What is telemarketing fraud?

Telemarketing fraud is a type of consumer fraud that occurs when a telemarketer uses false or misleading statements to deceive a consumer into making a purchase or sending money. Telemarketing fraud is illegal in Hawaii and other states. Telemarketers may use high-pressure tactics to convince consumers to make a purchase or other financial transactions they do not need or want. They may also use false or misleading information about a product or offer, such as exaggerating its features or benefits, or use deceptive tactics, such as claiming a product is free or has a guaranteed return. Telemarketers may also engage in unfair or deceptive business practices. Examples of these include not providing adequate disclosure of a product’s features or costs, failing to honor a cancellation or return policy, or making unsubstantiated claims about a product’s performance. In Hawaii, it is illegal to engage in telemarketing fraud or other forms of consumer fraud, and those found guilty may be subject to criminal and civil penalties. Hawaii also has laws in place to protect consumers from fraudulent telemarketing, such as requiring telemarketers to register with the Division of Consumer Advocate and adhere to the state’s Telemarketing Law. The state also requires telemarketers to make certain disclosures to customers prior to asking for any payment.

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What is telemarketing fraud?

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