Consumer Protection

SENATE BILL 2209
By Taylor

HOUSE BILL 2225
By Gillespie
HB2225
009633
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AN ACT to amend Tennessee Code Annotated, Title 39;
Title 47 and Title 65, relative to consumer
protection.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 47, Chapter 18, is amended by adding
the following as a new part:
47-18-3501. Legislative findings.
The general assembly finds and declares the following:
(1) The use of the telephone to market goods and services to the home
is now pervasive due to the increased use of cost-effective telephone solicitation
technologies and techniques;
(2) While some consumers enjoy and benefit from telephone solicitations
from legitimate telephone solicitors, many others object to these telephone
solicitations as an intrusive invasion of their privacy in the home;
(3) In addition, the proliferation of telephone solicitations, especially
during the evening hours, creates a nuisance and a disturbance upon the home
and family life of telephone subscribers during a time of day used by many
families for traditional family activities;
(4) Residents of this state should have the freedom to choose whether or
not to permit telephone solicitors to contact them;
(5) Individual privacy rights, personal safety, prevention of fraud, and
commercial freedom of speech and trade must be balanced in a way that

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protects the privacy of individuals and permits legitimate telephone solicitation
practices;
(6) Legitimate telephone solicitors have no interest in continuing to
invade the privacy of those telephone subscribers who affirmatively express their
desires to receive no further telephone solicitations;
(7) Many telephone subscribers who have transacted business with firms
that employ telephone solicitations have experienced problems with their
checking and credit card accounts being debited before they can evaluate the
terms and conditions of the transaction, before they can evaluate the
merchandise or service to be delivered, or without their agreement to enter into
the transaction or authorize such transactions in the first place. Other telephone
subscribers have had unauthorized charges placed on their telephone bill and
have had their long-distance carrier switched without their authorization as a
result of telephone solicitations;
(8) New technologies that make telephone solicitations more cost-
effective also allow for the creation of a "Do Not Call" registry through which
consumers in this state can easily register their desires not to receive further
telephone solicitations and telephone solicitors can easily access and employ
lists of consumers who have registered those desires; and
(9) The public interest requires an efficient mechanism for telephone
subscribers to notify telephone solicitors that their telephone numbers cannot be
called and additional protections for residents in this state who enter into
consumer transactions initiated through telephone solicitations.
47-18-3502. Part definitions.
As used in this part:

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(1) "Affiliate" means a business establishment, business, or other legal
entity that wholly or substantially owns, is wholly or substantially owned by, or is
under common ownership with a telephone solicitor;
(2) "Do not call registry" means:
(A) The registry created and maintained by the federal trade
commission pursuant to the telemarketing sales rule;
(B) Another telemarketing registry created by the federal
government, including the federal communications commission; and
(C) Any registry created by the attorney general and reporter
pursuant to § 47-18-3503(m);
(3) "Doing business in this state" means to make or cause to be made
any telephone solicitation to telephone subscribers in this state, whether the
telephone solicitations are made from a location inside or outside of this state;
(4) "Established business relationship" means a relationship between a
seller and a consumer based on:
(A) The consumer's purchase, rental, or lease of the seller's
goods or services or a financial transaction between the consumer and
the seller or one (1) or more of its affiliates within the eighteen (18)
months immediately preceding the date of a telephone solicitation; or
(B) The consumer's inquiry or application regarding a product or
service offered by the seller within the three (3) months immediately
preceding the date of a telephone solicitation;
(5) "Person" means an individual, business, or other legal entity;
(6) "Prior express written consent" means an agreement that:
(A) Is in writing;

