Telemarketing Sales Rule: what the FTC rule covers and how it applies to lead generation

The Telemarketing Sales Rule is the FTC’s rule for telemarketing, at 16 CFR Part 310. It requires sales disclosures, bans misrepresentations, sets Do Not Call and calling-hour limits, restricts prerecorded sales calls and requires records. It applies to sellers and telemarketers, alongside the FCC’s TCPA rules, when a buyer calls a lead.

This page reflects 16 CFR Part 310 as shown in the Electronic Code of Federal Regulations on October 6, 2026, and the FTC’s business guidance on the same date. It is general information, not legal advice.

What is the Telemarketing Sales Rule?

The Telemarketing Sales Rule (TSR) is a Federal Trade Commission rule published at 16 CFR Part 310. It implements the Telemarketing and Consumer Fraud and Abuse Prevention Act, which directed the FTC to write rules against deceptive and abusive telemarketing (15 U.S.C. 6102).

The rule defines telemarketing as a plan, program or campaign conducted to induce the purchase of goods or services or a charitable contribution by use of one or more telephones and which involves more than one interstate telephone call (16 CFR 310.2). The FTC’s guidance notes that the FCC regulates both interstate and intrastate calling, so the two agencies’ rules overlap.

Who must comply with the TSR?

The TSR applies to two roles, and a business can be both:

• Sellers: businesses that provide, offer to provide or arrange for others to provide goods or services in exchange for payment, in connection with a telemarketing transaction. A law firm or contractor that buys a lead and calls it to sell its services is a seller.
• Telemarketers: anyone who, in connection with telemarketing, initiates or receives telephone calls to or from a customer. A call center that dials leads for a seller is a telemarketer.

The rule also reaches others. Under 16 CFR 310.3(b), it is a violation to provide substantial assistance or support to a seller or telemarketer when the person knows or consciously avoids knowing that the seller or telemarketer is violating certain parts of the rule. Lead sellers, brokers and service providers should read that provision with counsel.

What the Telemarketing Sales Rule covers

The Do Not Call parts are covered in detail in DNC list for businesses.

Telemarketing Sales Rule vs TCPA

A business that calls leads usually has to meet both. They come from different statutes and agencies, and their terms differ.

On penalties, the FTC’s guidance states that anyone who violates the TSR is subject to civil penalties of up to $53,088 for each violation, and may also face injunctions and be required to pay redress to injured consumers. TCPA damages are covered in TCPA violations and fines.

How the Telemarketing Sales Rule applies to lead generation

A typical lead flow has a person fill out a form, the lead is sold, and the buyer calls the person. The TSR mainly governs that last step: the buyer’s outbound sales call. The points that come up most:

Calls to numbers on the Do Not Call Registry

Under 310.4(b)(1)(iii)(B), a seller may call a registered number only if it can show the person’s express agreement, in writing, that clearly evidences authorization for calls by or on behalf of a specific party, with the phone number and the person’s signature, or an established business relationship. Under 310.2, an inquiry or application about the seller’s goods or services within the 90 days before the call creates an established business relationship with that seller. Whether a form submitted to a lead seller counts as an inquiry to a particular buyer is a legal question for counsel.

Prerecorded messages

Prerecorded sales calls need a signed written agreement to receive prerecorded calls from that specific seller (310.4(b)(1)(v)). The FTC’s guidance answers the lead generation question directly: a seller may not obtain that permission through a third party, such as a lead generator, and must obtain it directly from the person. Buyers that plan prerecorded calls should not rely on consent captured on a lead form for this purpose.

Records and scripts

Section 310.5 requires sellers and telemarketers to keep records for 5 years, including copies of advertising and scripts, call records, and records of consent or express agreements. Lead buyers often ask sellers for consent certificates because those records support the buyer’s own record-keeping.

How leads move from form to buyer is explained in the lead generation industry guide. Summit Leads captures TCPA consent on every lead and delivers consent certificates to buyers; buyers remain responsible for their own calls. Buyers can read more on the for buyers page.

Telemarketing Sales Rule checklist for lead buyers

• Confirm whether your calls are telemarketing under 16 CFR 310.2 and which exemptions in 310.6 could apply.
• Register with the National Do Not Call Registry for the area codes you call, under your own subscription, and pay any fee due.
• Scrub call lists against the registry at least every 31 days and keep an entity-specific do-not-call list.
• Keep outbound calls to residences between 8:00 a.m. and 9:00 p.m. local time.
• Give the oral disclosures at the start of each sales call: who the seller is, that the call is a sales call and what is being sold.
• Do not use prerecorded sales messages unless you hold your own signed written agreement for them.
• Keep the records in 310.5 for 5 years.
• Check the FCC rules and state telemarketing laws as well; the TSR does not replace them.

Common mistakes

• Treating TCPA compliance as TSR compliance. The rules overlap but differ, including in how an established business relationship is measured.
• Relying on a lead seller for prerecorded call permission. The FTC says the seller must obtain it directly.
• Sharing one registry subscription. The FTC’s guidance says each seller must have its own subscription; cost-sharing arrangements are barred by 310.8(c).
• Skipping the opening disclosures. The seller’s identity and the sales purpose must be disclosed promptly on outbound sales calls.
• Throwing out scripts and recordings. Scripts and promotional material must be kept for 5 years from when they are no longer used.

Frequently asked questions

Related guides

• TCPA compliance hub: Every TCPA guide on the site.
• DNC list for businesses: Registry access, scrubbing and state lists.
• DNC list violations: What counts and the penalties.
• Express written consent: The FCC’s written agreement standard.
• Consent record-keeping: What records to keep and for how long.

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