The Telephone Sales Rule (TSR) is a regulation that governs “telephone sales”, which is defined as a plan, program or campaign to induce the purchase of goods or services or a charitable contribution that involves more than one interstate telephone call. The Federal Communications Commission (FCC) is responsible for overseeing intrastate and interstate calls. This applies to both “telemarketers” who initiate or receive telephone calls to or from consumers, and “sellers” who provide, offer, or make arrangements to provide goods or services to consumers in exchange for payment. It doesn't matter if a company makes or receives calls with low-tech equipment or with the latest technology, and it doesn't matter if the calls are made from outside the United States, as long as they are made to consumers in the United States.
Those who make the calls must comply with the provisions of the TSR unless they are otherwise exempt. The business tax for the City of Los Angeles is a privilege tax that is applied for tax purposes only. Persons engaged in the provision of services may be entitled to an apportionment of gross income derived from activities carried out both inside and outside the city of Los Angeles (City Clerk's Judgment No.). The tax does not apply to leases of composite text or of copies of reproductions of the same by a printer to another person for use in the preparation of printed material, or to the leases of such reproduction tests or printed mats to a printer or publisher for use in printing, except when the reproduction test is an integral part of an adhesive, mechanical or assembly. Article 1.15, Chapter 2, of the Los Angeles Municipal Code imposes a tax on the privilege of occupying space in any parking facility in the city of Los Angeles. When disclosures are oral, they must be clear and eye-catching, meaning they are made at an understandable speed and pace, and in the same language and in the same tone and volume as the sales offers, so that ordinary consumers can easily hear and understand them.
In any multi-purpose call in which the telephone vendor plans to request charitable contributions on at least some of the calls, both charitable request disclosures must be made promptly, that is, during the first part of the call before the non-charitable part of the call. Similarly, in any multipurpose call in which the seller or telephone salesperson plans to sell goods or services in at least some of the calls, all four sales disclosures must be made without delay, that is, during the first part of the call before the non-sales part of the call. The commercial tax incentive areas of the City of Los Angeles have been approved by City Council to offer commercial tax incentives to businesses located in certain areas of the city. Retailers and wholesalers may be entitled to an apportionment of their gross income if they are in Los Angeles and carry out sales activities both inside and outside city limits (City Clerk's Judgment No.). Sales tax does not apply to sale of repair parts to a landlord who uses them to maintain leased equipment in accordance with a mandatory maintenance contract. A third party that provides sellers or sellers over phone with mailing lists, automatic dialing software, or telephone services; helps create sales scripts or direct mail items; or provides any other substantial assistance knowingly or unknowingly avoiding knowing that a seller or telephone seller is committing a TSR violation may be in violation of TSR.
If a telephone seller offers goods or services that are not in catalog that prompted consumer's call or in a substantially similar catalog, then this sales transaction is covered by TSR. So do most printer repair services provide loaner parts while they are working on customer's equipment in Los Angeles County, CA? The answer is yes. Companies must comply with TSR regulations when making calls to induce purchases and must make all necessary disclosures promptly. Additionally, businesses located within certain areas may be eligible for commercial tax incentives when carrying out sales activities both inside and outside Los Angeles County.
