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FTC action over breach of Do-Not-Call Registry

OUT-LAW News, 01/09/2004

The US Federal Trade Commission on Monday sued a telesales company that made over 300,000 calls to consumers registered with the National Do-Not-Call Registry. This is the first time the FTC has claimed damages for such violations.

The case targets Las Vegas-based Braglia Marketing Group and its two directors, Frank and Kate Braglia, accusing them of making hundreds of thousands of calls, mostly relating to timeshare properties.

The FTC also alleges that the firm made over 10,000 calls without first paying a required annual area code access fee and that the company abandoned calls to consumers by failing to connect the call to a representative within two seconds after consumers answered the phone, all in breach of Registry provisions and the US Telemarketing Sales Rule.

Around 63 million consumers have joined the Registry, which is similar to the UK's Telephone Preference Service, since it opened for registrations in June last year.

Since 17th October 2003, telemarketers have had to check the list every three months to clean their lists for those numbers that have opted-out of receiving telemarketing calls. Telemarketers that call a number on the list are liable for a fine of up to $11,000 per call.

"This is a pretty simple case because our requirements are pretty clear. You can't call numbers on the Registry. These people did," Eileen Harrington, the agency's associate director for marketing practices, told the Washington Post.

The Braglia Marketing Group has made no comment.

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