The Federal Communications Commission (FCC) has made a significant move against rampant robocall abuse by imposing a staggering $299,997,000 fine on an international network of companies. These companies, operating under various names like Sumco Panama and Virtual Telecom, were found guilty of making an astounding five billion robocalls to over 500 million phone numbers within a mere three-month period in 2021.
The FCC press release detailed the extensive violations committed by this network, including unauthorized telemarketing calls, failure to obtain consent, and dialing numbers registered on the National Do Not Call Registry. Additionally, the calls used caller ID spoofing tools to conceal their origin, a violation of U.S. laws.
The operation, which began in 2018, aimed at promoting false or misleading vehicle service contracts, resulting in a deluge of “your car’s extended warranty” pitches that became an online meme due to their ubiquity. Key figures behind this operation were identified as Roy M. Cox and Aaron Michael Jones, both of whom had been previously banned from telemarketing activities.
Despite facing a lifetime ban, they continued their activities, prompting the FCC to take a more aggressive approach. The FCC instructed U.S.-based voice service providers to block their calls and imposed a massive fine of $300 million on the scammers.
The FCC’s enforcement efforts bore fruit, leading to a 99% reduction in auto warranty robocalls executed by the offending companies. The regulatory agency also initiated a punitive phase of the case after receiving no response from the implicated companies to its inquiries.
Moving forward, the U.S. Department of Justice stands ready to ensure the prompt collection of the fines if the sanctioned entities fail to meet their payment obligations. This landmark action underscores the FCC’s commitment to curbing the scourge of robocalls and protecting consumers from unwanted and intrusive communications.
