Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Robocaller Settles FTC Charges, (Feb 19, 2013)

By Tobias J. Gillett, J.D., LLM.

A telemarketer who allegedly peddled credit card interest rate reduction services, extended automobile warranties, and home security systems through illegal robocalls has reached a settlement with the FTC under which he will no longer be permitted to engage in telemarketing, the FTC has announced (U.S. v. Cox, FTC File No. 092 3193, Case No. 8:11-cv-01910-DOC-JPR).

The FTC’s complaint had charged the telemarketer, Roy M. Cox, Jr., and related American, Panamanian, Argentinian, and Hungarian companies with violations of the FTC’s Telemarketing Sales Rule (TSR), issued pursuant to the Telemarketing and Consumer Fraud and Abuse Prevention Act. The complaint alleged that Cox and his companies had called consumers listed on the Do Not Call Registry and had failed to transmit the name of the telemarketer or seller in violation of the TSR, instead using generic names such as “Card Services,” “Credit Services,” or “Private Office.” Moreover, Cox had allegedly assisted or supported others while knowing, or consciously avoiding knowing, that they were engaged in violations of the TSR.

The settlement order permanently enjoins Cox from telemarketing and from assisting others in telemarketing. It also imposes a judgment of over $1.125 million, but with payment suspended due to Cox’s inability to pay. Should the financial information he provided to the FTC later prove to be false, the entire amount of the judgment will become due.

News: ConsumerProtection FederalTradeCommissionNews