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FTC shuts down operation behind billions of 'robocalls'

Consumer Reports News: March 28, 2012 05:08 PM

A Federal Trade Commission settlement announced today bans SBN Peripherals, doing business as Asia Pacific Telecom, from telemarketing and also requires the company give up roughly $3 million in assets.

The settlement resolves FTC charges that the company bombarded consumers with more than two billion calls pitching various services, including extended automotive warranties and credit card interest rate-reduction programs.

To hear a couple of examples of the telemarketing calls used in this case, check out Auto Warranty audio and Credit Card audio.

There are some 200 million phone numbers registered with the national Do Not Call Registry. To sign up, you have to make the initiative, by either calling 888-382-1222 from the number you want removed, or by visiting National Do Not Call Registry. Granted, not even the registry has stopped all telemarketers in the past. We recently reported about legal action against a company robocalling numbers on the Do Not Call list. However, new FCC rules were recently announced that protect you from robocalls, by making it so that you have to opt in (not out) in order to receive such telemarketing pitches.

The settlement order is part of the FTC's ongoing crackdown on deceptive robocallers. The order bans the defendants from telemarketing. The settlement does not constitute an admission by the defendants that the law was broken. To learn more about telemarketing scams, read Who's Calling? Recognize and Report Phone Fraud.

FTC Action Puts Robocallers Out of the Telemarketing Business [FTC]

Maggie Shader

   

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