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MONTHLY ARCHIVES
Companies Ring Up $7.7 Million in Fines for 'Do Not Call' Violations
November 07, 2007 11:14 AM
ABC News' Brian Hartman, Lisa Chinn and Theresa Cook Report: It might be the national Do Not Call list, but several major companies have been fined for allegedly violating the registry's rules and making unwanted contact with consumers.
The Federal Trade Commission announced settlements totaling $7.7 million with companies accused of violating the Do Not Call rules, for allegations including companies making calls to individuals on the registry to apparently using promotions to circumvent the rules.
Companies that have settled with the FTC include Craftmatic beds, Ameriquest, Guardian Communications, and three private security companies. Another company, Global Mortgage Funding, has not settled, so the Justice Department is pursuing action against it.
Bed maker Craftmatic will pay a $4.4 million civil penalty, for complaints accusing the company of running a "win a bed" sweepstakes promotion that did not adequately inform tens of thousands of consumers that by entering they would start receiving sales calls.
The company also placed millions of "abandoned calls" to consumers, where picking up the phone just results in dead air. Also, the company allegedly ignored consumer requests to be taken off the company's call list.
Ameriquest will pay a $1 million fine for allegedly calling consumers on the registry after buying numbers from a "lead generator." The lead generator is said to have lured consumers to provide contact information on web sites under the guise of being a benign source of information. In the future, Ameriquest must guarantee lead generators get their numbers in a more straightforward manner. Ameriquest was also accused of ignoring consumer requests to be taken off the company's call list.
Guardian Communications allegedly "blasted" phone numbers with prerecorded telemarketing pitches "immediately terminating calls when a live consumer answered leaving dead air." The calls allegedly sent misleading caller ID information, so consumers were unaware of the true source of the call. Guardian also did not offer consumers the opportunity to opt off the company's call list.
The company settled for $150,000, with a $7.8 million civil penalty suspended based on Guardian’s "inability to pay."
Security companies ADT, Alarm King and Direct Security Services will pay $2 million, $20,000 and $25,000 respectively for allegedly calling consumers that were on the registry.
As for Global Mortgage Funding, the Justice Department is pursuing charges in federal court against the company for "making hundreds of thousands of calls" to consumers on the Do Not Call registry to sell financial products. The company allegedly transmitted misleading caller ID information and left consumers with dead air.
All fined companies were turned in by consumers. According to the FTC, fines determined by number of violations and severity of those alleged abuses. The FTC looked at allegations of dead air calls, fraudulent sweepstakes, prerecorded messages or blasting when determining severity.
November 7, 2007 | Permalink | User Comments (11)
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Sorry - meant companies not comments in previous post
Posted by: Bob | Nov 8, 2007 8:47:46 AM
These comments are the little c###roaches who scatter when the light comes on. Anything for a buck.
Posted by: Bob | Nov 8, 2007 8:46:59 AM
I have received at least five calls since July . They are rude and aggressive when I ask them to cease and desist and to put us on the "Do Not Call List." We are getting calls at all hours of the day and night.
We have filed a formal complaint with the FCC.
Posted by: Kathryn Daugherty | Nov 8, 2007 7:44:09 AM
Bush had a big hand in the Do Not Call registry. Ameriquest was owned by Roland Arnall, one of Bush's biggest fundraisers in 2004 and now the Ambassador to the Netherlands. Good job, George!
Posted by: Chris | Nov 7, 2007 7:27:20 PM
i get calls on my cell phone - someone yelling in spanish - i don't speak or understand spanish !!!
Posted by: skyz | Nov 7, 2007 6:13:05 PM
I'm so glad I don't have a home phone line any more.
Posted by: TB | Nov 7, 2007 5:40:15 PM
Well, I used to let getting these calls really bother me because 1) I thought I had to at least listen to what they said before giving a response. 2) I thought I had to be nice and polite. 3) I was under the misconception that, once I picked up the phone I was "obligated" to be civil. WRONG ANSWER! Now they don't bother me at all. In fact, sometimes it's a good way to "vent" frustrations. Sometimes I am just plain obnoxious. (Call me at home unwanted and that's what you get.) There are days I "play" with them if I feel like it and other days I just give them the old quick "Bye Bye" and hang up immediately. Some say you can't treat the "caller" that way because they are only doing their job. Oh well, it's my phone, my house and they called me, so, I can treat them any way I choose. If they don't like it maybe they won't call back.
Posted by: LetsKeepItReal | Nov 7, 2007 5:30:00 PM
I'm on the Do Not Call List and still get calls saying they are 'taking a poll'. Too back the FCC doesn't go after them. Also, I'm constantly getting faxes from out of the country to 'Go On A Carribean Cruise' Can't these belocked?
Posted by: NJ | Nov 7, 2007 5:25:38 PM
The really sad part is the FTC only fines US companies. All the call centers from other countries get away with this and there's nothing the FTC can do if they don't have US assets. I say the FTC needs to get the phone carriers to block foreign call centers.
Posted by: Steve | Nov 7, 2007 5:11:37 PM
my family and i signed up for the do not call list four times and we still
receive calls from telemarketers, i think its really rude to call right at nine o'clock, and expect someone to talk to them, i actually thought this list would really work to stop unwanted calls, thats what i get for thinking.
Posted by: krista nichols | Nov 7, 2007 4:51:50 PM
The government lets these people get away with murder, then slaps a $7.8 Million dollar fine on those responsible, but forgives almost all the fine "because they can't pay"! This headline is so misleading as they really only paid $150,000 of the 7.8 MILLION! Is this a scam by the government to look good? What is the point of a fine when it serves NO incentive for them to stop as they get fined but don't have to pay it? Makes absolutely no sense! They should have forced them into bankruptcy. They then would not be calling, would they?
Posted by: concordcan | Nov 7, 2007 4:21:47 PM
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