Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC, states challenge robocalls pitching cruise line vacations, (Mar 4, 2015)

By Dan Selcke, J.D.

The FTC and 10 state attorneys general have taken action against Caribbean Cruise Line, Inc. (CCL) and several other companies that allegedly assisted in perpetrating a massive telemarketing campaign involving billions of robocalls designed to sell cruise vacations (FTC v. Caribbean Cruise Line, Inc., FTC File No. 122-3196).

According to the joint complaint, consumers who answered one of the defendants’ robocalls typically heard a pre-recorded message from “John from Political Opinions of America.” They were told they had been “carefully selected” to participate in a 30-second research survey, after which they could “press one” to receive a two-day cruise to the Bahamas. Consumers who completed the survey and pressed one were connected to a live telemarketer, working on behalf of CCL, who would try to sell them cruise vacations and other travel packages.

Although political survey robocalls were not prohibited by the FTC’s do-not-call and robocall rules, the defendants’ robocalls allegedly violated federal law by incorporating the vacation sales pitches.

“Marketers who know the ropes understand you can’t steer clear of the do not call rules by tacking a political or survey call onto a sales pitch,” said Jessica Rich, Director of the FTC Bureau of Consumer Protection. “Anyone who assists in making illegal calls is also on the hook.”

The complaint charges CCL with violating the agency’s Telemarketing Sales Rule (TSR). It brings the same charge against Linked Service Solutions, LLC and Economic Strategy, LLC, the two companies that actually placed the calls.

In addition, the complaint charges a group of five interrelated companies, and their owner, Fred Accuardi, with assisting and facilitating the calls. Allegedly, these defendants provided the robocallers with hundreds of telephone numbers, made it possible to obscure the robocallers’ true identities from consumers and authorities, and helped fund the operation by sharing fees generated by accessing caller ID names. These companies include Telephone Management Corporation; T M Caller ID, LLC; Pacific Telecom Communications Group, International Telephone Corporation; and International Telephone, LLC.

The proposed settlement orders would bar CCL and the other defendants from engaging in abusive telemarketing practices, including calling consumers whose phone number are on the DNC Registry, calling anyone that has previously said they didn’t want to be called again, failing to transmit accurate caller ID information, and placing illegal robocalls. The proposed orders also impose civil penalties on the defendants. CCL is required to make a payment of $500,000. Litigation continues against Fred Accuardi and his five companies, but all of the other defendants have agreed to settle the charges against them.

Companies: Caribbean Cruise Line, Inc.

News: ConsumerProtection FederalTradeCommissionNews