DirecTV will pay $5,335,000 to settle the charges – the largest
civil penalty the FTC has ever announced in a case enforcing any
consumer protection law.
In a complaint filed with a Los Angeles District Court, the FTC
alleged that five telemarketing firms, calling on behalf of
DirecTV, contacted consumers registered with the National
Do-Not-Call Registry. This is a body, similar to the UK's Telephone
Preference Service, which gives consumers the right to opt-out of
receiving telemarketing calls at home.
In addition, the complaint alleges that one of the telemarketers
– Global Satellite – directly or through another entity, abandoned
calls to consumers by failing to put a live sales representative on
the line within two seconds after the called consumer completes his
or her greeting, in breach of the Commission’s Telemarketing Sales
Rule (TSR).
Finally, the complaint alleges that DirecTV provided substantial
assistance and support to Global Satellite, even though it knew or
consciously avoided knowing, that Global Satellite was violating
the Do-Not-Call provisions of the TSR.
All five telemarketers, six principals of those firms and
DirecTV are named in the complaint.
The FTC announced yesterday that it has settled the charges with
DirecTV, two of the telemarketing firms – Communications Concepts
and American Communications of the Triad – and their principals,
although the settlement still has to be approved by the Court. None
of the defendants have admitted breaching any rules.
FTC action against three other firms – DRD Inc, trading as Power
Direct, Nomrah Records, trading as Direct Activation and Global
Satellite, trading as Mavcomm – and their principals is
continuing.
“This multimillion dollar penalty drives home a simple point:
Sellers are on the hook for calls placed on their behalf,” said FTC
Chairman Deborah Platt Majoras. “The Do-Not-Call Rule applies to
all players in the marketing chain, including retailers and their
telemarketers.”
