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STUART F. DELERYActing Assistant Attorney GeneralMAAME EWUSI-MENSAH FRIMPONGDeputy Assistant Attorney GeneralMICHAEL S. BLUMEDirector, Consumer Protection BranchRICHARD GOLDBERGAssistant Director, Consumer Protection Branch

U.S. Department of Justice450 Fifth Street, NW, Suite 6400 SouthWashington, D.C. 20001PHONE: 202-307-2532FAX: [email protected]

Attorneys for the United States of America

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN FRANCISCO DIVISION

UNITED STATES OF AMERICA,

Plaintiffs,

v.

SKYY CONSULTING, INC., also d/b/aCallFire, a California corporation,

Defendant.

)))))))))))

Case No.

[PROPOSED] STIPULATED ORDERFOR PERMANENT INJUNCTIONAND CIVIL PENALTY JUDGMENT

Plaintiff, the United States of America, acting upon notification and authorization to the

Attorney General by the Federal Trade Commission (Commission), filed its Complaint for a

permanent injunction, civil penalties, and other relief in this matter, pursuant to Sections 13(b),

19, and 16(a)(1) of the Federal Trade Commission Act (FTC Act), 15 U.S.C. 53(b), 57b,

[Proposed] Stipulated Order for Permanent Injunction and Civil Penalty Judgment, p. 1

Case4:13-cv-02136-DMR Document3 Filed05/13/13 Page1 of 28

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and 56(a)(1). Defendant has waived service of the summons and the Complaint. Plaintiff and

Defendant stipulate to the entry of this Stipulated Order for Permanent Injunction and Civil

Penalty Judgment (Order) to resolve all matters in dispute in this action between them.

THEREFORE, IT IS ORDERED as follows:

FINDINGS

1. This Court has jurisdiction over this matter.

2. The Complaint charges that Defendant participated in violations of the Telemarketing

Sales Rule, 16 C.F.R. Part 310, that also constitute violations of Section 5 of the FTC Act, 15

U.S.C. 45, in the assisting and facilitating of telemarketing.

3. Defendant neither admits nor denies any of the allegations in the Complaint, except as

specifically stated in this Order. Only for purposes of this action, Defendant admits the facts

necessary to establish jurisdiction.

4. Defendant waives any claim that it 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

agrees to bear its own costs and attorneys fees.

5. The parties 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 shall apply:

1. Assisting other persons means providing any of the following goods or services toanother person while knowing or consciously avoiding knowing that the person receiving

assistance is engaged in an act or practice that is prohibited by this Order: (i) serving as



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an officer, director, or consultant; (ii) initiating telephone calls for the purpose of

delivering prerecorded messages; (iii) providing or arranging for access to software,

equipment that dials stored or generated telephone numbers, or telecommunications

services for the purpose of initiating telephone calls that deliver prerecorded messages;

(iv) providing or arranging for access to services that permit alteration of the name of the

calling party displayed by caller identification services; (v) providing or acquiring lists

of names or telephone numbers for the purpose of contacting persons on the list by

telephone; (vi) formulating or providing, or arranging for the formulation or provision of,

any script or any other material for communicating with customers or potential

customers; or (vii) providing any other substantial help or aid.

2. Caller identification servicemeans a service that allows a telephone subscriber tohave 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.

3. Charitable contribution means any donation or gift of money or any other thing ofvalue.

4. Defendant means Skyy Consulting, Inc., whether doing business as CallFire orCallFire.com or under any other name, and its successors and assigns.

5. Do Not Call request means a statement by a person that indicates that he or she doesnot wish to receive telephone calls initiated to induce the purchase of goods or services or

to solicit charitable contributions.



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6. Established business relationshipmeans a relationship between the seller and aperson based on: (a) the person=s purchase, rental, or lease of the seller=s goods or

services or a financial transaction between the person and seller, within the eighteen (18)

months immediately preceding the date of the telemarketing call; or (b) the persons

inquiry or application regarding a product or service offered by the seller, within the three

(3) months immediately preceding the date of a telemarketing call.

7. National Do Not Call Registry means the National Do Not Call Registry, which is thedo-not-call registry maintained by the Commission pursuant to 16 C.F.R.

310.4(b)(1)(iii)(B).

8. Outbound telephone call means a telephone call initiated by a telemarketer to inducethe purchase of goods or services or to solicit a charitable contribution.

9. Person means any individual, group, unincorporated association, limited or generalpartnership, corporation, or other business entity.

10. Representatives means Defendants officers, agents, servants, employees, attorneys,and those persons in active concert or participation with them who receive actual notice

of this Order by personal service or otherwise.

11. 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, whether or not such person is under the jurisdiction of the

Commission.

12. Subscriber means any person who, for consideration, authorizes Defendant or itsRepresentatives to initiate, or arranges for Defendant or its Representatives to assist



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others in initiating, multiple telephone calls for the purpose of delivering prerecorded

messages, but does not include a person who purchases the right to use software and

receives no other good or service from Defendant.

13. Telemarketer means any person who, in connection with telemarketing, initiates orreceives telephone calls to or from a customer or donor.

14. Telemarketingmeans a plan, program, or campaign which is conducted to induce thepurchase of goods or services or a charitable contribution, by use of one or more

telephones and which involves more than one interstate telephone call. Telemarketing

does not include the solicitation of sales through the mailing of a catalog.

15. Telemarketing Sales Rule means the Commission rule titled Telemarketing SalesRule, 16 C.F.R. Part 310, attached as Appendix A.

ORDER

I. PROHIBITION AGAINST ILLEGAL TELEMARKETING PRACTICES

IT IS ORDERED that, in connection with telemarketing, Defendant and its

Representatives, whether acting directly or through any entity, corporation, subsidiary, division,

affiliate, or other device, are permanently restrained and enjoined from engaging in, causing

others to engage in, or assisting other persons to engage in:

A. Initiating any outbound telephone call that delivers a prerecorded message to induce the

purchase of any good or service unless, prior to making any such call, the seller has

obtained from the recipient of the call an express agreement, in writing, that:



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1. the seller obtained only after a clear and conspicuous disclosure that the purposeof the agreement is to authorize the seller to place prerecorded calls to such

person;

2. the seller obtained without requiring, directly or indirectly, that the agreement beexecuted as a condition of purchasing any good or service;

3. evidences the willingness of the recipient of the call to receive calls that deliverprerecorded messages by or on behalf of a specific seller; and

4.

includes such person=

s telephone number and signature; and

B. Violations of the Telemarketing Sales Rule, 16 C.F.R. Part 310, attached as Appendix A;Provided, however, that the requirements of this section do not apply to the solicitation of sales

by mailing a catalog.

