s) for which Defendants provide Payment Processing are not deceptive or unfair in

violation of Section 5 of the FTC Act or the TSR;

Failing to promptly stop processing sales transactions and close all

processing accounts for any Covered Client that Defendants know or should know is

engaged in tactics to avoid fraud and risk monitoring programs established by any

Financial Institution, Acquirer, or the operators of any payment system, including, but

not limited to, balancing or distributing sales transaction volume or sales transaction

activity among multiple Merchant Accounts or merchant billing descriptors; using shell

companies to apply for additional bank accounts or Merchant Accounts; or attempting to

reduce excessive Chargeback Rates through the use of services that allow Merchants to

create Prevented Chargebacks without also assessing the cause of the excessive

Chargeback Rate.

VI.

CHARGEBACK MONITORING OF ALL CLIENTS

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents,

employees, and all other Persons in active concert or participation with any of them, who

receive actual notice of this Order, whether acting directly or indirectly, in connection

with Payment Processing, are permanently restrained and enjoined from:

Failing to calculate and update at least on a monthly basis for each Client

the Chargeback Rate. For any Client with multiple processing accounts with the

Defendants, the calculation of the Chargeback Rate shall be made for each of the Client’s

individual processing accounts, and in the aggregate for each Client.

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Failing to promptly conduct a reasonable investigation of any Client who,

in any two of the past six (6) months, had a monthly Chargeback Rate in excess of 1.0%

and more than seventy-five (75) Chargebacks in a month as to any individual processing

account, or in the aggregate for each such Client. A reasonable investigation includes,

but is not limited to:

Undertaking the monitoring steps set out in Sections V.B thru V.E

and VI.A and B of this Order, if not already performed, and verifying and updating the

truth and accuracy of information gathered in compliance with Sections IV and V of this

Order and any other advertising of the Client;

Confirming that the Client has obtained required consumer

authorizations for the sales transactions and verifying the legitimacy of such

authorizations;

Contacting Financial Institutions and Better Business Bureaus to

gather detailed information, including complaints and other relevant information,

regarding the Client;

Reviewing from an IP address that is not associated with Defendants

the Internet websites used by the Client to market its goods and services;

Searching publicly available sources for legal actions taken by the

Commission or other state or federal law enforcement agencies against the Client,

including any assurances of voluntary compliance;

Conducting test shopping and test calls to determine the Client’s

sales practices, including what representations are being made to consumers and what

goods or services are being sold;

Identifying all processing accounts the Client maintains with

Defendants, including accounts through which Defendants provide ACH Transaction

services.

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Within sixty (60) days of commencing an investigation of a Client pursuant

to Subsection VI.E of this Order, failing to stop processing sales transactions and close

all processing accounts for such Client, unless Defendants draft a written report

establishing facts that demonstrate, by clear and convincing evidence, that the Client’s

business practices related to the offer(s) for which Defendants provide Payment

Processing are not deceptive or unfair in violation of Section 5 of the FTC Act or the

TSR.

VII.

MONETARY JUDGMENT

IT IS FURTHER ORDERED that:

Judgment in the amount of Four Million Eight Hundred and Fifty

Thousand Dollars ($4,850,000) is entered in favor of the Commission against the

Defendants, jointly and severally, as monetary relief.

Defendants are ordered to pay to the Commission Four Million Eight

Hundred and Fifty Thousand Dollars ($4,850,000), which, as Defendants stipulate, their

undersigned counsel holds in escrow for no purpose other than payment to the

Commission. Such payment must be made within seven (7) days of entry of this Order

by electronic fund transfer in accordance with instructions previously provided by a

representative of the Commission.

VIII. ADDITIONAL MONETARY PROVISIONS

IT IS FURTHER ORDERED that:

Defendants relinquish dominion and all legal and equitable right, title, and

interest in all assets transferred pursuant to this Order and may not seek the return of any

assets.

The facts alleged in the Complaint will be taken as true, without further

proof, in any subsequent civil litigation by or on behalf of the Commission, including in

a proceeding to enforce its rights to any payment or monetary judgment pursuant to this

Order, such as a nondischargeability complaint in any bankruptcy case.

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The facts alleged in the Complaint establish all elements necessary to

sustain an action by the Commission pursuant to Section 523(a)(2)(A) of the Bankruptcy

Code, 11 U.S.C. § 523(a)(2)(A), and this Order will have collateral estoppel effect for

such purposes.

Each Defendant acknowledges that their Taxpayer Identification Numbers,

may be used for collecting and reporting on any delinquent amount arising out of this

Order, in accordance with 31 U.S.C. §7701.

All money received by the Commission pursuant to this Order may be

deposited into a fund administered by the Commission or its designee to be used for

consumer relief, such as redress and any attendant expenses for the administration of any

redress fund. If a representative of the Commission decides that direct redress to

consumers is wholly or partially impracticable or money remains after such redress is

completed, the Commission may apply any remaining money for such related relief

(including consumer information remedies) as it determines to be reasonably related to

Defendants’ practices alleged in the Complaint. Any money not used for relief is to be

deposited to the U.S. Treasury. Defendants have no right to challenge any actions the

Commission or its representatives may take pursuant to this Subsection.

IX.

CUSTOMER INFORMATION

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents,

employees, and all other Persons in active concert or participation with any of them, who

receive actual notice of this Order, are permanently restrained and enjoined from directly

or indirectly:

Failing to provide, if available, sufficient customer information to enable

the Commission to efficiently administer consumer redress. If a representative of the

Commission requests in writing any information related to redress, Defendants must

provide it, in the form prescribed by the Commission, within fourteen (14) days.

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Disclosing, using, or benefitting from customer information, including the

name, address, telephone number, email address, social security number, other

identifying information, or any data that enables access to a customer’s account

(including a credit card, bank account, or other financial account), that any Defendant

obtained prior to entry of this Order in connection with Payment Processing for any

Technical Support Products or Services; and

Failing to destroy such customer information in all forms in their

possession, custody, or control within 30 days after receipt of written direction to do so

from a representative of the Commission.

Provided, however, that customer information need not be disposed of, and may

be disclosed, to the extent requested by a government agency or required by law,

regulation, or court order.

COOPERATION

IT IS FURTHER ORDERED that the Defendants must fully cooperate with

representatives of the Commission in this case and in any investigation related to or

associated with the transactions or the occurrences that are the subject of the Complaint.

Defendants must provide truthful and complete information, evidence, and testimony.

Defendants must cause their officers, employees, representatives, or agents to appear for

interviews, discovery, hearings, trials, and any other proceedings that a Commission

representative may reasonably request upon fourteen (14) days written notice, or other

reasonable notice, at such places and times as a Commission representative may

designate, without the service of a subpoena.

XI.

ORDER ACKNOWLEDGMENTS

IT IS FURTHER ORDERED that Defendants obtain acknowledgments of receipt

of this Order:

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Each Defendant, within seven (7) days of entry of this Order, must submit

to the Commission an acknowledgment of receipt of this Order sworn under penalty of

perjury.

For five (5) years after entry of this Order, each Defendant must deliver a

copy of this Order to: (1) all principals, officers, directors, and LLC managers and

members; (2) all employees having managerial responsibilities for conduct related to the

subject matter of the Order and all agents and representatives who participate in conduct

related to the subject matter of the Order; and (3) any business entity resulting from any

change in structure as set forth in the Section titled Compliance Reporting. Delivery must

occur within seven (7) days of entry of this Order for current personnel. For all others,

delivery must occur before they assume their responsibilities.

From each individual or entity to which a Defendant delivered a copy of

this Order, that Defendant must obtain, within thirty (30) days, a signed and dated

acknowledgment of receipt of this Order.

XII.

IT IS FURTHER ORDERED that Defendants make timely submissions to the

Commission:

COMPLIANCE REPORTING

One (1) year after entry of this Order, each Defendant must submit a

compliance report, sworn under penalty of perjury:

Each Defendant must: (a) identify the primary physical, postal, and

email address and telephone number, as designated points of contact, which

representatives of the Commission may use to communicate with Defendant; (b) identify

all of that Defendant’s businesses by all of their names, telephone numbers, and physical,

postal, email, and Internet addresses; (c) describe the activities of each business,

including the goods and services offered, the means of advertising, marketing, and sales,

and the involvement of any other Defendant (which Defendants must describe if they

know or should know due to their own involvement); (d) describe in detail whether and

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how that Defendant is in compliance with each Section of this Order; (e) provide a copy

of any written reports drafted pursuant to Sections V.E. and VI.B. of this Order; and (f)

provide a copy of each Order Acknowledgment obtained pursuant to this Order, unless

previously submitted to the Commission.

For ten (10) years after entry of this Order, each Defendant must submit a

compliance notice, sworn under penalty of perjury, within fourteen (14) days of any

change in the following:

Each Defendant must report any change in: (a) any designated point

of contact; (b) the number of written reports drafted pursuant to Sections V.E. and VI.B

of this Order (along with copies of any newly drafted reports); or (c) the structure of any

Corporate Defendant or any entity that Defendant has any ownership interest in or

controls directly or indirectly that may affect compliance obligations arising under this

Order, including: creation, merger, sale, or dissolution of the entity or any subsidiary,

parent, or affiliate that engages in any acts or practices subject to this Order.

