Considering ignoring CID? Think again.
Chunditz
February 14, 2022 | 2:39 pm
Considering ignoring CID? Think again.
Protecting consumers from illegal robocalls is a battle the FTC is fighting on all fronts. Two recent actions to enforce Civil Investigative Demands (CIDs) against VoIP service providers demonstrate this commitment. But the messages in these cases extend beyond the realm of robocalls.
Voice over Internet Protocol – VoIP – A service provider that facilitates the transmission of telephone calls over the Internet. The FTC has learned from other investigations that the billions of calls made through VoIP service providers each year are illegal telemarketing calls and robocalls, many originating from outside the United States but targeting American consumers. In the course of investigating violations of the Telemarketing Rule and other regulations, the FTC frequently issues CIDs to VoIP service providers who may have made illegal calls. Our goal is to collect information needed by law enforcement, including what they are doing to comply with the TSR and the identity of the telemarketers making potentially illegal calls.
The FTC issued a CID to Los Angeles-based VoIP service provider XCast Labs, but received only a small number of responses. When efforts to cooperate with XCast were unsuccessful, the FTC went to court to enforce the CID. A federal judge has ordered the company to comply.
In another action, the FTC sent a CID to Deltracon, a VoIP service provider based in Irvine, California. Deltracon and its principals failed to respond, so the FTC asked a federal court to force compliance, urging that the company’s conduct “significantly hindered the FTC’s investigation.” The court granted the FTC’s request, and Deltracon ultimately turned over the required information.
What can other companies take away from these two recent actions?
When the FTC sends a CID to a business (or anyone else), the FTC represents the business. The agency makes enforcement decisions based on the facts, which is why CID is critical to the investigative process. It is extremely unwise for a company to ignore a CID or respond in an incomplete manner. When necessary, the FTC will act quickly and use existing tools to seek enforcement.
bottom line and italicize That message when it comes to illegal robocalls. The Telemarketing Sales Rule imposes broad responsibilities on companies behind illegal robocalls and the agencies that assist them. Exhibit A: FTC action against Alcazar Networks and its owners, alleging they knowingly provided VoIP services to an Indian company that deceptively displayed 911 as caller ID and placed calls impersonating the Social Security Administration to facilitate illegal telemarketing Telephones are provided for administrative convenience. The settlement in the case permanently bars the defendants from participating in various aspects of the telemarketing business.
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