Ky. Rev. Stat. § 367.46951
Section 367.46951 – Definitions for KRS 367.46951 to 367.46999 and 367.990
As used in KRS 367.46951 to 367.46999 and 367.990, unless the context otherwise requires:
(1) “Telephone solicitation” means:
(a) A live or recorded communication sent by a telephone or message sent by a facsimile machine to a residential, mobile, or telephone paging device telephone number, including a call made by an automatic dialing or recorded message device, for the purpose of:
1. Soliciting a sale of consumer goods or services, offering an investment, business, or employment opportunity, or offering a consumer loan to the person called;
2. Obtaining information that will or may be used for the solicitation of a sale of consumer goods or services, the offering of an investment, business, or employment opportunity, or the offering of a consumer loan to the person called;
3. Offering the person called a prize, gift, or anything else of value, if payment of money or other consideration is required in order to receive the prize or gift, including the purchase of other merchandise or services or the payment of any processing fees, delivery charges, shipping and handling fees, or other fees or charges; or
4. Offering the person called a prize, gift, or other incentive to attend a sales presentation for consumer goods or services, an investment or business opportunity, or a consumer loan; or
(b) A live or recorded communication sent by telephone, facsimile machine, mobile telephone, or telephone paging device in response to inquiries generated by unrequested notifications sent by the merchant to persons who have not previously purchased goods or services from the merchant or telemarketer or who have not previously requested credit from the merchant, to a prospective purchaser if the merchant or telemarketer represents or implies to the recipient of the notification that any of the following applies:
1. That the recipient has in any manner been specially selected to receive the notification or the offer contained in the notification;
2. That the recipient will receive a prize or gift if the recipient calls the merchant or telemarketer; or
3. That if the recipient buys one (1) or more items from the merchant or telemarketer, the recipient will also receive additional or other items of the same or a different type at no additional cost or for less than the regular price of the items;
(2) “Telephone solicitation” does not mean the following:
(a) A telephone call made in response to an express request of a person called, unless the request was made during a prior telephone solicitation;
(b) A telephone call made to the debtor or a party to the contract in connection with the payment or performance of an existing debt or contract, the payment or performance of which has not been completed at the time of the call;
(c) A telephone call to any person with whom the telemarketer or merchant has a prior or existing business relationship, including but not limited to the solicitation of contracts for the maintenance or repair of items previously purchased from the person making the solicitation or on whose behalf the solicitation is made;
(d) A telephone call made by the following:
1. A merchant or telemarketer located in Kentucky to a location outside of the Commonwealth of Kentucky;
2. A telephone call made by one (1) merchant to another;
(3) “Consumer goods or services” means goods, services, or interests in real property used by natural persons primarily for personal, family, or household purposes;
(4) “Consumer loan” means any extension of credit, including credit cards and other forms of revolving credit, to a natural person primarily for the purposes of purchasing consumer goods or services or for paying existing personal, family, or household debts;
(5) “Consumer” means a natural person who receives a telephone solicitation;
(6) “Legal name of the merchant” means the real name of the merchant, as defined in KRS 365.015(1), or the assumed name of the merchant for which all proper certificates have been filed pursuant to KRS 365.015;
(7) “Merchant” means the individual or business entity offering the consumer goods or services, an investment, business, or employment opportunity, or a consumer loan;
(8) “Caller” or “sales person” means the individual making the call or operating the automatic dialing or recorded message device and causing the call to be made;
(9) “Division” means the Consumer Protection Division of the Office of the Attorney General;
(10) “Automated calling equipment” means any device or combination of devices used to select or dial telephone numbers and to deliver recorded messages to those numbers without the use of a live operator;
(11) “Telemarketer” means any person who under contract with a merchant or in connection with a telephone solicitation initiates or receives telephone calls to or from a consumer of goods and services. A telemarketer includes but is not limited to any such person that is an owner, operator, officer, director, or partner to the management activities of a business;
(12) “Publicly traded corporation” means an issuer or subsidiary of an issuer that has a class of securities which is:
(a) Subject to Section 12 of the Securities Exchange Act of 1934 (15 U.S.C. sec. 78l) and which is registered or exempt from registration under paragraph (A), (B), (C), (E), (F), (G), or (H) of subsection (g)(2) of that section;
(b) Listed on the New York Stock Exchange, the American Stock Exchange, or the NASDAQ National Market System; or
(c) A reported security within the meaning of subparagraph (4) of Regulation Section 240.11Aa3-1.(a) under the Securities Exchange Act of 1934. A subsidiary of an issuer that qualifies for exemption under this paragraph shall not itself be exempt unless at least sixty percent (60%) of the voting power of its shares is owned by the qualifying issuer;
(13) “Telemarketing company” means a company whose primary business is to engage in telephone solicitation; and
(14) “Zero call list” means the national Do Not Call Registry maintained by the United States Federal Trade Commission containing the residential or wireless telephone numbers of the individuals that indicate their preference not to receive telephone solicitations.
