Current through Reg. 50, No. 13; March 28, 2025
(a) Purpose. This
section implements the Texas Business & Commerce Code Annotated
§44.103 (Bus. & Com. Code) relating to rules, customer information,
and isolated violations of the Texas no-call list.
(b) Application. This section is applicable
to:
(1) Certificated telecommunications
utilities (CTUs), as defined by §
26.5 of this title (relating to
Definitions), that provide local exchange telephone service to residential
customers in Texas; and
(2)
Telemarketers, as defined in subsection (c)(9) of this section including, but
not limited to, retail electric providers as defined in §
25.5 of this title (relating to
Definitions).
(c)
Definitions. The following words and terms, when used in this section shall
have the following meanings, unless the context clearly indicates otherwise.
(1) Consumer good or service--For purposes of
this section, consumer good or service has the same meaning as Bus. & Com.
Code §44.002(3), relating to Definitions.
(2) Established business relationship--A
prior or existing relationship that has not been terminated by either party,
and that was formed by voluntary two-way communication between a person and a
consumer regardless of whether consideration was exchanged, regarding consumer
goods or services offered by the person.
(3) No-call database--Database administered
by the commission or its designee that contains the names, addresses,
non-business telephone numbers and dates of registration for all Texas no-call
registrants. Lists or other information generated from the no-call database
shall be deemed to be a part of the database for purposes of enforcing this
section.
(4) No-call list--A
combined list that is published and distributed as required by subsection
(f)(2) of this section and consists of the name and telephone numbers of each
consumer in the 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.
(5) No-call registrant--A telephone customer
who has registered, by application and, if required, payment of accompanying
fee, for the Texas no-call list.
(6) State licensee--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.
(7) Telemarketing call--An unsolicited
telephone call made to:
(A) solicit a sale of
a consumer good or service;
(B)
solicit an extension of credit for a consumer good or service; or
(C) obtain information that may be used to
solicit a sale of a consumer good or service or to extend credit for
sale.
(8) Telephone
call--A call or other transmission that is made to or received at a telephone
number within an exchange in the state of Texas, including but not limited to:
(A) a call made by an automatic dial
announcing device (ADAD); or
(B) a
transmission to a facsimile recording device.
(9) Telemarketer-A person who makes or causes
to be made a telemarketing call that is made to a telephone number in an
exchange in the state of Texas.
(d) Requirement of telemarketers.
(1) A telemarketer shall not make or cause to
be made a telemarketing call to a telephone number that has been published for
more than 60 calendar days on the Texas no-call list.
(2) A telemarketer shall purchase each
published version of the no-call list unless:
(A) the entirety of the telemarketer's
business is comprised of telemarketing calls that are exempt pursuant to
subsection (e) of this section; or
(B) a telemarketer has a written contractual
agreement with a second telemarketer to make telemarketing calls on behalf of
the first telemarketer and the second telemarketer is contractually obligated
to comply with all requirements of this section. In the absence of a written
contract that requires the second telemarketer to comply with all requirements
of this section, the first telemarketer and the second telemarketer making
telemarketing calls on behalf of the first telemarketer are both liable for
violations of this section.
(e) Exemptions. This section shall not apply
to a telemarketing call made:
(1) By a
no-call registrant 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:
(i) the date of publication of the first
Texas no-call list on which the no-call registrant's telephone number appears;
or
(ii) 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;
(5) By a state
licensee if:
(A) The call is not made by an
ADAD;
(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; or
(6) By a person who is not a telemarketer, as
defined in subsection (c)(9) of this section.
(f) No-call database.
(1) Administrator. The commission or its
designee shall establish and provide for the operation of the no-call
database.
(2) Distribution of
database.
(A) Timing. Beginning on April 1,
2002, the administrator of the no-call database will update and publish the
entire Texas no-call list on January 1, April 1, July 1, and October 1 of each
year;
(B) Fees. The no-call list
shall be made available to subscribing telemarketers for a set fee not to
exceed $75 per list per quarter;
(C) Format. The commission or its designee
will make the no-call list available to subscribing telemarketers by:
(i) electronic internet access in a
downloadable format;
(ii) Compact
Disk Read Only Memory (CD-ROM) format;
(iii) paper copy, if requested by the
telemarketer; and
(iv) any other
format agreed upon by the current administrator of the no-call database and the
subscribing telemarketer.