II. TERMINATION OF NONCOMPLIANT SUBSCRIBERSIT IS FURTHER ORDERED that:

A. Defendant shall, within one hundred and twenty (120) days of the date of entry of thisOrder, review messages that its current subscribers deliver to Defendant or its

Representatives and, for each subscriber that delivers a message to businesses or

consumers that promotes the purchase of goods or services or solicits charitable

contributions, Defendant or its Representatives shall, within one hundred and twenty

(120) days of the date of entry of this Order:

1. Provide, electronically or otherwise, the subscriber with: (i) a copy of this Order,including Appendix A; and (ii) a written notice stating that the use of Defendant=s



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services to cause the initiation of telephone calls that do not comply with this

Order will result in immediate termination of services; and

2. Obtain from each such subscriber an electronic acknowledgment or other signedand dated statement acknowledging receipt of this Order and the written notice

concerning immediate termination of services.

B. Prior to commencing services that assist subscribers or prospective subscribers indelivering a message to businesses or consumers that was not reviewed under

Subparagraph A, Defendant shall review the message and, if the message promotes the

purchase of goods or services or solicits charitable contributions and the subscriber or

proposed subscriber seeking to deliver the messages has not previously provided a

statement acknowledging receipt of this Order, Defendant or its Representatives shall:

1. Provide, electronically or otherwise, each such subscriber or prospectivesubscriber with: (i) a copy of this Order, including Appendix A; and (ii) a written

notice stating that the use of Defendant=s services to cause the initiation of

telephone calls that do not comply with this Order will result in immediate

termination of services; and

2. Obtain from each such subscriber or prospective subscriber an electronicacknowledgment or other signed and dated statement acknowledging receipt of

this Order and the written notice concerning immediate termination of services.

C. Defendant shall:



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1. Terminate services to any subscriber immediately upon discovering that asubscriber has used the services of Defendant or its Representatives to initiate or

cause the initiation of telephone calls that do not comply with this Order;

2. Refuse to provide services to any prospective subscriber if such services wouldassist or support the initiation of telephone calls that do not comply with this

Order; and

3. Provide, electronically or otherwise, a copy of this Order (including Appendix A)to any person that purchases the right to use software Defendant

=

s services to

initiate telephone calls to deliver prerecorded messages and receives no other

good or service from Defendant.

III. MONETARY JUDGMENT FOR CIVIL PENALTYIT IS FURTHER ORDERED that:

A. Judgment in the amount of Seventy-five Thousand Dollars ($75,000) is entered in favorof Plaintiff against Defendant as a civil penalty.

B. Defendant is ordered to pay to Plaintiff, by making payment to the Treasurer of theUnited States, Seventy-five Thousand Dollars ($75,000), which, as Defendant stipulates,

its undersigned counsel holds in escrow for no purpose other than payment to Plaintiff.

Such payment must be made within 7 days of entry of this Order by electronic fund

transfer in accordance with instructions previously provided by a representative of

Plaintiff.

C. Defendant relinquishes dominion and all legal and equitable right, title, and interest in allassets transferred pursuant to this Order and may not seek the return of any assets.



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D. The facts alleged in the Complaint will be taken as true, without further proof, in anysubsequent 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.

E. Defendant agrees that the judgment represents a civil penalty owed to the government ofthe United States and is not compensation for actual pecuniary loss.

IV. ORDER ACKNOWLEDGMENTSIT IS FURTHER ORDERED that Defendant obtain acknowledgments of receipt of this

Order:

A. The Defendant, within 7 days of entry of this Order, must submit to the Commission an

acknowledgment of receipt of this Order sworn under penalty of perjury.

B. For 10 years after entry of this Order, Defendant must deliver a copy of this Order to:

(1) all principals, officers, directors, and managers; (2) all employees, agents, and representatives

who participate in assisting or facilitating telemarketing; and (3) any business entity resulting

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

must occur within 7 days of entry of this Order for current personnel. To all others, delivery

must occur before they assume their responsibilities.

C. From each individual or entity to which a Defendant delivered a copy of this Order, that

Defendant must obtain, within 30 days, a signed and dated acknowledgment of receipt of this

Order.



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V. COMPLIANCE REPORTINGIT IS FURTHER ORDERED that Defendant make timely submissions to the

Commission:

A. One year after entry of this Order, the Defendant must submit a compliance report, sworn

under penalty of perjury. The Defendant must: (a) designate at least one telephone number and

an email, physical, and postal address as points of contact, which representatives of the

Commission and Plaintiff 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 products and

services offered, the means of advertising, marketing, and sales; (d) describe in detail whether

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

of each Order Acknowledgment obtained pursuant to this Order, unless previously submitted to

the Commission;

B. For 10 years following entry of this Order, the Defendant must submit a compliance

notice, sworn under penalty of perjury, within 14 days of any change in the following:

. 1. any designated point of contact; or

2. the structure of the Defendant any entity that Defendant has any ownership

interest in or directly or indirectly controls 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.

C. The Defendant must submit to the Commission notice of the filing of any



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bankruptcy petition, insolvency proceeding, or any similar proceeding by or against the

Defendant within 14 days of its filing.

D. 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.

E. Unless otherwise directed by a Commission representative in writing, all submissions to

the Commission pursuant to this Order must be emailed to [email protected] or sent by overnight

courier (not the U.S. Postal Service) to: Associate Director for Enforcement, Bureau of

Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington,

DC 20580. The subject line must begin: United States v. Skyy Consulting, Inc., also d/b/a

CallFire, matter no. 1223011.

VI. RECORDKEEPINGIT IS FURTHER ORDERED that Defendant must create certain records for 10 years

after entry of the Order, and retain each such record for 5 years. Specifically, Defendant, in

connection with assisting or facilitating telemarketing, must maintain the following records:

A. Accounting records showing the revenues from all goods or services sold, all costs

incurred in generating those revenues, and the resulting net profit or loss;

B. Personnel records showing, for each person providing services, whether as an employee

or otherwise, that person=s: name, addresses, and telephone numbers; job title or position; dates

of service; and, if applicable, the reason for termination;



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C. Records of all consumer complaints and refund requests, whether received directly or

indirectly, such as through a third party, and any response; and

D. All records necessary to demonstrate full compliance with each provision of this Order,

including all submissions to the Commission.

VII. COMPLIANCE MONITORINGIT IS FURTHER ORDERED that, for the purpose of monitoring Defendant=s compliance

with this Order, including any failure to transfer any assets as required by this Order:

A. Within 14 days of receipt of a written request from a representative of the Commission or

Plaintiff, 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 and Plaintiff are 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.

B. For matters concerning this Order, the Commission and Plaintiff are authorized to

communicate directly with Defendant through undersigned counsel. If such counsel no longer

represents the Defendant, the Commission and Plaintiff are authorized to communicate directly

with such Defendant. Defendant must permit representatives of the Commission and Plaintiff 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.

C. The Commission and Plaintiff may use all other lawful means, including posing, through

its representatives, as consumers, suppliers, or other individuals or entities, to Defendant or any

individual or entity affiliated with Defendant, without the necessity of identification or prior



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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.

VIII. RETENTION OF JURISDICTIONIT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for

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

JUDGMENT IS THEREFORE ENTERED in favor of Plaintiff and against

Defendant, pursuant to all the terms and conditions recited above.

SO ORDERED this day of , 20___.

