New Federal Telemarketing/Fax Rules

September 2, 2003
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The FTC's National Do Not Call Registry

On July 3, 2003, the Federal Communications Commission (“FCC”) amended the Telemarketing Sales Rule (“TSR”), to create the National Do Not Call Registry (the “Registry”). The Registry makes it easier for consumers to stop certain types of telemarketing calls. Franchisors and franchisees must understand these requirements because the Registry rules apply to telemarketing solicitations by both franchisors of prospective franchisees and franchisees to customers or prospective customers.
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FCC Issues A Stay Until January 1, 2005 On Rule That Requires Written Consent To Send Faxes To Existing Customers
by Ron Plesser, Stuart Ingis and Paul Jamieson, E-Commerce and Privacy Group

Also on July 3, 2003, the Federal Communications Commission (FCC) issued an Order revising its facsimile rules under the Telephone Consumer Protection Act of 1991. Included in the Order was a significant change that limits businesses’ ability to send fax advertisements to existing customers. The Order requires businesses to obtain an existing customer’s signed, written consent before sending such faxes.
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The law applicable to franchise relationships and the regulation of franchising is subject to frequent changes.

We endeavor to carefully monitor legal developments that are important to our clients and friends, focusing on both franchise law and a variety of other laws that affect franchise relationships.

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