Regulators extend comment period for rule on telemarketing scams

The Federal Trade Commission (FTC) on Friday announced it was extending the comment period for the proposed changes to the agency’s Telemarketing Sales Rule to Aug. 8. The period was previously slated to end July 29. 

The proposed regulations would ban certain payment methods employed in telemarketing scams.

Specifically, the rule would keep telemarketers from dipping directly into consumers’ bank accounts via unsigned checks or certain payment orders that can allow criminals to debit bank accounts without permission, according to the FTC. 

It would also prohibit telemarketers from getting paid with traditional “cash-to-cash” money transfers, which scammers use to get money anonymously from their victims.

First proposed on May 29, the regulations were changed slightly this week. Though still substantially the same, the FTC voted 4-0 to extend the comment period in light of the adjustments.