Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC and Florida halt medical alert device robocall operation, (Jan 13, 2014)

By Edward L. Puzzo, J.D.

The FTC and the Florida Attorney General’s office have obtained a temporary restraining order freezing the corporate and individual assets of an Orlando-based operation accused of violating federal and state deceptive practices laws by using unsolicited recorded phone calls (“robocalls”) to target senior citizens to sell allegedly “free” medical alert devices. The agencies are seeking a court order permanently banning the defendants from engaging in the allegedly fraudulent and illegal conduct, and providing restitution to consumers who were victimized (FTC v. Worldwide Info Services, Inc., FTC File No. 132 3175, Case No. 6:14-cv-8-ORL-28DAB).

The FTC alleges that call recipients across the United States and Canada were falsely informed that the medical alert device had already been ordered by a friend or relative of the recipient, but firm representatives refused to identify the alleged party who placed the order when asked. Representatives of the operation required the call recipients’ credit card numbers and then, it is alleged, falsely represented that charges would not be incurred until the devices were received and activated, even though charges were incurred immediately. Representatives, it is alleged, also falsely claimed that the medical alert devices they were selling were endorsed by various health organizations such as the American Heart Association, and the National Institute on Aging. Caller IDs were used which falsified the caller’s phone number and name, and, when asked by call recipients, firm representatives refused to identify the name of their company. Representatives also made it difficult to cancel orders. The FTC has received over 66,000 consumer complaints about the calls to date.

The operation sold medical devices and services offered by Lifewatch, but are accused of identifying themselves in calls as the “I’ve fallen but I can’t get up” company, which is actually the tagline of competitor Life Alert. It was estimated that the operation made over $13 million in commissions from Lifewatch over a two-year period. No current action is being taken against Lifewatch, an FTC spokesman stated, but their relationship to the company may warrant further investigation.

The operation, which often did business as “The Credit Voice,” had 100 employees and at least 7 physical locations within Florida. They employed a complex corporate structure using “Worldwide Info Services, Inc.” and a variety of other corporate names, allegedly intended to shield disclosure of ownership and physical locations. Michael Hilgar, Gary Martin and Joseph Settecase, officers of the operations’ various corporations, have also been charged individually.

A preliminary injunction hearing on the matter is set for January 16, 2014 before the federal district court in Orlando.

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