2005 Texas Business & Commerce Code CHAPTER 44. TELEMARKETING


BUSINESS & COMMERCE CODE
CHAPTER 44. TELEMARKETING
SUBCHAPTER A. GENERAL PROVISIONS
§ 44.001. SHORT TITLE. This chapter may be cited as the Texas Telemarketing Disclosure and Privacy Act. Added by Acts 2001, 77th Leg., ch. 1429, § 1, eff. Jan. 1, 2002. Renumbered from V.T.C.A., Bus. & C. Code § 43.001 by Acts 2003, 78th Leg., ch. 1275, § 2(3), eff. Sept. 1, 2003. § 44.002. DEFINITIONS. In this chapter: (1) "Caller identification service" means a service or device designed to provide the user of the service or device with the telephone number of an incoming telephone call. (2) "Commission" means the Public Utility Commission of Texas. (3) "Consumer good or service" means property of any kind that is normally used for personal, family, or household purposes. The term does not include a security, as defined by Section 4, The Securities Act (Article 581-4, Vernon's Texas Civil Statutes). (4) "Established business relationship" means a prior or existing relationship of a person formed by a voluntary two-way communication between a person and a consumer regardless of whether consideration is exchanged, regarding consumer goods or services offered by the person, that has not been terminated by either party. (5) "Facsimile recording device" means any device capable of receiving a facsimile transmission. (6) "Facsimile solicitation" means a telemarketing call made by a transmission to a facsimile recording device. (7) "Telemarketer" means a person who makes or causes to be made a telemarketing call. (8) "State licensee" means a person licensed by a state agency under a law of this state that requires the person to obtain a license as a condition of engaging in a profession or business. (9) "Telephone call" means a call or other transmission which is made to or received at a telephone number, including: (A) a call made by an automated telephone dialing system; (B) a transmission to a facsimile recording device; and (C) a call to a mobile telephone number serviced by a provider of commercial mobile service, as defined by Section 332(d), Communications Act of 1934 (47 U.S.C. Section 151 et seq.), as amended, Federal Communications Commission rules, and the Omnibus Budget Reconciliation Act of 1993 (Pub. L. No. 103-66), as amended. Added by Acts 2001, 77th Leg., ch. 1429, § 1, eff. Jan. 1, 2002. Amended by Acts 2003, 78th Leg., ch. 399, § 1, eff. June 20, 2003. Renumbered from V.T.C.A., Bus. & C. Code § 43.002 by Acts 2003, 78th Leg., ch. 1275, § 2(3), eff. Sept. 1, 2003. § 44.003. TELEMARKETING CALLS GOVERNED BY CHAPTER. (a) For the purposes of this chapter, a telemarketing call is an unsolicited telephone call made to: (1) solicit a sale of a consumer good or service; (2) solicit an extension of credit for a consumer good or service; or (3) obtain information that may be used to solicit a sale of a consumer good or service or to extend credit for the sale. (b) This chapter does not apply to a call made: (1) by a consumer that is the result of a solicitation by a seller or telemarketer or in response to general media advertising by direct mail solicitations that clearly, conspicuously, and truthfully make all disclosures required by federal or state law; (2) in connection with: (A) an established business relationship; or (B) a business relationship that has been terminated, if the call is made before the later of the date the first Texas no-call list in which the consumer's telephone number appears is published or one year after the date of termination; (3) between a telemarketer and a business, other than by a facsimile solicitation, unless the business informed the telemarketer that the business does not wish to receive telemarketing calls from the telemarketer; (4) to collect a debt; or (5) by a state licensee if: (A) the call is not made by an automated telephone dialing system; (B) the solicited transaction is not completed until a face-to-face sales presentation by the seller and the consumer is not required to pay or authorize payment until after the presentation; and (C) the consumer has not informed the telemarketer that the consumer does not wish to receive telemarketing calls from the telemarketer. Added by Acts 2001, 77th Leg., ch. 1429, § 1, eff. Jan. 1, 2002. Renumbered from V.T.C.A., Bus. & C. Code § 43.003 by Acts 2003, 78th Leg., ch. 1275, § 2(3), eff. Sept. 1, 2003. § 44.004. MAKING TELEMARKETING CALL. In this chapter, a person makes a telemarketing call if the person effects a telemarketing call on the