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Iowa Telemarketing Fraud Laws

Telemarketing fraud occurs when any deception or misrepresentation is made over the phone with the intent of obtaining money or information from the victim. There are both state and federal laws that criminalize telemarketing fraud in the United States.

Telemarketing Fraud in Iowa

Code Section

Iowa Code section 714.16(2): Consumer Frauds

What's Prohibited?


It is illegal to use or employ an unfair practice, deception, fraud, false pretense, false promise, or misrepresentation, or conceal, suppress, or omit a material fact with the intent that others will rely on the misrepresentation in connection with the lease, sale, or advertisement of any merchandise or the solicitation of contributions for charitable purposes.

It doesn't make a difference whether or not a person has in fact been misled, deceived, or damaged.

Code Section

Iowa Code section 476.57: Limitations on Use of ADAD Equipment

Definition of "ADAD Equipment"

"ADAD equipment" means automatic dialing device equipment that is used for automatically selecting or dialing telephone numbers, without using live operators, to disseminate prerecorded messages to the numbers selected or dialed.

What's the Rule?


It is illegal for a person to use, employ, or direct another person to use ADAD equipment except under the following circumstances:
  • Calls made by a nonprofit organization or by an individual using the calls other than for commercial profit-making purposes or fund-raising, if the calls don't involve the advertisement or offering for sale, lease, or rental of goods, services, or property
  • Calls relating to payment for previously ordered or purchased goods or services
  • Calls to people who have a prior business relationship with the organization placing the calls
  • Calls relating to the collection of unlawful debts
  • Calls to employees of the organization placing the calls
  • Calls which use an initial prerecorded message, that is no longer than seven seconds, before a live operator comes onto the line, or calls which involve an initial message from a live operator



Calls made with ADAD equipment must terminate the connection within 10 seconds after the person receiving the call acts to disconnect the line.



Violating this law is a serious misdemeanor.

Federal Telemarketing Fraud Laws

There are several federal laws that govern telemarketing. These laws include:

Protect Yourself – The National Do Not Call Registry

Because telemarketing fraud comes in so many shapes and sizes it can be had to recognize fraudulent scams. One easy way to help protect yourself against telemarketing fraud is to register your phone number with the National Do Not Call Registry. Telemarketers aren't allowed to call numbers on the registry, so if you receive a telemarketing call after registering your number then you'll know that it's likely a scam.

Additional Resources

State laws change frequently. For case specific information regarding Iowa's telemarketing fraud laws contact a local consumer protection lawyer.

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