_______________________________UNITED STATES DISTRICT JUDGE

SO STIPULATED AND AGREED:

FOR THE PLAINTIFF:FOR THE UNITED STATES OF AMERICA

STUART F. DELERYActing Assistant Attorney General, CivilDivision

MAAME EWUSI-MENSAH FRIMPONGDeputy Assistant Attorney General, CivilDivision

MICHAEL S. BLUMEDirector, Consumer Protection BranchCivil DivisionU.S. Department of Justice

/s Richard Goldberg____________RICHARD GOLDBERG, Assistant DirectorConsumer Protection

FOR THE FEDERAL TRADECOMMISSION:

JEFFREY KLURFELDDirector, Western RegionFEDERAL TRADE COMMISSION

Kenneth H. AbbeDavid NewmanFederal Trade Commission901 Market St., Ste. 570San Francisco, CA 94103

U.S. Department of JusticeP.O. Box 386Washington, D.C. 20044PHONE: 202-307-2532FAX: [email protected]



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FOR DEFENDANT:1

/s Dinesh Ravishanker________Skyy Consulting, Inc., also d/b/a CallFire, byits CEO/Founder

/s Michael Hazzard___________Michael B. Hazzard, Esq.Arent Fox LLP1717 K Street, N.W.Washington, DC 20036-5342(202) 857-6029Counsel for Defendant

Date: 12/10/12

Date: 12/10/12

1 Signed version of Consent Decree with Defendant and Defense Counsel signatures are on file with Plaintiff.



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Federal Trade Commission

ALTERNATIVE FUELED VEHICLE BUYERS GUIDE

Before Selecting An Allorn:lllve Fueled Vehicle Consider:0 FIJEl.. O'PENIDAVNL.I'BAJTY!IO'OW """" I'Oi'li _ , _ " " " " " "Y !IO'PERrQRMNICE/COHYEHIEHCE: --I>OW'I"d byd1f'"ri " ' " 'dt ib b lhdt ..,IHyloalotUCDkl .. ow 11YQ k l>ka ., o/JIIho"'"lde$11!111o .. . c : ! l y , - ~ l i o n , . w and.......-h(lmo-E I E J I G Y S E ~ ! W l e W " " ' L I T Y C c n t < I . , . M 1 t l e a n d i > N i h o 6 > d - f t f 1 1 1 r t i o l o ! t o d o hl ) 4 > ! o l y p -EMISSIOI6: er...loNe"'"""""'rc ' -'n 'ooon. , . . t ldo

Additlanallnto

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310.2licenses a credlt ca rd syaLem co author-ize merchanr.s to accept, t1ansmit. orprocess payment by credit> ca.rclthrough the credit card sysr.em formoney, goods or services, or anyt.bJngelse of value.(b) Attorney Gcmeru l means the chieflegaJ ofllcer of a st ate .(C) Billing injormutwn means any data.thaL enahles any person Lo access a.cusr.omer's or donor's account. such asa credit ca.td. checking, savings. shareor silntlar account,.. utilit y bill. mortrgage loaH a.ccou.nc, or uebl t card.(d) Caller id.entificat.trm sen1tce means aservice lJ:ia t allows a te lephone sub-sc t1be1' Lo have th e te lepho11e number.and. wlle te available. name of the calllng uarty transmittetl contempora-neously with t.he telephone e ~ t l l . anddisplayed on a. device in or connectedco the subscriber's telephone.(e) Ca.l'dlwlder means a person towhom a c r e d l ~ card is issued Ot' who isauLholized to use a CI'edic cru-d on be-bali of or in atlillt1on to tb e person cowhom the credi& card is issued.

{f) Charitable contrlbtttion means anydonation or g:lft of o1oney or any ot.hert.hing of \alue.

(g l Com.IIliSSIOn means the FederalTrade Commission.{h) Crecltt means the right granted bya c r o r u ~ o r to a debtor to defer paymentof del't. 01 to tnctu debt antl defel' i'CSp a ~ m e n t .(1) Crcd;t curd means MY card. plate.coupon book. or oche.r cretllc device ex

l s ~ i . n g for th e purpose of obtainingmoney. propert.y. labor, or services oncredit.(i ) Credit card sales draft means anyrPcorct ot ev1clence of a crediL cardtransaction.{k) Cred1t caret system means anymethod or procedure used t.o process

credit card cmnsactions involving crcd-1 . crutls Issued or licensed by t11e opeeator of Lhat system.CIJ Customer means any person wllo isor may be reqltiJed to pay for goods orse l'VlCcs o[fererl Lh:rough telemarketing.(m) Del>t te.lieJ sentce means an y prog-ram Ol ' 5er\ice reprl:'scnted, d i r e c ~ l y orl>y irnplicat.lon. to renegociace. settle.or in any way a.Jt-er che Lerms of pa y-ment or ocher terms of the de1>t bcLwt!en a parson and one or more unsl'-

16 CFR Ch. I (1-1-12 Edition)cured creclicot'S or collectors. in -cluding, bu t no t Jtmltec.l to , a recluctioni l l th e balance, Interest rate. or feesowed by a DEU-son to an unsecured creditor or debt coll ector.(n> Donor means an y person solicitedto make a charitable contribution.(o) Established business relationshipmeans a relationship between a sell erand a co1Jsumer based on:(1) the consumer's purchase . rental.or lease o[ the seller's goods or servicesm a financial transaction bellween theconsumer anrl seller. within th e eight.eeu 08) months im mediately precedingthe dat e of a t elemarketing call ; or(2) the cons11mer's lnqully or appllcacion regarding a product or serv ice offered by the seller. W1th1n th e t.h!ee {8)months Jmmedla tely preceding t.hedate of a telemarketing eall.

(p ) Free-to-pay conversion means. lnan offer or a.greemenc to sell or provideany goods or services, a p r o ~ i s i o n~ m d e r which a customer receives aproduct or serY1oe fOl' free for an inltmlperiod and will 1J1cur an oi.JUgar.ton topa y for th e product or service U be o1she does no t take a.mrmati\e a.otlo11 tocancel before th e end of that period.

(q ) Investment opportunity means any-t.blng, tangible or intangible. tl1aL ls offered. offered for sale. sold. or tr adedbuseLl wholly or in part on representat ions. either ex-press m implied. aboutpast. present. or future income. Pl'ofit..or appreciation.(r) Matena.l means likely to affect aperson's choice of. or conduct tega.rdlng. goods or services or a cha.t'ttalllecon tiribu tion.(Sl Merchant means a. person who Isautllm'ized u n c l e . ~ a written coDiil'RCtwith an acqnlrer to honor or acceptcreillt cards. or to trru1sml t or processfor paymwlt credit card paymenL.s, forthe purchase oC goods or services or acharitable contributiOn.(c) Merchant agreement m e a n ~ a \\'l'itl.en contracc between a merchrult Mdru1 acquirer to honor or accept crcdl tcards. or t.o transmit ot process forpayment. cr>dtt catd payments. for Lhepurchase of goods or services or a. charItable contribution.

