[co-author: Stephanie Kozol]*
On October 18, North Carolina Attorney General (AG) Josh Stein filed a complaint against timeshare company Club Exploria, LLC, for allegedly using robocall machines to make unsolicited calls to consumers.
The lawsuit alleges that, through its service provider, Club Exploria made prerecorded calls to consumers to sell timeshares and vacation rentals, but that it did so without obtaining consumers’ consent as required by North Carolina law. It further alleges that the company did not accurately identify the caller at the beginning of each call in accordance with state law. The AG asked the court to prohibit Club Exploria from engaging in robocalling and require it to pay civil penalties and other costs.
This is not the first time that the North Carolina AG has focused on companies’ attempts to contact consumers. According to the office’s press release, Stein has issued civil investigative demands to companies suspected of making illegal robocalls and texts, and has filed a lawsuit against a company for routing scam calls to North Carolina consumers in violation of telemarketing laws. The AG is also currently leading the Anti-Robocall Multistate Litigation Task Force.
Why It Matters
Stein’s lawsuit and other enforcement activity highlight a broad increase in regulatory scrutiny over businesses’ attempts to solicit consumers, particularly through automated means without consumer consent. Regulators use various laws in this context, including the federal Telephone Consumer Protection Act, the Telemarketing Sales Rule, and state laws that similarly place restrictions on contacting consumers via the telephone. Companies should familiarize themselves with this regulatory regime to avoid any pitfalls by ensuring their business practices comply with federal and applicable state laws.
*Senior Government Relations Manager
