World_421_ANB_03

Task prompt

What the agent was asked to do

Senior Living Lending, Inc. ("SLL") emailed me because they are concerned that responses to their ad campaigns may fall under the Telemarketing Sales Rule (“TSR”). Can you please draft the content for a reply that I can send? Please include any relevant definitions. Write out your answer here. Here's the relevant part of their email for reference: Will the TSR requirements apply when we receive calls or texts from potential buyers in response to those print ads and online banners?

Grading rubric

Criteria and grader verdict (showcase run)

1. States that the TSR requirements do not apply to potential buyers' responses to SLL's ad campaigns

   Pass

   Evidence: Response says, “Generally, the full TSR requirements should not apply to consumer-initiated inbound calls responding to public print ads or online banner ads” and “the initial inbound interaction should generally fall outside most TSR requirements.” Assessment: The criterion asks whether it states TSR requirements do not apply to potential buyers’ responses; pass, with reasonable qualifications/limitations.

2. States that responses to general media advertising are exempt from the TSR

   Pass

   Evidence: Response says the TSR “expressly exempts ‘[t]elephone calls initiated by a customer or donor in response to an advertisement through any medium, other than direct mail solicitation’” and labels print/banner ads as “general-media advertising.” Assessment: The criterion asks for stating responses to general media advertising are exempt from TSR; pass.

3. States that general media advertising includes all of the following: (1) TV commercials; (2) infomercials; (3) home shopping programs; (4) radio ads; (5) print ads in magazines, newspapers, the Yellow Pages, or online directories; (6) online banner ads; and (7) other forms of mass media advertising and solicitation

   Fail

   Evidence: Response lists “newspaper/magazine ads, online display/banner ads, or other broadly available advertising” and mentions “print ads and banner ads.” It does not mention TV commercials, infomercials, home shopping programs, radio ads, Yellow Pages/online directories as a full list. Assessment: The criterion requires all listed examples; fail because several required categories are omitted.

4. States that entities receiving inbound calls in response to general media advertising must comply with TSR prohibitions on payment methods

   Pass

   Evidence: Response says, “The exemption does not permit prohibited payment methods. Even for inbound calls responding to general-media ads, the TSR still prohibits certain payment methods...” Assessment: The criterion asks whether entities receiving inbound calls in response to general media advertising must comply with TSR payment-method prohibitions; pass.

5. States that when entities receive inbound calls in response to general media advertising, any upselling to a consumer will trigger TSR compliance

   Pass

   Evidence: Response says, “The exemption does not apply to upsells” and “Upsells are not covered by the inbound-ad exemption.” Assessment: The criterion asks whether upselling during inbound general-media responses triggers TSR compliance; pass.

6. States that upselling occurs when a seller tries to sell additional goods or services during a single phone call, after an initial transaction

   Pass

   Evidence: Response defines “Upselling” as “soliciting the purchase of goods or services following an initial transaction during a single telephone call.” Assessment: The criterion asks for stating upselling occurs when selling additional goods/services during a single call after an initial transaction; pass.

7. States that the general media advertising exemption to the TSR does not apply to all of the following: (1) franchises falling outside of the FTC’s Franchise Rule, (2) business opportunities not covered by the FTC's Business Opportunity Rule, (3) credit card loss protection, credit repair, or recovery services, (4) advance-fee loans, (5) investment opportunities, or (6) debt relief services

   Fail

   Evidence: Response lists exceptions: “investment opportunities, debt relief services, technical support services, certain business opportunities, credit card loss protection, credit repair, recovery services, and advance-fee loan offers.” It does not identify franchises falling outside the Franchise Rule or business opportunities not covered by the Business Opportunity Rule with the required specificity. Assessment: The criterion requires all six specified categories; fail because required franchise category is missing and business opportunities are only vaguely stated.

8. States that even if the TSR does not apply to calls from consumers in response to general media advertisements, it may apply to other portions of SLL’s marketing campaign

   Pass

   Evidence: Response says the exemption “is not a blanket exemption for all later communications,” distinguishes “any SLL-initiated follow-up calls or texts,” and says later communications “may be treated as telemarketing.” Assessment: The criterion asks whether TSR may apply to other portions of SLL’s marketing campaign even if inbound responses are exempt; pass.

9. States that SLL must be specific about the type of advertising being conducted in order to maintain TSR exemption

   Pass

   Evidence: Response says ads must be “general-media advertising and not direct mail or other individualized solicitations,” and warns if a “print ad” is actually a “postcard, flyer, letter, email, or similar solicitation directed to a specific person or address,” different analysis applies. Assessment: The criterion asks whether SLL must be specific about advertising type to maintain exemption; pass.