Antitrust Law Daily Wrap Up, CONSUMER PROTECTION—M.D. Fla.: $6.67M default judgment, injunction entered in FTC medical alert case, (Mar 9, 2015)

By Greg Hammond, J.D.

In an FTC and State of Florida action against an Orlando-based telemarketing operation that used pre-recorded telephone calls to sell seniors supposedly free medical alert systems, a default judgment in the amount of nearly $6.67 million and an order for permanent injunction was granted against Live Agent Response 1 LLC for failing to file any responsive pleading, the federal district court in Orlando decided (FTC v. Worldwide Info Services, Inc., March 6, 2015, Mendoza, C.).

In January 2014, the FTC and the Florida Attorney General filed a joint complaint, alleging that various telemarketers violated the FTC Act, the Telemarketing Sales Rule (TSR), and Florida’s Deceptive and Unfair Trade Practices Act (FDUTPA) by sending unsolicited pre-recorded robocalls to senior citizens, falsely stating that they were eligible to receive a free medical alert system that was bought for them by a friend, family member, or acquaintance. The court entered a temporary restraining order in January 2014, freezing corporate and individual assets. In November 2014, all of the defendants, except Live Agent, settled with the FTC and Florida Attorney General. The FTC and the Florida Attorney General subsequently filed a motion for entry of default judgment and order for permanent injunction and monetary relief against Live Agent.

Because Live Agent was properly served and subsequently failed to file any responsive pleading, the court determined that the plaintiffs were entitled to default judgment. Live Agent was therefore ordered to pay $6,669,285 for its violations of the FTC Act, the TSR, and the FDUTPA. In addition, Live Agent was permanently enjoined from initiating any telephone call that delivers a prerecorded message; participating in telemarketing; advertising, marketing, promoting, or selling any medical alert product or service; misrepresenting that a good or service has already been purchased for a consumer, that a good or service is endorsed by any organization or agency, when a consumer will be charged for a good or service, and any other fact material to consumers concerning any good or service. Live Agent is required to pay the judgment amount within seven days of receipt of the order, which the FTC and Florida must serve on it. Lastly, the freeze on Live Agent’s assets will remain in effect until they have received the total amount required.

The case number is 6:14-cv-8-Orl-41DAB.

Attorneys: David A. O'Tool, FTC. Denise D. Kim, Office of the Attorney General, for State of Florida.

Companies: Worldwide Info Services, Inc.; Live Agent Response 1 LLC

Cases: ConsumerProtection StateUnfairTradePractices FloridaNews