May 20, 2009
Injunction issued against auto warranty robocallers

Yes! Yes, yes, yes!

A federal judge has issued two temporary restraining orders designed to stop what officials describe as a wave of deceptive "robo-calls" warning people their auto warranties are expiring and offering to sell them new service plans.


The FTC filed suit against two companies and their executives on Thursday, asking a federal court in Chicago to halt a wave of as many as 1 billion automated, random, prerecorded calls and freeze the assets of the companies.

Officials say the calls have targeted consumers regardless of whether they have warranties or even own cars and ignore the Do Not Call registry. They say telemarketers have misrepresented service agreements consumers have to buy for warranties that come with the price of the car.

Sen. Charles Schumer, D-N.Y. had asked for an FTC investigation into what he described as the scam of "robo-dialer harassment."

"These calls are annoying, but worse, many Americans have been fleeced," he said.

U.S. District Judge John F. Grady issued the temporary restraining order against Transcontinental Warranty Inc. on Thursday and Voice Touch Inc. on Friday.

Grady's orders also applied to Transcontinental CEO and President Christopher Cowart, Voice Touch executives James and Maureen Dunne, Voice Touch business partner Network Foundations LLC and Network Foundations executive Damian Kohlfeld.


Besides ordering a halt to the automatic telephone sales calls, Grady's order froze the assets of the two companies. The FTC alleged in its complaints that the calls were part of a deceptive scheme and asked the court to assure the assets will not be lost in case they might be needed to repay consumers who have been victimized.

The temporary restraining orders are to remain in effect until May 29, when Grady scheduled a hearing on the FTC's request for a preliminary injunction.

Halle-freaking-lujah. May this put these bastards out of business once and for all.

The FTC isn't immediately seeking civil fines against the companies but may do so later, agency officials said.

I still think public execution would be a just outcome, but I'll take what I can get. Thanks to Kevin Drum for the pointer.

Posted by Charles Kuffner on May 20, 2009 to Bidness
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