KRS 367.46951Effective:6/26/2007
Amended 2007, Ky. Acts ch. 115, sec. 1, effective6/26/2007. — Amended 2002, Ky. Acts ch. 21, sec. 1, effective 7/15/2002. — Amended 1998, Ky. Acts ch. 426, sec. 573, effective 7/15/1998; and ch. 581, sec. 1, effective 7/15/1998. — Created 1994 Ky. Acts ch. 302, sec. 1, effective 7/15/1994; and ch. 463, sec. 1, effective 7/15/1994.
Ky. Rev. Stat. § 367.46953
Section 367.46953 – Requirements for making telephone solicitation
A caller making a telephone solicitation shall:
(1) Immediately upon making contact by telephone with the consumer, state his actual name, the merchant’s legal name, a telephone number or address at which the merchant may be contacted, and the town or city and state where the caller is physically located;
(2) Within the first thirty (30) seconds of the call, identify the goods, services, interest in real estate, investment or business opportunity, or type of credit being offered and inquire whether the consumer is interested in listening to a sales presentation; and
(3) Immediately discontinue the solicitation if the consumer responds in the negative.
KRS 367.46953Effective:7/15/1994
Created 1994 Ky. Acts ch. 302, sec. 2, effective7/15/1994; and ch. 463, sec. 2, effective7/15/1994.
Ky. Rev. Stat. § 367.46955
Section 367.46955 – Prohibited telephone solicitation acts and practices
It is a prohibited telephone solicitation act or practice and a violation of KRS 367.46951 to 367.46999 for any person making a telephone solicitation through telecommunications services or interconnected Voice over Internet Protocol or VoIP service to engage in the following conduct:
(1) Advertising or representing that registration as a telemarketer equals an endorsement or approval by any government or governmental agency;
(2) Requesting a fee in advance to remove derogatory information from or improve a person’s credit history or credit record;
(3) Requesting or receiving a payment in advance from a person to recover or otherwise aid in the return of money or any other item lost by the consumer in a prior telephone solicitation transaction;
(4) Requesting or receiving payment of any fee or consideration in advance of obtaining a loan or other extension of credit when the telemarketing company has guaranteed or represented a high likelihood of success in obtaining or arranging a loan or other extension of credit for a person;
(5) Obtaining or submitting for payment a check, draft, or other form of negotiable paper drawn on a person’s checking, savings, or bond or other account without the consumer’s express written authorization, or charging a credit card account or making electronic transfer of funds except in conformity with KRS 367.46963;
(6) Procuring the services of any professional delivery, courier, or other pickup service to obtain immediate receipt or possession of a consumer’s payment, unless the goods are delivered with the opportunity to inspect before any payment is collected;
(7) Assisting, supporting, or providing substantial assistance to any telemarketer when the telemarketing company knew or should have known that the telemarketer was engaged in any act or practice prohibited under this section;
(8) Making a telephone solicitation to anyone under eighteen (18) years of age. When making a telephone solicitation the telemarketer shall inquire as to whether the person is eighteen (18) years of age or older and the answer shall be presumed to be correct;
(9)
(a) Causing misleading caller identification information to be transmitted to users of caller identification services, or to otherwise misrepresent the origin of the telephone solicitation.
(b)
1. This subsection shall not apply to solicitations which block caller identification, nor shall it apply to solicitations in which the name and telephone number of the party on whose behalf the call is made is substituted for the name and telephone number of the actual caller.
