Alleged Robocall Operation Settles With FTC

An operation that allegedly used millions of pre-recorded telemarketing messages to fraudulently pitch extended auto warranties to U.S. consumers will pay more than $655,000 in consumer redress and will be permanently banned from telemarketing, as part of a settlement with the Federal Trade Commission, according to the FTC.

Named as defendants were Voice Touch, Inc. and its principal James A. Dunne, according to the FTC.

In addition to paying the fine, Dunne will have to turn over the proceeds from the sale of his second home in Florida and two luxury cars, a Porsche 911 and a Lexus sedan, the Commission continued.

According to the FTC, Voice Touch and Dunne acted as brokers between telemarketers and the dialing companies that actually made the pre-recorded robocalls.

They conducted telemarketing campaigns on behalf of several companies, causing tens of millions of consumers to receive illegal pre-recorded pitches that misled consumers to think that the callers were affiliated with consumers’ car dealership or manufacturer and that their auto warranty was expiring or about to expire, continued the FTC.

This settlement order permanently bars them from both telemarketing and assisting anyone else in telemarketing, according to the FTC. It also bars them from making a range of misrepresentations, including:

*That they are affiliated with a consumer’s car manufacturer or dealer.

*That the consumer’s original auto warranty is about to expire.

*That they are authorized to sell, and are selling, auto warranties that will extend the original manufacturer’s warranty.

*That they are selling warranties of any kind.

*The total cost to buy, receive, or use the goods or services they are selling.

*Any material restrictions, limitations, or conditions on buying, receiving, or using their services.

This case is on file in the U.S. District Court for the Northern District of Illinois, Eastern Division.