( I I ) Negative 01Jlion feature means. luan offer or agreement to sell or prO\rltlean y g-ooc.Js or services. a provisiont1nclcr which the customer's silence ot364

Appendix A

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Federal Trade Commissionfa!.lme to the1 game ofcha.nce: o:r(2 ) An oral or writr.en express or im -plied rcpresauLat;ion that a person ha swon. l1as been se lected to receive. orrnay be eligible to receive a prize orpurported r i ~ e .(aa) Seiler means a11y person who, iuconnection w1th a. telemarkatiug tra.nsaotion, provides. oifers to provide. orarranges for otbe.rs to pro,'ide goods orservices to th e customer in exChangefov consideration.(bb) Stal.e means an y $tate o i th e

Unrted St.a.tes. th e Dist.rioL of Colum-bi a, Puerto R1co. th e Nort.hern Mal'iannIslands. and any territory or J)O:>Sesslonof th e United States.(CO) Tclemarketer mea.nt> any personwho. in connection with telemarketing,initiates or receives telephone calls Loor from a customer or donor.(dd) Telf'markeling means a plan. program. or caml)alsm which 1s condtlctedto mduce tbe purchase ofgoods or serv-ices or a cbal'itable con trib1.1 t o n . byuse of one O! ' mo re telepllones an d

3 10.3whicll Involves more than one inter-state telephone oa,ll. Th e term does notjnclude Lhe solicitation of salesthrough th e mailing of a co.t.alogwhich: cont.alns a. written desortptfonor lllustt"ation of the goods or serv\ce11offered for sale; includes the bustnessarld.ress of th e e l l e r : includes multiplepages of written material or lliustm-tlons; and bas been issued noll less uequently than once a year. when tbf'person making th e solicitation doesnot solicit. oustome.rs by telephone butonly receives calls initiated by customers in l'esponse the catalog an dclm:ing t hose calls takes order s onlywithout further soli c ita Lion. For purpose s of tb e previous sentence, theterm "fUI'tber soltcitat.lon does notinclude providing th e CtlStomer withinformation about. or attempLing tose ll . any other item included in th esame catalog which prompted the cus-tomer's call or In a su.bstantially simi-lar catalog.(ee) Upse/ling means soliciting thepurchase of goods or services followingan lnltlal transaction during a :Jingletelepho11e call. The npse111s a separateLelema.tketill,g L r a n . ' ! a c ~ i o n . not :\ con

t . l n u a ~ o n or th e inir.1al l.ra.nsaction. An' 'external upsell" is a solicitationmade by or on behalf of a seller ulf-rerent from th e seller in th e Inl t.ialtransaction, regardless of whethet theinltial transaction a:nd th e snbsequencs o l t c i c a ~ l o n are made by th e same tele-markete:r. All "internal u.psell" Is a so-licitation made l.)y or on behalf of f,hesame seller as in th e lnitlal t rans-aotlon. regarcUess of whether th o l.lti-tial transaction and sul>sequent. solioi-ta.LlOn are made by the same tela-marketer.3 10.3 Dec ept ive te iE>..marke ting ne ls orprac tices.

la ) P1ohibited decept.1ve telemMketlll!Jacts or practices. I t ts a deceptive talemarketing acL or practice an d a viola-tion of this Rule for an y seller or tete-marketer to engage in th e followingconduct:

365

Appendix A

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310.3(1) Before a customer consents topa y for goods or services offered.falling to r.lisclos c truthfully, 111 a clearan d conspicuous manner, th e followingmaterial in.formatton:(i ) The uota1 costs to purchase, re ceive. or use. a.nd tbe quantitY of. anygoods or smvices tllat ar e tb e subjectof che sales oCfer: Gao(i i ) All material rcstriobions. l imi ta-

tions. or conditions to purchase , receive. or use th e goods or services thatar e th e subJect of the sales offet;(iii) If th e sellet' has a policy of not.making refunds, cancellations. exchanges, or repwchases, a. statementiufon:ning the customer that this is theseller' s policy: or. if he seller o1 telemarkeuer makes a representationabout a refw1d, cancellation. exchange.

Ol ' repurchase pollcy. a statement. or allmat.erial Germs m d coud1tions of suchpo11cy;(lv) In any prize promotion. the oddsof being ab le to re ceive t.he prize, and.1f the odds ar e not calculable In advance . th e factors used In ca.lcu1at;ingt he odds; r.hat. no purchase or payment.i s required co win a pr:tze or to pa.rt;ici pn.ce i:n a. prize ptomot1on and tha t an yptu'chase or payment will not Increaseth e pe rson's chances of \...-Inning; an dth e no-purcba setno-paymonl method ofparLic ipa.t;Jng- tn prize promotionwith either instructions on bow to PRI't.icipate or an adctress or local or tollfree telephone number to which custo mers ma y write or ca ll for info.rma&lon on ho w t.o parttcipate:

e. . Wbvo n sel l11r or tela markecer nstiS. ordirects a. customer to use, a Co1,1rie!' to transpot! pnymen t. Lhe sellat or ~ e l e m a r . k e t e rm\lSt nll\JJ:e &he dlscloswes rcrtll1red 1 ) ~ ,310.3tal(l) heCore sendJng a cowier to p1ckup PUYllllilll. Ot' Fot o!!ws o r consmner crud! prolllc tssuhjcot Ule Truth in Lending Act. 15U.S.C. JfiOl ct sen. aud RagulatJon z . 12 CF R2.26. compllnnc.- with t he dtsclo5ure requ1remeou umler the Truth in LenrlinC' Act a ndR8Q:ltlatlon Z sbaU consLltute lmm_pl lanoe1vtl.h 310.:\(a)(l1\1) or this RUle.

16 CFR Ch . I (1 -1- 12 Edition)(v) All material costs 01 conditionsto receive or redeem a 'Prize that is th esul>ject of th e pr1ze promotion;(v1) In th e sale or an y goods or services represented t.o protect. in slu'e, orotherwise limit a Cllstomer 's liabilityin tl1e event o:t: unau.thOlize(l use of thecustomer's cr edi t car d. th e limits on acardholder's llabillt;y fol' unau thorizeduse of n credit card pursuant to 15u.s.c. 1643;(v t i) !I th e offer 1ncludes a negativeoption reat u.re. a ll materlal terms anclconditions of the negative option feattue. including, bll.t not limited to , th efact r.haL customers account wil lbe charged unless th e customer takesa.n aJfirmative action t.o avoid th echarge(s), the date(s) th e charge(s) wU1be submitted fo r payment, an d the spe-ctflc steps Ghe customer mus t take toa\oid the charge(s); and(\ t i l ) In th e sale oi any debt reUefse rvice:(A ) tJ1e amount of time necessary toachie,e th e l'epresented results. an d toth e extent that the sen1ce may Includea settlement offer to any of th e cus

tomer's creditOl'S or debt oolleetors.th e t1me by which th e

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Federal Trade Commissionth e accoun&, th e customer ma y withdraw ftom the debt relief service a.t anytime without penalty, and, i f the customer withdraws. th e customer mus treceive all funds m the account, otherthan fw1ds earned by the debt reliefservt

