United States - FTC Reaches Settlement With Home Security Company that Called Millions of Consumers on the National Do Not Call Registry

The FTC has settled a complaint against a home security company that illegally called millions of people on the National Do Not Call Registry (DNC Registry) to pitch home security systems. According to the FTC, Versatile Marketing Solutions (VMS) bought phone numbers from lead generators who falsely claimed those consumers had given VMS permission to contact them. The lead generators used illegal means to compile their lists, including robocalls, fake surveys, and calls to phone numbers on the DNC Registry.  The FTC complaint alleged that the defendants’ conduct violated the Telemarketing Sales Rule.  The stipulated final order prohibits the defendants from making abusive telemarketing calls.  It also prohibits their calling any consumer whose number is on the DNC Registry unless they can prove that they have received written permission to make the call or that they have an established business relationship with that consumer.  Further, it bars defendants from calling any consumer who has previously told VMS not to call them again.  The order also places restrictions on how defendants can obtain and use lead-generated phone numbers.  Finally, the order imposes a $3.4 million penalty on the defendants, with all but $320,700 suspended due to their inability to pay.