Richard B. Newman
Member
The U.S. District Court for the Central District of Illinois has ordered penalties totaling $280 million against Dish Network following Do-Not-Call (DNC) litigation brought by the U.S. Department of Justice on behalf of the Federal Trade Commission, as well as the states of California, Illinois, North Carolina and Ohio.
The court found Dish Network liable for more than 66 million calls that violated the FTC’s Telemarketing Sales Rule - including Do-Not-Call, entity-specific and abandoned-call violations – the Telephone Consumer Protection Act and state law.
The federal government was awarded $168 million, a record for a Do-Not-Call matter. The remainder was awarded to the states.
“The outcome of this case shows companies will pay a hefty price for violating consumers’ privacy with unwanted calls,” said Maureen K. Ohlhausen, Acting FTC Chairman. “This is a great result for consumers, and I am grateful to FTC staff for their years of tenacious work investigating and developing this case. We and our DOJ and state partners will continue to bring enforcement actions against Do-Not-Call violators.”
In part, the complaint alleged that Dish Network initiated, or caused a telemarketer to initiate, outbound telephone calls to phone numbers listed on the Do-Not-Call Registry, violated the Telemarketing Sales Rule’s prohibitions on abandoned calls and assisted/facilitated telemarketers when it knew, or consciously avoided knowing, that the telemarketer was engaged in violations of the law.
In other words, the court weighed Dish Network’s culpability for its direct marketing program and for unlawful calls made as a result of what it considered to be insufficient vendor oversight.
Strict injunctive relief was also awarded designed to protect consumers from future harm.
For example, Dish Network must demonstrate that it is in full compliance with the Safe Harbor Provisions of the TSR (i.e., if a seller or telemarketer can establish that as part of its routine business practice, it meets specifically enumerated requirements, it will not be subject to civil penalties or sanctions for erroneously calling a consumer who has asked not to be called, or for calling a number on the National Do-Not-Call Registry).
Dish Network must also hire a telemarketing-compliance expert to prepare a plan to ensure ongoing compliance with telemarketing laws and the injunction.
If Dish Network fails to prove that it meets the various requirements, it is subject to being barred from conducting outbound telemarketing for specifically enumerated periods of time.
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ADVERTISING MATERIAL. These materials are provided for informational purposes only and are not to be considered legal advice, nor do they create a lawyer-client relationship. No person should act or rely on any information in this article without seeking the advice of an attorney. Information on previous case results does not guarantee a similar future result. Hinch Newman LLP | 40 Wall St., 35th Floor, New York, NY 10005 | (212) 756-8777.
The court found Dish Network liable for more than 66 million calls that violated the FTC’s Telemarketing Sales Rule - including Do-Not-Call, entity-specific and abandoned-call violations – the Telephone Consumer Protection Act and state law.
The federal government was awarded $168 million, a record for a Do-Not-Call matter. The remainder was awarded to the states.
“The outcome of this case shows companies will pay a hefty price for violating consumers’ privacy with unwanted calls,” said Maureen K. Ohlhausen, Acting FTC Chairman. “This is a great result for consumers, and I am grateful to FTC staff for their years of tenacious work investigating and developing this case. We and our DOJ and state partners will continue to bring enforcement actions against Do-Not-Call violators.”
In part, the complaint alleged that Dish Network initiated, or caused a telemarketer to initiate, outbound telephone calls to phone numbers listed on the Do-Not-Call Registry, violated the Telemarketing Sales Rule’s prohibitions on abandoned calls and assisted/facilitated telemarketers when it knew, or consciously avoided knowing, that the telemarketer was engaged in violations of the law.
In other words, the court weighed Dish Network’s culpability for its direct marketing program and for unlawful calls made as a result of what it considered to be insufficient vendor oversight.
Strict injunctive relief was also awarded designed to protect consumers from future harm.
For example, Dish Network must demonstrate that it is in full compliance with the Safe Harbor Provisions of the TSR (i.e., if a seller or telemarketer can establish that as part of its routine business practice, it meets specifically enumerated requirements, it will not be subject to civil penalties or sanctions for erroneously calling a consumer who has asked not to be called, or for calling a number on the National Do-Not-Call Registry).
Dish Network must also hire a telemarketing-compliance expert to prepare a plan to ensure ongoing compliance with telemarketing laws and the injunction.
If Dish Network fails to prove that it meets the various requirements, it is subject to being barred from conducting outbound telemarketing for specifically enumerated periods of time.
Follow the author on Twitter, here.
ADVERTISING MATERIAL. These materials are provided for informational purposes only and are not to be considered legal advice, nor do they create a lawyer-client relationship. No person should act or rely on any information in this article without seeking the advice of an attorney. Information on previous case results does not guarantee a similar future result. Hinch Newman LLP | 40 Wall St., 35th Floor, New York, NY 10005 | (212) 756-8777.
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