FTC Announces Amendments to Telemarketing Sales Rule (TSR) to Include Technical Support Services
The Recap
In a bid to curb the rising threat of tech support scams, the Federal Trade Commission (FTC) has announced significant amendments to the Telemarketing Sales Rule (TSR) that will expand its coverage to include technical support services. The changes are part of an ongoing effort to protect consumers from fraudulent schemes that have become increasingly prevalent in recent years, particularly in the realm of technology services.
The new amendments, which were finalized following a public consultation process, aim to address the growing problem of tech support scams that have led to substantial financial losses for consumers. According to FTC reports, U.S. consumers lost more than $165 million to tech support fraud in 2024 alone, highlighting the urgent need for regulatory intervention.
Background: The Rise of Tech Support Scams
Tech support scams typically involve fraudsters posing as legitimate technical support representatives, often claiming to represent well-known companies like Microsoft or Apple. These scammers use a variety of tactics to convince consumers that their computers are infected with malware or that there is an urgent need for repairs, typically convincing them to pay for unnecessary services or software.
In many cases, these scams involve cold calls or unsolicited emails that appear to come from reputable tech companies. Scammers may also use pop-up messages or fake "system alerts" that trick users into calling fake support numbers. Once the scammer has gained the consumer's trust, they often instruct the victim to grant remote access to their device, where they can install malicious software, steal personal information, or extort payments for "fixing" non-existent issues.
With the rapid growth of online services and increased reliance on digital technology, these scams have become more sophisticated and widespread. The FTC has received an increasing number of consumer complaints about such fraudulent schemes, prompting the agency to take action.
Key Amendments to the Telemarketing Sales Rule
The FTC's amendments to the Telemarketing Sales Rule (TSR) are designed to strengthen protections against deceptive practices in the technical support services sector. The key changes include:
Extension of TSR Coverage to Technical Support Services: Under the new amendments, tech support services are now explicitly covered under the TSR, which previously focused on traditional goods and services. This means that companies offering technical support services through telemarketing will be required to adhere to the same strict guidelines that govern other forms of telemarketing, such as providing clear and accurate information about the services they offer, disclosing any costs upfront, and refraining from misleading or deceptive practices.
Prohibition of Misleading Claims: The amendments make it unlawful for telemarketers to make misleading or false claims regarding the necessity of technical support services. For instance, companies can no longer falsely claim that a consumer’s computer is infected with malware or in need of urgent repairs to pressure them into purchasing services.
Increased Transparency in Pricing: The rule now mandates that telemarketers disclose the full cost of the services before any transaction occurs. Consumers must be fully informed about what they are paying for, and companies must obtain clear and explicit consent from the consumer before proceeding with any charges.
Mandatory Disclosure of Affiliate Relationships: The amendments require telemarketers to disclose any relationships with third parties, such as affiliate networks or subcontractors, involved in providing technical support services. This ensures that consumers are aware of the entities they are dealing with and can make informed decisions about the legitimacy of the service being offered.
Enhanced Consumer Protection: The new rule also includes provisions for additional consumer protections, such as the ability for consumers to easily cancel services and obtain refunds for services that were misrepresented or not performed as promised. It also prohibits companies from requiring upfront payment for services that may not be delivered, a common tactic in tech support scams.
Stronger Enforcement Powers: The FTC’s ability to take enforcement action against companies violating the TSR has been strengthened under the amendments. The agency will have the authority to pursue penalties for deceptive practices in the tech support industry, including seeking financial restitution for consumers who have been harmed by fraudulent schemes.
The Growing Impact of Tech Support Scams
The FTC's decision to amend the TSR comes after an alarming increase in consumer complaints related to tech support fraud. In 2024 alone, victims reported losing over $165 million to scammers who prey on their lack of technical knowledge and urgent fears about their devices.
These scams disproportionately target older adults and individuals who may be less familiar with common online threats or technical jargon. Many victims are misled into believing that their computers are at risk of being hacked or damaged, prompting them to pay for expensive and unnecessary repairs. In some cases, scammers use remote access tools to gain control of the victim's device, compromising personal information, banking details, and other sensitive data.
The financial losses caused by these schemes are not just a matter of individual harm; they also represent a growing threat to the security of the broader online ecosystem. As more consumers fall victim to these scams, it creates an environment where trust in legitimate tech support services can be eroded, making it harder for consumers to distinguish between legitimate providers and fraudulent ones.
FTC's Commitment to Consumer Protection
FTC Chair Lina M. Khan emphasized the agency's commitment to protecting consumers from tech support fraud, stating, "Tech support scams are a growing threat, and these amendments to the Telemarketing Sales Rule will give us the tools we need to combat this pervasive issue. By extending the rule’s protections to technical support services, we are taking important steps to safeguard consumers from deceptive practices and to ensure that they have the information they need to make informed decisions."
The amendments also align with the FTC’s broader agenda of enhancing consumer protections in the digital age, particularly as the rapid adoption of technology has made consumers more vulnerable to online fraud.
What This Means for Consumers
For consumers, the amendments to the TSR mean greater transparency, stronger protections, and a more robust framework to fight back against fraudulent tech support schemes. Consumers who receive unsolicited calls or emails from companies offering tech support services will now be able to rely on clearer regulations that prevent deceptive practices. In particular, consumers will have greater confidence that any service they pay for is both legitimate and accurately represented.
For those who suspect they have been targeted by a tech support scam, the FTC encourages individuals to report the incident to the agency. The new rules also provide more opportunities for consumers to seek refunds and dispute charges for services that were misrepresented or delivered inappropriately.
Conclusion
The FTC's amendments to the Telemarketing Sales Rule represent a significant step toward protecting consumers from the growing threat of tech support scams. With millions of dollars lost to fraudsters each year, these changes will help create a safer and more transparent environment for consumers seeking legitimate technical support services. The amendments are a proactive response to an evolving landscape of online threats and demonstrate the FTC's ongoing commitment to safeguarding consumer interests in an increasingly digital world.
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