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310.3th e gooc.l.s or servioes or chal'itablo contribution ar e th e subject of th etel emnrketing t.ransa.ction and th e customer's or donor's receipt of all of th efollowing information:(A ) Th e ntunbet of debits , ch arges. orpaymanr.s (II mot'e than one);(B) Tile date(s) th e debit(s).ohn rge(s). or paym eJt t(s) will be submittecl for payment:

(C) Th e runounL(s) of th e debit(s).cha.rge(s), ot pnyment(s):(D) The customer 's or clonors nam e:(E) 'l'he custome r's or donor's billinginformation, ldentiileu that pt'li-sOn knows or consciouslyavoids knowing r.bett the seller m te1e-

16 CFR Ch . I {1-1-12 Edition)marketer 1s engaged in an y act or practice that violates 310.3(a), (c) or (d),or 310..! of t.his Rul e(c) Credit card lawuteri11g. E.xccp t asexpressly peJmitted by th e appltcablecredit ca rd sy stem. i t is a deceptivetelemarketing ac t or practice an d avtolat.ion of th]s Ru le for:

(1) A merchant to present Lo o1 deposit Into, or cause another to presentto or deposito into. th e cr edit card syste m fo r payment, a credit ca rd sa,lesdraft generated by a te1emarketingtransaction that is no t the result of atelemarketing credit ca rd transactionbetween th e cardholde1 and t be mercba.nt;(2) Any person to employ. sol tcit. orocherwise cause a meJ'cbant. or an emp1oyee, re presentative. or agent of th em er chant. to presem; to or deposit intoth o oredir. card system for payn1ent. acr edi t ca rd sales draft. generated by atelemarket.lng transaction that is notth e result of a telemarketing creditcard w-ansaccton between the cat'dholder and t.he me rchant: or(3) A ny petson to o1>t:ain access 1;o t.heoredH card .system through th e use of abusiness r elationship or au aff1Uat1onwith a merchant, 'v hen such access isno t; authorized by the merch ant agreement Ol ' the a pplicable creclit ca rd syste m{d) Prohibited deceptit:e acts or prac-t1ces in the solicita.tion o[ cllaritable can-trlbuiJOns. I t is a fraudulent charitablesollcitn.tion. a deceptive telemarketingact or pJ'act:ice. an d a violation of thisRule for an y tolemarketer solicu;blgch aritable contributions to misrepresent. di rec tJy o1' by implica tion. a.ny ofth e followin g mater ia l information:

(1) Tha nnture, purpose, ot mission ofan y cn ttcy on 'behalf of which a. charitable contribu tion i s being requesr:eu;(2) That an y charitable contributlonIs ta x uelluctible 111 whole or iu prut:(3) The purpose for which any char1-t:.tblc contribution wlll l1e user!:(4) The percent>n.ge or am oun t of an yollaJ'itahle cont ribution th!J.L will go toa. charitable organization ot to an ypartioulru charitable program;(5) Any material aspecc of a prlzepxomotion including, but uor. l t m lto : t,hc odds of bemg a.ble to receive aprize; the nature or value of a prize: or368

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Federal Trade Commissionthat a chantable contribuLion Is re-Quh-etl Lo wi n a. priZe or to participace1.n a pt'ize promotion: or(6) A charitable organization's ortelemarketer's affiliation wll..h , Ol' endorsemen t< or sponsorship by . any pet-son or government ellt.lt..y. 310.4 Abusive telemarketing ucts orpractices.(a) Abusive conducf generally It Is anabusive telemarket.lng act. o1 I>racticeand a. violation of t..h1s Rule ro r an yseller or t.elemarketer to engage 1n tllefollowtng conduct :(1) Threats. l.nti.D'Iidation. or th e useof profane or obscene language:(2) Reql.lesting or recehlng paymentof any fee or considera tion for goods otservices represented to remove dm:ogatory inform ation from. or improve. aperson's credit ltisLory. credit. recoru .or credit rating until:(1) Th e time frame in which clle sellcthas represented all of t.he goods orsen1ces will be provided to that personhas expirell : and( l i ) Tb e seller h as provided th e person

with documeDliat;ion 1n the form of aconsumer repo tt Crom a consumer re-poning agency demons tratl.ng tha t thept'Omised t'6Sult.s have been : ~ . e h i e v e l l ,such report having been !ssncd motethan six month s afl,er the resltl ts wereachieved. Nothing ln th1s Rule shouldbe construed to a f f c < : ~ the l'CQltiremenL1.11 the Fai r Credit; Reponing Act.. 16U.S .C. 1681, r.hat a col tSUlnet reportmay only be obtained fot 1\ spoclfledpermissll:lle purpose;

(3) Requesting ot tccolviug paymentof an y fee or cons tdesat.ion from a person for goods or services reprosentet\ torecover OJ' o&herwis!J assist In 1he re -t.wn or money or ll.DY otibet item orvalue paid for by. or pramtsed Lo. Uutt.person In a prev1ous t.elemarketl.ngtransaction. until se\'en (7 ) huslnessdays after such money or other Item Illdel!ve1 ed to that e r ~ o n . Th1s pro\lsloush a ll no t apply to goods or sentcesprovided t;Q a pe!'son by a licensed at -torney:{1 l Request.ing or receiving t > . ~ Y m e n tof any fee or cons1deraL1on in :\ The funds ar e held l.n an accounta t an inswpd firuulcialinStiLuL!on.(B ) The customer owns the funds he ldIn the account :md 1s paid accrued Interest on th e account, if any:(C) Th e ent.1t.y administerwg Lhe account Is not. owned or contloUod by. orln any way aliiliaoed wit h . th e debt. relief SCI'VH:e;

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310.4(D ) 'l'he ent:l.t;y administering ~ ; h e ac count does nor. gw e or accept an ymoney or or,her compensation in ex-chango for r eferrals or business tnvoh

in g Lhe debt reUe! service: an d(E) Th e customer may withdraw !romth e debt. relief sorvice at any timewithout penalt;y, and must. recetve al lfunds ln lihe account., other than fundsearned by th e debt relief service incompliance wiLh 3l0.4(a)(5)(i)(A)cbtough (C), \vtthln seven {7) businessdays of t.he customer's r'equest .(6) Disclosing or re ceiving, fo1 considetatton, Wlencrypted consumer ac-count. numbet'S fot use in tele-ma.rketing; provided, however. thatthis paragrallh sh all not. apply to th edisc losure or tecelpt of a customers ordonor's bill1ng tnformatton to process apayment. fo r goods or seivtces or acharitable cont.ribut.lon pu rsuant to atransaction:(7) Causing billing informa.t.ion to besubmltt.ed fo r payment. directly or iu.-dl tccl.ly. \vtthout the express informedconsent of the custom er or donor. Inan y t.elemarketlng transaction , thoseUer or te lemnrker.cr must obtain t heexl)ress Informed consent. of the cnstomet OI' rtonor to be charged rox th egoo(A) of tllls section: or(8) Falling to transmit or ca.use to betransmitted the telephone number.and, when made avatlable by th e t.ele-marketer's cnrrier. Lhe name of t.hetelomarketer. to an y caller iden t;!Sioa-tion servi ce in use uy a recipient of a.telemarket.ing call, provided that l tshal l not. be a ,tolatlon to substi tute(for Lhe name nnd phone number usedin . or llllled for. making t he call) th ename of the selll'r or charitable orgam-zatlon on behalf of which a t.cle-mru.'ket.lng call ls placed, an d th e se ll-er 's or charitable organir.a,;ion s cusLomur or donor sentce telephone number. which is answered during reg\llarbusiness hours.

