FTC Cracks Down on Robocall Software Operators

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By Kyle LaHucik

The Federal Trade Commission is suing two technology companies for allegedly enabling customers to make billions of illegal robocalls.

The FTC alleged that NetDotSolutions Inc. and TeraMESH Networks Inc. operate a software platform through which users can make large amounts of telemarketing calls, including to numbers on the National Do-Not-Call Registry. The FTC has filed at least eight other lawsuits against companies and individuals using the software, called TelWeb, to dial robocalls, the agency said in a complaint filed in the U.S. District Court for the Central District of California.

The FTC alleged violations of the Telemarketing Act, which prohibits deceptive telemarketing practices.

“This case shows that the FTC will keep using every tool it has to fight illegal robocalls,” Andrew Smith, director of the commission’s bureau of consumer protection, said in a June 5 statement. “We will go after not only robocallers, but also companies—like these—who give robocallers the platform and tools to deceive the public and violate the law.”

The two companies said in June 5 statements that they will “vigorously defend themselves” against the allegations.

The case is FTC v. Christiano , C.D. Cal., No. SA CV 18-0936, 5/31/18 .

To contact the reporter on this story: Kyle LaHucik at klaHucik@bloomberglaw.comTo contact the editor on this story: Roger Yu at ryu@bloomberglaw.com

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