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(B) Bears the signature, including an electronic or digital form of
signature to the extent that such form of signature is recognized as a valid
signature under applicable state or federal law, of the person to be called
that clearly authorizes the seller to deliver or cause to be delivered
telephone solicitations to the person;
(C) Includes the telephone number to which the person
authorizes such telephone solicitations to be delivered; and
(D) Includes a clear and conspicuous disclosure informing the
person that:
(i) By executing the agreement, the person authorizes the
seller to deliver or cause to be delivered telephone solicitations to
the person; and
(ii) The person is not required to sign the agreement or
agree to enter into such an agreement as a condition of
purchasing any property, goods, or services;
(7) "Robocall":
(A) Means a voice communication that delivers artificial, artificially
generated, or prerecorded voice messages, in whole or in part, including,
but not limited to, telephone calls utilizing soundboard technology and
ringless voicemail messages; and
(B) Includes spam and scam text messages received by a
telephone subscriber through a messaging application;
(8) "Robocaller" means a person doing business in this state that, directly
or through others, makes, attempts to make, causes to be made, or otherwise
provides substantial assistance or support for making robocalls;

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(9) "Telemarketing sales rule" means the federal regulation promulgated
by the federal trade commission (16 CFR Part 310), as amended, to implement
the federal Telemarketing and Consumer Fraud and Abuse Prevention Act (15
U.S.C. §§ 6101-6108), as amended;
(10) "Telephone solicitation":
(A) Means:
(i) A voice or text communication, whether prerecorded,
live, or a facsimile, over a telephone line or wireless telephone
network or via a commercial mobile radio service that is made by
a telephone solicitor to a telephone subscriber for the purpose of
soliciting or encouraging the purchase or rental of, or investment
in, property, goods, or services;
(ii) Obtaining or providing information that will or may be
used for the purposes described in subdivision (10)(A)(i);
(iii) Soliciting or encouraging a telephone subscriber's
participation in any contest, sweepstakes, raffle, or lottery,
whether legal or illegal; or
(iv) Obtaining a charitable donation; and
(B) Includes transactions that meet the definition of telemarketing
under the telemarketing sales rule;
(11) "Telephone solicitor":
(A) Means any person doing business in this state that, directly or
through salespersons or agents, makes, attempts to make, causes to be
made, or otherwise provides substantial assistance or support for making
telephone solicitations; and

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(B) Includes any party that meets the definition of a telemarketer
under the telemarketing sales rule; and
(12) "Telephone subscriber":
(A) Means an individual who subscribes to a residential telephone
service from a local exchange company, a competing local provider
certified to do business in this state, or a wireless telephone company;
and
(B) Includes an individual living or residing with such individual.
47-18-3503. Restrictions on telephone solicitations.
(a) Except as provided in § 47-18-3504, a telephone solicitor shall not make a
telephone solicitation to a telephone subscriber's telephone number if the telephone
subscriber's telephone number appears in the latest edition of the do not call registry.
(b) A telephone solicitor shall not make a telephone solicitation to a telephone
subscriber's telephone number if the telephone subscriber previously has communicated
to the telephone solicitor a desire to receive no further telephone solicitations from the
telephone solicitor to that number.
(c) A telephone solicitor who makes a telephone solicitation shall:
(1) At the beginning of the telephone solicitation, state clearly the identity
of the telephone solicitor and identify the individual making the telephone
solicitation;
(2) Upon request, provide the telephone subscriber with the telephone
number or address at which the telephone solicitor may be contacted;
(3) If the telephone subscriber requests to be taken off the contact list of
the telephone solicitor, take all steps necessary to remove the telephone
subscriber's name and telephone number from the contact list of the telephone

