Arizona’s Telephone Solicitation Statute Amendments

by Ashley D. Adams

(March 2013) Arizona’s Legislature has continued its crack-down on telemarketing companies. House Bill 2825 amended Arizona’s Telephone Solicitation Statutes so as to target sellers of “business opportunities” and related services, including advertising, marketing, tax, and/or business formation services. In addition to the registration and bonding requirements included in the statute, these sellers must now provide each customer with a written contract and disclosure documents before any monies can be accepted. Sellers much also identify themselves when making a solicitation call to a residential or mobile telephone in Arizona.

The amendment now broadly defines ‘business opportunity’ as the sale or lease, or offer for sale or lease, of any goods or services to a consumer for an initial payment of five hundred dollars or greater for the purpose of enabling the consumer to start or operate a business. The statute now allows a consumer to cancel a business opportunity contract or agreement with a seller for any reason at any time within ten business days after the date that the consumer signs the contract.

Failure to comply with these statutory requirements subjects business opportunity sellers to the payment of substantial penalties, restitution, attorney’s fees, and injunctive relief. Telemarketers who fail to register with the Secretary of State also can be criminally prosecuted. Failure to register is a class 5 felony.

Should you have any questions about Arizona’s Telemarketing laws, please contact Ashley D. Adams, PLC via phone at 480.219.1366 or Ashley is a criminal defense attorney in Scottsdale and a former federal prosecutor.