Each Defendant must submit to the Commission notice of the filing of any

bankruptcy petition, insolvency proceeding, or similar proceeding by or against such

Defendant within fourteen (14) days of its filing.

Any submission to the Commission required by this Order to be sworn

under penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746,

such as by concluding: “I declare under penalty of perjury under the laws of the United

States of America that the foregoing is true and correct. Executed on: __________” and

supplying the date, signatory’s full name, title (if applicable), and signature.

Unless otherwise directed by a Commission representative in writing, all

submissions to the Commission pursuant to this Order must be emailed to

DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to: Associate

Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission,

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600 Pennsylvania Avenue NW, Washington, DC 20580. The subject line must begin:

FTC v. Nuvei.

XIII. RECORDKEEPING

IT IS FURTHER ORDERED that Defendants must create certain records for ten

(10) years after entry of the Order, and retain each such record for five (5) years.

Specifically, Defendants must create and retain the following records:

Accounting records showing the revenues from all goods or services sold;

Personnel records showing, for each Person providing services, whether as

an employee or otherwise, that Person’s: name; addresses; telephone numbers; job title or

position; dates of service; and (if applicable) the reason for termination;

Records of all consumer complaints, returned transactions, Chargebacks,

and refund requests, whether received directly or indirectly, such as through a third party,

and any response; and

All records necessary to demonstrate full compliance with each provision

of this Order, including all submissions to the Commission.

XIV. COMPLIANCE MONITORING

IT IS FURTHER ORDERED that, for the purpose of monitoring Defendants’

compliance with this Order and any failure to transfer any assets as required by this

Order:

Within 14 days of receipt of a written request from a representative of the

Commission, each Defendant must: submit additional compliance reports or other

requested information, which must be sworn under penalty of perjury; appear for

depositions; and produce documents for inspection and copying. The Commission is also

authorized to obtain discovery, without further leave of court, using any of the

procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic

depositions), 31, 33, 34, 36, 45, and 69.

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For matters concerning this Order, the Commission is authorized to

communicate directly with each Defendant. Defendants must permit representatives of

the Commission to interview any employee or other Person affiliated with any Defendant

who has agreed to such an interview. The Person interviewed may have counsel present.

The Commission may use all other lawful means, including posing through

its representatives as consumers, suppliers, or other individuals or entities, to Defendants

or any individual or entity affiliated with Defendants, without the necessity of

identification or prior notice. Nothing in this Order limits the Commission’s lawful use

of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49,

57b-1.

XV.

RETENTION OF JURISDICTION

IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for

purposes of construction, modification, and enforcement of this Order.

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SO STIPULATED AND AGREED:

FOR PLAINTIFF FEDERAL TRADE COMMISSION

~ Dui:z:A

_ _ __ _ _ _ _ _ _ _ _ ___

Date: 9/3/2026

DEFENDANTS NUVEI CORPORATION, NUVEI INTERNATIONAL GROUP

LIMITED, NUVEI LIMITED, SAFECHARGE DIGITAL LIMITED, AND

NUVEI TECHNOLOGIES, INC.

Date:

Lindsay Matthews

General Counsel & Corporate Secretary

COUNSEL FOR DEFENDANTS NUVEI CORPORATION, NUVEI

INTERNATIONAL GROUP LIMITED, NUVEI LIMITED, SAFECHARGE

DIGITAL LIMITED, AND NUVEI TECHNOLOGIES, INC.

Davis Polk & Wardwell LLP

Howard Shelanski

Michael Scheinkman

Mari Grace

John A. Atchley III

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A UTHENTICATE.~

.,_T..

~~'!.~~~N T

ase 2:26-cv-06306-KML

GPO

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pt_ 309, App. A

Page 27 of 44

16 CFR Ch. I ( 1-1-25 Edition)

APPENDIX A TO PART 309---FIGURES FOR PART 309

HYDROGEN

MINIMUM

90°/o

98°/o

HYDROGEN

METHANE

Figure l

Fi gure 2

ELECTRICITY

9.6 kW

240 vac/40 amps

CONDUCTIVE

l"igure 3

[60 FR 26955, May 19 , 1995 , as amended at 69 FR 55339, Sept. 14, 2004; 78 FR 23835, Apr. 23 , 2013]

SOURCE: 75 FR 48516, Aug. 10, 2010, unless

otherwise noted.

PART 310-TELEMARKETING SALES

RULE

§310.1 Scope of regulations in this

part.

Sec.

310.1 Scope of regulations in this part.

310.2 Definitions.

310.3 Deceptive telemarketing acts or prac

tices.

This part implements the Tele

marketing and Consumer Fraud and

Abuse Prevention Act, 15 U.S.C. 61016108, as amended.

310.4 Abusive telemarketing acts or prac-

§ 3 10.2

tices.

310.5 Recordkeeping requirements.

310.6 Exemptions.

310.7 Actions by s tates and private persons.

310.8 Fee for access to the National Do Not

Call Registry.

310.9 Severab111ty.

(a ) Acquirer means a business organi

zation, financial institution, or an

agent of a business organization or fi

nancial institution that has authority

from an organization that operates or

licenses a credit card system to author

ize merchants to accept, transmit, or

process payment by credit card

AUTHORITY: 15 U.S.C. 6101~ 108.

412

Definitions.

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§ 310.2

through the credit card system for

money, goods or services, or anything

else of value.

(b) Attorney General means the chief

legal officer of a state.

that enables any person to access a

customer’s or donor’s account, such as

a credit card, checking, savings, share

or similar account, utility bill, mortgage loan account, or debit card.

(d) Caller identification service means a

service that allows a telephone subscriber to have the telephone number,

and, where available, name of the calling party transmitted contemporaneously with the telephone call, and

displayed on a device in or connected

to the subscriber’s telephone.

(e) Cardholder means a person to

whom a credit card is issued or who is

authorized to use a credit card on behalf of or in addition to the person to

whom the credit card is issued.

(f) Cash-to-cash money transfer means

the electronic (as defined in section

106(2) of the Electronic Signatures in

Global and National Commerce Act (15

U.S.C. 7006(2)) transfer of the value of

cash received from one person to another person in a different location

that is sent by a money transfer provider and received in the form of cash.

For purposes of this definition, money

transfer provider means any person or

financial institution that provides

cash-to-cash money transfers for a person in the normal course of its business, whether or not the person holds

an account with such person or financial institution. The term cash-to-cash

money transfer includes a remittance

transfer, as defined in section 919(g)(2)

of the Electronic Fund Transfer Act

(‘‘EFTA’’), 15 U.S.C. 1693a, that is a

cash-to-cash transaction; however it

does not include any transaction that

is:

(1) An electronic fund transfer as defined in section 903 of the EFTA;

(2) Covered by Regulation E, 12 CFR

1005.20, pertaining to gift cards; or

(3) Subject to the Truth in Lending

Act, 15 U.S.C. 1601 et seq.

(g) Cash reload mechanism is a device,

authorization code, personal identification number, or other security measure

that makes it possible for a person to

convert cash into an electronic (as de-

fined in section 106(2) of the Electronic

Signatures in Global and National

Commerce Act (15 U.S.C. 7006(2)) form

that can be used to add funds to a general-use prepaid card, as defined in

Regulation E, 12 CFR 1005.2, or an account with a payment intermediary.

For purposes of this definition, a cash

reload mechanism is not itself a general-use prepaid debit card or a swipe

reload process or similar method in

which funds are added directly onto a

person’s own general-use prepaid card

or account with a payment intermediary.

(h) Charitable contribution means any

donation or gift of money or any other

thing of value.

(i) Commission means the Federal

Trade Commission.

(j) Credit means the right granted by

a creditor to a debtor to defer payment

of debt or to incur debt and defer its

payment.

(k) Credit card means any card, plate,

coupon book, or other credit device existing for the purpose of obtaining

money, property, labor, or services on

credit.

(l) Credit card sales draft means any

record or evidence of a credit card

transaction.

(m) Credit card system means any

method or procedure used to process

credit card transactions involving credit cards issued or licensed by the operator of that system.

(n) Customer means any person who is

or may be required to pay for goods or

services

offered

through

telemarketing.

(o) Debt relief service means any program or service represented, directly or

by implication, to renegotiate, settle,

or in any way alter the terms of payment or other terms of the debt between a person and one or more unsecured creditors or debt collectors, including, but not limited to, a reduction

in the balance, interest rate, or fees

owed by a person to an unsecured creditor or debt collector.

(p) Donor means any person solicited

to make a charitable contribution.

(q) Established business relationship

means a relationship between a seller

and a person based on:

(1) The person’s purchase, rental, or

lease of the seller’s goods or services or

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16 CFR Ch. I (1–1–25 Edition)

a financial transaction between the

person and seller, within the 540 days

immediately preceding the date of a

telemarketing call; or

(2) The person’s inquiry or application regarding a good or service offered

by the seller, within the 90 days immediately preceding the date of a telemarketing call.

(r) Free-to-pay conversion means, in an

offer or agreement to sell or provide

any goods or services, a provision

under which a customer receives a

product or service for free for an initial

period and will incur an obligation to

pay for the product or service if he or

she does not take affirmative action to

cancel before the end of that period.

