Telemarketing for Consumers
In Montana, telemarketing is defined as using the phone to encourage consumers to purchase, rent or invest in goods, property or services. If you wish to stop receiving telemarketing calls, put your phone number on the do-not-call lists.
Recorded telemarketing messages are illegal in Montana under 45-8-216 of the Montana Code Annotated. There are a few exceptions such as the use of recorded messages to tell a customer that previously ordered goods are available for pick-up.
Do-Not-Call Lists
A do-not-call list is a list of phone numbers that telemarketers are not allowed to call. There are two lists – a federal and a state list. If you sign up on one, you are automatically placed on the other as well.
- The Federal Do-Not Call List only covers calls that cross state lines.
- The State Do-Not Call List covers all telemarketing calls within, to or from Montana.
If you place your phone number on the state and federal lists, you will receive fewer telemarketing calls. Three months after you sign up, it is illegal for most telemarketers to call you. In addition:
- Even if your number is not on the do-not-call lists, you still can ask a company to put you on its own do-not-call list. The company must honor your request.
- It is against the law for a telemarketer to call you before 8 a.m. and after 9 p.m.
How to Sign Up
It is free to sign up on the do-not-call lists. There are two ways to sign up:
- Call (888) 382-1222 or TTY (866) 290-4236 from the phone number you wish to add. For example, to add your home phone number, you must call using your home telephone.
- You can add up to three numbers by signing up online at the National Do Not Call Registry.
The only information collected is your phone number and the date you called. You will be signed up for five years or until your phone is disconnected. After five years, you may renew your registration.
You cannot sign up by writing a letter.
To remove your name from the lists, call (888) 382-1222 and follow the instructions provided.
Who Can Still Call?
Telemarketers are permitted to call for three months after you sign up. After that time, some organizations can still legally call:
- Political campaigns and surveys are not covered by the do-not-call list.
- Charities and nonprofits can still call you. If you do not want them to call, ask that they put you on their do-not-call list. If you ask them to, they must do so.
- Some telemarketers will still be able to call. For example:
- telemarketers you have authorized to call
- telemarketers who have an existing or previous business relationship with you (Montana's list allows businesses to call within 180 days of your contact with them; the national list allows them to call within 18 months.)
- telemarketers who are calling from their own homes
- professionals licensed by the state can call to set up appointments
To File a Complaint
If a telemarketer continues to call or you believe that a telemarketer has stolen your money, you may file a complaint against them.
- If you don't know where the telemarketer is calling from, call the Federal Trade Commission at (888) 382-1222.
- If you know they are calling from Montana, call the Montana Office of Consumer Protection at (406) 444-4500 or (800) 481-6896 or file a consumer complaint.
Telemarketing Fraud
Millions of Americans are ripped-off every year by fraudulent telemarketers. Over 40 billion dollars is lost each year to con artists. Fraudulent telemarketers often use phrases like these, so if you hear these lines, hang up immediately:
- "You've been specially selected to hear this offer."
- "You've won one of five valuable prizes."
- "You've won big money in a foreign lottery."
- "You must send money right away."
- "This investment is low risk and provides a higher return than you can get anywhere else."
- "You have to make up your mind right away."
- "We'll just put the shipping and handling charges on your credit card."
- "We need to verify your account number."
