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FTC robocalls lawsuit overview:
- Who: The United States of America, acting upon notification and authorization to the Attorney General by the Federal Trade Commission (FTC), has filed a lawsuit against XCast Labs Inc.
- Why: The FTC claims XCast provided services that were used to place billions of illegal robocalls to American consumers.
- Where: The lawsuit was filed in California federal court.
XCast Labs Inc. provided services used to place billions of illegal robocalls to American consumers, a new lawsuit alleges.
The Federal Trade Commission (FTC) claims XCast Labs assisted its customers in making unlawful telemarketing calls that used pre-recorded messages and were placed to numbers listed on the National Do Not Call Registry.
The FTC argues the allegedly unlawful robocalls also failed to disclose the identity of the seller, made false or misleading statements to induce purchases, transmitted false or deceptive caller ID numbers, and claimed false affiliations — including with government entities.
XCast Labs is accused of violating the Federal Trade Commission Act, the Telemarketing and Consumer Fraud and Abuse Prevention Act, and the FTC’s Telemarketing Sales Rule (TSR).
“It is a violation of the TSR for any person to provide substantial assistance or support to any seller or telemarketer when that person knows or consciously avoids knowing that the seller or telemarketer is engaged in a practice that violates the TSR,” the FTC lawsuit states.
XCast’s Voice over Internet Protocol services used to transmit billions of illegal robocalls, says suit
Since at least Jan. 1, 2018, XCast has provided Voice over Internet Protocol services used to transmit “billions of illegal robocalls that sellers and telemarketers placed to American consumers in violation of the TSR,” the FTC lawsuit alleges.
“Many of the illegal robocalls XCast has transmitted were fraudulent telemarketing scams,” the FTC lawsuit states.
The robocalls included those marketing goods and services “with a history of deceptive sales practices,” and ones which falsely claimed affiliations with government agencies such as the Social Security Administration, according to the FTC lawsuit.
The FTC is demanding a jury trial and requesting a permanent injunction along with an award of monetary civil penalties.
Last August, the attorneys general from each US state came together to create a robocall task force created to investigate and prosecute telecom companies found letting foreign robocalls into the country.
Have you received an illegal robocall? Let us know in the comments!
The FTC is represented in-house by Thomas M. Biesty and Frances Kern, and by Zachary A. Dietert of the Department of Justice.
The FTC robocalls lawsuit is United States of America v. XCast Labs Inc., Case No. 2:23-cv-03646, in the U.S. District Court for the Central District of California.
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