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solicitor and stop calling the telephone subscriber within thirty (30) business
days;
(4) If the telephone subscriber objects to the telephone solicitation,
terminate the telephone solicitation and, if the telephone solicitation is a voice
communication, promptly disconnect from the telephone line of the person
receiving the call; and
(5) Notwithstanding subdivision (c)(3), if a telephone solicitor relies on
the established business relationship of an affiliate to solicit a residential
telephone subscriber whose telephone number is listed in the latest edition of the
do not call registry and the person called communicates a desire to receive no
further telephone solicitations from the telephone solicitor, take all steps
necessary to remove that telephone subscriber's telephone number from the
contact lists of the telephone solicitor and that affiliate, unless the telephone
subscriber indicates otherwise, and the telephone solicitor and that affiliate shall
stop calling or texting the telephone subscriber at that number within sixty (60)
business days.
(d) Each telephone solicitor shall implement systems and written procedures to
prevent further telephone solicitations to any telephone subscriber who has asked not to
be called or texted again at a specific number or numbers or whose telephone number
appears in the do not call registry. Each telephone solicitor shall train, monitor, and
enforce compliance by its employees and shall monitor and enforce compliance by its
independent contractors in such systems and procedures. Each telephone solicitor shall
ensure that lists of telephone numbers that may not be contacted by the telephone
solicitor are maintained and recorded. Compliance with the time requirements within the

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telemarketing sales rule for incorporating and complying with updated versions of the do
not call registry constitute compliance with this section.
(e) Except as provided in § 47-18-3504, a telephone solicitor shall not violate
any requirement of 16 CFR § 310.3, 16 CFR § 310.4, or 16 CFR § 310.5.
(f) A telephone solicitor shall not make a telephone solicitation before eight
o'clock a.m. (8:00 a.m.) or after nine o'clock p.m. (9:00 p.m.), based upon the telephone
subscriber's local time zone.
(g) A telephone solicitor shall inquire as to whether the telephone subscriber is
under eighteen (18) years of age. If the telephone subscriber purports to be less than
eighteen (18) years of age, then the telephone solicitor shall discontinue the call or text
conversation immediately. An inquiry is not required where the solicitor has taken
reasonable steps to remove all telephone contacts who are less than eighteen (18)
years of age from its list of subscribers being contacted or can demonstrate that it does
not target subscribers who are less than eighteen (18) years of age.
(h) A telephone solicitor or robocaller shall not engage in threats, intimidation, or
the use of profane or obscene language.
(i) A telephone solicitor or its agent that makes telephone solicitations on its
behalf, provided, that the telephone solicitor ensures compliance by its agent, shall keep
a record for a period of twenty-four (24) months from the date a telephone solicitation is
made of the legal name, any fictitious name used, the resident address, the telephone
number, and the job title of each individual who makes a telephone solicitation for that
telephone solicitor. If an individual who makes telephone solicitations for a telephone
solicitor uses a fictitious name, then the fictitious name must be traceable only to that
specific individual.

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(j) This section does not prohibit a telephone solicitor from contacting by
nontelephonic notice a telephone subscriber whose telephone number appears in the do
not call registry to obtain the telephone subscriber's prior express written consent
allowing the telephone solicitor to make telephone solicitations to the telephone
subscriber. A telephone solicitor shall not contact a telephone subscriber by telephone
to obtain such prior express written consent.
(k) This section does not prohibit a telephone solicitor from advertising in a
general medium or contacting by nontelephonic notice a telephone subscriber whose
telephone number appears in the do not call registry to encourage the telephone
subscriber to initiate telephone calls to the telephone solicitor. A telephone solicitor shall
not contact a telephone subscriber by telephone to obtain such prior express written
consent.
(l)
(1) The attorney general and reporter, in consultation with the staff of the
Tennessee public utilities commission, shall draft the contents of a bill insert or
bill message, a direct mailing, and an email that notifies consumers of the
existence of the do not call registry and provides information to consumers on
how to use it and the other provisions of this part to object to receiving telephone
solicitations. Local exchange companies shall distribute the notification pursuant
to subdivision (l)(2).
(2) A local exchange company shall distribute the bill insert or bill
message created pursuant to subdivision (l)(1) at least annually by one (1) of the
following methods:
(A) Bill insert or bill message;
(B) Direct mail; or

