FTC Takes Action to End Annoying Robocalls

(IntegrityTimes.com) – The Federal Trade Commission (FTC) announced on Tuesday, January 2, that they had reached an agreement with Voice over Internet Protocol (VoIP) provider XCast Labs. The proposed settlement and penalties are the result of the complaints originally made by the FTC in May 2020. The official complaint against the company was an escalation after XCast Labs apparently ignored the reminders the FTC had sent out to VoIP providers that aiding illegal telemarketing is against the law.

As part of the settlement XCast Labs was ordered to pay a $10 million civil penalty; however, that may be suspended based on the company being unable to pay that amount. However, if XCast Labs is discovered to have misrepresented its financial situation, the full amount will come due immediately. They also must cut off all ties with any telemarketing firms that do not follow the Telemarking Sales Rules.

In addition, XCast Labs has agreed to implement a screening process to ensure that they will no longer be working with firms that are not in full compliance with telemarketing-related laws. Samuel Levine, director of the FTC’s Bureau of Consumer Protection commented that XCast Labs had been notified that illegal robocallers were using their service but took no actions to rectify the situation. He added that any VoIP companies that similarly ignore such violations should also expect to hear from the FTC about the issue.

XCast Labs has asserted that the FTC violated the spirit of the agreed-upon settlement by making the details of the case public in their announcement. They say they do not admit any fault or agree that they were responsible for any violations of the telemarketing rules, but rather they agreed to the settlement simply to avoid a costly and protracted court battle. They claim that by agreeing to abide by the rules of telemarketing they will not be making any changes to how they already operate. The Department of Justice litigated the case on behalf of the FTC.

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