Developments of Note

Telemarketers charged with violating the terms of the National Do Not Call Registry when they tried to sell DIRECTV satellite-television subscriptions in 2005 settled with the Federal Trade Commission (FTC) last month, agreeing to pay $100,000 and to not violate the Telemarketing Sales Rule (TSR). In December 2005, the FTC charged that DIRECTV, and other defendants telemarketing for DIRECTV, had called consumers whose phone numbers were registered with the national Do Not Call (DNC) Registry. In settling the charges, DIRECTV itself paid $5.3 million ' the largest DNC-penalty payment the FTC has obtained. The stipulated final judgment settles FTC charges against D.R.D. Inc. (d/b/a Power Direct); Daniel R. Delfino, individually and as an officer of D.R.D.; Global Satellite LLC (d/b/a Mavcomm); William King, individually and as an officer of Global Satellite; and Michael Gleason, individually and as an officer of Global Satellite. The government said that the D.R.D. and Global Satellite defendants violated the DNC provisions of the TSR by telemarketing DIRECTV subscriptions to people who had put their numbers on the National DNC Registry. Global Satellite also violated the TSR by using pre-recorded telemarketing messages that resulted in abandoned calls. The Commission explained that under the TSR, each abandoned call is a violation if not connected to an operator within two seconds of the consumer answering. The parties are also to monitor and keep record of activities to ensure compliance. An FTC news release is available at www.ftc.gov/opa/2006/12/directv.htm.

A telemarketing company will give up $235,000 in a settlement with the Federal Trade Commission (FTC) over a complaint that the company, Del Sol, scammed Spanish-speaking consumers by offering them 'designer' merchandise but furnishing imitation goods and outdated electronics. The FTC charged that the company's actions in the matter broke federal laws, including the Do Not Call Rule. The government said that the telemarketers told the consumers they had been chosen to get a 'prize,' such as a computer or digital video camera. To claim the prize, the people had to buy 'designer' merchandise, such as watches and fragrances. The FTC alleges that the consumers got the knock-off merchandise and outdated electronics for their purchase, and not the prize of the laptop computer or digital video camera. The government's settlement with Del Sol prevents the firm from making misrepresentations when advertising or selling any product or service, and prohibits it and its principle from violating provision of the Telemarketing Sales Rule, including the Commission's Do Not Call Rule. A judgment of $1.6 million against the company was suspended because it couldn't pay, but the full amount, after the $235,000, will be due if the Commission discovers that the company misrepresented its financial status. The FTC noted that the settlement, under a stipulated final order, isn't an admission of any violation of law. An FTC news release is available at www.ftc.gov/opa/2006/12/delsol.htm.