(s) Investment opportunity means anything, tangible or intangible, that is offered, offered for sale, sold, or traded

based wholly or in part on representations, either express or implied, about

past, present, or future income, profit,

or appreciation.

(t) Material means likely to affect a

person’s choice of, or conduct regarding, goods or services or a charitable

contribution.

(u) Merchant means a person who is

authorized under a written contract

with an acquirer to honor or accept

credit cards, or to transmit or process

for payment credit card payments, for

the purchase of goods or services or a

charitable contribution.

(v) Merchant agreement means a written contract between a merchant and

an acquirer to honor or accept credit

cards, or to transmit or process for

payment credit card payments, for the

purchase of goods or services or a charitable contribution.

(w) Negative option feature means, in

an offer or agreement to sell or provide

any goods or services, a provision

under which the customer’s silence or

failure to take an affirmative action to

reject goods or services or to cancel the

agreement is interpreted by the seller

as acceptance of the offer.

(x) Outbound telephone call means a

telephone call initiated by a telemarketer to induce the purchase of

goods or services or to solicit a charitable contribution.

(y) Person means any individual,

group, unincorporated association, lim-

ited or general partnership, corporation, or other business entity.

(z) Preacquired account information

means any information that enables a

seller or telemarketer to cause a

charge to be placed against a customer’s or donor’s account without obtaining the account number directly

from the customer or donor during the

telemarketing transaction pursuant to

which the account will be charged.

(aa) Previous donor means any person

who has made a charitable contribution to a particular charitable organization within the 2-year period immediately preceding the date of the telemarketing call soliciting on behalf of

that charitable organization.

(bb) Prize means anything offered, or

purportedly offered, and given, or purportedly given, to a person by chance.

For purposes of this definition, chance

exists if a person is guaranteed to receive an item and, at the time of the

offer or purported offer, the telemarketer does not identify the specific

item that the person will receive.

(cc) Prize promotion means:

(1) A sweepstakes or other game of

chance; or

(2) An oral or written express or implied representation that a person has

won, has been selected to receive, or

may be eligible to receive a prize or

purported prize.

(dd) Remotely created payment order

means any payment instruction or

order drawn on a person’s account that

is created by the payee or the payee’s

agent and deposited into or cleared

through the check clearing system.

The term includes, without limitation,

a ‘‘remotely created check,’’ as defined

in Regulation CC, Availability of

Funds and Collection of Checks, 12 CFR

229.2(fff), but does not include a payment order cleared through an Automated Clearinghouse (ACH) Network or

subject to the Truth in Lending Act, 15

U.S.C. 1601 et seq., and Regulation Z, 12

CFR part 1026.

(ee) Seller means any person who, in

connection with a telemarketing transaction, provides, offers to provide, or

arranges for others to provide goods or

services to the customer in exchange

for consideration.

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Federal Trade Commission

§ 310.3

(ff) State means any state of the

United States, the District of Columbia, Puerto Rico, the Northern Mariana

Islands, and any territory or possession

of the United States.

(gg) Telemarketer means any person

who, in connection with telemarketing,

initiates or receives telephone calls to

or from a customer or donor.

(hh) Telemarketing means a plan, program, or campaign which is conducted

to induce the purchase of goods or services or a charitable contribution, by

use of one or more telephones and

which involves more than one interstate telephone call. The term does not

include the solicitation of sales

through the mailing of a catalog

which: contains a written description

or illustration of the goods or services

offered for sale; includes the business

address of the seller; includes multiple

pages of written material or illustrations; and has been issued not less frequently than once a year, when the

person making the solicitation does

not solicit customers by telephone but

only receives calls initiated by customers in response to the catalog and

during those calls takes orders only

without further solicitation. For purposes of the previous sentence, the

term ‘‘further solicitation’’ does not

include providing the customer with

information about, or attempting to

sell, any other item included in the

same catalog which prompted the customer’s call or in a substantially similar catalog.

(ii) Upselling means soliciting the

purchase of goods or services following

an initial transaction during a single

telephone call. The upsell is a separate

telemarketing transaction, not a continuation of the initial transaction. An

‘‘external upsell’’ is a solicitation

made by or on behalf of a seller different from the seller in the initial

transaction, regardless of whether the

initial transaction and the subsequent

solicitation are made by the same telemarketer. An ‘‘internal upsell’’ is a solicitation made by or on behalf of the

same seller as in the initial transaction, regardless of whether the initial transaction and subsequent solici-

tation are made by the same telemarketer.

[75 FR 48516, Aug. 10, 2010, as amended at 80

FR 77557, Dec. 14, 2015; 89 FR 26783, Apr. 16,

2024]

EFFECTIVE DATE NOTE: At 89 FR 99075, Dec.

10, 2024, § 310.2 was amended by redesignating

paragraphs (gg) through (ii) as paragraphs

(hh) through (jj), and adding new paragraph

(gg), effective Jan. 9, 2025. For the convenience of the user, the added text is set forth

as follows:

§ 310.2

Definitions.

(gg) Technical support service means 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. Technical support service does

not include any plan, program, software, or

service in which the person providing the repair, maintenance, or improvement obtains

physical possession of the device being repaired.

§ 310.3 Deceptive telemarketing acts or

practices.

(a) Prohibited deceptive telemarketing

acts or practices. It is a deceptive telemarketing act or practice and a violation of this part for any seller or telemarketer to engage in the following

conduct:

(1) Before a customer consents to

pay 1 for goods or services offered, failing to disclose truthfully, in a clear

and conspicuous manner, the following

material information:

(i) The total costs to purchase, receive, or use, and the quantity of, any

1 When a seller or telemarketer uses, or directs a customer to use, a courier to transport payment, the seller or telemarketer

must make the disclosures required by

§ 310.3(a)(1) before sending a courier to pick

up payment or authorization for payment, or

directing a customer to have a courier pick

up payment or authorization for payment. In

the case of debt relief services, the seller or

telemarketer must make the disclosures required by § 310.3(a)(1) before the consumer enrolls in an offered program.

415

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16 CFR Ch. I (1–1–25 Edition)

goods or services that are the subject

of the sales offer; 2

(ii) All material restrictions, limitations, or conditions to purchase, receive, or use the goods or services that

are the subject of the sales offer;

(iii) If the seller has a policy of not

making refunds, cancellations, exchanges, or repurchases, a statement

informing the customer that this is the

seller’s policy; or, if the seller or telemarketer makes a representation

about a refund, cancellation, exchange,

or repurchase policy, a statement of all

material terms and conditions of such

policy;

(iv) In any prize promotion, the odds

of being able to receive the prize, and,

if the odds are not calculable in advance, the factors used in calculating

the odds; that no purchase or payment

is required to win a prize or to participate in a prize promotion and that any

purchase or payment will not increase

the person’s chances of winning; and

the no-purchase/no-payment method of

participating in the prize promotion

with either instructions on how to participate or an address or local or tollfree telephone number to which customers may write or call for information on how to participate;

(v) All material costs or conditions

to receive or redeem a prize that is the

subject of the prize promotion;

(vi) In the sale of any goods or services represented to protect, insure, or

otherwise limit a customer’s liability

in the event of unauthorized use of the

customer’s credit card, the limits on a

cardholder’s liability for unauthorized

use of a credit card pursuant to 15

U.S.C. 1643;

(vii) If the offer includes a negative

option feature, all material terms and

conditions of the negative option feature, including, but not limited to, the

fact that the customer’s account will

be charged unless the customer takes

an affirmative action to avoid the

charge(s), the date(s) the charge(s) will

be submitted for payment, and the spe2 For offers of consumer credit products

subject to the Truth in Lending Act, 15

U.S.C. 1601 et seq., and Regulation Z, 12 CFR

226, compliance with the disclosure requirements under the Truth in Lending Act and

Regulation Z shall constitute compliance

with § 310.3(a)(1)(i) of this part.

cific steps the customer must take to

avoid the charge(s); and

(viii) In the sale of any debt relief

service:

(A) the amount of time necessary to

achieve the represented results, and to

the extent that the service may include

a settlement offer to any of the customer’s creditors or debt collectors,

the time by which the debt relief service provider will make a bona fide settlement offer to each of them;

(B) to the extent that the service

may include a settlement offer to any

of the customer’s creditors or debt collectors, the amount of money or the

percentage of each outstanding debt

that the customer must accumulate before the debt relief service provider

will make a bona fide settlement offer

to each of them;

the debt relief service relies upon or results in the customer’s failure to make

timely payments to creditors or debt

collectors, that the use of the debt relief service will likely adversely affect

the customer’s creditworthiness, may

result in the customer being subject to

collections or sued by creditors or debt

collectors, and may increase the

amount of money the customer owes

due to the accrual of fees and interest;

and

(D) to the extent that the debt relief

service requests or requires the customer to place funds in an account at

an insured financial institution, that

the customer owns the funds held in

the account, the customer may withdraw from the debt relief service at any

time without penalty, and, if the customer withdraws, the customer must

receive all funds in the account, other

than funds earned by the debt relief

service

compliance

with

§ 310.4(a)(5)(i)(A) through (C).

