Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC action leads to telemarketing and robocalling ban for marketer, (Apr 17, 2014)

By Linda O’Brien, J.D., LL.M.

A federal district court in Riverside, California, has permanently banned the owner of an operation that allegedly enabled telemarketers to make illegal robocalls, call phone numbers on the National Do Not Call Registry, and mask Caller ID information, from telemarketing and robocalling, the FTC announced today (U.S. v. Sonkei Communications, Inc., FTC File No. 112-3060).

In November 2011, on the FTC’s behalf, the Department of Justice filed a complaint, alleging that Joseph Turpel sold services to telemarketers who were violating the FTC’s Telemarketing Sales Rule. The complaint alleged that Turpel knew, or consciously avoided knowing, that clients used his services while calling numbers on the National Do Not Call Registry, transmitting inaccurate caller ID information, and making illegal prerecorded telemarketing solicitations, known as robocalls.

According to the complaint, Turpel’s clients offered credit card services, home security systems, and grant procurement programs. He allegedly gave clients the means to hide their identity by transmitting inaccurate caller names, such as “SERVICE MESSAGE” or “SERVICE ANNOUNCEMENT,” on caller ID displays.

In addition to banning Turpel from telemarketing and robocalling, the settlement order imposes a $395,000 civil penalty that is suspended based on his inability to pay. The full penalty will become due immediately if Turpel is found to have misrepresented his financial condition.

The final order was entered by the U.S. District Court for the Central District of California on April 15, 2014.

Companies: Sonkei Communications, Inc.

News: ConsumerProtection FederalTradeCommissionNews