(b) Pa ttem of cttlls. (1 ) I t is an abnshet elem.arketlng act. or practice and 1.1.viola lion or th1s Rule for a te le-markl!tar to engage in . or fm a sellerto cause a telemarketer to engage In,th e following conduct.(1) Causinlf an y telephone to 11ng-, 01engaging an y person in te lephone conversa t.lon. t'epea.tedtv or conr.inuouslywllih l.lltenL to anr1oy, nbuse, or l1

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Federal Trode Commission(13) Thati person's telephone numberis on the " do-not-call ' ' reg1stry, maintained by the Commission. of personswho do no t w1sb to receive outboundtelephone cans to mduce the purchaseof gootls or services unless the seller:(t ) Bas obta1ned the express agreement. in writmg, of suob person toplace calls to that person. Such writtenagreement shall clenrly evidence suchperson's authol'iza.t.lon that calls made

by or on behalf of a !:!Pcclflc party maybe p l { ~ c e d to that person. anv) Tnitla.ting a.uy otttbound telephonecall Lhat cleUvers a prerecordecl message, other than a prerecorded messagepermitted for complln.nce \vl.th the callabandonment safe harhor in310.4(bl(tll(ih). unless.(A> In a.uy such call to mduce th epurcl1ase of any good or servtce. theseller bas obtained from th e recipientof the call an express ll&'l'eement. inwriting, that .(1) Th e seller obtained only after a.clear and conspicuous disclosure tha&the ptupose of the agreement. 1s to authorize Cbe s ~ l l e r to pli\Ce prerccortledcalls SLlC11 person:(li) ' rhe seller obLained wit.houc te-quu1.ng, threccly or tncllrectly, that th eagreement be executed as a contllt.lonof purchasing any good or service:( t il ) Evidences Ute wt.ll1ngucss of t.herecipient of thP call to receive callstha.c dellvet prereconled messagel> hyor on behalf of a spectnc seller; an dota For pu.rposes or Lhl.S Rule, t.he term''SIIlDI\turo" shall Include an eh:ctton.tc ordig .t.al Conn of sl.!(naLurto. t.o t l l l ' ext.en. t t .at

SUch form or SlRIJCllil(A) any time dwtngth e message 'The mechamsm must..(1 ) Automatically ad d the numbercalled to Lbe seller's ent.lty-spec1fic DoNot Call list;(2) 0110e W\"Oke Be n..vathible fOI' use at any timedUl'Jnll" th e me.,sage; an d(B) In th e case of a. call t.ha.l could beanswered by an answe11ng mach1ne orvoicemail se tvice. lha.t the personcalled c:a.n nse a toll-free telephonenumbe1 t.o asser t a Do Not. Call requestpurauant Lo 310.4(b)(l)C1U)(A). Th enumber pro\ricleu must. connP..ct dil'ec t.Jyto an automated interact;ive voice or

l c ~ s - a . c t J v a t . e c l opt-out m

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310.4(ill) Compl1es with al l other requirements of thls part am l othe r appllcablefederal an d state laws.(0) An y ca ll tllaL complies wttb a llapplicable requitements of this pru:agrapb (v) shall not be deemed to violate31M{b)(l}(iv) of this part.{Dl This paragraph (v) shall no t applyto any outbound telephone ca.ll that de livers a prerecorded healthca.re message made by, or on behalf of, a coveredentity or i ts business associate, asthose terms ar e defined in th e HlPAAPrivacy Rule, 45 CFJt 160.103.(2) I t is an abusive te lemarkel>tng ac tor pmcclce and a violation of this Rulefor an y person to sell. rent. lease. pw-clia.se. 01 use any list established tocomply w! t.h 310.4(b)(l)(ii1)(A), orma1.nlialned by the Commission PUl'SU-ant to 310.4(bl(l)(iii )(B), ror a.ny Pl1rpose except compliance wim th e provisions of this Rule or otherwise to pravent telepho.ne calls &o telephone nu mbers on such lists.(3) A seller or t.elemarketer will no tbe liable fo r violating 310.4(b)(l)(11)an d (ill) i f l t ca n demonstrate that , a.'l

part of t;be seller's or telema.rkotcr'sroutine business practice:(1) I t bas e s t < ~ . b U s h e and implemented writtcller's ot telem:u:keter' s ohl.lgattoo to comply' 'it11 relevant !>tat and fcdt>t"Al laws. lnellldiu g bu t no t JlmltPd to th e TO Pt\ , 17 U C:U7. an d 17 CF R part 64..1200

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Federal Trade Commission(1 ) Tbe identit.y of the seller;(2) That the purpose or th e cal l 1s tosell goods or services:(3) 'l'be natW'e of th e goods or servIces; and(I!) That no pwchase or payment lsnecesaa.ry to be able to win a prize orpa.r t.iclpate In a prize promotion i f a.prize promotion is offered au d that anyp11rchase or payment; wi ll not increaseth e IlO t'son's chances of \\'inning . This

disclosu1'e musL be made before or inconjllDction with the description of th epx1ze to th e person called. If requestedby ~ h a t person, the Leleoruke ter mustdisclose th e no-purchase. no-payment.entry method for t.he prize -promotion:pr ovided, however. that, il l any interna l Llpaell fo r tho sale or goods or ser vices, seller or Lelema.rkete must.ptovlde l.he diRclo::;ures lh>ted In thissect.Lon only to the extent t.hat the in formn.t.lon in th e upsell differ::; from th ecl lsclosllres provided in th e ln1t.1al telemarketing transaction!e ) Required oral disclomres il t chari-table solicitations. Tt, Is an abus1ve telemarket.h tg act. OL' p r a c ~ l c e an d a violation of cb1s Rule fo R. telema.rketer. 1nau outbound tclPphone call to mduce acharitable contribut.ion. to fall to disclose tuthfully, promptly, and in aclear and conspicuous manner to &he-person recei\ing !Jle can. the f o l l o w i n ~miormaLion :

11) ThA identitY of tb c cha.ntable orgnnizatlon on \JehaU of wluch the request Is being made; nod(2) That t.he pW'J)Ose of th e call Is tosoliclt. a cbruit.al>le contr!button{75 1-'R 18516, Au g 10. 2010. t\R amended a t 76FR 58'116, Selll 2l.. :!011} 310.5 Recor dk eep ing r equire me n ts .