(2) Misrepresenting, directly or by

implication, in the sale of goods or

services any of the following material

information:

(i) The total costs to purchase, receive, or use, and the quantity of, any

goods or services that are the subject

of a sales offer;

(ii) Any material restriction, limitation, or condition to purchase, receive,

or use goods or services that are the

subject of a sales offer;

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§ 310.3

(iii) Any material aspect of the performance, efficacy, nature, or central

characteristics of goods or services

that are the subject of a sales offer;

(iv) Any material aspect of the nature or terms of the seller’s refund,

cancellation, exchange, or repurchase

policies;

(v) Any material aspect of a prize

promotion including, but not limited

to, the odds of being able to receive a

prize, the nature or value of a prize, or

that a purchase or payment is required

to win a prize or to participate in a

prize promotion;

(vi) Any material aspect of an investment opportunity including, but not

limited to, risk, liquidity, earnings potential, or profitability;

(vii) A seller’s or telemarketer’s affiliation with, or endorsement or sponsorship by, any person or government

entity;

(viii) That any customer needs offered goods or services to provide protections a customer already has pursuant to 15 U.S.C. 1643;

(ix) Any material aspect of a negative option feature including, but not

limited to, the fact that the customer’s

account will be charged unless the customer takes an affirmative action to

avoid the charge(s), the date(s) the

charge(s) will be submitted for payment, and the specific steps the customer must take to avoid the

charge(s); or

(x) Any material aspect of any debt

relief service, including, but not limited to, the amount of money or the

percentage of the debt amount that a

customer may save by using such service; the amount of time necessary to

achieve the represented results; the

amount of money or the percentage of

each outstanding debt that the customer must accumulate before the provider of the debt relief service will initiate attempts with the customer’s

creditors or debt collectors or make a

bona fide offer to negotiate, settle, or

modify the terms of the customer’s

debt; the effect of the service on a customer’s creditworthiness; the effect of

the service on collection efforts of the

customer’s creditors or debt collectors;

the percentage or number of customers

who attain the represented results; and

whether a debt relief service is offered

or provided by a non-profit entity.

(3) Causing billing information to be

submitted for payment, or collecting or

attempting to collect payment for

goods or services or a charitable contribution, directly or indirectly, without the customer’s or donor’s express

verifiable authorization, except when

the method of payment used is a credit

card subject to protections of the

Truth in Lending Act and Regulation

Z,3 or a debit card subject to the protections of the Electronic Fund Transfer Act and Regulation E.4 Such authorization shall be deemed verifiable

if any of the following means is employed:

(i) Express written authorization by

the customer or donor, which includes

the customer’s or donor’s signature;5

(ii) Express oral authorization which

is audio-recorded and made available

upon request to the customer or donor,

and the customer’s or donor’s bank or

other billing entity, and which evidences clearly both the customer’s or

donor’s authorization of payment for

the goods or services or charitable contribution that are the subject of the

telemarketing transaction and the customer’s or donor’s receipt of all of the

following information:

(A) An accurate description, clearly

and conspicuously stated, of the goods

or services or charitable contribution

for which payment authorization is

sought;

(B) The number of debits, charges, or

payments (if more than one);

or payment(s) will be submitted for

payment;

(D) The amount(s) of the debit(s),

charge(s), or payment(s);

(E) The customer’s or donor’s name;

(F) The customer’s or donor’s billing

information, identified with sufficient

3 Truth in Lending Act, 15 U.S.C. 1601 et

seq., and Regulation Z, 12 CFR part 226.

4 Electronic Fund Transfer Act, 15 U.S.C.

1693 et seq., and Regulation E, 12 CFR part

205.

5 For purposes of this part, the term ‘‘signature’’ shall include an electronic or digital

form of signature, to the extent that such

form of signature is recognized as a valid signature under applicable federal law or state

contract law.

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specificity such that the customer or

donor understands what account will

be used to collect payment for the

goods or services or charitable contribution that are the subject of the

telemarketing transaction;

(G) A telephone number for customer

or donor inquiry that is answered during normal business hours; and

(H) The date of the customer’s or donor’s oral authorization; or

(iii) Written confirmation of the

transaction, identified in a clear and

conspicuous manner as such on the

outside of the envelope, sent to the

customer or donor via first class mail

prior to the submission for payment of

the customer’s or donor’s billing information, and that includes all of the information

contained

§§ 310.3(a)(3)(ii)(A)-(G) and a clear and

conspicuous statement of the procedures by which the customer or donor

can obtain a refund from the seller or

telemarketer or charitable organization in the event the confirmation is

inaccurate; provided, however, that

this means of authorization shall not

be deemed verifiable in instances in

which goods or services are offered in a

transaction involving a free-to-pay

conversion and preacquired account information.

(4) Making a false or misleading

statement to induce any person to pay

for goods or services or to induce a

charitable contribution.

(b) Assisting and facilitating. It is a deceptive telemarketing act or practice

and a violation of this part for a person

to provide substantial assistance or

support to any seller or telemarketer

when that person knows or consciously

avoids knowing that the seller or telemarketer is engaged in any act or practice that violates §§ 310.3(a), (c) or (d),

or § 310.4 of this part.

expressly permitted by the applicable

credit card system, it is a deceptive

telemarketing act or practice and a

violation of this part for:

(1) A merchant to present to or deposit into, or cause another to present

to or deposit into, the credit card system for payment, a credit card sales

draft generated by a telemarketing

transaction that is not the result of a

telemarketing credit card transaction

between the cardholder and the merchant;

(2) Any person to employ, solicit, or

otherwise cause a merchant, or an employee, representative, or agent of the

merchant, to present to or deposit into

the credit card system for payment, a

credit card sales draft generated by a

telemarketing transaction that is not

the result of a telemarketing credit

card transaction between the cardholder and the merchant; or

(3) Any person to obtain access to the

credit card system through the use of a

business relationship or an affiliation

with a merchant, when such access is

not authorized by the merchant agreement or the applicable credit card system.

(d) Prohibited deceptive acts or practices in the solicitation of charitable contributions. It is a fraudulent charitable

solicitation, a deceptive telemarketing

act or practice, and a violation of this

part for any telemarketer soliciting

charitable contributions to misrepresent, directly or by implication, any of

the following material information:

(1) The nature, purpose, or mission of

any entity on behalf of which a charitable contribution is being requested;

(2) That any charitable contribution

is tax deductible in whole or in part;

(3) The purpose for which any charitable contribution will be used;

(4) The percentage or amount of any

charitable contribution that will go to

a charitable organization or to any

particular charitable program;

(5) Any material aspect of a prize

promotion including, but not limited

to: the odds of being able to receive a

prize; the nature or value of a prize; or

that a charitable contribution is required to win a prize or to participate

in a prize promotion; or

(6) A charitable organization’s or

telemarketer’s affiliation with, or endorsement or sponsorship by, any person or government entity.

[75 FR 48516, Aug. 10, 2010, as amended at 80

FR 77558, Dec. 14, 2015; 89 FR 26784, 26785, Apr.

16, 2024]

§ 310.4 Abusive telemarketing acts or

practices.

(a) Abusive conduct generally. It is an

abusive telemarketing act or practice

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and a violation of this part for any seller or telemarketer to engage in the following conduct:

(1) Threats, intimidation, or the use

of profane or obscene language;

(2) Requesting or receiving payment

of any fee or consideration for goods or

services represented to remove derogatory information from, or improve, a

person’s credit history, credit record,

or credit rating until:

(i) The time frame in which the seller

has represented all of the goods or

services will be provided to that person

has expired; and

(ii) The seller has provided the person

with documentation in the form of a

consumer report from a consumer reporting agency demonstrating that the

promised results have been achieved,

such report having been issued more

than six months after the results were

achieved. Nothing in this part should

be construed to affect the requirement

in the Fair Credit Reporting Act, 15

U.S.C. 1681, that a consumer report

may only be obtained for a specified

permissible purpose;

(3) Requesting or receiving payment

of any fee or consideration from a person for goods or services represented to

recover or otherwise assist in the return of money or any other item of

value paid for by, or promised to, that

person in a previous transaction, until

seven (7) business days after such

money or other item is delivered to

that person. This provision shall not

apply to goods or services provided to a

person by a licensed attorney;

(4) Requesting or receiving payment

of any fee or consideration in advance

of obtaining a loan or other extension

of credit when the seller or telemarketer has guaranteed or represented a high likelihood of success in

obtaining or arranging a loan or other

extension of credit for a person;

(5)(i) Requesting or receiving payment of any fee or consideration for

any debt relief service until and unless:

(A) The seller or telemarketer has renegotiated, settled, reduced, or otherwise altered the terms of at least one

debt pursuant to a settlement agreement, debt management plan, or other

such valid contractual agreement executed by the customer;

(B) The customer has made at least

one payment pursuant to that settlement agreement, debt management

plan, or other valid contractual agreement between the customer and the

creditor or debt collector; and

in a service are renegotiated, settled,

reduced, or otherwise altered individually, the fee or consideration either:

(1) Bears the same proportional relationship to the total fee for renegotiating, settling, reducing, or altering

the terms of the entire debt balance as

the individual debt amount bears to

the entire debt amount. The individual

debt amount and the entire debt

amount are those owed at the time the

debt was enrolled in the service; or

(2) Is a percentage of the amount

saved as a result of the renegotiation,

settlement, reduction, or alteration.

