(Direct Newsline)—The Federal Trade Commission has issued a series of rulings regarding offerings of prescreened solicitations for credit or insurance. The final rules are effective Aug. 1.

The final rulings primarily affect the language and presentation of such offers, as well as the formatting and presentation of opt-out notices.

Among the actions taken in the final rules, the agency:

• Defined the “principal promotional document,” where a short consumer information notice, including basic opt-out information, must be located
• Ruled that the short form of the opt-out notice could not contain any information other than informing the consumer of the right to opt out, along with toll-free numbers to exercise that right
• Ruled that the long form of the notice could contain additional information, such as the benefits of pre-screening, that did not contradict the purpose of the opt-out notice
• Determined the type size of the notices for both the short and long forms
• Modified the language within initially proposed notices from what was perceived by commentators as a pejorative tone to a more neutral one
• Established criteria for opt-out notices within electronic solicitations

The full text of the FTC’s final ruling is available on the agency’s Web site, at Ftc.gov/os/2005/01/050124factafrn.pdf

The Federal Trade Commission has issued a series of rulings regarding offerings of prescreened solicitations for credit or insurance. The final rules are effective Aug. 1.

The final rulings primarily affect the language and presentation of such offers, as well as the formatting and presentation of opt-out notices.

Among the actions taken in the final rules, the agency:

Defined the