(a) Any seller or telemn.rketer s.hatlkeep. fo r a -period of 21 months fromthe dat.P me record is produced. t.he followtng r e c o r d ~ ; telatiDIC to i ts t.elemnrketlng ac&iv1ties(1) All substantially d1ffCl'ent atl,et-

t l ~ i n ~ r , brochllre>s. telemarketingsctipt.s. lllld promottonal materials;!2) The name and las t known addressof f'n1h pr ize reclplenL an d thf' l '1'12eawanled for pnzes that ate represented. direc tl y or hy 1mphcat1on. tohnve a va lue of $25 .00 or more;(!l) The name and hl.'IL known addressor each customer, tho goO known borne nddtess an dte lephone number, and Job litle(s)for all cu rrent and format' em ployeesdirectly Involved in te lephone sales orsolicitations: provided. however. that 1ft he seller or telemarketcr pe t mits ftcLit.iou:; oamP.s to be used by employees.each flctittous name m u ~ t be traceableto only one spec1Iio employee: an d(5) All ve1ifiablc authorizations OJ'records of express inf01med consent orexpress agreement required to he pro\'lded or received under this Role .(b) A seller or t.elemarketer maykeep the records tequlrod by 310 sra)1n any form , an d In th e t;ame manner,format. ot place as they keep suchr ecords ln the ordln,try course of business. FaJlure to keep al l recoi'Cls required by 310.5(a) shall be a v1olacionof thls Rule .(c) The seller ami the tclemarket.etca.llmg- on behulf of the seller may. brwntteo llKTeem11nL. nllotate respons1-bllity betweeu tbemsehcs for the recordkeeping rcqutrt>d by th is Section.When a selltn an d telemarketet havef'ntered Into such an agreement. th eterms of tiU\1. n ~ ; " r e c m e n t shall go\'crn.a.nd tb e so11er or teleilllU'keter. as th ecase ma y be, noE'll no t keep record:>that. dupllcnte those of rh e other. I f th eagreement. is unclear as to who mu.tmaincain llllY reqnlnld rN.onl(s). or i fno such e e m , ~ n t exl!ilS. the sellerf;hall be I'e!'.pon:;lhll' fo romplytug with 310 S(a)( l-\3) and Hi), Lbe tclemarketeJ' :.;hall be rPspon!llble fox complving \('Jth 310.5lfll(!'llers or tolemarketer's business. t1w principal ofthat seller or telt>mn.rkot.er :>hall maintain all tecorcls as t'cnuirud unde thissection. In th e cvl'nt. of nny sale. as signment., or other cbansrc tn owner.shlp

~ . . , Fot offers or r.onsum"t crNJI ptotlu L'lobJect to lbe Truth Ill LrndtD!f Act. 15u s c 1.601 I!L s ~ ; q e.ru1 Re)(ul:1uon z. 12 ern226, compllitnc:c wtth : h" rooordket!PIDI!' l'l!i ' l U t r e m e n t : ~ uorler th e Trmh In Lundin!{ Act ,and Rt'\:UlaUon Z. sh a ll CO!u.tltute t;Offipllance wll.h S l O . ~ l l(31 ol tht. Rule

373

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310.6of the seller's or telemruketers bnsln e:>s, th e succ-essor business shall maintain a ll records required undor this section. 310.6 E:\:emptions.

(a) Solicitations 1;o i n d u e ~ cluu:ita!Jlccomribnt1ons vi a outihou.nd te lephoneca11s ar e not co, ered by 310.4{b)( l )(tti)(B) or tbl.s Ru le .Cl>) 'l'lle following acts or practicesar e exempt from t.b.ls Rule:(1 ) The sale of pay-pr:r -cal l serviceRsubJect to tihe Cc>mmi.ssion s Rule entitled Trade Regulation Rule Pu1suarLtto th e Tel ephone Di sclosure an d Dispute Resolut1on Act. of 1992," 16 OFRPart. 308. provided, however , that thisexemption does not apply to t ile t'equi.rement s of 310.4(a)(l), (a)(7). (b).and tc);(2) The sale of franchises subject toth e Commission's Rule entitled 'Disclosure Requirements and ProhibitionsConcerning Franchising,"' (" .FranchiseRule .. 16 CF R Part 436. and tlle sale orbusiness opportunities subJect to theCommission's Rule entitled "Disclo

swe Requ.iTernents an d ProblbictonsConceTnin:g Business Opportunil;les,''("Business O p p o r t u n i t ; ~ - Rule'') 16 CFRPart '137. provided, however, t h a ~ tb1&exemption does not. apply to che requirements of 3lOA(a)(l) , (a)C7), (b),and (c);(3) T elephone calls il t which th e saleof goods or services or charitable solicitat,io u is no t completed. an d paymen tor altthonza.tlon of payment is not tequired. until after a. faoe-to-face salesor donation presentation by th e selleror chari table organizatio11, proz;ided.however, that this exemption does no tapply to the requirements oi310.'1(a)(l ). (a)(7). (b). il.lld (c):(4) Te lephone ca.Us imtiatelblP.374

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Federal Trade Commissionprior to 1ls initiating an action underthis Rule. '.rhe notice shall be sent toth e Office of the Director, Bureau ofConsumer Protection, l' 'ederal TradeCommiss ion. Washington, DC 20580. an dshall include a copy of th e state's orprlva.r.e person's complaint an d an yother pleadings to be Iiled with thec01ut. If pvior notice i s not feasible,t.be state or prlvace parson shall serveth e Oommissio n w1bh th e l'equired no tice Immediately npon rnst11tuting It saction.(b) Nothing contained in tWs Sectionshall prohibit an y a t t o r n e ~ general OJ'other authorized sta te ot:rtoial !romproceeding in state court on the basisof a n alleged violation of any civil orcrim:lnal statute of such state. 310.8 F ee fo r access to the NationalDo Not Cnll Registry.

(a) rt , is a viola tio n of th:ls Rule forany selJer to iuit.iate, or cause a n ~ rtelemarkoter to inUlatie. au out.bonntltelephone call to an y person whosetelephone number 1s within a givena rea code unless such seller, e i ~ . h e r di-rectly or tlrroagh another petson, fi r.- tha s paid the annual Iee. required by310.8(c). !o r access to telephone nu m-bers wlt:.hin that area code thn . ar e in cluded iu th e National Do No t CallRegistry maintained by the Commission 11ncler 310 4( b)\ l )(iil)(B ); provided,bowevet', that such payment is not nec-essary 1I th a seller initiates, or ca,usesa tclem11.rkete.r to initiate. oa lls so lelyr.o persons pursuant. to 3l0.4(b)(l)(iti)(B)( i ) or t it ), lllld t.heseller does no t access the National DoNot Call Registr y for an y ot11er pm-pose.(b) I t Is a violation of llhls Itule fornn y 1ielemru:keter. on behalf of an y seller , to initiate an outboaud telephonecall to an y pe rs on whose telephonenumber ls w1 thin a g:lveu area. code liDless that seller. either d11'0Ct.ly OJ'Gl:uough another person, first has Pll.ldth e annual fee. required by 310.8tc),fOl' access to th e telephone numberswithin that area code that. ar e tnclndeclin bhe Na t ional Do No t Call Registry:provided, however. that such pnymenr.is not uecessary if th e seller initin tes.or causes a tclemarketer to inir.tate.ca lls solely to persons Plll'SllBUL to310 t(h}(l )(lli)(B)( l ) OI' t i l }, and t.he

310.8seller does not access \Jle Nattona I DoNot Call Registry for an y other pu r-pose.

