FTC Moves to Limit Affiliate Marketing

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The Federal Trade Commission said yesterday that it proposed new regulations to let consumers opt out of receiving marketing communications from affiliates of companies with which they do business.

Companies would be prohibited from using customer information received from an affiliate unless the consumer had received notice and the opportunity to refuse such solicitations. An exception would be if the affiliate already had an existing relationship with the consumer.

The proposed rule would implement a section of the Fair and Accurate Credit Transaction Act, which became law in December 2003, the FTC said. FACTA also requires federal banking agencies, the National Credit Union Administration and the Securities and Exchange Commission to implement similar rules.

The FTC will accept comment on the proposal until July 20. Comments may be submitted at www.regulations.gov. The full text of the FTC's Federal Register notice of the proposal is available in PDF format at www.ftc.gov/os/2004/06/040609factactaffiliatefrn.pdf.

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