person's own behalf or on behalf of another entity. A person makes a telemarketing call on behalf of another entity if, as a result of the telemarketing call, the other entity: (1) can become entitled to receive money or other property of any kind from a sale solicited during the call; or (2) can receive information that is obtained during the call and that is to be used for the purpose of: (A) extending or offering to extend credit for a consumer good or service to the person solicited; or (B) directly soliciting a sale of a consumer good or service or extending credit for the sale. Added by Acts 2001, 77th Leg., ch. 1429, § 1, eff. Jan. 1, 2002. Renumbered from V.T.C.A., Bus. & C. Code § 43.004 by Acts 2003, 78th Leg., ch. 1275, § 2(3), eff. Sept. 1, 2003. § 44.005. CONSTRUCTION AND APPLICATION. This chapter shall be liberally construed and applied to promote its underlying purpose to protect the public against false, misleading, abusive, or deceptive practices in the telemarketing business. Added by Acts 2001, 77th Leg., ch. 1429, § 1, eff. Jan. 1, 2002. Renumbered from V.T.C.A., Bus. & C. Code § 43.005 by Acts 2003, 78th Leg., ch. 1275, § 2(3), eff. Sept. 1, 2003. § 44.006. WAIVER PROHIBITED. An attempted waiver of a provision of this chapter is void. Added by Acts 2001, 77th Leg., ch. 1429, § 1, eff. Jan. 1, 2002. Renumbered from V.T.C.A., Bus. & C. Code § 43.006 by Acts 2003, 78th Leg., ch. 1275, § 2(3), eff. Sept. 1, 2003.
SUBCHAPTER B. CALLER IDENTIFICATION
§ 44.051. PROHIBITION ON INTERFERENCE WITH CALLER IDENTIFICATION SERVICE. (a) A telemarketer may not, in making a telemarketing call, block the identity of the telephone number from which the telephone call is made to evade devices designed to identify telephone callers. (b) A telemarketer may not: (1) interfere with or circumvent the capability of a caller identification service to access or provide to the recipient of the telemarketing call any information regarding the call that the service is capable of providing; and (2) fail to provide caller identification information in a manner that is accessible by a caller identification service, if the person has capability to provide the information in that manner. (c) For purposes of this section, the use of telecommunications service or equipment that is incapable of transmitting caller identification information does not of itself constitute interference with or circumvention of the capability of a caller identification service to access or provide the information. Added by Acts 2001, 77th Leg., ch. 1429, § 1, eff. Jan. 1, 2002. Renumbered from V.T.C.A., Bus. & C. Code § 43.051 by Acts 2003, 78th Leg., ch. 1275, § 2(3), eff. Sept. 1, 2003. § 44.052. ENFORCEMENT; PENALTIES. (a) Except as provided by Subsection (c), the commission shall receive and investigate complaints concerning violations of this subchapter and may assess an administrative penalty not to exceed $1,000 for each violation. If the complaint alleges that the person violating this subchapter is a telecommunications provider, as defined by Section 51.002, Utilities Code, the commission has exclusive jurisdiction over the violation alleged in the complaint, notwithstanding Subsection (b). (b) Except as provided by Subsection (c), the attorney general may investigate violations of this subchapter and file civil enforcement actions seeking injunctive relief, attorney's fees, and civil penalties in an amount not to exceed $1,000 for each violation. If the court finds the defendant wilfully or knowingly violated this subchapter, the court may increase the amount of the civil penalties to an amount not to exceed $3,000 for each violation. A violation of this subchapter is subject to enforcement action by the attorney general's consumer protection division under Sections 17.47, 17.58, 17.60, and 17.61. (c) A state agency that issues a license to a state licensee may receive and investigate complaints concerning violations of this subchapter by the state licensee, may assess an administrative penalty not to exceed $1,000 for each violation, and may order restitution of any monetary damages of the complainant. In addition, if the agency finds that the licensee wilfully or knowingly violated this subchapter, the agency may suspend or revoke the state licensee's license. (d) Venue for an action under this subchapter is in Travis County. Added by Acts 2001, 77th Leg., ch. 1429, § 1, eff. Jan. 1, 2002. Renumbered from V.T.C.A., Bus. & C. Code § 43.052 by Acts 2003, 78th Leg., ch. 1275, § 2(3), eff. Sept. 1, 2003.
