The Federal Communications Commission (FCC) plans to impose a massive fine of nearly $300 million on the people behind a huge robocall scam. The FCC previously took action to stop the scam, which they consider the largest robocall operation they’ve ever investigated.
The FCC issued a Notice of Apparent Liability (NAL) on December 23, 2022, against several companies involved in the scam. The scam, orchestrated by Roy Cox, Jr., Michael Aaron Jones, and their affiliates, involved billions of illegal robocalls. In just three months in 2021, over five billion robocalls were made to around 500 million phone numbers. These calls played a recorded message, urging people to talk to a fake “warranty specialist” about extending or renewing their car’s warranty.
To combat the scam, the FCC used new tactics like the “K4 Notice” and “N2 Order.” The K4 Notice allows the FCC to instruct phone service providers to block calls or stop accepting calls from specific providers. Together with the N2 Order, these actions aimed to block the auto warranty scam robocalls. The FCC claims that their efforts resulted in a massive 99% decrease in the number of these calls. They later issued another K4 Notice to target a robocall scam related to student loan debt.
The FCC alleges that the auto warranty robocallers violated laws against robocalling and spoofing. Spoofing involves making the caller ID display a different number than the actual one. The Truth in Caller ID Act prohibits spoofing when it is used for fraud or harm. The Telephone Consumer Protection Act (TCPA) prohibits robocalls to mobile phones without the recipient’s consent, proper caller identification at the start of the call, or a callback number to opt out of future calls. In this case, the robocalls used neighbor numbers to hide their origins, made no effort to obtain consent, and didn’t provide the required information.
The FCC proposed a record-breaking fine of $299,997,000 against the robocall firm for their egregious violations. Consumers complained about the constant and harassing nature of the calls. The robocalls even spoofed hospital numbers during the COVID-19 pandemic, causing confused people to call hospitals and tie up important phone lines.
However, the FCC’s proposal is not the final decision on the fine. The accused parties have the opportunity to dispute the allegations and present their own arguments and evidence.
If the FCC ultimately imposes the fine, it is uncertain whether consumers will receive any compensation from it. While some agencies allocate penalty funds for victim compensation and financial education, most federal agencies, including the FCC, send penalty proceeds to the U.S. Treasury. For instance, when AT&T faced a $100 million fine for misleading customers about its unlimited data plan, the FCC stated that the money went to the U.S. Treasury for general use, and Congress decides how to allocate it.
If you have been affected by the scam you can also file your own claim under the TCPA, potentially seeking up to $1,500 for each illegal phone call.
Our experienced attorneys specialize in Do Not Call claims and can help you recover the damages you deserve. Don’t let illegal telemarketers violate your privacy and waste your time. Contact us for a free consultation to discuss your case and learn about your options.
