Current through Register Vol. 63, No. 9, September 1, 2024
Each filing pursuant to OAR 137-020-0201(1) through (5) shall
contain the following information:
(1)
The name or names of the seller, including the name under which the seller is
doing or intends to do business, if different from the seller's, and the name
of any parent or affiliated organization that will engage in business
transactions with purchasers relating to sales solicited by the seller or that
accepts responsibility for statements made by, or acts of, the seller relating
to sales solicited by the seller.
(2) The seller's business form and place of
organization and, if the seller is a corporation, a copy of its articles of
incorporation and bylaws and amendments thereto: or, if a partnership, a copy
of the partnership agreement; or if operating under a fictitious business name,
the location where the fictitious name has been registered. All the same
information shall be included for any parent or affiliated organization
disclosed pursuant to section (1) of this rule.
(3) The complete street address or addresses
of all locations, designating the principal location from which the telephonic
seller will be conducting business. If the principal location of the seller is
not in this state, then the seller shall also designate which of its locations
within this state is its main location in the state.
(4) A listing of all telephone numbers to be
used by the seller and the address where each telephone using each of these
telephone numbers is located.
(5)
The name of, and the office held by, the seller's officers, directors,
trustees, general and limited partners, sole proprietor, and owners, as the
case may be, and the names of those persons who have management
responsibilities in connection with the seller's business activities.
(6) The complete address of the principal
residence, the date of birth and the driver's license number and state of
issuance of each of the persons whose names are disclosed pursuant to section
(5) of this rule.
(7) The name and
principal residence address of each person the telephonic seller leaves in
charge at each location from which the seller does business in this state, as
defined in OAR 137-020-0200(2), and the business location which each of these
persons is or will be in charge of.
(8) A statement, meeting the requirements of
this rule, as to both the seller, whether a corporation, partnership, firm,
association, joint venture, or any other type of business entity (and whether
identified pursuant to section (5) or (7) of this rule or not), and as to any
person identified pursuant to sections (5) and (7) of this rule, who:
(a) Has been convicted of a felony or
misdemeanor involving fraud, theft, embezzlement, fraudulent conversion, or
misappropriation of property. For purposes of this paragraph, a plea of nolo
contendere is a conviction;
(b) Has
had entered against him or her a final judgment or order in a civil or
administrative action, including a stipulated judgment or order, if the
complaint or petition in the civil or administrative action alleged acts
constituting a violation of the Unlawful Trade Practices Act, fraud, theft,
embezzlement, fraudulent conversion, or misappropriation of property, the use
of untrue or misleading representations in an attempt to sell or dispose of
real or personal property, or the use of unfair, unlawful or deceptive business
practices;
(c) Is subject to any
currently effective injunction or restrictive court order relating to business
activity as the result of an action brought by a federal, state, or local
public agency or unit thereof, including, but not limited to, an action
affecting any vocational license;
(d) Has at any time during the previous seven
tax years filed for bankruptcy, been adjudged a bankrupt, been reorganized due
to insolvency, or been a principal, director, officer, trustee, general or
limited partner, or had management responsibilities of any other corporation,
partnership, joint venture, or business entity that has so filed or was so
adjudicated or reorganized during or within one year after the period that the
person held that position. For purposes of subsections (a), (b) and (c) of this
section, the statement required by this subdivision shall identify the seller
or person, the court or administrative agency rendering the judgment or order,
the docket number of the matter, the date of the judgment or order, and the
name of the governmental agency, if any, that brought the action resulting in
the judgment or order. For purposes of this subsection, the statement required
by this subdivision shall include the name and location of the seller or person
filing in bankruptcy, adjudged a bankrupt, or reorganized due to insolvency,
and shall include the date thereof, the court which exercised jurisdiction, and
the docket number of the matter.
(9) The name of the financial institution and
account number for each of the seller's demand accounts; checking accounts; and
merchant accounts used for the deposit of any credit card charge slips,
including but not limited to credit cards issued by VISA, MasterCard, Discover
Card, American Express, Diners Club or Carte Blanche.
(10) Every pseudonym or alias ever used or
now being used by a salesperson, manager or principal of the telephonic
seller's business.
(11) A list of
the names and principal residence addresses of salespersons who solicit on
behalf of the telephonic seller and the names the salespersons use while so
soliciting.
(12) A description of
the items the seller is offering for sale and a copy of all sales scripts the
telephonic seller requires salespersons to use when soliciting prospective
purchasers, or if no sales script is required to be used, a statement to that
effect.
(13) A copy of all sales
information and literature (including but not limited to scripts, outlines,
instructions, and information regarding how to conduct telephonic sales, sample
introductions, sample closings, product information, and contest or
premium-award information) provided by the telephonic seller to salespersons or
of which the seller informs salespersons, and a copy of all written materials
the seller sends to any prospective or actual purchaser.