2. This subsection shall not apply to a telecommunications, broadband, or Voice over Internet Protocol service provider that is:
a. Acting in the telecommunications, broadband, or Voice over Internet Protocol service provider’s capacity as an intermediary for the transmission of telephone service between the caller and the recipient;
b. Providing or configuring a service or service feature as requested by the customer;
c. Acting in a manner that is authorized or required by applicable law; or
d. Engaging in other conduct that is necessary to provide service;
(10) Directing or permitting employees to use a fictitious name or not to use their name while making a telephone solicitation;
(11) Threatening, intimidating, or using profane or obscene language;
(12) Causing the telephone to ring more than thirty (30) seconds in an intended telephone solicitation;
(13) Engaging any person repeatedly or continuously with behavior a reasonable person would deem to be annoying, abusive, or harassing;
(14) Initiating a telephone solicitation call to a person, when that person has stated previously that he or she does not wish to receive solicitation calls from that seller;
(15) Making or causing to be made an unsolicited telephone solicitation call if the residential number for that telephone appears in the current publication of the national Do Not Call Registry maintained by the United States Federal Trade Commission;
(16) Making telephone solicitations to a person’s residence at any time other than between 10 a.m. – 9 p.m. local time, at the called person’s location;
(17) Selling or making available for economic gain any information revealed during a telephone solicitation without the express written consent of the consumer;
(18) Making a telephone solicitation to any residential telephone using an artificial or prerecorded voice to deliver a message, unless the call is initiated for emergency purposes by schools regulated by the Kentucky Department of Education or the call is made with the prior express consent of the called party; or
(19) Engaging in any unfair, false, misleading, or deceptive practice or act as part of a telephone solicitation.
KRS 367.46955Amended by 2019 Ky. Acts ch. 105,§ 1, eff. 6/26/2019.Amended by 2018 Ky. Acts ch. 145,§ 1, eff. 7/14/2018.Effective:6/26/2007
Amended 2007, Ky. Acts ch. 115, sec. 2, effective6/26/2007. — Amended 2002, Ky. Acts ch. 21, sec. 2, effective 7/15/2002. — Created 1998, Ky. Acts ch. 581, sec. 3, effective 7/15/1998.
Ky. Rev. Stat. § 367.46957
Section 367.46957 – Contract or agreement voidable by consumer if resulting from nonconforming telephone solicitation
A contract or agreement made as a result of a telephone solicitation violating KRS 367.46951 to 367.46999 is voidable by the consumer for any reason at any time and shall not be enforced against the consumer.
KRS 367.46957Effective:7/15/1994
Created 1994 Ky. Acts ch. 302, sec. 3, effective7/15/1994; and ch. 463, sec. 3, effective7/15/1994.
Ky. Rev. Stat. § 367.46961
Section 367.46961 – Cancellation of contract not reduced to writing – Exception
(1) Unless the contract is reduced to writing in compliance with subsection (4) of this section, a consumer may cancel a contract made as a result of a telephone solicitation and obtain a full refund of all money paid, by returning the goods, if any, undamaged and unused, or canceling services within the later of:
(a) Fourteen (14) calendar days following receipt of the goods; or
(b) Fourteen (14) calendar days following receipt of two (2) copies of a written notice of cancellation rights containing the following language in no less than ten (10) point, bold-faced type:
NOTICE OF CANCELLATION RIGHTS
BECAUSE YOU AGREED TO BUY THESE GOODS (or services or other appropriate description) AS A RESULT OF AN UNSOLICITED TELEPHONE CALL, KENTUCKY LAW GIVES YOU FOURTEEN (14) DAYS TO CANCEL YOUR AGREEMENT WITH US. IF YOU WANT TO CANCEL, YOU MUST SIGN YOUR NAME BELOW AND RETURN A COPY OF THIS NOTICE, TOGETHER WITH ANY GOODS YOU HAVE RECEIVED, SO THEY ARE POSTMARKED NO LATER THAN MIDNIGHT OF THE FOURTEENTH DAY FOLLOWING THE DATE YOU RECEIVED THE GOODS OR AGREED TO THE SERVICES, OR THE FOURTEENTH DAY FOLLOWING THE DATE YOU RECEIVED THIS NOTICE, WHICHEVER IS LATER. THE NOTICE AND GOODS MUST BE ADDRESSED AS FOLLOWS:
(Name and address of Merchant)
I want to cancel my agreement to purchase.
____________________________________
(Signature)
____________________________________
(Name of Consumer – Printed)
____________________________________
(Address of Consumer – Printed)
____________________________________
(Address – City, State, Zip)
____________________________________
(Date)
(2) The consumer shall be deemed to have complied with subsection (1) of this section if the cancellation notice and goods, if any, are returned to the merchant and are postmarked by midnight of the fourteenth day.
(3) The merchant shall process the refund due any consumer within thirty (30) days of receiving the merchandise returned by the consumer or the written cancellation provided in subsection (1) of this section.