(c ) The annual Cee. whlcll must bepaid by any person prior to obtainingaccess to tb e National Do No t CallRegistry, 1.5 S56 for each area code ofdata accessed. up to a maximum or$16,503; >pr01Jfded , however. that thereshall be no cbru'ge to any person for accessing th e first f1ve area codes of cat a.an d provided. further, tha t there shal l beno charge to an y pa rson n ~ , r a g i n g in orcausing ot.hers to engage Ln outboundGele.vhone calls to consume1s and whois accessing a.rea codes of dava in th eNational Do Not Call Registry if th eperson is _peiml tt ed to access. but:. isnot required to access. th e Nat.ional DoNo t Call RcgisLJ'Y onder this Rule. 47CF R 64.1200. or any other Fecleral regulaGiou or la w . Any person accessing th eNat ional Do Not Call Registry ma y notpar t icipate in any arrangement tosl1are t11e cost of accessmg tl1e registry, incluc lng any arrangement withany telemruketer or service Pl"OVlder to

d l v ~ d e th e costs to access b1le registryamong various clients of U1at t alemarketer or service provider.

(d l Each person who pa ys, either d:l-rectl:v or clll'ougb auothel' pe rson , th eannual fee se t forth in 310.8(c}. eachperson excepted untlet' 310.8(c) t:rumpaying th e ~ u m n a l fee. ll.lld each personexcepted fl'om paying an aunua.l feellndet 310.'1(b){l)(j1l)(B), wm be pro-Vided a unique acoounL number tha twill allow that. perso n to access Lheregistry data. !o r th e selected areacodes a t cime for Lho l;wehc monthpeliod beginning on the iirst. rla:v of th emonth in wJ:llch th e J)llrson pa1rl the Iee('the annual period .). To obta:ln accessto additional o.rna. codes of data duringth e ll i'S t sL" mont hs of ube aunual pe-riod, each person tequired to l)ay thefee under 310.8(c) mus t first pa y $56for each additional area code of datan ot initially select.ecl. To ohtaill accessto add1Lional area codes of data dwingLhe second six montlls of che annnal pel 'iod. each llUl't-JOn required to pay thefee under S10.8(c) must first pay S28for each addltionR.l area code o:f tlacanoc in:ltially selected '['he 1>a:rmenc ofth e additional foP will permit Lhe person co access Lhe a.dd:lttonal area codes

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310.9of data for t.he remainder of th e annualperiod.{e) Access co th e National Do No tCall Registry is limited to te lemarketel'S. sellers. others engaged \n orcausing otllers to engage in telephonecalls to consumers. service providetsacting on behalf of such pel'SOns, revent telephone calls to tetephone numbers on che tegistry. If he person is ac cessmg th e tegist.ry on behalf of sellers, chat tJOtson also must tdenLifyeach o( tihe sellers on whose behalf It is;LCcessing tb e regis try, must. wovldeeach seller's unique accoutlli IJumberfor access to th e natAonal1egistry. a.nclmust certify, under penalty of law.that the sellers wtll be using the in!ormation gathered from th e registrysolely to comply w1th th e provisions of

t h 1 ~ ; Rule o1 otherwise to pl'event telephone calls to telephone numbers onth e registry.[75 FR 46516, 1\\ll:( 10. 2010: 75 ?& 51934, An g.2'1, 2010, as amended a t 76 FR 53037. Au g. 29,20ll) 310.9 Sever ability.

The provisions of this Rule are separate and severable from oue anothet. Ji(tn;v provlston ls f;tm;ved or determinettto be invalid . lb ls Gbe Commission's in tention that th e remaining provisionsshall continLte in effect.PART 3 11- TEST PROCEDURES AND

LABELING STANDARDS FOR RE-CYCLED OILSec .3!1 .1 Definition:;3ll .2 Stayed or lnvn ll d pa!'ls.311.8 Preemption.3ll.4 Testlnt:;311.5 Labeli.mr.311.6 Prahlbltecl acts.

Ali'I'HORITY: 112 U ,S,C. 6363(dlSot:nc&: 60 FR 5&-12.1 . OCt. 31 1995, unltlssotherw1se cotl'{l

16 CFR Ch. I (1 - 1-12 Edition) ln 1.1 Definitions.As usecl ln this po.rt:(a) ManujactLtrer means an y personwho 1e-refines or othenvise processasused oi l to remove physical or chemical impurlLies a.cqutred through use orwho blends such re-refined or otherwiseprocessed used oil vrlth ne w oil o1 addilih,es.{b) New oi l means A.ny syntbcliic on Ot'

oi l that ha s been refined f.rom crude oUand which has no t been used and mayor may not contain aclditives. suchterm does not Include used oil or recycled oi l.(c) Processed u ~ c d oi l means re-refineclor otherwise processed used oi l or blendof oil, consisting of suoh re-refined orotherwise processed used oil an d newoU ot additives(cl) Recycled oi l means proce$Sed usedoU tha't th e manufacturer has det.ermlned. pursuant to section 311.'1 of thispart. 1s subst.antia,lly eqL11vale.nt to newoU fo r use as engine oH.Used ol means any synthetic ot lor oil Lhar. has been tefined (rom crudeoil, which ba s been used and, as a L'e

sult of suoh use, hns been contanlinat.ed by physical o1 ohem1eal impurltit>.s .lO R e - r c j i 1 ~ e d oi l means nsed ol l fromwhich physical am! chem:lca.1 contaminants acquued t,hrougb us e have beentemoved. 311.2 Stayed or invalid parts.1f ans part of t.his 1u1e is st-ayed orheld 1nvalicl. th e rest of it . will rema.lnln force.

311.3 Preemption.No la.w, l'eguln.tlotl, or order of an yState or polit.lca l SLthdivislon thereofma y apjJly, or te ma.ill applicable. to

any conta..iner of recycled oil. i f suchlaw, regulation. or ordet' requires "-UYcontainer of recycled oil, which conla.iuer bears a lube! in accordance withth e terms of 311.5 of t , h i ~ pan.. to bearan y label with t'el;pcct. to the comparat.lve oha.raoterllitics of such recycled oi lwith new oil th;tt is not identical toLhat permitted by 311.5 or this part. 311 .4 'I'e.sLing.

To determine the subsWtntial equtvaIPncy of proceSSt>d used oil wJt.h new oi l

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