Bipartisan Coalition Targets Billion-Dollar Illegal Telemarketing Industry

Troutman Pepper

[co-author: Stephanie Kozol]*

A bipartisan coalition of Attorneys General (AGs) representing each state and Washington D.C. joined forces with the Federal Trade Commission (FTC) and the Department of Justice (DOJ). They have announced their unified commitment to an initiative known as ‘Operation Stop Scam Calls,’ which has already made a significant impact. Illinois AG Kwame Raoul — a fervent advocate for consumer rights — underscored this commitment, saying, “[c]ompanies responsible for these illegal, annoying calls must be held accountable.”

Operation Stop Scam Calls: A Closer Look

The initiative takes a targeted approach to illegal telemarketing, including robocalls. Enforcement efforts focus on the telemarketers, the companies that employ them, and the lead generators who craftily gather and supply consumer telephone numbers to robocallers and others. The program also zeroes in on Voice over Internet Protocol (VoIP) service providers, notorious for facilitating billions of illegal robocalls every year.

Effects and Achievements so Far

The crackdown effort is producing substantial results. The FTC has already initiated 167 cases against illegal robocallers and Do Not Call violators. These actions have led to defendants being ordered to pay more than $2 billion. The FTC has collected more than $394 million from these fines, a significant portion of which has been directed back to defrauded consumers. In conjunction, 48 federal and 54 state agencies have brought forth more than 180 enforcement actions as a part of Operation Stop Scam Calls.

Continuity of Efforts

The initiative is not a shift in focus for the states or the federal government. Instead, it builds on existing bipartisan efforts to curb illegal telemarketing and robocalls. In September 2022, a bipartisan coalition of 51 AGs submitted comments to the Federal Communications Commission (FCC) concerning its proposal to expand anti-robocall rules focused on illegal and fraudulent robocalls. In the letter, the AGs expressed strong support for enhanced regulation for domestic providers. They even suggested additional measures such as short compliance deadlines and the mandatory blocking of all illegal call traffic when alerted by the FCC.

Takeaway: A Focus on Consumer Protection

Consistent with the recent surge in headline-grabbing issues such as opioids, student loans, and tobacco, state and federal authorities have not abandoned their mission to protect consumers against deceptive and manipulative trade practices in other industries. This cross-party assembly of resources amply demonstrates that the commitment to safeguarding consumers from the onslaught of illegal telemarketing from both state and federal authorities continues.

*Senior Government Relations Manager

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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