SUBCHAPTER C. TEXAS NO-CALL LIST
§ 44.101. COMMISSION TO ESTABLISH TEXAS NO-CALL LISTS. (a) The commission shall establish and provide for the operation of a database to compile a list of names, zip codes, and telephone numbers of consumers in this state who object to receiving unsolicited telemarketing or telephone calls. (b) The commission may contract with a private vendor to maintain the Texas no-call list if: (1) the private vendor has maintained a no-call list database containing the names and telephone numbers of consumers who have previously requested to be added to a no-call list; and (2) the contract requires the vendor to publish the Texas portion of the national no-call list in an electronic format to any telemarketer who agrees to use the Texas no-call list only for the purposes of updating the no-call list of that telemarketer by including in its list persons with whom the telemarketer does not have an established business relationship. (c) The Texas no-call list is a combined list consisting of the name and telephone numbers of each consumer in this state who has requested to be on that list and of each person in the portion of the national do-not-call registry maintained by the United States government that relates to this state. The Texas no-call list shall be updated and published on January 1, April 1, July 1, and October 1 of each year. An entry on the Texas no-call list expires on the third anniversary of the date the entry is first published on the list. An entry may be renewed for successive three-year periods. The telephone number of the consumer on the Texas no-call list may be deleted from the list on the consumer's written request or if the telephone number of the consumer is changed. The commission may charge a person a reasonable amount not to exceed $3 for a request to place a telephone number on the Texas no-call list or to renew an entry on the list, except that the commission shall provide for a method of placement or renewal of an entry by use of the Internet at no charge. The commission shall develop and make available an Internet website at which a person may request that a telephone number be placed on the Texas no-call list and shall provide a toll-free telephone number and a mailing address that persons may call or write to obtain a copy of a form to request placement of a telephone number on the Texas no-call list. A private for-profit publisher of a residential telephone directory that is distributed to the public at minimal or no cost shall include in the directory a prominently displayed Internet website address, toll-free number, and mailing address established by the commission through which a person may request placement of a telephone number on the Texas no-call list or order a copy of the form to make this request. (d) The commission or its designee may provide information on the Texas no-call list to the administrator of the national do-not-call registry and may allow placement of the names and telephone numbers contained on the Texas no-call list in the national do-not-call registry. Added by Acts 2001, 77th Leg., ch. 1429, § 1, eff. Jan. 1, 2002. Amended by Acts 2003, 78th Leg., ch. 401, § 1, eff. June 20, 2003. Renumbered from V.T.C.A., Bus. & C. Code § 43.101 by Acts 2003, 78th Leg., ch. 1275, § 2(3), eff. Sept. 1, 2003. Amended by Acts 2005, 79th Leg., ch. 171, § 1, eff. May 27, 2005. § 44.102. TELEMARKETING OF PERSONS ON TEXAS NO-CALL LIST; ENFORCEMENT; PENALTIES. (a) A telemarketer may not make a telemarketing call to a telephone number that has been published on the Texas no-call list more than 60 days after the telephone number appears on the then-current list. (b) Except as provided by Subsection (d), the commission shall receive and investigate complaints concerning violations of this subchapter and may assess an administrative penalty not to exceed $1,000 for each violation. If the complaint alleges that the person violating this subchapter is a telecommunications provider, as defined by Section 51.002, Utilities Code, the commission has exclusive jurisdiction, notwithstanding Subsection (c), over the violation alleged in the complaint, except that this does not affect the right of a consumer to bring an action under Subsection (f). (c) Except as provided in Subsection (d), the attorney general may investigate violations of this subchapter and file civil enforcement actions seeking injunctive relief, attorney's fees, and civil penalties in an