(3) Intended use of the no-call database and
no-call list.
(A) The no-call database shall
be used only for the intended purposes of creating a no-call list and promoting
and furthering statutory mandates in accordance with the Bus. & Com. Code,
Chapter 44, relating to Telemarketing. Neither the no-call database nor a
published no-call list shall be transferred, exchanged or resold to a
non-subscribing entity, group, or individual regardless of whether compensation
is exchanged.
(B) The no-call
database is not open to public inspection or disclosure.
(C) The administrator shall take all
necessary steps to protect the confidentiality of the no-call database and
prevent access to the no-call database by unauthorized parties.
(4) Penalties for misuse of
information. Improper use of the no-call database or a published no-call list
by the administrator, telemarketers, or any other person regardless of the
method of attainment, shall be subject to administrative penalties and
enforcement provisions contained in §
22.246 of this title (relating to
Administrative Penalties).
(g) Notice. A CTU shall provide notice of the
no-call list to each of its residential customers as specified by this
subsection. In addition to the required notice, the CTU may engage in other
forms of customer notification.
(1) Content
of notice. A CTU shall provide notice in compliance with §
26.26 of this title (relating to
Foreign Language Requirements) that, at a minimum, clearly explains the
following:
(A) Beginning January 1, 2002,
residential customers may add their name, address and non-business telephone
number to a state-sponsored no-call list that is intended to limit the number
of telemarketing calls received;
(B) When a customer who registers for
inclusion on the no-call list can expect to stop receiving telemarketing
calls;
(C) A customer must pay a
fee to register for the no-call list unless the customer registers via the
commission's internet website address, in which case there is no
charge;
(D) Registration of a
non-business telephone number on the no-call list expires on the third
anniversary of the date the number is first published on the list;
(E) Registration of a telephone number on the
no-call list can be accomplished via the United States Postal Service,
Internet, or telephonically;
(F)
The customer registration fee, which cannot exceed three dollars per term, must
be paid by credit card when registering by telephone. When registering by mail,
the fee must be paid by credit card, check or money order;
(G) The toll-free telephone number, website
address, and mailing address for registration; and
(H) A customer that registers for inclusion
on the no-call list may continue to receive calls from groups, organizations,
and persons who are exempt from compliance with this section, including a
listing of the entities exempted as specified in subsection (e) of this
section.
(2) Publication
of notice.
(A) Telephone directory. A CTU
that publishes, or has an affiliate that publishes, a residential telephone
directory may 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 a form for, or request to be placed on, the
Texas no-call list in order to avoid unwanted telemarketing calls.
(B) Notice to individual customers. A CTU
shall provide notice of the Texas no-call list to each of its residential
customers in Texas by one or more of the methods listed in clauses (i) - (v) of
this subparagraph.
(i) an insert in the
customer's billing statement. Electronic notification is permissible for a
customer who, during the notification period, is receiving billing statements
from the CTU in an electronic format;
(iii) separate direct mailing;
(iv) customer newsletter; or
(v) Customer Rights disclosure as provided in
§
26.31(a)(4) of
this title (relating to Disclosures to Applicants and Customers).
(3) Timing of notice.
Beginning in 2002, a CTU shall provide notice of the Texas no-call list to its
residential customers using one of the methods listed in paragraph (2)(B)(i) -
(v) of this subsection.
(A) A CTU that uses a
notification method listed in paragraph (2)(B)(i) - (iv) of this subsection,
shall provide the notice annually beginning in 2002. The annual notice shall be
easily legible, prominently displayed, and comply with the requirements listed
in paragraph (1) of this subsection.
(B) A CTU that elects the Customer Rights
disclosure as its notification method as allowed in paragraph (2)(B)(v) of this
subsection shall comply with the timing of distribution requirement in §
26.31(a)(4) of
this title. The no-call list information provided in the Customer Rights
disclosure shall comply with paragraph (1) of this subsection.