(4) The cancellation period provided in subsection (1) of this section shall not apply to a written contract signed by the consumer that:
(a) Complies with all applicable federal and state laws and regulations:
(b) Contains a description of the goods, services, investment or business opportunity, extension of credit, or interest in realty matching the description used in the telephone solicitation;
(c) Contains the name, address, and telephone number of the merchant, the total price of the contract, including any finance or interest charges, and a detailed description of the goods, services, credit, or interest in realty being offered;
(d) Contains all oral or written representations made to the consumer in connection with the transaction; and
(e) Sets out in at least ten (10) point, bold-face type, immediately preceding the signature, the following statement:
YOU ARE NOT OBLIGATED TO PAY ANY
MONEY UNLESS YOU SIGN THIS CONTRACT
AND RETURN IT TO THE MERCHANT.
KRS 367.46961Effective:7/15/1994
Created 1994 Ky. Acts ch. 302, sec. 4, effective7/15/1994; and ch. 463, sec. 4, effective7/15/1994.
Ky. Rev. Stat. § 367.46963
Section 367.46963 – Requirements to be met before accepting payment from or charging consumer
No caller or merchant making or causing to be made a telephone solicitation shall request or accept payment from a consumer or make or submit any charge to the consumer’s credit or bank account until either:
(1) The merchant receives from the consumer a signed copy of a written contract complying with KRS 367.46961(4); or
(2) The cancellation period provided in KRS 367.46961(1) has expired, and the consumer has not exercised his right to cancel.
KRS 367.46963Effective:7/15/1994
Created 1994 Ky. Acts ch. 302, sec. 5, effective7/15/1994; and ch. 463, sec. 5, effective7/15/1994.
Ky. Rev. Stat. § 367.46967
Section 367.46967 – Violation as unfair or deceptive trade practice – Powers of Attorney General
(1) A violation by a telemarketing company, telemarketer, caller, or merchant of KRS 367.46951 to 367.46999 shall constitute an unfair, false, misleading, or deceptive act or practice in the conduct of trade or commerce in violation of KRS 367.170.
(2) All of the remedies, powers, and duties provided for the Attorney General by KRS 367.190 to 367.300 and the penalties provided in KRS 367.990, relating to acts and practices violating KRS 367.170 shall apply with equal force and effect to acts and practices declared unlawful by KRS 367.46951 to 367.46999.
(3) Nothing in KRS 367.46951 to 367.46999 shall be construed to limit or restrict the exercise of powers or the performance of the duties of the Attorney General authorized under any other provision of law.
KRS 367.46967Effective:7/15/2002
Amended 2002, Ky. Acts ch. 21, sec. 7, effective7/15/2002. — Created 1994 Ky. Acts ch. 302, sec. 6, effective 7/15/1994; and ch. 463, sec. 6, effective 7/15/1994.
Ky. Rev. Stat. § 367.46971
Section 367.46971 – Registration of telemarketing companies doing business in this state – Filing fee – Renewal – Addendum – Written confirmation of receipt of filing – Posting of registration statement
(1) At least ten (10) days prior to doing business in this state, a telemarketing company shall register with the division by filing the information described below and paying a filing fee of three hundred dollars ($300). A telemarketing company shall be deemed to do business in this state if the telemarketing company solicits prospective purchasers from locations in this state or solicits prospective purchasers who are located in this state. The information required by this section shall be submitted on a form provided by the Attorney General and shall be verified by a declaration signed by each principal of the telemarketing company, under penalty of perjury. The declaration shall specify the date and location of signing. Information submitted pursuant to KRS 367.46951 to 367.46999 shall be clearly identified and appended to the filing.
(2) Registration of a telemarketing company shall be valid for one (1) year from the effective date thereof and may be renewed annually by making the filing required by this section and paying a filing fee of fifty dollars ($50).
(3) If, prior to expiration of a telemarketing company’s annual registration, there is a material change in the information required by KRS 367.46951 to 367.46999, the telemarketing company shall, within ten (10) days, file an addendum updating the information with the division. However, changes in salespersons soliciting on behalf of a telemarketing company shall be updated by filing addenda, if necessary, in quarterly intervals computed from the effective date of registration. The addendum shall include the required information for all salespersons currently soliciting or having solicited on behalf of the telemarketing company at any time during the period between the filing of the registration, or the last addendum, and the current addendum, and shall include information on salespersons no longer soliciting for the telemarketing company as of the date of the filing of the current addendum.
