FTC Warns VoIP Service Providers after Illegal Coronavirus-related Telemarketing Calls

The FTC recently began sending warning letters to Voice over Internet Protocol (VoIP) service providers, among other companies, alleging violations of the Federal Trade Commission Act and the FTC’s Telemarketing Sales Rule for routing and transmitting COVID-19 scam robocall traffic.

The COVID-19 pandemic has prompted various companies to use illegal robocalls for fraudulent purposes.  Calls include, for example, offers to Medicare recipients for fake COVID-19 tests.

In response to this conduct, the FTC has taken one of two approaches in issuing warning letters.  In some letters, the FTC alleges that the company assisted and facilitated this illegal activity and warns that if the company continues to originate robocall traffic after 48 hours of the issuance of the letter, the FTC will authorize additional steps to prevent these calls.  Specifically, the FTC warns that it will authorize U.S. providers to block all calls originating from the company and take any further steps necessary to prevent the company from originating unlawful calls.

Other letters, rather than make allegations, request that the company provide a detailed explanation to the FTC of the company’s actions taken to ensure that their services are not being employed in the COVID-19 robocall schemes.