We’ve probably all be inundated with calls to our cell phones with prerecorded messages that our car warranty is expiring. I covered this, and similar topics, in a recent post on the Lending Club blog: Cell Phone Telemarketing Scams. Today, the Federal Trade Commision announced that it had filed suit to stop these illegal robocalls.
Highlights from the FTC press release:
The Federal Trade Commission is asking a federal court to shut down a telemarketing campaign that has been bombarding U.S. consumers with hundreds of millions of allegedly deceptive “robocalls” in an effort to sell them vehicle service contracts under the guise that they are extensions of original vehicle warranties.
In two related complaints filed in federal court, the Commission took action against both the promoter of the phony extended auto warranties, as well as the telemarketing company that it hired to carry out its illegal, deceptive campaign. In its complaints, the agency contends that the companies are operating a massive telemarketing scheme that uses random, pre-recorded phone calls to deceive consumers into thinking that their vehicle’s warranty is about to expire. Consumers who respond to the robocalls are pressured to purchase extended service contracts for their vehicles, which the telemarketers falsely portray as an extension of the manufacturer’s original warranty.
“This is one of the most aggressive telemarketing schemes the FTC has ever encountered,” said FTC Chairman Jon Leibowitz. “I’m not sure which is worse, the abusive telemarketing tactics of these companies, or the way they try to deceive people once they get them on the phone. Either way, we intend to shut them down.”
According to papers the FTC filed with the court, the robocalls have prompted tens of thousands of complaints from consumers who are either on the Do Not Call Registry or asked not to be called. Five telephone numbers associated with the defendants have generated a total of 30,000 Do Not Call complaints. Consumers received the robocalls at home, work, and on their cell phones, sometimes several times in one day. Businesses, government offices and even 911 dispatchers also have been subjected to the calls.
It’s nice to see action being taken against these annoying and illegal calls. Though today’s announcement (and lawsuit) probably won’t stop every call, if it can at least begin the processes of shutting down the companies behind them, it is certainly welcome news.
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May 15th, 2009 at 1:04 pm
Phone call of many type telling me my warranty is about to expire and i NEED TO RENEW..I WOULD BE HAPPY TO GET THIS INFO
AND SEND IT TO YOU.
May 15th, 2009 at 1:05 pm
VERY UNRULY AND OUT OF CONTROL OPERATION…