Federal Trade Commission Reaches $6.4 Million Deal, Bans Companies From ‘Free Cruise’ Robocalls

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FTC Free Cruise Robocalls Settlement Overview:

• Why: The FTC accused the companies and executives of making millions of illegal robocalls purportedly offering customers “free cruises.”
• Who: The Federal Trade Commission (FTC) reached a settlement with five cruise companies and two executives.
• Where: The lawsuit was filed in Florida federal court.

A $6.4 million deal has been reached in a Federal Trade Commission (FTC) case against five Florida-based companies and two executives over the millions of illegal robocalls made to consumers falsely advertising “free cruises.”

Johnathan Blake Curtis and Anthony DiGiacomo, owners of Grand Bahama Cruise Line LLC, Royal Bahama Cruise Line LLC, Tropical Accommodations LLC, VSC LLC, and Florida VSC Inc, will also each pay a $50,000 civil penalty to the Treasury Department. Once paid, the $6.4 million penalty will be partially suspended.

The settlement permanently bans Curtis, DiGiacomo, and their five businesses from participating in making robocalls to consumers, calling phone numbers on the FTC’s Do Not Call Registry, and blocking or misrepresenting caller ID information. 

The seven accused entities neither admit to nor deny any of the FTC’s allegations, “except as specifically stated in” the settlement order.

Companies Disregarded Several Laws to Make ‘Free Cruise’ Robocalls

The cruise companies in the FTC’s lawsuit did not amend their call lists according to the FTC’s Do Not Call Registry, calling many consumers who had already requested not to be called, according to the FTC. The companies also supposedly failed to maintain accurate caller ID information which is required by the Telemarketing Sales Rule, claimed the agency.

The FTC contends that the Grand Bahama’s telemarketing operation also bought call lists from lead generators, then placed illegal “survey” robocalls to identify potential customers. Customers receiving the illegal calls would then be offered two free tickets to a Bahamas cruise, although the tickets ended up costing $59 in taxes and fees. 

Did you receive robocalls about free cruise offers? What do you think of the settlement? Tell us about it in the comments below!

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