The percentage charged cannot change

from one individual debt to another.

The amount saved is the difference between the amount owed at the time the

debt was enrolled in the service and the

amount actually paid to satisfy the

debt.

(ii) Nothing in § 310.4(a)(5)(i) prohibits

requesting or requiring the customer

to place funds in an account to be used

for the debt relief provider’s fees and

for payments to creditors or debt collectors in connection with the renegotiation, settlement, reduction, or other

alteration of the terms of payment or

other terms of a debt, provided that:

(A) The funds are held in an account

at an insured financial institution;

(B) The customer owns the funds held

in the account and is paid accrued interest on the account, if any;

in any way affiliated with, the debt relief service;

(D) The entity administering the account does not give or accept any

money or other compensation in exchange for referrals of business involving the debt relief service; and

(E) The customer may withdraw from

the debt relief service at any time

without penalty, and must receive all

funds in the account, other than funds

earned by the debt relief service in

compliance

with

§ 310.4(a)(5)(i)(A)

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through (C), within seven (7) business

days of the customer’s request.

(6) Disclosing or receiving, for consideration, unencrypted consumer account numbers for use in telemarketing; provided, however, that

this paragraph shall not apply to the

disclosure or receipt of a customer’s or

donor’s billing information to process a

payment for goods or services or a

charitable contribution pursuant to a

transaction;

(7) Causing billing information to be

submitted for payment, directly or indirectly, without the express informed

consent of the customer or donor. In

any telemarketing transaction, the

seller or telemarketer must obtain the

express informed consent of the customer or donor to be charged for the

goods or services or charitable contribution and to be charged using the

identified account. In any telemarketing

transaction

involving

preacquired account information, the

requirements in paragraphs (a)(7)(i)

through (ii) of this section must be met

to evidence express informed consent.

(i) In any telemarketing transaction

involving preacquired account information and a free-to-pay conversion feature, the seller or telemarketer must:

(A) Obtain from the customer, at a

minimum, the last four (4) digits of the

account number to be charged;

(B) Obtain from the customer his or

her express agreement to be charged

for the goods or services and to be

charged using the account number pursuant to paragraph (a)(7)(i)(A) of this

section; and,

transaction.

(ii) In any other telemarketing transaction involving preacquired account

information not described in paragraph

(a)(7)(i) of this section, the seller or

telemarketer must:

(A) At a minimum, identify the account to be charged with sufficient

specificity for the customer or donor to

understand what account will be

charged; and

(B) Obtain from the customer or

donor his or her express agreement to

be charged for the goods or services

and to be charged using the account

number identified pursuant to paragraph (a)(7)(ii)(A) of this section;

(8) Failing to transmit or cause to be

transmitted the telephone number,

and, when made available by the telemarketer’s carrier, the name of the

telemarketer, to any caller identification service in use by a recipient of a

telemarketing call; provided that it

shall not be a violation to substitute

(for the name and phone number used

in, or billed for, making the call) the

name of the seller or charitable organization on behalf of which a telemarketing call is placed, and the seller’s or charitable organization’s customer or donor service telephone number, which is answered during regular

business hours;

(9) Creating or causing to be created,

directly or indirectly, a remotely created payment order as payment for

goods or services offered or sold

through telemarketing or as a charitable contribution solicited or sought

through telemarketing; or

(10) Accepting from a customer or

donor, directly or indirectly, a cash-tocash money transfer or cash reload

mechanism as payment for goods or

services offered or sold through telemarketing or as a charitable contribution solicited or sought through telemarketing.

(b) Pattern of calls. (1) It is an abusive

telemarketing act or practice and a

violation of this part for a telemarketer to engage in, or for a seller

to cause a telemarketer to engage in,

the following conduct:

(i) Causing any telephone to ring, or

engaging any person in telephone conversation, repeatedly or continuously

with intent to annoy, abuse, or harass

any person at the called number;

(ii) Denying or interfering in any

way, directly or indirectly, with a person’s right to be placed on any registry

of names and/or telephone numbers of

persons who do not wish to receive outbound telephone calls established to

comply with paragraph (b)(1)(iii)(A) of

this section, including, but not limited

to, harassing any person who makes

such a request; hanging up on that person; failing to honor the request; requiring the person to listen to a sales

pitch before accepting the request; assessing a charge or fee for honoring the

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§ 310.4

request; requiring a person to call a

different number to submit the request; and requiring the person to identify the seller making the call or on

whose behalf the call is made;

(iii) Initiating any outbound telephone call to a person when:

(A) That person previously has stated

that he or she does not wish to receive

an outbound telephone call made by or

on behalf of the seller whose goods or

services are being offered or made on

behalf of the charitable organization

for which a charitable contribution is

being solicited; or

(B) That person’s telephone number

is on the ‘‘do-not-call’’ registry, maintained by the Commission, of persons

who do not wish to receive outbound

telephone calls to induce the purchase

of goods or services unless the seller or

telemarketer:

(1) Can demonstrate that the seller

has obtained the express agreement, in

writing, of such person to place calls to

that person. Such written agreement

shall clearly evidence such person’s authorization that calls made by or on

behalf of a specific party may be placed

to that person, and shall include the

telephone number to which the calls

may be placed and the signature 1 of

that person; or

(2) Can demonstrate that the seller

has an established business relationship with such person, and that person

has not stated that he or she does not

wish to receive outbound telephone

calls under paragraph (b)(1)(iii)(A) of

this section; or

(iv) Abandoning any outbound telephone call. An outbound telephone call

is ‘‘abandoned’’ under this section if a

person answers it and the telemarketer

does not connect the call to a sales representative within two (2) seconds of

the person’s completed greeting.

(v) Initiating any outbound telephone

call that delivers a prerecorded message, other than a prerecorded message

permitted for compliance with the call

abandonment

safe

harbor

§ 310.4(b)(4)(iii), unless:

(A) In any such call to induce the

purchase of any good or service, the

seller has obtained from the recipient

of the call an express agreement, in

writing, that:

(i) The seller obtained only after a

clear and conspicuous disclosure that

the purpose of the agreement is to authorize the seller to place prerecorded

calls to such person;

(ii) The seller obtained without requiring, directly or indirectly, that the

agreement be executed as a condition

of purchasing any good or service;

(iii) Evidences the willingness of the

recipient of the call to receive calls

that deliver prerecorded messages by

or on behalf of a specific seller; and

(iv) Includes such person’s telephone

number and signature;2 and

(B) In any such call to induce the

purchase of any good or service, or to

induce a charitable contribution from a

member of, or previous donor to, a nonprofit charitable organization on whose

behalf the call is made, the seller or

telemarketer:

(i) Allows the telephone to ring for at

least fifteen (15) seconds or four (4)

rings before disconnecting an unanswered call; and

(ii) Within two (2) seconds after the

completed greeting of the person

called, plays a prerecorded message

that promptly provides the disclosures

required by § 310.4(d) or (e), followed

immediately by a disclosure of one or

both of the following:

(A) In the case of a call that could be

answered in person by a consumer, that

the person called can use an automated

interactive voice and/or keypress-activated opt-out mechanism to assert a

Do Not Call request pursuant to

§ 310.4(b)(1)(iii)(A) at any time during

the message. The mechanism must:

(1) Automatically add the number

called to the seller’s entity-specific Do

Not Call list;

(2) Once invoked, immediately disconnect the call; and

(3) Be available for use at any time

during the message; and

1 For purposes of this part, the term ‘‘signature’’ shall include an electronic or digital

form of signature, to the extent that such

form of signature is recognized as a valid signature under applicable federal law or state

contract law.

2 For purposes of this part, the term ‘‘signature’’ shall include an electronic or digital

form of signature, to the extent that such

form of signature is recognized as a valid signature under applicable federal law or state

contract law.

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(B) In the case of a call that could be

answered by an answering machine or

voicemail service, that the person

called can use a toll-free telephone

number to assert a Do Not Call request

pursuant to § 310.4(b)(1)(iii)(A). The

number provided must connect directly

to an automated interactive voice or

keypress-activated opt-out mechanism

that:

(1) Automatically adds the number

called to the seller’s entity-specific Do

Not Call list;

(2)

Immediately

thereafter

disconnects the call; and

(3) Is accessible at any time throughout the duration of the telemarketing

campaign; and

(iii) Complies with all other requirements of this part and other applicable

federal and state laws.

applicable requirements of this paragraph (v) shall not be deemed to violate

§ 310.4(b)(1)(iv) of this part.

(D) This paragraph (v) shall not apply

to any outbound telephone call that delivers a prerecorded healthcare message made by, or on behalf of, a covered

entity or its business associate, as

those terms are defined in the HIPAA

Privacy Rule, 45 CFR 160.103.P≤(2) It is

an abusive telemarketing act or practice and a violation of this part for any

person to sell, rent, lease, purchase, or

use any list established to comply with

§ 310.4(b)(1)(iii)(A) or § 310.5, or maintained by the Commission pursuant to

§ 310.4(b)(1)(iii)(B), for any purpose except compliance with the provisions of

this part or otherwise to prevent telephone calls to telephone numbers on

such lists.

