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The FTC brings $7.7 million in DNC list violations against six major companies

The U.S. Federal Trade Commission announced that it initiated a crackdown on companies who disregard names on the Federal Do Not Call (DNC) list and actions resulting from the crackdown have been brought against six companies by the U.S. Department of Justice.

These actions have resulted in six settlements with the FTC with the sum total being $7.7 million in civil penalties. The largest settlement was from Craftmatic, the adjustable bed company, after it used a contest to capture phone numbers of entrants. Consumers who entered the contest weren’t told sales calls would be made to the numbers they provided to enter the contest.

Craftmatic allegedly placed tens of thousands of calls to the numbers collected in the contest and complaints alleged the company made millions of abandoned calls to consumers. An abandoned call is when a call is placed to a consumer and the consumer isn't connected to a live representative within two seconds.

Craftmatic has agreed to pay a $4.4 million USD civil penalty to settle the complaint, which is the second largest penalty ever for DNC violations. Alarm company ADT also settled with the FTC for calling numbers on the DNC list for $2 million. Two of its authorized dealers, Alarm King and Direct Security also settled for $20,000 and $25,000 respectively for DNC violations.

Ameriquest Mortgage settled similar allegations for $1 million. Guardian Communications was hit with the largest penalty totaling $7.8 million, but settled with the FTC for only $150,000 because the company couldn’t pay the full amount of the fine. The remainder of the $7.8 million is suspended based on the company's inability to pay.


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RE: Great!
By Runiteshark on 11/9/2007 4:09:05 PM , Rating: 2
I thought the fine was supposed to be $10,000 per call per customer for each violation of this DNC list. Obviously these companies called a few more then 4400, or 2000 calls.

What ever happened to that?


RE: Great!
By johnbuk on 11/9/2007 4:20:50 PM , Rating: 2
Dumped my land line several years ago and only get an occasional solicitor on my cell. I guess I'm surprised at the number of people who must buy from telemarketers in order for the business of telemarketing to still be profitable. I never bought from them and would either hang up or else punch a key on the phone so that it would beep until they hung up on me.


RE: Great!
By KristopherKubicki (blog) on 11/9/2007 4:21:25 PM , Rating: 2
quote:
I thought the fine was supposed to be $10,000 per call per customer

It's actually "up to $10,000"


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