Robocall Operations Shut Down in FTC Crackdown

Four major robocall operations have been forced to shut down by the Federal Trade Commission (FTC) under court orders. All four companies have agreed to pay multi-million dollar settlements in order to resolve charges of violating the Telephone Consumer Protection Act (TCPA). The charges in these cases include violations of the Telemarketing Sales Rule and its Do Not Call provisions.

These four cases are only the tip of the proverbial iceberg; the FTC has been busy over the past few years filing dozens of lawsuits against companies that have been making harassing sales calls to consumers. In an official press release, FTC bureau chief Andrew Smith said, “Fighting unwanted calls remains one of our highest priorities.”

In addition to paying millions of dollars to settle the cases against them, the defendants are banned from most forms of telemarketing, including the use of automatic dialing equipment.

About the Defendants

According to the FTC,the four defendants facing charges of robocall abuse have engaged in the illicit marketing of auto warranties, questionable debt-relief “services,” and a fraudulent charity calling itself “Veterans of America,” claiming to be working on behalf of military veterans.

One of the defendants, Pointbreak Media, allegedly engaged in a scam in which small business owners would receive a robocall from a party claiming to be a “data service provider” for Google or an “authorized Google My Business” agency. These business owners were reportedly told that they were in danger of being removed from Google search results and could only remain visible on the net by paying a fee of as much as $700.

What Constitutes a Robocall

A robocall is defined as a telephonic communication in which the party initiating the call uses a device known as an “autodialer” in order to present a pre-recorded message, or in some cases, a computer-generated one. Most often, these are delivered as part of a telemarketing or political campaign. Autodialing technology includes software that auto-generates phone numbers at random. There are even sophisticated systems that can deliver a robocall and make it appear that it is originating from someone else’s number.

According to YouMail, a California-based software company offering a free application for robocall blocking, Americans received over 4 billion harassing auto-generated telephone calls in May of 2018 alone. Some 30 billion such robocalls were logged over the course of five months.

Robocalls placed without the prior consent of the person receiving the call may run afoul of federal telemarketing laws. It should be noted that there are limited situations in which a robocall is perfectly legal, such as a regional emergency advisory. These robocalls are are from authorized government agencies, however.

What is Being Done About the Robocall Epidemic?

Consumers tired of receiving robocalls they never consented to receive may be able to take enforcement into their own hands through civil litigation. Robocalls placed in violation of the TCPA may entitle the receiving party to statutory damages of up to $1,500 per call. Repeated robocalls have led to multi-million dollar TCPA settlements.

Join a Free TCPA Class Action Lawsuit Investigation

If you were contacted on your cell phone by a company via an unsolicited text message (text spam) or prerecorded voice message (robocall), you may be eligible for compensation under the Telephone Consumer Protection Act.

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