(3) A seller or telemarketer will not

be liable for violating § 310.4(b)(1)(ii)

and (iii) if it can demonstrate that, as

part of the seller’s or telemarketer’s

routine business practice:

(i) It has established and implemented written procedures to comply

with § 310.4(b)(1)(ii) and (iii);

(ii) It has trained its personnel, and

any entity assisting in its compliance,

in the procedures established pursuant

to § 310.4(b)(3)(i);

(iii) The seller, or a telemarketer or

another person acting on behalf of the

seller or charitable organization, has

maintained and recorded a list of tele-

phone numbers the seller or charitable

organization may not contact, in compliance with § 310.4(b)(1)(iii)(A);

(iv) The seller or a telemarketer uses

a process to prevent telemarketing to

any telephone number on any list established pursuant to § 310.4(b)(3)(iii) or

310.4(b)(1)(iii)(B), employing a version

of the ‘‘do-not-call’’ registry obtained

from the Commission no more than

thirty-one (31) days prior to the date

any call is made, and maintains

records documenting this process;

(v) The seller or a telemarketer or

another person acting on behalf of the

seller or charitable organization, monitors and enforces compliance with the

procedures established pursuant to

§ 310.4(b)(3)(i); and

(vi) Any subsequent call otherwise

violating paragraph (b)(1)(ii) or (iii) of

this section is the result of error and

not of failure to obtain any information necessary to comply with a request

pursuant

paragraph

(b)(1)(iii)(A) of this section not to receive further calls by or on behalf of a

seller or charitable organization.

(4) A seller or telemarketer will not

be liable for violating § 310.4(b)(1)(iv) if:

(i) The seller or telemarketer employs technology that ensures abandonment of no more than three (3) percent of all calls answered by a person,

measured over the duration of a single

calling campaign, if less than 30 days,

or separately over each successive 30day period or portion thereof that the

campaign continues.

(ii) The seller or telemarketer, for

each telemarketing call placed, allows

the telephone to ring for at least fifteen (15) seconds or four (4) rings before

disconnecting an unanswered call;

(iii) Whenever a sales representative

is not available to speak with the person answering the call within two (2)

seconds after the person’s completed

greeting, the seller or telemarketer

promptly plays a recorded message

that states the name and telephone

number of the seller on whose behalf

the call was placed3; and

3 This provision does not affect any seller’s

or telemarketer’s obligation to comply with

relevant state and federal laws, including

but not limited to the TCPA, 47 U.S.C. 227,

and 47 CFR part 64.1200.

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§ 310.5

(iv) The seller or telemarketer, in accordance with § 310.5(b)-(d), retains

records establishing compliance with

§ 310.4(b)(4)(i)-(iii).

the prior consent of a person, it is an

abusive telemarketing act or practice

and a violation of this part for a telemarketer to engage in outbound telephone calls to a person’s residence at

any time other than between 8:00 a.m.

and 9:00 p.m. local time at the called

person’s location.

(d) Required oral disclosures in the sale

of goods or services. It is an abusive telemarketing act or practice and a violation of this part for a telemarketer in

an outbound telephone call or internal

or external upsell to induce the purchase of goods or services to fail to disclose truthfully, promptly, and in a

clear and conspicuous manner to the

person receiving the call, the following

information:

(1) The identity of the seller;

(2) That the purpose of the call is to

sell goods or services;

(3) The nature of the goods or services; and

(4) That no purchase or payment is

necessary to be able to win a prize or

participate in a prize promotion if a

prize promotion is offered and that any

purchase or payment will not increase

the person’s chances of winning. This

disclosure must be made before or in

conjunction with the description of the

prize to the person called. If requested

by that person, the telemarketer must

disclose the no-purchase/no-payment

entry method for the prize promotion;

provided, however, that, in any internal upsell for the sale of goods or services, the seller or telemarketer must

provide the disclosures listed in this

section only to the extent that the information in the upsell differs from the

disclosures provided in the initial telemarketing transaction.

(e) Required oral disclosures in charitable solicitations. It is an abusive telemarketing act or practice and a violation of this part for a telemarketer, in

an outbound telephone call to induce a

charitable contribution, to fail to disclose truthfully, promptly, and in a

clear and conspicuous manner to the

person receiving the call, the following

information:

(1) The identity of the charitable organization on behalf of which the request is being made; and

(2) That the purpose of the call is to

solicit a charitable contribution.

[75 FR 48516, Aug. 10, 2010, as amended at 76

FR 58716, Sept. 22, 2011; 80 FR 77559, Dec. 14,

2015; 89 FR 26784, 26785, Apr. 16, 2024]

§ 310.5 Recordkeeping requirements.

(a) Any seller or telemarketer must

keep, for a period of 5 years from the

date the record is produced unless specified otherwise, the following records

relating to its telemarketing activities:

(1) A copy of each substantially different advertising, brochure, telemarketing script, and promotional material, and a copy of each unique

prerecorded message. Such records

must be kept for a period of 5 years

from the date that they are no longer

used in telemarketing;

(2) A record of each telemarketing

call, which must include:

(i) The telemarketer that placed or

received the call;

(ii) The seller or person for which the

telemarketing call is placed or received;

(iii) The good, service, or charitable

purpose that is the subject of the telemarketing call;

(iv) Whether the telemarketing call

is to an individual consumer or a business consumer;

(v) Whether the telemarketing call is

an outbound telephone call;

(vi) Whether the telemarketing call

utilizes a prerecorded message;

(vii) The calling number, called number, date, time, and duration of the

telemarketing call;

(viii) The telemarketing script(s) and

prerecorded message, if any, used during the call;

(ix) The caller identification telephone number, and if it is transmitted,

the caller identification name that is

transmitted in an outbound telephone

call to the recipient of the call, and

any contracts or other proof of authorization for the telemarketer to use

that telephone number and name, and

the time period for which such authorization or contract applies; and

(x) The disposition of the call, including but not limited to, whether the call

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was answered, connected, dropped, or

transferred. If the call was transferred,

the record must also include the telephone number or IP address that the

call was transferred to as well as the

company name, if the call was transferred to a company different from the

seller or telemarketer that placed the

call; provided, however, that for calls

that an individual telemarketer makes

by manually entering a single telephone number to initiate the call to

that number, a seller or telemarketer

need not retain the records specified in

paragraphs (a)(2)(vii) and (a)(2)(x) of

this section.

(3) For each prize recipient, a record

of the name, last known telephone

number, and last known physical or

email address of that prize recipient,

and the prize awarded for prizes that

are represented, directly or by implication, to have a value of $25.00 or more;

(4) For each customer, a record of the

name, last known telephone number,

and last known physical or email address of that customer, the goods or

services purchased, the date such goods

or services were purchased, the date

such goods or services were shipped or

provided, and the amount paid by the

customer for the goods or services; 1

(5) For each person with whom a seller intends to assert it has an established business relationship under

§ 310.2(q)(2), a record of the name and

last known telephone number of that

person, the date that person submitted

an inquiry or application regarding the

seller’s goods or services, and the goods

or services inquired about;

(6) For each person that a telemarketer intends to assert is a previous donor to a particular charitable

organization under § 310.2(aa), a record

of the name and last known telephone

number of that person, and the last

date that person donated to that particular charitable organization;

(7) For each current or former employee directly involved in telephone

sales or solicitations, a record of the

1 For offers of consumer credit products

subject to the Truth in Lending Act, 15

U.S.C. 1601 et seq., and Regulation Z, 12 CFR

pt. 226, compliance with the recordkeeping

requirements under the Truth in Lending

Act, and Regulation Z, will constitute compliance with § 310.5(a)(4) of this part.

name, any fictitious name used, the

last known home address and telephone

number, and the job title(s) of that employee; provided, however, that if the

seller or telemarketer permits fictitious names to be used by employees,

each fictitious name must be traceable

to only one specific employee;

(8) All verifiable authorizations or

records of express informed consent or

express agreement (collectively, ‘‘Consent’’) required to be provided or received under this part. A complete

record of Consent includes the following:

(i) The name and telephone number

of the person providing Consent;

(ii) A copy of the request for Consent

in the same manner and format in

which it was presented to the person

providing Consent;

(iii) The purpose for which Consent is

requested and given;

(iv) A copy of the Consent provided;

(v) The date Consent was given; and

(vi) For the copy of Consent provided

under

§ 310.3(a)(3),

§ 310.4(a)(7),

§ 310.4(b)(1)(iii)(B)(1),

§ 310.4(b)(1)(v)(A), a complete record

must also include all information specified in those respective sections of

this part;

(9) A record of each service provider a

telemarketer used to deliver an outbound telephone call to a person on behalf of a seller for each good or service

the seller offers for sale through telemarketing. For each such service provider, a complete record includes the

contract for the service provided, the

date the contract was signed, and the

time period the contract is in effect.

