The Federal Trade Commission (FTC) and over 100 federal and state law enforcement agencies have teamed up to announce a major crackdown on illegal telemarketing calls. This collective initiative, “Operation Stop Scam Calls,” targets the operations responsible for billions of unsolicited calls to U.S. consumers.
This joint initiative includes the attorneys general from all 50 states and the District of Columbia. The operation not only takes action against telemarketers and companies employing them but also targets lead generators, who deceive consumers into providing their telephone numbers under pretenses, and Voice over Internet Protocol (VoIP) service providers facilitating illegal robocalls.
Director of the FTC’s Bureau of Consumer Protection, Samuel Levine, stressed the government’s unified front against illegal telemarketing, pledging relentless action against those who mislead people into consenting to receive these calls and those facilitating them.
Five new FTC cases have been launched under Operation Stop Scam Calls against companies and individuals for their roles in illegal telemarketing practices. These lawsuits assert that third-party lead generation for robocalls is illegal under the Telemarketing Sales Rule (TSR).
The FTC has filed 167 cases against illegal robocallers and violators of the Do Not Call (DNC) regulations, leading to court-ordered payments totaling over $2 billion. Of this amount, the FTC has collected more than $394 million, a significant portion of which has been refunded to defrauded consumers.
As part of Operation Stop Scam Calls, 48 federal and 54 state agencies have implemented over 180 enforcement actions and initiatives. This effort involves notable law enforcement entities like the Department of Justice, the Federal Communications Commission, the Social Security Administration Office of the Inspector General, and the U.S. Postal Inspection Service.
Ohio Attorney General Dave Yost highlighted the importance of consumers’ role in these efforts, urging them to continue reporting illicit robocalls to help disable these illegal operations. Illinois Attorney General Kwame Raoul echoed Yost’s sentiments, expressing his commitment to protecting consumers from disruptive, unlawful practices.
The FTC has announced actions against several companies for their roles in this illicit telemarketing practice. These include Fluent, LLC; Viceroy Media Solutions, LLC; Yodel Technologies, LLC; Solar Xchange LLC; and Hello Hello Miami, LLC. The allegations range from deceptive practices to violate the FTC Act and TSR to facilitating illegal robocalls, with proposed penalties totaling millions of dollars.
The FTC has expanded its approach in combatting illegal telemarketing, targeting companies directly involved and those enabling these practices. Earlier this year, the FTC initiated actions against Stratics Networks, Inc., and XCast Labs, Inc., accused of facilitating illegal VoIP and ringless voicemail robocalls.
The FTC’s law enforcement initiative, “Project Point of No Entry,” launched in April 2023, focuses on “gateway” VoIP service providers to prevent overseas calls from entering the U.S. Through this project, the FTC has identified 24 such providers linked to approximately 307 illegal telemarketing campaigns between 2021 and 2023.
With the combined efforts of federal and state agencies in Operation Stop Scam Calls and Project Point of No Entry, the FTC is taking considerable steps to tackle the nationwide issue of illegal telemarketing and robocalls. The overarching goal remains to protect consumers from these disruptive, often fraudulent practices and restore trust in communication networks.
