The FTC, in partnership with the DOJ, filed a complaint against a Voice over Internet Protocol service provider for the transmission of millions of allegedly illegal prerecorded telemarketing robocalls. The company and its owner are now facing injunctive and monetary penalties. The Commission also announced its intentions to update the Telemarketing Sales Rule with a notice and advance notice of proposed rulemaking. More on these stories after the jump.
Tuesday, April 26, 2022
Bureau of Consumer Protection: Robocalls, Advertising and Marketing
- The FTC announced that the U.S. Department of Justice filed a complaint on its behalf against Voice over Internet Protocol (VoIP) service provider VoIP Terminator, Inc., a related company, and the firms’ owner. According to the complaint, defendants assisted and facilitated with transmitting millions of illegal prerecorded telemarketing robocalls in violation of the Telemarketing Sales Rule (TSR). More specifically, defendants allegedly provided VoIP services to customers despite knowing or consciously avoiding knowing that those customers were (1) calling phone numbers on the FTC’s Do Not Call list; (2) delivering prerecorded messages; and (3) displaying spoofed caller ID numbers while marketing credit card interest rate reduction, tech support, and COVID-19 pandemic related scams. The FTC’s proposed order settling the complaint requires VoIP Terminator to do the following: (1) stop permitting robocalls; (2) stop TSR violations; (3) create new procedures to block suspected robocalls; and (4) require VoIP Terminator to screen customers. The order also imposes a suspended civil penalty of more than $3,000,000.
Thursday, April 28, 2022
Bureau of Consumer Protection: Robocalls, Advertising and Marketing
- The FTC is seeking comments on updates to the Telemarketing Sales Rule (TSR) that would extend protections against telemarketing violations to small businesses and strengthen safeguards against other malicious telemarketing tactics. The notice of proposed rulemaking seeks public comment on whether the FTC should amend the TSR to, (1) prohibit misrepresentations in business-to-business calls and (2) to require telemarketers to retain information in seven new categories, such as keeping recordings of robocalls. The advance notice of proposed rulemaking seeks public comment on whether the TSR should, (1) add additional provisions to address the rise in tech-support scams, (2) require telemarketers to provide consumers with a simple notice and cancelation when they sign up for subscription plans, and (3) broadly stop treating telemarketing calls made to businesses different from those made to consumers. Commissioner Christine Wilson shared oral remarks in support of the proposed rulemakings.
For further information, please contact:
Tiffany Aguiar, Crowell & Morning
taguiar@crowell.com