(14) If the telephonic seller represents or
implies, or directs salespersons to represent or imply to purchasers that the
purchaser will receive certain specific items (including a certificate of any
type which the purchaser must redeem to obtain the item described in the
certificate) or one or more items from among designated items, whether the
items are denominated as gifts, premiums, bonuses, prizes, or otherwise, the
filing shall include the following:
(a) A list
of the items offered;
(b) The value
or worth of each item described to prospective purchasers and the basis for the
valuation;
(c) The price paid by
the telephonic seller to its supplier for each of these items and the name,
address, and telephone number of each item's supplier;
(d) If the purchaser is to receive fewer than
all of the items described by the seller, the filing shall include the
following:
(A) The manner in which the
telephonic seller decides which item or items a particular prospective
purchaser is to receive;
(B) The
odds a single prospective purchaser has of receiving each described
item;
(C) The name and address of
each recipient who has, during the preceding 12 months (or if the seller has
not been in business that long, during the period the telephonic seller has
been in business) received the item having the greatest value and the item with
the smallest odds of being received.
(e) All rules, regulations, terms, and
conditions a prospective purchaser must meet in order to receive the
item.
(15) If the
telephonic seller is offering to sell any metal, stone, or mineral, the filing
shall include the following:
(a) The name,
address, and telephone number of each of the seller's suppliers and a
description of each metal, stone, or mineral provided by the supplier;
(b) If possession of any metal,
stone, or mineral is to be retained by the seller or will not be transferred to
the purchaser until the purchaser has paid in full, the filing shall include
the following:
(A) The address of each
location where the metal, stone, or material will be kept;
(B) If not kept on premises owned by the
seller or at an address or addresses set forth in compliance with section (3)
of this rule, the name of the owner of the business at which the metal, stone,
or mineral will be kept;
(C) A copy
of any contract or other document which evidences the seller's right to store
the metal, stone, or mineral at the address or addresses designated pursuant to
paragraph (A) of this subsection.
(c) If the seller is not selling the metal,
stone, or mineral from its own inventory, but instead purchases the metal,
stone, or mineral to fill orders taken from purchasers, the filing shall
include copies of all contracts or other documents evidencing the seller's
ability to call upon suppliers to fill the seller's orders;
(d) If the seller represents to purchasers
that the seller has insurance or a surety bond of any type relating to a
purchaser's purchase of any metal, stone, or mineral from the seller, the
filing shall include a complete copy of all these insurance policies and
bonds;
(e) If the seller makes any
representations as to the earning or profit potential of purchases of any
metal, stone, or mineral, the filing shall include data to substantiate the
claims made. If the representation relates to previous sales made by the seller
or a related entity, substantiating data shall be based on the experiences of
at least 50 percent of the persons who have purchased the particular metal,
stone, or mineral from the seller or related entity during the preceding six
months (or if the seller or related entity has not been in business that long,
during the period the seller or related entity has been in business) and shall
include the raw data upon which the representation is based, including, but not
limited to, all of the following:
(A) The
length of time the seller or related entity has been selling the particular
metal, stone, or mineral being offered;
(B) The number of purchasers thereof from the
seller or related entity known to the seller or related entity to have made at
least the same earnings or profit as those represented;
(C) The percentage that the number disclosed
pursuant to paragraph (B) of this subsection represents of the total number of
purchasers from the seller or related entity of the particular metal, stone, or
mineral.
(16)
If the telephonic seller is offering to sell an interest in oil, gas, or
mineral fields, wells, or exploration sites, the filing shall include
disclosure of the following:
(a) The seller's
ownership interest, if any, in each field, well, or site being offered for
sale;
(b) The total number of
interests to be sold in each field, well, or site being offered for
sale;
(c) If, in selling an
interest in any particular field, well, or site, reference is made to an
investigation of these fields, wells, or sites by the seller or anyone else,
the filing shall include the following:
(A)
The name, business address, telephone number, and professional credentials of
the person or persons who made the investigation;
(B) A copy of the report and other documents
relating to the investigation prepared by the person or persons.
(d) If the seller makes any
representation as to the earning or profit potential of purchases of any
interest in these fields, wells, or sites, the filing shall include data to
substantiate the claims made. If the representation relates to previous sales
made by the seller or a related entity, the substantiating data shall be based
on the experiences of at least 50 percent of the purchasers of the particular
interests from the seller or the related entity during the preceding six months
(or if the seller has not been in business that long, during the period the
seller or related entity has been in business) and shall include the raw data
upon which the representation is based, including, but not limited to, all of
the following:
(A) The length of time the
seller or related entity has been selling the particular interests in the
fields, wells, or sites being offered;
(B) The number of purchasers of the
particular interests from the seller or related entity known to the seller to
have made at least the same earnings as those represented;
(C) The percentage which the number disclosed
pursuant to paragraph (B) of this subsection represents of the total number of
purchasers of the particular interests from the seller or related
entity.
Stat. Auth.: ORS 646
Stats. Implemented: ORS
646.553