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(C) Email, if the subscriber has affirmatively selected email as a
means of notification.
(3) The Tennessee public utilities commission shall also ensure that such
information is printed in a clear, conspicuous manner in the consumer
information pages of each telephone directory distributed to residential
customers.
(m) In the event that the federal do not call registry is not operational on January
1, 2027, or ceases to operate for any reason after January 1, 2027, the attorney general
and reporter may develop, operate, and maintain such a registry for the benefit of
telephone subscribers in this state.
(n) In telephone solicitation transactions involving telephone subscribers, a
contract or purchase agreement entered into during a telephone solicitation is not valid,
and money from the prospective purchaser is not due thereunder, unless:
(1) The contract and the sales representations that precede it are not
deceptive or abusive telemarketing acts or practices as described in 16 CFR §§
310.3 and 310.4, only to the extent that this part requires telephone solicitors to
comply with such regulations;
(2) The telephone solicitor has complied with the recordkeeping
requirements of 16 CFR § 310.5, only to the extent that this part requires
telephone solicitors to comply with such regulation; and
(3) The contract and the sales representations that precede it comply
with all other applicable federal and state laws, including chapter 25, part 1, of
this title.
47-18-3504. Limited exceptions.
(a) Section 47-18-3503 does not apply to a telephone solicitation that is made:

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(1) To a telephone subscriber with the telephone subscriber's prior
express written consent;
(2) To a telephone subscriber with whom the telephone solicitor has an
established business relationship;
(3) By or on behalf of a tax-exempt nonprofit organization;
(4) By or on behalf of a telephone solicitor that employs fewer than ten
(10) full-time or part-time direct employees, the telephone solicitations are made
by the direct employees, and the direct employees collectively make or attempt
to make no more than an average of ten (10) telephone solicitations to telephone
subscribers per week during a calendar year;
(5) To a telephone subscriber for the sole purpose of arranging a
subsequent face-to-face meeting between the telephone solicitor and the
telephone subscriber and during the telephone solicitation the telephone solicitor
does not:
(A) Seek payment from the telephone subscriber in connection
with the sale or rental of, or investment in, property, goods, or services;
(B) Complete the sale or rental of, or investment in, property,
goods, or services;
(C) Obtain provisional acceptance of a sale, rental, or investment;
(D) Obtain the agreement of the telephone subscriber to
participate in any contest, sweepstakes, raffle, or lottery; or
(E) Directly following the telephone solicitation, go or cause an
individual to go to the telephone subscriber to collect a payment or deliver
any item purchased; and

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(6) By a person primarily soliciting the sale of a subscription for a
newspaper of general circulation.
(b) Section 47-18-3503(c)(3), (d), (g), and (i) do not apply to telephone
solicitations described in subdivisions (a)(1)-(5).
(c) Section 47-18-3503(e) does not apply to telephone solicitations described in
subdivisions (a)(4) and (5).
(d) Section 47-18-3503(e) does not apply to telephone solicitations described in
subdivisions (a)(1), (2), and (3), except that such telephone solicitations must comply
with 16 CFR §§ 310.3(a)(2), (a)(3), (a)(4), (c), (d) and 16 CFR §§ 310.4(a), (b)(1)(i),
(b)(1)(iv), (b)(2), (b)(3), (b)(4), and (e).
(e) In any dispute regarding whether a telephone subscriber has provided prior
express written consent under subsection (a), the telephone solicitor has the burden of
proving that the telephone subscriber has provided such consent by producing the
original document, a facsimile document, or an electronic form, signed by the telephone
subscriber, or other authentication that evidences consent. A telephone subscriber may
subsequently retract prior express written consent by indicating a desire not to receive
further telephone solicitations under § 47-18-3503(b).
47-18-3505. Restrictions on use of robocalls.
(a) Except as provided in this section, a person shall not make a robocall to a
telephone number.
(b) Notwithstanding subsection (a), a person may make a robocall only under
one (1) or more of the following circumstances:
(1) All of the following are satisfied:
(A) The person making the robocall is:
(i) A tax-exempt charitable or civic organization;

