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Investigate Before
You Invest
Cathy Cox Secretary of State Thurbert Baker Attorney General
Barry W. Reid Office of Consumer Affairs

Dear Georgia Consumer,
A recent study by the Federal Traue Commission revealed thllt telemarketing scams rob consumers of 40 billion dollars annually. In Georgia alone, they cheat their victims out of more than 500 million dollars each year. With more than 75 percent of fraud occurring over the phone, every Georgian with a phone is potentially at risk of being victimized.
lhe National Consumers League estimates that more than 10 percent of all telemarketing calls are fraudulent. Whether they are promising a "last chance oilt:r," a "can't miss" investment or a "worthy" charitable contribution, it is becoming harder than ever to distinguish 1cgitimille te1emarketers from those operating illegally.
The Secretary of Stale's oillce, the Governor's Oiliee of Consumer Alrairs and the AtlOmey General's otliee are working together to protect Georgia consumers from these fraudulent operlltors, Our etrorts have resulted in new legislation making telemarketing fraud a felony, doubling the penalties for those who target the elderly or disablt:d and es-
tablishing a Georgia No Call List tor residents
who do not wish to be called by telemarketers at home.
But remember, liS with most crimes, the be~t cure lor telemarketing lruud i~ prevention. We hop.: this brochure serves as a useful tool to help protect you from the criminals who usc a phone, rather than a gun or knife. to sleal your h<lrd-ellmed money.
Sincerely,

Cathy Cox Sccreta.ry of State

~s~ TIlUrbert Baker Attorney Genera!

'j?>~W, (.{~

Ba y. W. Reid Governor's Of Ice of Consumer Affairs

Unwanted Telemarketing Calls
Once you get on a call list, you can expect to get multiple calls from a wide range of telemarketing firms for an indefmite period.
Computerized Call Offers and Facsimile Transmissiuns - Unsolicited telemarketing calls placed by computer or delivering a recorded message are illegal under Georgia law. The recipient may consent to receive such a call only if a line operator introduces the call and announces that a recorded message will follow. Telemarketers are also prohibited un der Georgia and federal law from transmitting facsimile messages without the recipient's C011sent.
The Georgia No Call List
in 1998. the Georgia General Assembly passed legislation allowing consumers to avoid calls from telephone solicitors by having their telephone numbers placed on the Georgia No Call list. Telephone solicitors are prohibited from calling any number on the list, which is maintained by the Public Service Commission. RcgislTation 011 the Georgia No Call List, however, does not limit calls from businesses with which you have a relationship, recognizcd charitable or religious organizations or political pollsters or candidates for public office.
For a $5.00 registration fee, a residential telephone number can be placed on Lhe Georgia No Call List for a period of two (2) years. This registration fcc must be paycd for each telephone number which is included on the list. By law, business numbers may not be included on the list.
To register for the Georgia No Call List, call \877-GANOCALL or visit the website at www.ganocall.com.

Charitable Solicitations
Charitable organizations that are not religious in nature and those paid to solicit charitable contributions must register with the Secretary of State in order to solicit contributions in Georgia.
If you are called, be sure to ask the caller for the following information:
The name ofthe charitable organization The type ofcharitable work being done How your money would be spent The address and telephone number of the
organization and whether it is registered with the Secretary of State's office You may call the Secretary of State's office, or access the 50S webpage, to verify that the charity or paid solicitor is registered to operatc in Georgia. If a charity caller offers to send someone to your home to pick up a monetary contribution, contact our office at (404) 656-3920.
To screen unfamiliar companies for report,I' offraudulent activity. call the
fhllowing groups:
National Fraud Information Center 1-800-876-7060
Better Business Bureau (check your local phone directory)
GovernOl"s Office of Consumer Affairs
404-651-8600 or 1-800-869-1123 outside the Atlanta area

Securities Firms and Investment Advisors
Issuers of securities, securities finns, securities salespersons and investment advisors doing business in Georgia are regulated by the Secretary of State. Securities are stocks and bonds, promissory notes, limited partne~ships and other investment transactions that are more complex. Nearly all security offerings, securities salespeople and investment advisors who manage less than $25 million in investments must bc registered with the Secretary of State.
H someone selling securities contacts you, remember:
You have the right to receive infonnation about the salesperson, his or her finn and the investmcnt itself.
Salespersons must confinn whether they or their employcr are registered with the Secretary of State.
Many securities sold over the telephone arc for poorly capitalized companies, for which there has been no previous public sale of stock. Such investments are generally much riskier than investing in established companies with longstanding operating histories.
Before sending any money to the salesperson, you should read and understand aprospecllIs, which contains key information about the issuer.
For any investment, be wary of a sales pitch where the salesperson offers you "inside infommtion," makes an offer solely on a "onetime" basis, or promises that [he investment will yield a large return.

