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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 oldman42 on 11/12/2007 12:56:23 AM , Rating: 2
Wow, you are a salseman to the core aren't you?

I suppose you should consider yourself lucky if all I do is flick your ear for an hour everyday too? Could be worse right? I can think of a hundred reasons why someone should not have the right to "actively" pursue me in my home for a sale, but I can't think of a single one why they should.

Telemarketers should be treated as poorly as is legally possible so that maybe they will reconsider their career choice. It is no more skin off my nose to curse at the putz who's bothering me than it is to be bothered by said putz in the first place.


"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins











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