Regulatory Round Up: Q2 2024

The second quarter of 2024 kept the telemarketing industry buzzing with regulatory updates. Here is a recap of the newest regulatory changes in the Telephone Consumer Protection Act (TCPA), Do Not Call (DNC), and AI legislation. 

Maine Enacts New Telemarketing Law Requiring Use of RND 

In an effort to further reduce robocalling, the Governor of Maine approved a new bill on March 25, 2024, requiring telephone solicitors to leverage the Reassigned Numbers Database (RND). This new law took effect on June 16, 2024. 

For more information, click here.

New Telemarketing Sales Rule (TSR) Provisions 

The Telemarketing Sales Rule (TSR), issued under the Telemarketing and Consumer Fraud and Abuse Prevent Act (Telemarketing Act), is governed by the FTC and covers most inbound and outbound telephone calls within the U.S., with many exceptions (non-profits, etc.) and a plethora of stipulations. 

The FTC has been making changes to the weighty Telemarketing Sales Rule, adopting amendments to be more congruent with FCC regulation and in some cases, laws at the state level. 

For more information, click here. 

Update on Wisconsin’s Prohibition of Caller ID Spoofing Bill 

Last quarter, we shared new Wisconsin legislation that made caller identification (ID) spoofing illegal. It has now been announced that the effective date for this law is April 1, 2025. 

Read more about Wisconsin’s anti-caller ID spoofing law here. 

Lingo Telecom Violates Truth in Caller ID Act; FCC Proposes $2 Million Fine 

In February of 2024, the FCC issued a cease-and-desist to Lingo Telecom for violating the Truth in Caller ID Act. According to the FCC, Lingo Telecom “apparently originated unlawful spoofed robocalls carrying deepfake prerecorded messages in a voice that was artificially created to sound like U.S. President Joseph R. Biden.” The calls were placed 2 days before the New Hampshire Presidential Primary Election. 

In May, the FCC followed up on the cease-and-desist and announced a proposed $2 million fine against Lingo Telecom for caller ID authentication violations, for failing to verify the accuracy of the Caller ID data, and for not following “know your customer” protocols. 

FCC Strengthens Ability of Consumers to Block Robocalls 

The Federal Communications Commission (FCC) adopted new rules that help simplify consumers’ ability to revoke consent to unwanted robocalls and robotexts while requiring that callers and texters honor these requests in a timely manner.  

Specifically, the FCC adopted rules to make clear that revocation of consent can be made in any reasonable manner, require that callers honor do-not-call and consent revocation requests within a reasonable time not to exceed ten business days of receipt, and limit text senders to a one-time text message confirming a consumer’s request that no further text messages be sent under the Telephone Consumer Protection Act (TCPA). 

For more information, click here. 

FCC Announces Robocall Enforcement Partnership with Georgia Attorney General 

The FCC announced a formal partnership with Georgia’s Office of the Attorney General to protect consumers against robocall scams. These Memoranda of Understanding between state and federal robocall investigators establish critical information sharing and cooperation structures to investigate spoofing and robocall scam campaigns.  

Both the FCC and state investigators seek records, talk to witnesses, interview targets, examine consumer complaints, and take other critical steps to build a record against possible bad actors. These partnerships can provide critical resources for building cases and preventing duplicative efforts in protecting consumers and businesses nationwide. 

For more information, click here. 

Utah to Add Disclosure Requirements for Artificial Intelligence 

The Utah Artificial Intelligence Policy Act (AIPA) expands existing consumer protection laws enforced by Utah’s Division of Consumer Protection (DoCP) to cover generative AI deployments and makes clear that the business (and not the system) is responsible for actions caused by generative AI use.  

The law, signed in March 2024, marks a significant step in regulating AI in the private sector. Beginning May 1, 2024, certain private entities using generative AI will be required to disclose when an individual interacts with AI technology or views material created by generative AI. 

For more information, click here. 

U.S. Senate confirms new FTC commissioners 

The U.S. Senate has voted in two nominees to fill empty slots at the Federal Trade Commission. Virginia Solicitor General Andrew Ferguson and Utah Solicitor General Melissa Holyoak were appointed to the five-member FTC. 

For more information, click here. 

Stir/Shaken Effective Dates 

As part of ongoing FCC requirements designed to promote caller ID authentication technology and combat the practice of illegal caller ID spoofing, the sixth STIR/SHAKEN Report and Order was published to the Federal Register containing additional provisions and additions. 

Effective May 28, 2024, voice service providers and intermediate providers will be prohibited from accepting traffic for providers not listed in the Robocall Mitigation Database and providers must refuse to carry traffic from any provider not listed in the Robocall Mitigation Database. 

For more information, click here. 