General Telemarketing Solicitations
The Governor's Office of Consumer Affairs (OCA) is responsible for combating fraudulent
telemarketing activities involving !l pauern of
unfair or deceptive acts in the consumer mar~ kctplace, Among those telemarketing activities that DCA investigates arc: prize offers, travel pack<lge offers, recovery scams, telephone service sales and credit-related scams.
If 'lOU arc solicited bv a tdcmarkcter, the following advice is important:
-Do Not Buy from an unfamjliar business on the phone or make an "on-thespot" purchase. Legitimate businesses are willing to provide you with information about their company and the offer, and will allow you the time 10 review the information before yOlI purchase. If the offer is not available unless you buy "right now," then it is not worth taking the risk
-Never send money or give out your credit card or bank account numbers to unfamiliar businesses. Aside from granting the telemarkcters immediate access to your accounts, your finan 4 cial and personal information may be sold to other telcmarketcrs or, even worse, they may set up their 0\VJ1 credit identity with your per4 sonal financial information.
Be wary! Common telemarketing scams:
-Prize Offers and Travel Packages -You usually have to do something to get your ''free'' prize: attend a sales presentation; buy something; give a check, credit card or bank account number for shipping charges, taxes, etc.. Generally, such prizes are worthless or junk products. "Free" or low-cost vacations can end up, due to a lack of disclosure of additional charges, costing YQ!! money.

-Recover)' Scams ~ !fyou buy from any of the telemarketing scams, you may be called again by someone promising 10 get your money back. Note that even state consumer protection offl~ cia Is and law enforcement cannot guarantee recovery of your funds and would never ask you for money to assist you with a telemarketing complaint. The caller is in all likelihood a scam artist just trying to steal from you again.
-"Slamming" and other Utility Problems As the process of lltility deregulation occurs, so do consumer problems as less than reputable players get into the marketplace. Slamming is the illegal practice of switching a consumer's utility service llocal and long distance telephone or, in the near future, natural gas and electricity] without their authorization or knowledge. The dramatic increase in telephone solicitations for telephone services (pre-paid calling cards, local and long distance services, elc.) has brought about an increase in the inci~ dence of fraud regarding such services. Con~ sutllers are adviscd to request infonnation in writing about the services and then make an educated decision. Consumers should also be wary of pyramid sales schemes, business op~ portunities and too~good~to~be-tnle offers regarding ulility services.
-Multi-Level Distribution Companies ~ A multi-level distribution company recmits par~ ticipants who, after paying a fee, earn conm)is~ sions or bonuses by selling a product and/or reemiting other participants. Though you may be promised a substantial profit for a few hours of work, most people are unlikely to merely recover their investment. Even worse, unless the company is in compliance with Georgia law, participation may be a criminal act.

TIle Georgia Attorne:r General has thc authority to go into court to stop tclcmarkcting fraud and seek recovel)' for victims when the SecretaI)' of State and thc Office of Consumcr Affairs find unla\\ful activities which cannot be resolved through their own administrative processes. In many cases, the Attorney General serves as the last line of defense in the war that the State of Georgia is waging against telemarketing fraud.
In the event you experience a telemarketing rautl problem, it is suggested thai you contact one oflhe organizations listed below:
Investments or Charitahle Solicitations Office of the Secretary of State Dh'isioll of Securities anti Business Regulation 2 M. L. King Jr. Drive, Suite 802 Atlanta, Georgia 30334 Telephone: 404/656-3920 http:/www.sos.state.ga.us
General Con..umer Mailers Govcrnor's Office of Consumer Affairs
2 1\1. L. King Jr. Dri"e Plaza Level East
Atlanta, ~orgia 30334 Telephone: 404/651-8600
8001869-1123
To verify registration ofcharitable organizations. securities broker/dealers or investment advisors with the state, cOn/act:
Ch<tritable Organizations lind Paid Solicitors
404/656-49 L1 or www.sos.statc.ga.lls
Securities BrukcrslDcalcrs ..JtI-i/656-2895
Invcstment Advisors and Financial Planners 404/657-1848