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(ii) A political party or political candidate;
(iii) A governmental official; or
(iv) An opinion polling organization, radio station,
television station, cable television company, or broadcast rating
service conducting a public opinion poll;
(B) No part of the robocall is used to make a telephone
solicitation; and
(C) The person making the robocall clearly identifies the person's
name and contact information and the nature of the unsolicited telephone
robocall;
(2) Prior to the playing of the robocall, a live operator complies with § 47-
18-3503(c), states the nature and length in minutes of the recorded message,
and asks for and receives prior approval to play the recorded message from the
person receiving the call;
(3) The robocall is in connection with an existing debt or contract for
which payment or performance has not been completed at the time of the
robocall, and both of the following are satisfied:
(A) No part of the robocall is used to make a telephone
solicitation; and
(B) The person making the robocall clearly identifies the person's
name and contact information and the nature of the robocall;
(4) The robocall is placed by a person with whom the telephone
subscriber has made an appointment, as long as the robocall is conveying
information only about the appointment, or by a utility, telephone company, cable
television company, satellite television company, or similar entity for the sole

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purpose of conveying information or news about network outages, repairs, or
service interruptions, and confirmation robocalls related to restoration of service,
and both of the following are satisfied:
(A) No part of the robocall is used to make a telephone
solicitation; and
(B) The person making the robocall clearly identifies the person's
name and contact information and the nature of the robocall;
(5) The person plays the robocall in order to comply with 16 CFR §
310.4(b)(4);
(6) The robocall is placed by, or on behalf of, a health insurance entity,
as defined in § 56-7-109, from which the telephone subscriber or other covered
family member receives healthcare coverage or the administration of such
coverage, as long as the robocall is conveying information related to the
telephone subscriber or family member's health care, preventive services,
medication, or other covered benefits, and both of the following are satisfied:
(A) No part of the robocall is used to make a telephone
solicitation; and
(B) The person making the robocall clearly identifies the person's
name and contact information and the nature of the robocall;
(7) No part of the robocall is used to make a telephone solicitation, the
person making the robocall clearly identifies the person's contact information and
the nature of the robocall, and the sole purpose of the robocall is to protect the
public health, safety, or welfare, by informing the telephone subscriber that the
telephone subscriber:

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(A) Has purchased a product that is subject to a recall by the
product's manufacturer, distributor, or retailer, or by the federal consumer
product safety commission or another government agency or department
with legal authority to recall the product that is the subject of the robocall,
due to safety or health concerns, as long as:
(i) There is a reasonable basis to believe that the
telephone subscriber has purchased the product; and
(ii) The message complies with any requirements imposed
by any government agency instituting the recall;
(B) May have received a prescription or over-the-counter
medication that is subject to a recall by the product's manufacturer,
distributor, or retailer, or by the federal food and drug administration or
another government agency or department with legal authority to recall
the product that is the subject of the robocall, due to safety or health
concerns, as long as:
(i) The robocall and its message comply with the
requirements of the Health Insurance Portability and
Accountability Act of 1996 (HIPAA) (42 U.S.C. § 1320d et seq.)
and any corresponding regulations pertaining to privacy;
(ii) There is a reasonable basis to believe that the
telephone subscriber has purchased or received the medication;
and
(iii) The message complies with any requirements
imposed by the government agency or product manufacturer,
distributor, or retailer instituting the recall; or

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(C) Has not picked up a filled prescription drug for which a valid
prescription is on file with a pharmacy licensed by the board of pharmacy
pursuant to § 63-10-310 and the telephone subscriber requested that the
prescription be filled, as long as the robocall and its message comply with
the requirements of the Health Insurance Portability and Accountability
Act of 1996 (HIPAA) (42 U.S.C. § 1320d et seq.) and any corresponding
regulations pertaining to privacy; or
(8) The robocall is generated from a court proceeding notification system
established or authorized by the administrative office of the courts.
47-18-3506. Restrictions on spoofing and impersonating government officials.
(a) A telephone solicitor or robocaller shall not cause misleading information to
be transmitted to users of caller identification technologies or otherwise block or
misrepresent the origin of a telephone solicitation or robocall. A provider of telephone
caller identification services is not liable for violations of this subsection (a) committed by
other individuals or entities. It is not a violation of this subsection (a) for a telephone
solicitor to utilize the name and number of the entity the solicitation is being made on
behalf of rather than the name and number of the telephone solicitor.
(b) A telephone solicitor or robocaller shall not impersonate any federal, state, or
local government official, law enforcement professional, or government agency in order
to defraud, confuse, or financially or otherwise injure the telephone subscriber or in order
to obtain personal information from the telephone subscriber that may be used in a
fraudulent or unlawful manner.
47-18-3507. Enforcement.
(a)