(4) Upon receiving the filing and the filing fee pursuant to this section, the division shall send the telemarketing company a written confirmation of receipt of the filing. If the telemarketing company has more than one (1) business location, the written confirmation shall be sent to the telemarketing company’s principal business location as identified in the telemarketing company’s filing in sufficient numbers so that the telemarketing company can meet the requirements of this subsection. Within ten (10) days of receipt of the confirmation, the telemarketing company shall post in a conspicuous place at each of the telemarketing company’s business locations within this state a copy of the entire registration statement which has been filed with the division. Until confirmation of receipt of filing is received and posted, the telemarketing company shall post in a conspicuous place at each of the telemarketing company’s business locations within this state a copy of the first page of the registration form sent to the department. The telemarketing company shall also post in close proximity to either the confirmation of receipt of filing or the first page of the submitted registration form the name of the individual in charge of each location from which the telemarketing company does business in this state.
KRS 367.46971Effective:6/26/2007
Amended 2007, Ky. Acts ch. 115, sec. 3, effective6/26/2007. — Amended 2002, Ky. Acts ch. 21, sec. 3, effective 7/15/2002. — Created 1994 Ky. Acts ch. 302, sec. 7, effective 7/15/1994; and ch. 463, sec. 7, effective 7/15/1994.
Ky. Rev. Stat. § 367.46973
Section 367.46973 – Contents of filing
Each filing pursuant to KRS 367.46971 shall contain the following information:
(1) The name or names of the telemarketing company, including the name under which the telemarketing company is doing or intends to do business, if different from the name of the telemarketing company, and the name of any parent or affiliated organization that will engage in business transactions with purchasers relating to sales solicited by the telemarketing company, or that accepts responsibility for statements made by, or acts of, the telemarketing company relating to sales solicited by the telemarketing company;
(2) The telemarketing company’s business form and place of organization and, if the telemarketing company is a corporation, a copy of its articles of incorporation and bylaws and amendments to those, 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, along with a copy of the registration documents. The same information shall be included for any parent or affiliated organization disclosed pursuant to subsection (1) of this section;
(3) The complete street address of all locations designating the principal location from which the telemarketing company will be conducting business. If the principal business location of the telemarketing company is not in this state, then the telemarketing company shall also designate which of its locations within this state is its main location;
(4) A listing of all telephone numbers to be used by the telemarketing company and the address where each telephone using each of these telephone numbers is located;
(5) The name of and the office held by the telemarketing company’s officers, directors, trustees, general and limited partners, sole proprietor, and owners and the names of persons having management responsibilities in the telemarketing company’s business activities;
(6) The principal residence, the date of birth, and the driver’s license number and state of issuance of each person named pursuant to subsection (5) of this section;
(7) The name and principal residence of each person the telemarketing company leaves in charge at each location in which the telemarketing company does business in this state, and the business location at which each of these persons is in charge;
(8) A statement, meeting the requirements of this subsection, as to both the telemarketing company, whether a corporation, partnership, firm, association, joint venture, or any other type of business entity and as to any person identified pursuant to subsection (5) or (7) of this section who:
(a) Has been convicted of a felony or a misdemeanor involving a violation of this article, or fraud, theft, embezzlement, fraudulent conversion, or misappropriation of property. For purposes of this paragraph, a plea of nolo contendere shall be considered a conviction;
(b) Has had entered against him 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 KRS 367.46951 to 367.46999, 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 an 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 of that agency, including but not limited to an action affecting any vocational license; or
(d) Has during the previous seven (7) tax years filed in 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 (1) year after the period that the person held that position.