Such contracts must be kept for 5

years from the date the contract expires;

(10) A record of each person who has

stated she does not wish to receive any

outbound telephone calls made on behalf of a seller or charitable organization pursuant to § 310.4(b)(1)(iii)(A) including: the name of the person, the

telephone number(s) associated with

the request, the seller or charitable organization from which the person does

not wish to receive calls, the telemarketer that called the person, the

date the person requested that she

cease receiving such calls, and the

goods or services the seller was offering

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Page 40 of 44

§ 310.5

for sale or the charitable purpose for

which a charitable contribution was

being solicited; and

(11) A record of which version of the

Commission’s ‘‘do-not-call’’ registry

was used to ensure compliance with

§ 310.4(b)(1)(iii)(B). Such record must include:

(i) The name of the entity which

accessed the registry;

(ii) The date the ‘‘do-not-call’’ registry was accessed;

(iii) The subscription account number that was used to access the registry; and

(iv) The telemarketing campaign for

which it was accessed.

(b) A seller or telemarketer may

keep the records required by paragraph

(a) of this section in the same manner,

format, or place as they keep such

records in the ordinary course of business. The format for records required

by paragraph (a)(2)(vii) of this section,

and any other records that include a

time or telephone number, must also

comply with the following:

(1) The format for domestic telephone numbers must comport with the

North American Numbering plan;

(2) The format for international telephone numbers must comport with the

standard established in the International Telecommunications Union’s

Recommendation ITU–T E.164: Series

E: Overall Network Operation, Telephone Service, Service Operation and

Human Factors, published 11/2010 (incorporated by reference, see paragraph

(g)(1) of this section);

(3) The time and duration of a call

must be kept to the closest second; and

(4) Time must be recorded in Coordinated Universal Time (UTC).

in a complete and accurate manner,

and in compliance with paragraph (b)

of this section, as applicable, is a violation of this part.

(d) For records kept pursuant to

paragraph (a)(2) of this section, the

seller or telemarketer will not be liable

for failure to keep complete and accurate records pursuant to this part if it

can demonstrate, with documentation,

that as part of its routine business

practice:

(1) It has established and implemented procedures to ensure completeness and accuracy of its records;

(2) It has trained its personnel, and

any entity assisting it in its compliance, in such procedures;

(3) It monitors compliance with and

enforces such procedures, and maintains records documenting such monitoring and enforcement; and

(4) Any failure to keep complete and

accurate records was temporary, due to

inadvertent error, and corrected within

30 days of discovery.

(e) The seller and the telemarketer

calling on behalf of the seller may, by

written agreement, allocate responsibility between themselves for the recordkeeping required by this section.

When a seller and telemarketer have

entered into such an agreement, the

terms of that agreement will govern,

and the seller or telemarketer, as the

case may be, need not keep records

that duplicate those of the other. If by

written agreement the telemarketer

bears the responsibility for the recordkeeping requirements of this section,

the seller must establish and implement practices and procedures to ensure the telemarketer is complying

with the requirements of this section.

These practices and procedures include

retaining access to any record the telemarketer creates under this section on

the seller’s behalf. If the agreement is

unclear as to who must maintain any

required record(s), or if no such agreement exists, both the telemarketer and

the seller are responsible for complying

with this section.

(f) In the event of any dissolution or

termination of the seller’s or telemarketer’s business, the principal of

that seller or telemarketer must maintain all records required under this section. In the event of any sale, assignment, or other change in ownership of

the seller’s or telemarketer’s business,

the successor business must maintain

all records required under this section.

(g) The material required in this section is incorporated by reference into

this section with the approval of the

Director of the Federal Register under

5 U.S.C. 552(a) and 1 CFR part 51. All

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§ 310.6

Filed 09/04/26

Page 41 of 44

16 CFR Ch. I (1–1–25 Edition)

approved material is available for inspection at the Federal Trade Commission (FTC) and at the National Archives and Records Administration

(NARA). Contact FTC at: FTC Library,

(202) 326–2395, Federal Trade Commission, Room H–630, 600 Pennsylvania Avenue NW, Washington, DC 20580, or by

email at Library@ftc.gov. For information on the availability of this material

NARA,

fr.inspection@nara.gov

www.archives.gov/federal-register/cfr/ibrlocations.html. It is available from: The

International

Telecommunications

Union, Telecommunications Standardization Bureau, Place des Nations, CH–

1211 Geneva 20; (+41 22 730 5852); https://

www.itu.int/en/pages/default.aspx.

(1) Recommendation ITU–T E.164: Series E: Overall Network Operation,

Telephone Service, Service Operation

and Human Factors, published 11/2010.

(2) [Reserved]

[89 FR 26784, Apr. 16, 2024]

§ 310.6 Exemptions.

(a) Solicitations to induce charitable

contributions via outbound telephone

calls

are

not

covered

§ 310.4(b)(1)(iii)(B) of this part.

(b) The following acts or practices

are exempt from this part:

(1) The sale of pay-per-call services

subject to the Commission’s Rule entitled ‘‘Trade Regulation Rule Pursuant

to the Telephone Disclosure and Dispute Resolution Act of 1992,’’ 16 CFR

part 308, provided, however, that this

exemption does not apply to the requirements of § 310.4(a)(1), (a)(8), (b),

and (c);

(2) The sale of franchises subject to

the Commission’s Rule entitled ‘‘Disclosure Requirements and Prohibitions

Concerning Franchising,’’ (‘‘Franchise

Rule’’) 16 CFR part 436, and the sale of

business opportunities subject to the

Commission’s Rule entitled ‘‘Disclosure Requirements and Prohibitions

Concerning Business Opportunities,’’

(‘‘Business Opportunity Rule’’) 16 CFR

part 437, provided, however, that this

exemption does not apply to the requirements of § 310.4(a)(1), (a)(8), (b),

and (c);

(3) Telephone calls in which the sale

of goods or services or charitable solicitation is not completed, and payment

or authorization of payment is not required, until after a face-to-face sales

or donation presentation by the seller

or charitable organization, provided,

however, that this exemption does not

apply

the

requirements

§ 310.4(a)(1), (a)(8), (b), and (c);

(4) Telephone calls initiated by a customer or donor that are not the result

of any solicitation by a seller, charitable organization, or telemarketer,

provided, however, that this exemption

does not apply to any instances of

upselling included in such telephone

calls;

(5) Telephone calls initiated by a customer or donor in response to an advertisement through any medium, other

than direct mail solicitation, provided,

however, that this exemption does not

apply to:

(i) Calls initiated by a customer or

donor in response to an advertisement

relating to investment opportunities,

debt relief services, business opportunities other than business arrangements

covered by the Franchise Rule or Business Opportunity Rule, or advertisements involving offers for goods or

services described in § 310.3(a)(1)(vi) or

§ 310.4(a)(2) through (4);

(ii) The requirements of § 310.4(a)(9)

or (10); or

(iii) Any instances of upselling included in such telephone calls;

(6) Telephone calls initiated by a customer or donor in response to a direct

mail solicitation, including solicitations via the U.S. Postal Service, facsimile transmission, electronic mail,

and other similar methods of delivery

in which a solicitation is directed to

specific address(es) or person(s), that

clearly, conspicuously, and truthfully

discloses all material information listed in § 310.3(a)(1), for any goods or services offered in the direct mail solicitation, and that contains no material

misrepresentation regarding any item

contained in § 310.3(d) for any requested

charitable contribution; provided, however, that this exemption does not

apply to:

(i) Calls initiated by a customer in

response to a direct mail solicitation

relating to prize promotions, investment opportunities, debt relief services, business opportunities other than

business arrangements covered by the

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[75 FR 48516, Aug. 10, 2010, as amended at 80

FR 77559, Dec. 14, 2015; 89 FR 26785, Apr. 16,

2024]

EFFECTIVE DATE NOTE: At 89 FR 99075, Dec.

10, 2024, § 310.6 was amended by revising paragraphs (b)(5)(i) and (b)(6)(i), effective Jan. 9,

2025. For the convenience of the user, the revised text is set forth as follows:

Exemptions.

(b) * * *

(5) * * *

(i) Calls initiated by a customer or donor

in response to an advertisement relating to

investment opportunities, debt relief services, technical support services, business opportunities other than business arrangements covered by the Franchise Rule or

Business Opportunity Rule, or advertisements involving offers for goods or services

described in § 310.3(a)(1)(vi) or § 310.4(a)(2)

through (4);

(6) * * *

(i) Calls initiated by a customer in response to a direct mail solicitation relating

to prize promotions, investment opportunities, debt relief services, technical support

services, business opportunities other than

business arrangements covered by the Franchise Rule or Business Opportunity Rule, or

goods or services described in § 310.3(a)(1)(vi)

or § 310.4(a)(2) through (4);

Page 42 of 44

§ 310.8

Franchise Rule or Business Opportunity Rule, or goods or services described in § 310.3(a)(1)(vi) or § 310.4(a)(2)

through (4);

(ii) The requirements of § 310.4(a)(9)

or (10); or

(iii) Any instances of upselling included in such telephone calls; and

(7) Telephone calls between a telemarketer and any business to induce

the purchase of goods or services or a

charitable contribution by the business, provided, however that this exemption does not apply to:

(i) The requirements of § 310.3(a)(2)

and(4); or

(ii) Calls to induce the retail sale of

nondurable office or cleaning supplies;

provided,

however,

that

§§ 310.4(b)(1)(iii)(B) and 310.5 shall not

apply to sellers or telemarketers of

nondurable office or cleaning supplies.