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(1) The attorney general and reporter may investigate any complaints
received alleging a violation of this part. If the attorney general and reporter finds
that there has been a violation of this part, then the attorney general and reporter
may bring an action to impose civil penalties and to seek any other appropriate
relief under this chapter, including equitable relief to restrain the violation. If the
attorney general and reporter brings an action on behalf of telephone subscribers
pursuant to subsection (c), then the attorney general and reporter shall not seek
treble damages on behalf of telephone subscribers. Actions for civil penalties
under this section must be consistent with the provisions of this chapter, except
that the penalty imposed for a violation of this part must be either:
(A) Five hundred dollars ($500) for the first violation, one
thousand dollars ($1,000) for the second violation, and five thousand
dollars ($5,000) for the third or a subsequent violation that occurs within
two (2) years of the first violation; or
(B) One hundred dollars ($100) for each violation within two (2)
years of the first violation, if the telephone solicitor or robocaller can show
that the violations are the result of a mistake and the telephone solicitor or
robocaller either made the telephone solicitation or robocall under § 47-
18-3504(a)(1)-(5), or can show that the telephone solicitor complied with
§ 47-18-3503(d). This subdivision (a)(1)(B) does not apply if the
telephone solicitor or robocaller violated § 47-18-3506.
(2) If a single call or text violates multiple provisions of this part, then
penalties must be assessed for each violation of this part caused by that call.

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(b) There is a rebuttable presumption that a telephone subscriber with an area
code in this state is a resident of this state or in this state at the time a telephone
solicitation or robocall is made.
(c)
(1) A telephone subscriber who has received a robocall or a telephone
solicitation from or on behalf of a telephone solicitor or robocaller in violation of
this part may bring the following actions in civil court:
(A) An action to enjoin further violations of this part by the
telephone solicitor or robocaller; and
(B) An action to recover five hundred dollars ($500) for the first
violation, one thousand dollars ($1,000) for the second violation, and five
thousand dollars ($5,000) for the third or a subsequent violation that
occurs within two (2) years of the first violation.
(2) If a single call or text violates multiple provisions of this part, then
penalties must be assessed for each violation of this part caused by that call or
text.
(d)
(1) A telephone subscriber does not have a cause of action under
subsection (c) if the violations are a result of a mistake and the telephone
solicitor either made the telephone solicitation under § 47-18-3504(a)(1)-(5), or
can show that the telephone solicitor complied with § 47-18-3503(d).
(2) Notwithstanding subdivision (d)(1), an action may be brought under
subsection (c) if the telephone solicitor or robocaller violated § 47-18-3506.
(e) In an action brought pursuant to this part, the court may award a prevailing
plaintiff reasonable attorney fees if the court finds the defendant willfully engaged in the

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act or practice, and the court may award reasonable attorney fees to a prevailing
defendant if the court finds that the plaintiff knew, or should have known, that the action
was frivolous and malicious.
(f) A citizen of this state may also bring an action in civil court to enforce the
private rights of action established by federal law under 47 U.S.C. § 227(b)(3) and 47
U.S.C. § 227(c)(5).
(g) Actions brought by telephone subscribers pursuant to this section must be
tried in the county where the plaintiff resides at the time the action commences.
SECTION 2. This act takes effect October 1, 2026, the public welfare requiring it, and
applies to actions occurring on or after that date.