The statement required by paragraphs (a), (b), and (c) of this subsection shall identify the telemarketing company or person, the court or administrative agency rendering the conviction, judgment, or order, the docket number of the matter, the date of the conviction, judgment, or order, and the name of the governmental agency, if any, that brought the action resulting in the conviction, judgment, or order. For purposes of paragraph (d) of this section, the statement required shall include the name and location of the telemarketing company 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) A list of the names, driver’s license numbers and states of issuance, principal residence addresses, and telephone numbers of salespersons who solicit on behalf of the telemarketing company, and any names the salesperson uses while soliciting;
(10) A description of the items the telemarketing company is offering for sale and a copy of all sales scripts the telemarketing company requires salespersons to use when soliciting prospective purchasers. If no sales script is required to be used, a statement to that effect shall be included;
(11) 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 telemarketing company to salespersons or of which the telemarketing company informs salespersons, and a copy of all written materials the telemarketing company sends to any prospective or actual purchaser;
(12)
(a) If the telemarketing company 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 (1) or more items among designated items, whether the items are denominated as gifts, premiums, bonuses, prizes, or otherwise, the filing shall include the following:
1. A list of the items offered;
2. The actual value or worth of each item described to prospective purchasers and the basis for the valuation; and
3. The price paid by the telemarketing company to its supplier for each of these items and the name, address, and telephone number of each item’s supplier;
(b) If the purchaser is to receive fewer than all of the items described by the telemarketing company, the filing shall include the following:
1. The manner in which the telemarketing company decides which item each prospective purchaser is to receive;
2. The odds a single prospective purchaser has of receiving each described item;
3. The name and address of each recipient who has, during the preceding twelve (12) months, or if the telemarketing company has not been in business that long, during the period the telemarketing company has been in business, received the item having the greatest value and the item with the smallest odds of being received; and
4. All rules, regulations, terms, and conditions a prospective purchaser must meet in order to receive the item; and
(13) If the telemarketing company is offering an investment, business, or employment opportunity, the filing shall include the following:
(a) The number of consumers or investors who have participated to date;
(b) The actual experience of the consumers or investors as measured by standards used in the sales presentations; and
(c) If the opportunity is so recent that no actual performance experience exists, that fact shall be disclosed in all sales presentations, and no other representation of performance shall be made in sales presentations.
KRS 367.46973Effective:6/26/2007
Amended 2007, Ky. Acts ch. 115, sec. 4, effective6/26/2007. — Created 1994 Ky. Acts ch. 302, sec. 8, effective 7/15/1994; and ch. 463, sec. 8, effective 7/15/1994.
Ky. Rev. Stat. § 367.46977
Section 367.46977 – Disclosure requirements for sale presentations
(1) If the merchant or telemarketer represents or implies that the consumer will receive a prize, award, or similar item of value from a number of such prizes or awards, all sales presentations shall include the actual number of individuals who have received the item having the greatest value, a description of the item, the market value of the item, the number of prizes to be awarded, the conditions to receive the item, the odds of winning, the statement that no purchase is necessary to win the prize or to participate in the promotion, and the actual number of individuals who have received the item with the least value within the preceding twelve (12) months or since the merchant or telemarketer has been in business if less than twelve (12) months.
(2) If the merchant or telemarketer is offering real estate, an investment, business, or employment opportunity, the sales presentation shall include the following:
(a) The number of consumers or investors who have participated to date;
(b) The actual experience of the consumers or investors as measured by the standards used in the sales presentations; and
(c) The price of the real estate or investment;
(d) The location of the real estate or investment;
(e) Regarding an investment or business opportunity, the reasonable likelihood of success and a notice of the risk; and
(f) If the opportunity is so recent that no actual performance experience exists, that fact shall be disclosed in all sales presentations, and no other representation of performance shall be made in sales presentations.
(3) If the sales presentation includes representations of prices below those usually charged for items, the sales presentation shall include the name of the manufacturer, importer, or supplier of such items and the locations within the merchant’s or telemarketer’s calling state or this state at which the items are offered at usual prices. If the item has never been sold in the merchant’s or telemarketer’s calling state or this state no representation of usual selling price shall be made.
(4) If presenting information on merchandise or service, the total cost of the goods or services that are the subject of the call shall be given.
(5) If any restrictions, limitations, or conditions for the purchase or investment exist, these shall be disclosed during the telephone sales presentation.
(6) Terms for refunds, cancellation, exchange, or repurchase of the subject of the sales presentation shall be disclosed during the telephone sales presentation.
KRS 367.46977Effective:7/15/1998
Amended 1998, Ky. Acts ch. 581, sec. 2, effective7/15/1998. — Created 1994 Ky. Acts ch. 302, sec. 9, effective 7/15/1994; and ch. 463, sec. 9, effective 7/15/1994.
Ky. Rev. Stat. § 367.46981
Section 367.46981 – Bond required for telemarketing companies – Notification to Attorney General of promotion offering premium
(1) Every telemarketing company shall maintain a bond issued by a surety company admitted to do business in this state. The bond shall be in the amount of fifty thousand dollars ($50,000) in favor of the Attorney General for the benefit of any person suffering injury or loss by reason of any violation of KRS 367.46951 to 367.46999 to be paid under the terms of any order of a court of competent jurisdiction obtained by the Attorney General, as a result of any violation of KRS 367.46951 to 367.46999. A copy of the bond shall be filed with the division.
