Judge Issues Order Vs. Alleged Warranty DMer

A federal judge in Illinois has slapped a telemarketing company with a temporary restrainng order barring it from making any further automated calls offering automobile warranties.

Judge John F. Grady of the U.S. District Court for the Northern District of Illinois made this order after the the Federal Trade Commission filed suit against Voice Touch, Inc., its principals James and Maureen Dunne, its business partner Network Foundations LLC, and Network Foundations principal Damian Kohlfeld, according to the FTC.

These calls allegedly violate the Do Not Call Registry and other provisions of the Telemarketing Sales Rule and the FTC Act, according to the Commission.

Specifically, the FTC charged that the defendants were operating a massive telemarketing scheme that used random, pre-recorded phone calls to deceive consumers into thinking that their vehicle’s warranty is about to expire.

In a related matter, Judge Grady issued a temporary restraining order against automobile warranty sales company Transcontinental Warranty Inc., and its CEO, Christopher Cowart, who are allegedly clients of Voice Touch, according to the FTC.

The court barred deceptive claims about extended warranties, froze the defendants’ assets, and appointed receivers over Transcontinental and Network Foundations to ensure that documents are preserved and assets are not dissipated, according to the FTC.

The restraining orders are in effect until a preliminary injunction hearing set for May 29, at which time the judge will reassess what type of relief should remain in place until the case proceeds to trial, according to the FTC.