Tennessee Caller ID Amendments 

The State of Tennessee House Bill 2504 has been amended to more descriptively define inaccurate caller ID information in connection with a telecommunications/VoIP service and on behalf of a debt collector or telemarketer service.  

For more information, click here. 

Maryland’s Telephone Solicitation Exemptions and Remedies Bill Expands 

Passed on April 25, 2024, and effective immediately, Maryland’s Telephone Solicitation Exemptions and Remedies Bill now allows the called party to bring action against the caller when the caller is in violation of the law. The called party can collect up to $500 or actual damages, whichever is greater. If the court finds that the defendant willfully or knowingly violated the law, fines up to three times the amount of damages may be awarded. 

Read more here. 

Georgia Amends Telemarketing Provisions for Defendants 

Georgia has amended Senate Bill 73, modifying telemarketing provisions. 

At a high level, the new provisions of the bill impacting telemarketing include: 

• Adding a private right of action 
• Modifying monetary damage amounts 
• Identifying a class action exemption for monetary damage amounts  
• Clarification that ignorance is not a valid defense. 

These provisions become effective on July 1, 2024. 

For more information, click here. 

Florida Provides Debt Relief Exception for Telemarketers and Sellers 

On April 26, 2024, an amendment was approved for Florida’s credit counseling services law. 

Effective July 1, 2024, the bill adds an exception to the provisions of credit counseling services for telemarketers and sellers who: 

• Provide debt relief services within the scope of the Telemarketing and Consumer Fraud and Abuse Prevention Act (CFAPA) and the Telemarketing Sales Rule (TSR) 
• Are required to comply with federal regulation 
• Do not receive from a debtor or disburse to a creditor money or items of value 

For more information, click here. 

Royal Tiger Designated as First-Ever “Robocall Bad Actor” by FCC 

Royal Tiger, led by Prince Jashvantlal Anand and Kaushal Bhavsar of the United Arab Emirates and India, has been the first ever designated entity officially classified by the Federal Communication Commission (FCC) as a Consumer Communications Information Service Threat (C-CIST) robocall bad actor with intent to harm and defraud consumers. 

The FCC states Royal Tiger’s persistent robocall campaigns (which amount to billions of calls) posed a significant threat to consumer’s trust in communication services, while impersonating government agencies, utility companies, financial institutions, credit card interest rate reduction offers and purchase authorizations. 

Royal Tiger has a presence in India, the United Kingdom, the United Arab Emirates, and the United States.  

For more information, click here. 

New Provisions for Selling Medicare Advantage Plans in Mississippi 

If you sell Medicare Advantage Plans and are currently calling into Mississippi, this is for you! 

Enacted by the Mississippi State Legislature with a goal “to prohibit telephone solicitors from making any telephone solicitation to any person in the state of Mississippi regarding any Medicare Advantage Plan,” HB1350 was signed into law on April 30th, 2024, by the Governor of Mississippi, amending: 

• Mississippi Telephone Solicitation Act (Section 77-3-707) 
• Medicare Supplement Insurance (Section 83-9-110) 

It is okay to call consumers if they initiated the first contact by calling to inquire about Medicare Advantage Plans. This new amendment becomes effective July 1, 2024. 

For more information, click here. 

FCC Targets Alliant Financial for Illegal Debt Consolidation Loan Robocalls 

The Federal Communications Commission (FCC) has been cleaning house, and its latest “Spring Cleaning” enforcement bureau effort is focused on voice service provider Alliant Financial.  

Alliant Financial was notified by the FCC in a letter outlining findings by USTelecom’s Industry Traceback Group (ITG) that: 

• Calls were prerecorded messages containing advertisements about “debt consolidation” 
• Calls were placed to wireless numbers, without consent 
• Calls were placed between November 10, 2023, and February 3, 2024 
• Multiple company names were used to identify the caller 
• When proof of consent was requested: 
  • Proof couldn’t be provided for some of the calls 
  • Invalid proof was provided for other calls, containing numbers belonging to Verizon’s internal honeypot list (not assigned to any subscriber) 

Not only did Alliant Financial claim to also be Main Street Financial and One Street Financial (unrelated entities but strikingly similar in name to Main Street Financial Services, and Alliant Financial Solutions), but they kept calling consumers who had asked to be removed from their calling list, even after callers had blocked their number by using a different number than what was blocked for the next call. 

As a result, on May 20, 2024, the FCC “ordered Alliant Financial to cease and desist its origination of an illegal campaign pitching debt consolidation loans.” 

For more information, click here.  

Ready to start your compliance journey? 

A steady upsurge in regulations surrounding the TCPA and DNC makes it difficult for compliance leaders to keep up with all the recent changes. Let Gryphon take the guesswork and heavy lifting out of compliance and learn more about Gryphon’s automated compliance solution today.