Which of the Following Is True Regarding Fred's Practice of Telling

question 62

Multiple Choice

Which of the following is true regarding Fred's practice of telling potential customers on the telephone costs in small increments without revealing the total price?

• A) Under federal law there is no problem with his practice because any consumer who does not want to talk to him can simply hang up.
• B) According to a rule of the Federal Trade Commission, a telemarketer must tell the total price of goods being sold.
• C) According to a rule of the Federal Trade Commission, a telemarketer must only give the total price if the consumer directly inquires about that matter. Therefore, it is smart for Fred to call when people are tired and less likely to ask questions.
• D) According to a rule of the Federal Trade Commission rule that is specific to funeral home directors, direct phone solicitation may not be made; therefore, Fred is in violation.
• E) According to a rule of the Federal Trade Commission that is specific to funeral home directors, direct phone solicitation must include the total price of any services offered; therefore, Fred is in violation.

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