FTC Settles with Telemarketer over Robocalling Violations

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Robocalls – or, telephone calls that use both a computerized autodialer and a computer-delivered pre-recorded message – receive a heightened level of scrutiny under various state and federal telemarketing laws.  As part of the increased regulatory focus on robocalls, the FTC brought charges against Roy M. Cox, Jr. and several related companies, alleging violations of the FTC’s Amended Telemarketing Sales Rule (“ATSR”).

In response, Cox and the FTC reached a settlement that will require Cox to pay $1,100,000 for the alleged ATSR violations, and for Cox to be banned, for life, from partaking in any future telemarketing activity.

Among the alleged violations, the FTC charged that Cox and the related entities, “illegally [failed] to transmit their name or their clients’ names on consumers’ caller ID displays when making their telemarketing calls, [used] generic names instead, such as “CARD SERVICES,” “CREDIT SERVICES,” or “PRIVATE OFFICE” … called phone numbers on the National Do Not Call Registry, and made pre-recorded sales calls to consumers without their written consent.”

As the Cox case makes clear, entities that fail to comply with state and federal telemarketing and/or robocall requirements could find themselves facing regulatory action from the FTC, or state regulatory bodies.

If you are interested in learning more about this topic or need to review your telemarketing practices, please contact us at your convenience.

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