Two Years and 30,000 Complaints Later, FTC Finally Busts Car Warranty Robocallers [UPDATED]
by John Paczkowski
Posted on May 18, 2009 at 8:46 AM PT
After more than one billion unsolicited calls and some 30,000 complaints–one from Senator Charles E. Schumer–the Federal Trade Commission is finally going after companies responsible for those supremely annoying car warranty robocalls.
You know the ones I’m talking about, I’m sure. They’ve been occurring since 2007 and go something like this: “This is the second notice that the factory warranty on your vehicle is about to expire.” Hang up and the machine calls you again later. Transfer to a “warranty specialist” and ask to be taken off the call list and you’re either hung up on or, in my case, given an 800 number to call that turns out to be a phone sex line.
In complaints filed in United States District Court in Chicago, the agency accuses telemarketer Voice Touch and warranty outfit Transcontinental Warranty of deceptive sales practices and violating telemarketing rules with their relentless prerecorded sales pitches for extended vehicle warranties. Among the companies’ numerous violations: dialing every number in a given area code, including those listed in the National Do Not Call Registry; robocalling 911 emergency centers; regularly spoofing call recipients by transmitting phony Caller ID information so that call they can’t identify the originating number; and pressuring consumers into purchasing bogus extended service contracts for their cars.
“This is one of the most aggressive telemarketing schemes the FTC has ever encountered,” chairman Jon Leibowitz said in a statement. “I’m not sure which is worse, the abusive telemarketing tactics of these companies or the way they try to deceive people once they get them on the phone.”
Right on. One question though: If this is the most aggressive telemarketing scheme the FTC has ever encountered, why did it take the agency two years and 30,000 complaints to finally jump into action?
Anyway…
The FTC has asked for temporary restraining orders to halt the illegal robocalls, an asset freeze on both defendants and a permanent injunction that would force them to disgorge their ill-gotten gains.
UPDATE: A federal judge has issued temporary restraining orders against the companies halting their “robo-dialer harassment.” He has also frozen their assets until a May 29 hearing on the FTC’s request for a preliminary injunction.
Comments
Considering South Carolina’s AG is all over Craigslist for a single ad, perhaps he can be bribed to help the FTC move a little faster on robocalls. The headlines would be as sensational as he would like to run for Governor, but a lot more people would be grateful for his efforts to liberate their phone lines.
Meanwhile, you raise a good question that I would love to have answered at some point: “If this is the most aggressive telemarketing scheme the FTC has ever encountered, why did it take the agency 2 years and 30,000 complaints to finally jump into action?”
Does the lag time have something to do with the previous administration’s evisceration of regulatory agencies? General incompetence? Outdated laws?
Posted by Kawika Holbrook at May 18th, 2009 at 9:21 amMeant to say that shutting down robocallers may NOT be as sensational as going after a single sex ad left on Craigslist, but SC’s AG could still grab his headlines and help a lot more people helping out the sluggish FTC.
Posted by Kawika Holbrook at May 18th, 2009 at 9:25 amJail time for the whole bunch. And every night their sleep should be interrupted by ringing phones.
Oh wait, they used that at Guantanamo?
Posted by Eric Welch at May 18th, 2009 at 9:41 amI think once again we need to ask the question “Is waterboarding really torture?”
In this case, I say it is more along the lines of letting the punishment fit the crime.
Posted by Mac Beach at May 18th, 2009 at 1:13 pm