FTC Seeks Injunction and Civil Penalties Against Operations Allegedly Responsible for Billions of Illegal Robocalls

The FTC recently filed a complaint in federal district court against two sets of defendant companies and their principals for their alleged involvement in placing billions of illegal robocalls to consumers in violation of the agency’s Telemarketing Sales Rule.  The Telemarketing Sales Rule, part of a comprehensive federal regulatory scheme to curb deceptive and abusive telemarketing practices, prohibits telemarketers from “spoofing” caller IDs by displaying false information, calling persons listed on the National Do Not Call Registry, playing prerecorded messages on outbound calls, and “abandoning” outbound calls by hanging up when the consumer answers.

In its complaint, the FTC brought charges against a set of call center companies and their principal for allegedly violating these provisions by directly initiating or causing to be initiated the billions of robocalls at issue.  The calls pitched varying goods and services such as reverse mortgages, debt-relief services, timeshares, solar panels, “pain cream,” and extended auto warranties.  Having uncovered an alleged robocalling web, the FTC also charged a set of technology companies and their principal with assisting and facilitating the call centers’ illegal calling practices—of which they allegedly knew or consciously avoided knowing—by providing software that allowed the call centers to send out large numbers of robocalls in a short time.  The FTC is seeking permanent injunctive relief, monetary civil penalties, and other appropriate relief against each defendant.

Read the complaint here.