amount not to exceed $1,000 for each violation. If the court finds the defendant wilfully or knowingly violated this subchapter, the court may increase the amount of the civil penalties to an amount not to exceed $3,000 for each violation. A violation of this subchapter is subject to enforcement action by the attorney general's consumer protection division under Sections 17.47, 17.58, 17.60, and 17.61. (d) A state agency that issues a license to a state licensee shall receive and investigate complaints concerning violations of this subchapter by the state licensee, may assess an administrative penalty not to exceed $1,000 for each violation, and may order restitution of any monetary damages of the complainant. In addition, if the agency finds that the licensee wilfully or knowingly violated this subchapter, the agency may suspend or revoke the state licensee's license. (e) Venue for an action based on a violation of this subchapter is in the county where the telemarketing call was made or received, or if brought by the attorney general, commission, or a state agency, in Travis County. (f) For purposes of this subchapter, a consumer on the Texas no-call list is presumed to be adversely affected by a telemarketer who calls the consumer more than once and may bring a civil action based on the second or a subsequent violation of this subchapter if: (1) the consumer has notified the telemarketer of the alleged violation and not later than the 30th day after the date of the call files a verified complaint setting forth the relevant facts surrounding the violation with the commission, the attorney general, or a state agency that licenses the person making the call; and (2) the commission, attorney general, or state agency receiving the complaint fails to initiate an administrative action or a civil enforcement action, as appropriate, against the telemarketer named in the complaint before the 121st day after the date the complaint is filed. (g) If the consumer brings an action based on violation of this section and the court finds that the defendant wilfully or knowingly violated this section, the court may award damages in an amount not to exceed $500 for each violation. Added by Acts 2001, 77th Leg., ch. 1429, § 1, eff. Jan. 1, 2002. Renumbered from V.T.C.A., Bus. & C. Code § 43.102 by Acts 2003, 78th Leg., ch. 1275, § 2(3), eff. Sept. 1, 2003. § 44.103. RULES; CUSTOMER INFORMATION; ISOLATED VIOLATION. (a) The commission may adopt rules to administer this subchapter. The commission shall adopt rules: (1) requiring each local exchange telephone company and each commercial mobile service provider that provides commercial mobile service in this state to inform its customers of the requirements of this subchapter by annual inserts in billing statements mailed to customers, notification in a customer's electronic bill, notification printed on a customer's paper bill, notification sent free of charge by messaging service to a customer's mobile telephone number, or conspicuous publication of the notice in the consumer information pages of local telephone directories or other appropriate notice to consumers; (2) providing that a telemarketing call made to a number on the Texas no-call list is not a violation of Section 44.102 if the telemarketing call is an isolated occurrence made by a person who has in place adequate procedures to comply with this subchapter; and (3) providing for: (A) the dissemination of the Texas no-call lists in formats, including electronic formats, commonly used by persons making telemarketing calls; and (B) a fee for each such distribution not to exceed $75. (b) In addition to requiring the notice under Subsection (a)(1), the commission may conduct educational programs designed to inform the public of their rights and telemarketers of their obligations under this subchapter. Added by Acts 2001, 77th Leg., ch. 1429, § 1, eff. Jan. 1, 2002. Amended by Acts 2003, 78th Leg., ch. 399, § 2, eff. June 20, 2003. Renumbered from V.T.C.A., Bus. & C. Code § 43.103 and amended by Acts 2003, 78th Leg., ch. 1275, § 2(3), 3(1), eff. Sept. 1, 2003. § 44.104. ASSISTANCE OF DEPARTMENT OF INFORMATION RESOURCES. On request of the commission, the Department of Information Resources shall assist the commission in administering this subchapter. Added by Acts 2001, 77th Leg., ch. 1429, § 1, eff. Jan. 1, 2002. Renumbered from V.T.C.A., Bus. & C. Code § 43.104 by Acts 2003, 78th Leg., ch. 1275, § 2(3), eff. Sept. 1, 2003.
