TELEMARKETING IMPROPRIETIES COST COMPANY $10 MILLION
XCast Labs Inc has settled a case brought by the Department of Justice (on behalf of the United States of America), claiming that the company had violated the “Telemarketing Sales Rules (TSR)” by allowing its customers to engage in “illegal marketing campaigns.”
Apparently, some of XCast’s clients breached the “National Do Not Call Registry,” while others would fraudulently claim they were from a government or other supposedly reputable entity (while engaging in fraudulent activity). And XCast repeatedly failed to take action after being informed of that misconduct.
In a press release dated January 2, 2024, the DOJ announced a settlement wherein Xcast agreed to screen calls made by customers, while a $10 million civil penalty was “suspended based on Xcast’s inability to pay.”
In a written statement, Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, noted that “Today’s order is another example of the Justice Department’s efforts to protect American consumers from illegal robocalls and to stop telecommunications providers from enabling those calls …. We will continue to work with the Federal Trade Commission to enforce the Telemarketing Sales Rule.”
Does that compute?
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