(4) Records of customer
notification. Upon commission request, a CTU shall provide a copy of records
maintained under the requirements of this subsection to the commission. A CTU
shall retain records maintained under the requirements of this subsection for a
period of two years.
(h)
Violations.
(1) Separate occurrence. Each
telemarketing call to a telephone number on the no-call list shall be deemed a
separate occurrence. Upon request from the commission or commission staff, a
telemarketer shall provide, within 21 days of receipt of such a request, all
information relating to the commission's investigation of complaints regarding
alleged violations of the no-call list such as call logs or phone
records.
(2) Isolated occurrence. A
telemarketing call made to a number on the no-call list is not a violation of
this section if the telemarketer complies with subsection (d)(2) and the
telemarketing call is determined to be an isolated occurrence.
(A) An isolated occurrence is an event,
action, or occurrence that arises unexpectedly and unintentionally, and is
caused by something other than a failure to implement or follow reasonable
procedures. An isolated occurrence may involve more than one separate
occurrence, but it does not involve a pattern or practice.
(B) The burden to prove that the
telemarketing call was made in error and was an isolated occurrence rests upon
the telemarketer who made (or caused to be made) the call. In order for a
telemarketer to assert as an affirmative defense that an alleged violation of
this section was an isolated occurrence, the telemarketer must provide evidence
of the following:
(i) The telemarketer has
purchased the most recently published version of the Texas no-call list, unless
the entirety of the telemarketer's business is comprised of telemarketing calls
that are exempt pursuant to subsection (e) of this section and the telemarketer
can provide sufficient proof of such;
(ii) The telemarketer has adopted and
implemented written procedures to ensure compliance with this section and
effectively prevent telemarketing calls that are in violation of this section,
including taking corrective actions when appropriate;
(iii) The telemarketer has trained its
personnel in the established procedures; and
(iv) The telemarketing call that violated
this section was made contrary to the policies and procedures established by
the telemarketer.
(i) Record retention; Provision of records;
Presumptions.
(1) A telemarketer shall
maintain a record of all telephone numbers it has attempted to contact for
telemarketing purposes, a record of all telephone numbers it has contacted for
telemarketing purposes, and the date of each, for a period of not less than 24
months from the date the telemarketing call was attempted or
completed.
(2) Upon request from
the commission or commission staff, a telemarketer shall provide, within 21
calendar days of receipt of such request, all information in its possession and
upon which it relies to demonstrate compliance with this section, relating to
the commission's investigation of alleged violations of the no-call list
including, but not limited to, the call logs or phone records described in
subsection (i)(1) of this section.
(3) Failure by the telemarketer to respond,
or to provide all information in its possession and upon which it relies to
demonstrate compliance with subsections (d) and (i) of this section within the
time specified in paragraph (2) of this subsection establishes a violation of
this section.
(4) Failure of a
telemarketer to provide all telemarketing information in its possession and
upon which it relies to demonstrates compliance with this section and, if
applicable, to establish an affirmative defense pursuant to subsection
(h)(2)(B) of this section within the time specified in paragraph (2) of this
subsection establishes a violation of this section.
(j) Evidence. Evidence provided by the
customer that meets the standards set out in Texas Government Code §
2001.081, including,
but not limited to, one or more affidavits from a customer, is admissible in a
proceeding to establish a violation of this section.
(k) Enforcement and penalties.
(1) State licensees. A state agency that
issues a license to a state licensee may receive and investigate complaints
concerning violations of this section by the state licensee.
(2) Telecommunications providers. The
commission has jurisdiction to investigate violations of this section made by
telecommunications providers, as defined in the Public Utility Regulatory Act
(PURA) §51.002.
(3) Retail
electric providers. The commission has jurisdiction to investigate violations
of this section made by retail electric providers (REPs) as specified in §
25.492 of this title (relating to
Non-Compliance with Rules or Orders; Enforcement by the Commission).
(4) Other Telemarketers. A telemarketer,
other than a state licensee or telecommunications provider, that violates this
section shall be subject to enforcement action pursuant to §
22.246 of this title.