SUBCHAPTER D. FACSIMILE TRANSMISSIONS
§ 44.151. NOTICE IN FACSIMILE SOLICITATION. In addition to the technical and procedural standards of federal statutes or regulations regarding telephone facsimile machines and transmissions, a person in this state who makes or causes to be made a facsimile solicitation shall include in the document transmitted or on a cover page to the document a statement, in at least 12-point type, stating: (1) the correct and complete name of the person making the facsimile solicitation and street address of the location of the person's place of business; and (2) a toll-free or local exchange accessible telephone number of the person that: (A) is answered in the order in which calls are received by an individual capable of responding to inquiries from recipients of facsimile solicitations at all times after 9 a.m. and before 5 p.m. on each day except Saturday and Sunday; or (B) automatically and immediately deletes the specified telephone number of the recipient. Added by Acts 2001, 77th Leg., ch. 1429, § 1, eff. Jan. 1, 2002. Renumbered from V.T.C.A., Bus. & C. Code § 43.151 by Acts 2003, 78th Leg., ch. 1275, § 2(3), eff. Sept. 1, 2003. § 44.152. ACKNOWLEDGMENT REQUIRED; TRANSMISSION PROHIBITED. On receipt of oral or written notification from a recipient of a facsimile solicitation not to send any further facsimile transmissions to one or more telephone numbers specified by the recipient, the person making the facsimile solicitation: (1) shall within 24 hours send the recipient a written acknowledgment of the recipient's notification; and (2) may not make or cause to be made a transmission to a telephone number specified by the recipient, except for a single transmission to comply with Subdivision (1). Added by Acts 2001, 77th Leg., ch. 1429, § 1, eff. Jan. 1, 2002. Renumbered from V.T.C.A., Bus. & C. Code § 43.152 by Acts 2003, 78th Leg., ch. 1275, § 2(3), eff. Sept. 1, 2003. § 44.153. ENFORCEMENT; PENALTIES. (a) Except as provided by Subsection (c), the commission shall receive and investigate complaints concerning violations of this subchapter and may assess an administrative penalty not to exceed $1,000 for each violation. If the complaint alleges that the person violating this subchapter is a telecommunications provider, as defined by Section 51.002, Utilities Code, the commission has exclusive jurisdiction, notwithstanding Subsection (b), over the violation alleged in the complaint, except that this does not affect the right of a consumer to bring an action under Subsection (e). (b) Except as provided by Subsection (c), the attorney general may investigate violations of this subchapter and file civil enforcement actions seeking injunctive relief, attorney's fees, and civil penalties in an amount not to exceed $1,000 for each violation. If the court finds the defendant wilfully or knowingly violated this subchapter, the court may increase the amount of the civil penalties to an amount not to exceed $3,000 for each violation. A violation of this subchapter is subject to enforcement action by the attorney general's consumer protection division under Sections 17.47, 17.58, 17.60, and 17.61. (c) A state agency that issues a license to a state licensee shall receive and investigate complaints concerning violations of this subchapter by the state licensee and may assess an administrative penalty not to exceed $1,000 for each violation. In addition, if the agency finds that the licensee wilfully or knowingly violated this subchapter, the agency may suspend or revoke the state licensee's license. (d) Venue for an action based on a violation under this subchapter is in the county where the telemarketing call was made or received, or if brought by the attorney general, commission, or a state agency, in Travis County. (e) A person may bring a private right of action based on a violation of this subchapter: (1) to enjoin the violation; and (2) for damages in an amount equal to the greater of: (A) the person's actual monetary loss from the violation; or (B) $500 for each violation; or (C) for both an injunction and damages. (f) If the court finds that the defendant wilfully or knowingly violated this section, the court may increase the amount of the award to an amount equal to not more than three times the amount available under Subsection (e)(2). Added by Acts 2001, 77th Leg., ch. 1429, § 1, eff. Jan. 1, 2002. Renumbered from V.T.C.A., Bus. & C. Code § 43.153 by Acts 2003, 78th Leg., ch. 1275, § 2(3), eff. Sept. 1, 2003.
