Dear Georgia Consumer,

A recent study by the Federal Trade Commission revealed that telemarketing scams rob consumers of 40 billion dollars annually. In Georgia alone, they cheat their victims out of more than 500 million dollars each year. With more than 75 percent of fraud occurring over the phone, every Georgian with a phone is potentially at risk of being victimized. 

The National Consumers League estimates that more than 10 percent of all telemarketing calls are fraudulent. Whether they are promising a "last chance offer," a "can’t miss" investment or a "worthy" charitable contribution, it is becoming harder than ever to distinguish legitimate telemarketers from those operating illegally.

The Secretary of State’s office, the Governor’s Office of Consumer Affairs and the Attorney General’s office are working together to protect Georgia consumers from these fraudulent operators. Our efforts have resulted in new legislation making telemarketing fraud a felony, doubling the penalties for those who target the elderly or disabled and establishing a Georgia No Call List for residents who do not wish to be called by telemarketers at home.

But remember, as with most crimes, the best cure for telemarketing fraud is prevention. We hope this brochure serves as a useful tool to help protect you from the criminals who use a phone, rather then a gun or knife, to steal your hard-earned money.

Sincerely,

Once you get on a call list, you can expect to be contacted by a wide range of telemarketing firms for an indefinite period. You may be contacted by means of computerized call offers and facsimile transmissions. Unsolicited telemarketing calls placed by a computer or delivered by a recorded message are illegal under Georgia law. The recipient may consent to receive such a call only if a line operator introduces the call and announces that a recorded message will follow. Telemarketers are also prohibited under Georgia and federal law from transmitting facsimile messages without the recipient’s consent.

The Georgia No-Call List

The Georgia General Assembly passed legislation in 1998 allowing consumers to avoid calls from telephone solicitors by having their telephone numbers placed on the Georgia No-Call List. Telephone solicitors are prohibited from calling any number on the list, which is maintained by the Public Service Commission. Registration on the Georgia No-Call List, however, does not limit calls from businesses with which you have a relationship, recognized charitable or religious organizations or political pollsters or candidates for public office.

For a $5.00 registration fee, a residential telephone number can be placed on the Georgia No-Call List for a period of two (2) years. This registration fee must be payed for each telephone number which is included on the list. By law, business numbers may not be included on the list.

To register for the Georgia No-Call List, call 1-877-GANOCALL or visit www.ganocall.com.

Charitable organizations that are not religious in nature and those paid to solicit charitable contributions must register with the Office of Secretary of State in order to solicit contributions in Georgia.

If you are called, you should ask the caller for the following information:

• The name of the charitable organization
• What type of charitable work is being done
• How your money would be spent
• The address and telephone number of the organization and whether it is registered with the Office of Secretary of State

You may call the Office of Secretary of State at (404) 656-3920 or use this site to verify that the charity or paid solicitor is registered to operate in Georgia. 

If a charity caller offers to send someone to your home to pick up a monetary contribution, contact out office at (404) 656-3920.

To screen unfamiliar companies for reports of fraudulent activity, contact the following groups:

National Fraud Information Center

Georgia Better Business Bureau offices

Governor's Office of Consumer Affairs

Securities Firms and Investment Advisors

Issuers of securities, securities firms, securities salespersons and investment advisors doing business in Georgia are regulated by the Secretary of State. Securities are stocks and bonds, promissory notes, limited partnerships and other investment transactions that are more complex. Nearly all security offerings, securities salespeople and investment advisors who manage less than $25 million in investments must be registered with the Secretary of State.

If someone selling securities contacts you, remember: 

• You have the right to receive information about the salesperson, his or her firm and the investment itself.
• Salespersons must confirm whether they or their employer are registered with the Secretary of State.
• Many securities sold over the telephone are for poorly capitalized companies, for which there has been no previous public sale of stock. Such investments are generally much riskier than investing in established companies with longstanding operating histories.
• Before sending any money to the salesperson, you should read and understand a prospectus, which contains key information about the issuer.

For any investment, be wary of a sales pitch where the salesperson tells you "inside information," makes an offer solely on a "one-time" basis, or promises that the investment will yield a large return.

General Telemarketing Solicitations

The Governor's Office of Consumer Affairs (OCA) is responsible for combating fraudulent telemarketing activities involving a pattern of unfair or deceptive acts in the consumer marketplace. Among those telemarketing activities that OCA investigates are: prize offers, travel package offers, recovery scams, telephone service sales and credit-related scams.

If you are solicited by a telemarketer, the following advice is important:

• Do Not Buy from an unfamiliar business on the phone or make an "on-the-spot" purchase. Legitimate businesses are willing to provide you with information about their company and the offer and will allow you the time to review the information before you purchase. If the offer is not available unless you buy "right now," then it is not worth taking the risk.

• Never send money or give out your credit card or bank account numbers to unfamiliar businesses. Aside from granting the telemarketers immediate access to your accounts, your financial and personal information may be sold to other telemarketers or, even worse, they may set up their own credit identity with your personal financial information.

Be Wary! Common telemarketing scams:

• Prize Offers and Travel Packages - You usually have to do something to get your "free" prize: attend a sales presentation; buy something; give a check, credit card or bank account number for shipping charges, taxes, etc. Generally, such prizes are worthless or junk products. "Free" or low-cost vacations can end up, due to a lack of disclosure of additional charges, costing you money.

• Recovery Scams - If you buy from any of the telemarketing scams, you may be called again by someone promising to get your money back. Note that even state consumer protection officials and law enforcement cannot guarantee recovery of your funds and would never ask you for money to assist you with a telemarketing complaint. The caller is in all likelihood a scam artist just trying to steal from you again.

• "Slamming" and other Utility Problems - As the process of utility deregulation occurs, so do consumer problems as less than reputable players get into the marketplace. Slamming is the illegal practice of switching a consumer's utility service [local and long distance telephone or, in the near future, natural gas and electricity] without their authorization or knowledge. The dramatic increase in telephone solicitations for telephone services (pre-paid calling cards, local and long distance services, etc.) has brought about an increase in the incidence of fraud regarding such services. Consumers are advised to request information in writing about the services and then make an educated decision. Consumers should also be wary of pyramid sales schemes, business opportunities, and too-good-to-be-true offers regarding utility services.

• Multi-Level Distribution Companies - A multi-level distribution company recruits participants who, after paying a fee, earn commissions or bonuses by selling a product and recruiting other participants. Though you may be promised a substantial profit for a few hours of work, most people are unlikely to merely recover their investment. Even worse, unless the company is in compliance with Georgia law, participation may be a criminal act.

The Georgia Attorney General has the authority to go into court to stop telemarketing fraud and seek recovery for victims when the Office of Secretary of State and the Office of Consumer Affairs find unlawful activities which cannot be resolved through their own administrative processes. In many cases, the Attorney General serves as the last line of defense in the war that the State of Georgia is waging against telemarketing fraud.

Investments or Charitable Solicitations

Office of the Secretary of State
Division of Securities and Business Regulation
2 M. L. King Jr. Drive, Suite 802
Atlanta, Georgia 30334
Telephone: (404) 656-3920
Fax: (404) 657-8410
GeorgiaSecurities.org


General Consumer Matters

Governor’s Office of Consumer Affairs
2 M. L. King Jr. Drive
Plaza Level East
Atlanta, Georgia 30334
Telephone: (404) 651-8600
1-800-869-1123