§ 310.6

Filed 09/04/26

§ 310.7 Actions by states and private

persons.

(a) Any attorney general or other officer of a State authorized by the State

to bring an action under the Telemarketing and Consumer Fraud and

Abuse Prevention Act, and any private

person who brings an action under that

Act, must serve written notice of its

action on the Commission, if feasible,

prior to its initiating an action under

this part. The notice must be sent to

the Office of the Director, Bureau of

Consumer Protection, Federal Trade

Commission, Washington, DC 20580, at

tsrnotice@ftc.gov and must include a

copy of the State’s or private person’s

complaint and any other pleadings to

be filed with the court. If prior notice

is not feasible, the State or private person must serve the Commission with

the required notice immediately upon

instituting its action.

(b) Nothing contained in this Section

shall prohibit any attorney general or

other authorized state official from

proceeding in state court on the basis

of an alleged violation of any civil or

criminal statute of such state.

[75 FR 48516, Aug. 10, 2010, as amended at 89

FR 26785, Apr. 16, 2024]

§ 310.8 Fee for access to the National

Do Not Call Registry.

(a) It is a violation of this part for

any seller to initiate, or cause any

telemarketer to initiate, an outbound

telephone call to any person whose

telephone number is within a given

area code unless such seller, either directly or through another person, first

has paid the annual fee, required by

§ 310.8(c), for access to telephone numbers within that area code that are included in the National Do Not Call

Registry maintained by the Commission under § 310.4(b)(1)(iii)(B); provided,

however, that such payment is not necessary if the seller initiates, or causes

a telemarketer to initiate, calls solely

persons

pursuant

§§ 310.4(b)(1)(iii)(B)(i) or (ii), and the

seller does not access the National Do

Not Call Registry for any other purpose.

(b) It is a violation of this part for

any telemarketer, on behalf of any seller, to initiate an outbound telephone

call to any person whose telephone

427

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§ 310.9

Filed 09/04/26

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16 CFR Ch. I (1–1–25 Edition)

number is within a given area code unless that seller, either directly or

through another person, first has paid

the annual fee, required by § 310.8(c),

for access to the telephone numbers

within that area code that are included

in the National Do Not Call Registry;

provided, however, that such payment

is not necessary if the seller initiates,

or causes a telemarketer to initiate,

calls solely to persons pursuant to

§§ 310.4(b)(1)(iii)(B)(i) or (ii), and the

seller does not access the National Do

Not Call Registry for any other purpose.

paid by any person prior to obtaining

access to the National Do Not Call

Registry, is $80 for each area code of

data accessed, up to a maximum of

$22,038; provided, however, that there

shall be no charge to any person for accessing the first five area codes of data,

and provided further, that there shall be

no charge to any person engaging in or

causing others to engage in outbound

telephone calls to consumers and who

is accessing area codes of data in the

National Do Not Call Registry if the

person is permitted to access, but is

not required to access, the National Do

Not Call Registry under 47 CFR 64.1200,

or any other Federal regulation or law.

No person may participate in any arrangement to share the cost of accessing the National Do Not Call Registry,

including any arrangement with any

telemarketer or service provider to divide the costs to access the registry

among various clients of that telemarketer or service provider.

(d) Each person who pays, either directly or through another person, the

annual fee set forth in paragraph (c) of

this section, each person excepted

under paragraph (c) from paying the

annual fee, and each person excepted

from paying an annual fee under

§ 310.4(b)(1)(iii)(B), will be provided a

unique account number that will allow

that person to access the registry data

for the selected area codes at any time

for the twelve month period beginning

on the first day of the month in which

the person paid the fee (‘‘the annual period’’). To obtain access to additional

area codes of data during the first six

months of the annual period, each person required to pay the fee under para-

graph (c) of this section must first pay

$80 for each additional area code of

data not initially selected. To obtain

access to additional area codes of data

during the second six months of the annual period, each person required to

pay the fee under paragraph (c) of this

section must first pay $40 for each additional area code of data not initially

selected. The payment of the additional fee will permit the person to access the additional area codes of data

for the remainder of the annual period.

(e) Access to the National Do Not

Call Registry is limited to telemarketers, sellers, others engaged in or

causing others to engage in telephone

calls to consumers, service providers

acting on behalf of such persons, and

any government agency that has law

enforcement authority. Prior to accessing the National Do Not Call Registry,

a person must provide the identifying

information required by the operator of

the registry to collect the fee, and

must certify, under penalty of law,

that the person is accessing the registry solely to comply with the provisions of this part or to otherwise prevent telephone calls to telephone numbers on the registry. If the person is accessing the registry on behalf of sellers, that person also must identify

each of the sellers on whose behalf it is

accessing the registry, must provide

each seller’s unique account number

for access to the national registry, and

must certify, under penalty of law,

that the sellers will be using the information gathered from the registry

solely to comply with the provisions of

this part or otherwise to prevent telephone calls to telephone numbers on

the registry.

[75 FR 48516, Aug. 10, 2010; 75 FR 51934, Aug.

24, 2010, as amended at 77 FR 51697, Aug. 27,

2012; 78 FR 53643, Aug. 30, 2013; 79 FR 51478,

Aug. 29, 2014; 80 FR 77560, Dec. 14, 2016; 81 FR

59845, Aug. 31, 2016; 82 FR 39534, Aug. 21, 2017;

83 FR 46640, Sept. 14, 2018; 84 FR 44687, Aug.

27, 2019; 85 FR 62597, Oct. 5, 2020; 86 FR 48301,

Aug. 30, 2021; 87 FR 53373, Aug. 31, 2022; 88 FR

57334, Aug. 23, 2023; 89 FR 26785, Apr. 16, 2024;

89 FR 70095, Aug. 29, 2024]

§ 310.9

Severability.

The provisions of this part are separate and severable from one another. If

any provision is stayed or determined

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Federal Trade Commission

§ 311.5

to be invalid, it is the Commission’s intention that the remaining provisions

shall continue in effect.

[75 FR 48516, Aug. 10, 2010, as amended at 89

FR 26785, Apr. 16, 2024]

PART 311—TEST PROCEDURES AND

LABELING STANDARDS FOR RECYCLED OIL

Sec.

311.1 Definitions.

311.2 Stayed or invalid parts.

311.3 Preemption.

311.4 Testing.

311.5 Labeling.

311.6 Prohibited acts.

AUTHORITY: 42 U.S.C. 6363(d).

SOURCE: 60 FR 55421, Oct. 31, 1995, unless

otherwise noted.

§ 311.1

Page 44 of 44

Definitions.

As used in this part:

(a) Manufacturer means any person

who re-refines or otherwise processes

used oil to remove physical or chemical impurities acquired through use or

who blends such re-refined or otherwise

processed used oil with new oil or additives.

(b) New oil means any synthetic oil or

oil that has been refined from crude oil

and which has not been used and may

or may not contain additives. Such

term does not include used oil or recycled oil.

or otherwise processed used oil or blend

of oil, consisting of such re-refined or

otherwise processed used oil and new

oil or additives.

(d) Recycled oil means processed used

oil that the manufacturer has determined, pursuant to section 311.4 of this

part, is substantially equivalent to new

oil for use as engine oil.

(e) Used oil means any synthetic oil

or oil that has been refined from crude

oil, which has been used and, as a result of such use, has been contaminated by physical or chemical impurities.

(f) Re-refined oil means used oil from

which physical and chemical contaminants acquired through use have been

removed.

§ 311.2 Stayed or invalid parts.

If any part of this rule is stayed or

held invalid, the rest of it will remain

in force.

§ 311.3 Preemption.

No law, regulation, or order of any

State or political subdivision thereof

may apply, or remain applicable, to

any container of recycled oil, if such

law, regulation, or order requires any

container of recycled oil, which container bears a label in accordance with

the terms of § 311.5 of this part, to bear

any label with respect to the comparative characteristics of such recycled oil

with new oil that is not identical to

that permitted by § 311.5 of this part.

§ 311.4 Testing.

To determine the substantial equivalency of processed used oil with new oil

for use as engine oil, manufacturers or

their designees must use the test procedures in API 1509, Engine Oil Licensing and Certification System, Seventeenth Edition, September 2012 (Addendum 1, October 2014, Errata, March

2015). The Director of the Federal Register approves this incorporation by

reference in accordance with 5 U.S.C.

552(a) and 1 CFR part 51. You may obtain a copy from API, 1220 L Street

NW, Washington, DC 20005; telephone:

202–682–8000; internet address: https://

www.api.org. You may inspect a copy

at the FTC Library, 202–326–2395, Federal Trade Commission, Room H–630,

600 Pennsylvania Avenue NW, Washington, DC 20580. It is also available for

inspection at the National Archives

and Records Administration (NARA).

For information on the availability of

this material at NARA, call 202–741–

6030 or go to http://www.archives.gov/federal_register/code_of_federal_regulations/

ibr_locations.html.

[83 FR 48216, Sept. 24, 2018]

§ 311.5 Labeling.

A manufacturer or other seller may

represent, on a label on a container of

processed used oil, that such oil is substantially equivalent to new oil for use

as engine oil only if the manufacturer

has determined that the oil is substantially equivalent to new oil for use as

engine oil in accordance with the NIST

429

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.