SUBCHAPTER E. REGULATORY REPORTS
§ 44.201. REPORT BY COMMISSION. Before December 31 of each even-numbered year, the commission shall submit a report to the lieutenant governor and speaker of the house of representatives. The report must contain for the two-year period ending August 31 of the year of the report: (1) a statement of the number of telephone numbers included on the Texas no-call list, the number of no-call lists distributed, and the amount collected for those requests and for distribution; (2) a list of complaints received by the commission concerning activities regulated by this chapter, itemized by type; (3) a summary of any enforcement efforts made by the commission; and (4) the commission's recommendations for any changes in this chapter. Added by Acts 2001, 77th Leg., ch. 1429, § 1, eff. Jan. 1, 2002. Renumbered from V.T.C.A., Bus. & C. Code § 43.201 by Acts 2003, 78th Leg., ch. 1275, § 2(3), eff. Sept. 1, 2003. § 44.202. REPORT BY ATTORNEY GENERAL. Before December 31 of each even-numbered year, the attorney general shall submit a report to the lieutenant governor and speaker of the house of representatives. The report must contain for the two-year period ending August 31 of the year of the report: (1) a list of complaints received by the attorney general concerning activities regulated by this chapter, itemized by type; (2) a summary of any enforcement efforts made by the attorney general; and (3) the attorney general's recommendations for any changes in this chapter. Added by Acts 2001, 77th Leg., ch. 1429, § 1, eff. Jan. 1, 2002. Renumbered from V.T.C.A., Bus. & C. Code § 43.202 by Acts 2003, 78th Leg., ch. 1275, § 2(3), eff. Sept. 1, 2003.
SUBCHAPTER F. PROVISIONS APPLICABLE TO ADMINISTRATIVE PENALTIES
§ 44.251. DETERMINATION OF AMOUNT. The amount of an administrative penalty imposed under this chapter shall be based on: (1) the seriousness of the violation, including the nature, circumstances, extent, and gravity of the violation; (2) the history of previous violations; (3) the amount necessary to deter a future violation; (4) efforts to correct the violation; and (5) any other matter that justice may require. Added by Acts 2001, 77th Leg., ch. 1429, § 1, eff. Jan. 1, 2002. Renumbered from V.T.C.A., Bus. & C. Code § 43.251 by Acts 2003, 78th Leg., ch. 1275, § 2(3), eff. Sept. 1, 2003. § 44.252. STAY OF PENALTY. The enforcement of the penalty may be stayed during the time the order is under judicial review if the person pays the penalty to the clerk of the court or files a supersedeas bond with the court in the amount of the penalty. A person who cannot afford to pay the penalty or file the bond may stay the enforcement by filing an affidavit in the manner required by the Texas Rules of Civil Procedure for a party who cannot afford to file security for costs, subject to the right to contest the affidavit as provided by those rules. Added by Acts 2001, 77th Leg., ch. 1429, § 1, eff. Jan. 1, 2002. Renumbered from V.T.C.A., Bus. & C. Code § 43.252 by Acts 2003, 78th Leg., ch. 1275, § 2(3), eff. Sept. 1, 2003. § 44.253. CONTESTED CASE. A proceeding to impose the penalty is considered to be a contested case under Chapter 2001, Government Code. Added by Acts 2001, 77th Leg., ch. 1429, § 1, eff. Jan. 1, 2002. Renumbered V.T.C.A., Bus. & C. Code § 43.253 by Acts 2003, 78th Leg., ch. 1275, § 2(3), eff. Sept. 1, 2003.

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