(2) At least ten (10) days prior to the inception of any promotion offering a premium with an actual market value or advertised value of five hundred dollars ($500) or more, the telemarketing company shall notify the Attorney General in writing of the details of the promotion, describing the premium and its current market value, the value at which it is advertised or held out to the customer, the date the premium shall be awarded, and the conditions under which the award shall be made. The telemarketing company shall maintain an additional bond for the greater of the current total market value or the advertised value of the premiums held out or advertised to be available to a purchaser or recipient. A copy of the bond shall be filed with the division. The bond, or a portion of it necessary to cover the cost of the award, shall be forfeited if the premium is not awarded to a bona fide customer within thirty (30) days of the date disclosed as the time of award or the time otherwise required by law. The proceeds of the bond shall be paid to any person suffering injury or loss by reason of any violation of KRS 367.46951 to 367.46999 or shall be paid pursuant to the terms of any order of a court of competent jurisdiction obtained by the Attorney General, Commonwealth’s attorney, or county attorney as a result of any violation of KRS 367.46951 to 367.46999. The bond shall be maintained until the telemarketing company files with the Attorney General proof that the premium was awarded.
KRS 367.46981Effective:7/15/2002
Amended 2002, Ky. Acts ch. 21, sec. 4, effective7/15/2002. — Created 1994 Ky. Acts ch. 302, sec. 10, effective 7/15/1994; and ch. 463, sec. 10, effective 7/15/1994.
Ky. Rev. Stat. § 367.46983
Section 367.46983 – Authority for administrative regulations
The Attorney General may promulgate administrative regulations necessary for the proper administration and enforcement of KRS 367.46951 to 367.46999.
KRS 367.46983Effective:7/15/1994
Created 1994 Ky. Acts ch. 302, sec. 11, effective7/15/1994; and ch. 463, sec. 11, effective7/15/1994.
Ky. Rev. Stat. § 367.46987
Section 367.46987 – Person using electronic equipment for solicitation deemed to have accepted Kentucky law
Any merchant, caller, or other person who uses electronic equipment within this Commonwealth for purposes of telephone solicitation shall, as a condition of that use, be deemed to have accepted the provisions of KRS 367.46951 to 367.46999 and of KRS Chapter 526.
KRS 367.46987Effective:7/15/1994
Created 1994 Ky. Acts ch. 302, sec. 12, effective7/15/1994; and ch. 463, sec. 12, effective7/15/1994.
Ky. Rev. Stat. § 367.46991
Section 367.46991 – Burden of proving exemption or defense on claimant
In a civil proceeding alleging a violation of KRS 367.46951 to 367.46999, the burden of proving an exemption shall be on the person claiming the exemption, and in a criminal proceeding alleging a violation of KRS 367.46951 to 367.46999, the burden of producing evidence to support a defense based on an exemption shall be on the person claiming the exemption.
KRS 367.46991Effective:7/15/1994
Created 1994 Ky. Acts ch. 302, sec. 13, effective7/15/1994; and ch. 463, sec. 13, effective7/15/1994.
Ky. Rev. Stat. § 367.46993
Section 367.46993 – Telemarketer prohibited from contacting credit card issuer to obtain account number – Issuer prohibited from providing account number
(1) A telemarketer shall not contact a credit card issuer, in writing or by telephone, facsimile, computer, or by any other means, for the purpose of obtaining a consumer’s credit card account number.
(2) A credit card issuer shall not provide a consumer’s credit card account number to a telemarketer.
KRS 367.46993Effective:7/15/2002
Created 2002, Ky. Acts ch. 18, sec. 1, effective7/15/2002.
Ky. Rev. Stat. § 367.46994
Section 367.46994 – Transfer of numbers on zero call list to national Do Not Call Registry – Consumer education materials – Publication of materials by telephone companies
(1) The Office of the Attorney General immediately shall request that the Federal Trade Commission include on the national Do Not Call Registry the residential numbers that were placed on the zero call list on or before June 26, 2007. If the Federal Trade Commission denies the request, then those households whose residential numbers will be purged from the zero call list shall be informed by the Office of the Attorney General on how to place their telephone number on the national Do Not Call Registry.
(2) Persons whose telephone numbers appear on the zero call list shall not receive telephone solicitations except in accordance with the provisions of KRS 367.46951 to 367.46999.
(3) Information contained in a database established for the purpose of administering the zero call list shall be used only for the purpose of implementing the zero call program in conformance with KRS 367.46951 to 367.46999.
