First Federal Telemarketing Jury Verdict Finds for FTC

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By Jimmy H. Koo

June 2 — In a first-ever jury verdict in a lawsuit to enforce the Federal Trade Commission's telemarketing rules a federal court jury in Utah found that three Utah-based companies made more than 117 million telemarketing calls pitching movies, including 99 million calls to people who had registered on the no-call list, the FTC announced June 2 ( United States v. Corps. for Character LC, D. Utah, No. 2:11-cv-00419-RJS-DBP, jury verdict filed, 5/25/16 ).

The jury May 25 found that defendant Forrest S. Baker III and his companies—Feature Films for Families Inc., Corporations for Character LC, and Family Films of Utah— engaged in illegal telemarketing campaigns promoting movies, in violation of FTC's Telemarketing Sales Rule (TSR) and Do Not Call Registry rules.

The U.S. District Court for the District of Utah will later decide what relief to impose.

The Justice Department May 5, 2011 filed suit on behalf of the FTC, alleging that the defendants made millions of telemarketing calls and deceived consumers about where the proceeds from their movie purchases and donations would go (10 PVLR 738, 5/16/11). The defendants made “no effort to avoid calling consumers on the DNC Registry,” the FTC said.

The jury also found that the defendants had actual or implied knowledge of these violations, thereby allowing the court to impose civil penalties of up to $16,000 per violation of the TSR.

To contact the reporter on this story: Jimmy H. Koo in Washington at

To contact the editor responsible for this story: Daniel R. Stoller at