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Frequently Asked Questions for Form Series 3400 - Telephone Solicitation Registration

The answers to our Frequently Asked Questions are provided for informational purposes and are not intended to provide legal advice or to substitute for the advice of an attorney. If you have specific legal questions, consult your attorney.

Solicitation Hotline 1 (800) 648-9642

1. Do I have to register as a telephone solicitor?

The Secretary of State does not decide if an individual or entity must register. The Registrations Unit can provide, on request, a copy of the Telephone Solicitation Act ("Act"). The Act defines a "Telephone Solicitation" and "Seller", lists exemptions, and provides guidelines for registration. It is the seller's responsibility to determine whether the seller should register.

2. How do I register?

A seller must file a registration statement, with the Secretary of State, and provide the required filing fee. A form pertaining to the registration statement is available from the Registrations Unit. In addition, a security deposit must accompany the registration statement. A certificate of registration issued under the Act is effective for one year and may be renewed by filing a renewal registration statement.

3. What is the filing fee to register as a telephone solicitation seller?

Currently, a $200 filing fee is required with the registration.

4. How large is the security deposit that must be filed?

It is $10,000.00, and is issued to the favor of the State for the benefit of any person who is injured by the seller's breach of an agreement entered into during a telephone solicitation.

5. Does having a security deposit on file mean that the company is reputable?

No. The Act requires that a seller must file the security deposit in order to be registered as a telephone solicitor. It does not indicate approval of the seller's business or actions.

6. Does registration with the Secretary of State indicate approval by the Secretary of State of the seller's business?

The issuance of a certificate of registration to a seller who is conducting telephone solicitations does not imply approval or endorsement of the seller's business or its operations.

7. Does the Secretary of State investigate violations of the Act?

The Secretary of State is the filing agency for documents required by the Act. The Texas Attorney General is charged with the enforcement of the registration requirements and/or violations of the Act. A person that has been injured by the actions of a seller conducting telephone solicitations may file a complaint with the Consumer Protection Division of the Attorney General's Office. In addition, an alleged violation can be reported to the Secretary of State by calling the solicitation hotline at 1 (800) 648-9642. Information received on the hotline will be forwarded to the Attorney General's Office.