FTC and DOJ Bring Legal Action Against Do-Not-Call Violators
November 9, 2007 2:45 PM
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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.
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.
This article is over a month old, voting and posting comments is disabled
11/9/2007 4:26:19 PM
I just got a new line last month.
Unlisted numbers are worth their weight in gold. We get practically zero telemarketing calls, and we only give the number out to frends and family. We give creditors and other businesses my work number, and even with that, I only get the occasional call. I think the biggest impact is by having the number unlisted.
11/10/2007 10:21:50 AM
I have to agree unlisted numbers are worth the $4 a month I pay for it.
"A lot of people pay zero for the cellphone ... That's what it's worth." -- Apple Chief Operating Officer Timothy Cook
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