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Telephone Disclosure and Dispute Resolution Act

Understanding the Telephone Disclosure and Dispute Resolution Act: Protecting Consumers

Q: How can I report a misleading pay-per-call service?

You can report it to the Federal Trade Commission (FTC) or your local consumer protection agency.

Q: What information must be disclosed in pay-per-call messages?

Messages must disclose the service description, total costs, when charges begin, parental consent requirements, and authorization status.

Definition & Meaning

The Telephone Disclosure and Dispute Resolution Act (the "Act") is a federal law designed to regulate pay-per-call services that may mislead consumers. Established under 15 USCS § 5701, the Act aims to protect the public by ensuring that these services provide clear and accurate information. It requires that each pay-per-call message includes essential disclosures, such as:

A description of the service being offered.
The total cost or cost per minute, along with any additional fees for the service or any related services.
Information indicating when charges for the call begin, which should be stated at the end of the introductory message.
A notice that parental consent is required for calls made by children.
A disclaimer if the pay-per-call service is not authorized by a federal agency.

Table of content

Legal Use & context

This Act is primarily relevant in the context of consumer protection law. It is used to regulate businesses that operate pay-per-call services, ensuring they comply with fair practices. Legal professionals may encounter this Act when advising clients on compliance issues or when handling disputes arising from misleading pay-per-call services. Users can manage related legal matters using templates from US Legal Forms, which provide guidance on necessary disclosures and compliance requirements.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: A pay-per-call service offers psychic readings. The introductory message must clearly state the cost per minute and that charges begin immediately after the message ends.

Example 2: A service providing adult content must disclose that parental consent is required for minors before the call can proceed. (hypothetical example)

Relevant laws & statutes

The primary statute governing this area is the Telephone Disclosure and Dispute Resolution Act, codified at 15 USCS § 5701. This law outlines the obligations of pay-per-call services and the protections afforded to consumers.

Common misunderstandings

What to do if this term applies to you

If you are a consumer who has encountered a misleading pay-per-call service, document the details of the call and the information provided. You may file a complaint with the Federal Trade Commission (FTC) or your state's consumer protection agency. If you are a business operating a pay-per-call service, ensure compliance with the Act by using legal templates from US Legal Forms to draft necessary disclosures. If you face complex legal issues, consider consulting a legal professional for assistance.