April 28, 2017
This past Monday, the United States District Court for the District of Columbia upheld a Federal Trade Commission (“FTC”) interpretation of the Telemarketing Sales Rule (“TSR”) which held that marketing calls placed through use of soundboard technology constitute “robocalls” under the statute. Although the FTC originally found that telephone calls using soundboard technology do not constitute robocalls, in 2012 the regulatory agency shifted its position and declared that, after further investigation, telephone calls made with soundboard technology do constitute “robocalls” under the TSR. The underlying lawsuit was commenced by a trade group representing companies that manufacture and use soundboard technology, and sought a declaration that the subject FTC interpretation was unlawful because the FTC did not allow for a notice and comment period before issuing its holding. The trade group also argued that the interpretation violates the First Amended of the Constitution. The federal court rejected both arguments and upheld the FTC soundboard technology opinion.
Why do calls made with Soundboard Technology Constitute Robocalls under the TSR?