(4) The Kentucky Public Service Commission shall produce consumer education materials that:
(a) Describe Kentucky’s telemarketing laws;
(b) Describe the consumer’s rights and responsibilities regarding the receipt of telephone solicitation;
(c) Explain how consumers can apply to be placed on any federal Do Not Call Registry established by the Federal Communications Commission and the Federal Trade Commission;
(d) Explain how to apply to be placed on company-specific and industrywide no solicitation calls list, including those lists provided by the Direct Marketing Association (DMA) and the Telephone Preference Service (TPS); and
(e) Describe how a consumer can file a complaint if the consumer receives calls after being placed on the Do Not Call Registry established by the Federal Communications Commission and the Federal Trade Commission.
(5) The Public Service Commission shall require that, once a year, telephone companies under the jurisdiction of the Public Service Commission shall include the customer education material or portions thereof, at the discretion of the companies, in either the billing inserts, billing messages, or in the Customer Guide pages of their telephone directories.
KRS 367.46994Effective:6/26/2007
Amended 2007, Ky. Acts ch. 115, sec. 5, effective6/26/2007. — Created 2002, Ky. Acts ch. 21, sec. 5, effective 7/15/2002.
Ky. Rev. Stat. § 367.46995
Section 367.46995 – Claims alleging calls made to persons on zero call list – Defenses
(1) Any claim or action alleging the making of a call to a person on the zero call list in violation of KRS 367.46955 shall be in writing and verified by the claimant.
(2) In any action or claim alleging the making of a call to a person on the zero call list, it shall be a defense that the defendant obtains the current zero call list in a timely manner and makes reasonable efforts to avoid calling persons whose telephone numbers appear on the list.
(3) It shall be a defense in any action or proceeding brought under KRS 367.46951 to 367.46999 that the defendant has established and implemented, with due care, reasonable practices and procedures to prevent telephone solicitations in violation of KRS 367.46951 to 367.46999.
KRS 367.46995Effective:7/15/2002
Created 2002, Ky. Acts ch. 21, sec. 6, effective7/15/2002.
Ky. Rev. Stat. § 367.46999
Section 367.46999 – Penalties for violation – Concurrent enforcement powers of Attorney General
(1) Any person, including, but not limited to, a merchant, a telemarketer, a salesperson, agent or representative of the merchant, or an independent contractor, who knowingly violates any provision of KRS 367.46951 to 367.46999 or engages in any act, practice, or course of business which operates or would operate as fraud or deceit upon any person in connection with a sale shall be guilty of a Class D felony, except that any person who violates KRS 367.46955(7) to (16) shall be guilty of:
(a) A Class B misdemeanor for the first offense that shall be punishable by imprisonment of not more than ninety (90) days, or a fine of no more than five hundred dollars ($500), or both; and
(b) A Class A misdemeanor for any subsequent offense that shall be punishable by imprisonment of not more than one (1) year, or a fine of not more than five thousand dollars ($5,000), or both.
(2) Notwithstanding any other provision of law, in addition to the penalties provided in this section, any person found guilty of violating KRS 367.46955(9)shall pay restitution of any financial benefit secured through conduct proscribed by KRS 367.46955(9).
(3) The Office of the Attorney General shall have concurrent enforcement powers as to such felonies and misdemeanors.
(4)
(a) Notwithstanding other criminal and administrative remedies, a person or class of persons alleging:
1. Receipt of a call in violation of KRS 367.46955(9); or
2. That a number assigned to the person was misleadingly transmitted as a caller identification number by a solicitor in violation of KRS 367.46955(9); may bring a civil action in the county where the plaintiff resides or has his or her principal place of business, against any person who is responsible for or who knowingly participated in the violation.
(b) The civil action brought under paragraph (a) of this subsection may be for:
1. Appropriate injunctive relief;
2. Actual damages;
3. Actual expenses incurred, including court costs and attorney’s fees; and
4. Punitive damages.
KRS 367.46999Amended by 2019 Ky. Acts ch. 105,§ 2, eff. 6/26/2019.Amended by 2018 Ky. Acts ch. 145,§ 2, eff. 7/14/2018.Effective:7/15/1998
Amended 1998, Ky. Acts ch. 581, sec. 4, effective7/15/1998. — Created 1994 Ky. Acts ch. 302, sec. 14, effective 7/15/1994; and ch. 463, sec. 14, effective 7/15/1994.