| Scam | Description |
|---|---|
| Bank Account or Credit Card Verification | In this "phishing" scam, someone pretending to be from your financial institution calls to advise you that your account was inadvertently exposed on the Internet, and tries to get you to divulge your account number. |
| Charities | Con artists often push you for an immediate gift, but won't send written information so you can check their "charity" out. They also may try to confuse you by using names that sound like well-known charitable organizations or even law enforcement agencies. |
| Foreign Lotteries | This scam claims you have won a lottery and need only wire the taxes to collect your winnings. Modern variations will send you a fake money order and ask you to send part of it back. |
| Government Grant or Loan | This scam claims you will receive a grant or loan if you pay a "filing fee." |
| Investments | "Get rich quick" schemes that promise high returns with little or no risk. These can include movie or cable television production deals, Internet gambling, rare coins, art or other "investment opportunities." The schemes vary, but one thing is consistent: unscrupulous promoters of investment fraud rely on the fact that investing can be complicated, and many people don't research the investment process. |
| Prize Offers | You usually have to do something to get your "free" prize, like attend a sales presentation, buy something, pay a fee or give out a credit card number. However, the prizes are worthless and your credit card may be used fraudulently. |
| Recovery Scams | If you fall victim to any of the above scams, you're likely to be placed in a so-called "sucker list" and be called again by someone promising to get your money back for a fee. Be careful not to lose more money to this common practice. Even law enforcement officials can't guarantee they'll recover your money. |
| Travel Packages | "Free" or "low cost" vacations with hidden costs, such as exorbitantly high prices for hotel or airfare. The total cost may run two to three times what you'd expect to pay or were told. Some "bargain" vacations never happen at all. |
Defensive Moves
In addition to knowing about the Telemarketing Sales Rule, it's a good idea to keep the following tips in mind whenever you hear a phone solicitation:
- Don't be pressured to make an immediate decision.
- Don't give your credit card, checking account or Social Security number if you did not initiate the call or are responding to junk mail.
- Don't buy something merely because you'll get a "free gift."
- Be cautious of statements that you've won a prize — particularly if the caller says you must send money to claim it.
- Don't agree to any offer where you have to pay a registration or shipping fee to receive a "prize."
- Get all information in writing before you agree to buy.
- Check out a charity before you give. Ask how much of your donation actually goes to the charity. Ask that written information be sent to you so you can make an informed giving decision.
- Don't invest your money with an unknown caller who insists you make up your mind immediately.
- If the offer is an investment, check with the State Auditor's Office to see if it's properly registered.
- Don't send cash by messenger or overnight mail. If you use cash rather than a credit card in the transaction, you may lose your right to dispute fraudulent charges.
- Make sure you know the per-minute charge for any 900 number calls you make.
- Check out unsolicited offers with the Office of Consumer Protection or the Better Business Bureau before you agree to send money.
- Beware of offers to "help" you recover money you may have lost previously. Be wary of callers saying they are law enforcement officers who will help you get your money back "for a fee."
Telemarketing Sales Rule
The Federal Trade Commission's Telemarketing Sales Rule requires certain disclosures and prohibits misrepresentations. It gives you the power to stop unwanted telemarketing calls and gives state law enforcement officers the authority to prosecute fraudulent telemarketers who operate across state lines.
The Rule covers most types of telemarketing calls to consumers, including calls to promote goods, services, "sweepstakes," and prize promotion or investment opportunities. It also applies to calls consumers make in response to materials received in the mail, or offers received through the Internet.
It can help you determine if you're talking with a legitimate telemarketer or a scam artist.
- Telemarketers must tell you it's a sales call and who's doing the selling before they make their pitch. If it's a prize promotion, they must tell you that no purchase or payment is necessary to enter or win. If you're asked to pay for a prize, hang up. Free is free.
- It's illegal for telemarketers to misrepresent any information, including facts about their goods or services, the earnings potential, profitability, or risk of an investment, or the nature of a prize in a prize-promotion scheme.
- Telemarketers must tell you the total cost of the products or services offered and any restrictions on getting or using them, or that a sale is final or nonrefundable, before you pay. In a prize promotion, they must tell you the odds of winning, that no purchase or payment is necessary to win, and any restrictions or conditions of receiving the prize.
- It's illegal for a telemarketer to withdraw money from your checking account without your express, verifiable authorization. That means they must tell you the total number of payments, the amount of each payment, the date the payments will be submitted to your bank, and which account they will charge.
- Telemarketers cannot lie to get you to pay, no matter what method of payment you use.