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FTC Files 8 Complaints Against Marketers

Michael Agruss

Written and Reviewed by Michael Agruss

  • Managing Partner and Personal Injury Lawyer at Mike Agruss Law.
  • Over 20 years of experience in Personal Injury.
  • Over 8000+ consumer rights cases settled.
  • Graduated from the University of Illinois Chicago School of Law: Juris Doctor, 2004.

FTC Files 8 Complaints Against Marketers

In March of 2013, the Federal Trade Commission (FTC) reported it has filed eight complaints against various affiliate marketers who sent millions of unwanted text messages to thousands of people. Over 180 million unwanted text messages were sent out by these defendants, pointing people to websites promising “free” gift cards, “free” merchandise, and other gifts and prizes. The FTC filed formal complaints against the senders of the spam text messages in several District Courts: Northern Illinois, Southern Texas, Central California, and Northern Georgia. The FTC also filed a compliant in the Northern District of Illinois against the entities behind several deceptive websites where people were directed by the unsolicited text messages.The groups running the websites paid the text senders to send spam texts to random phone numbers; these texts tricked people into visiting certain websites with promises of “free” gifts and prizes (gift cards to major retailers, iPads and iPods, etc). More than one out of ten of the recipients of these texts didn’t have text message subscription plans and were charged a fee to receive the unwanted messages. Once people arrived at the fraudulent websites, they were lured into giving out personal information, spending money, unknowingly sharing their personal information with third party marketers, and redeeming other offers. These sites deceptively displayed the logos of the major retailers they purported to offer free gift cards to (Best Buy, Wal-Mart, Target), giving the impression the offers were valid.But, the sensitive personal information gathered (supposedly to ship the gift cards to) was sold to third parties for marketing purposes without people’s consent—sometimes even health-related information. After doling out personal information at the fist site, people were sent to a second site where they were told they would have to sign up for numerous offers to receive their gift, many of which required consumers to provide their credit card information. Here, people had to submit applications for credit that could adversely affect their credit scores and others contained negative option components or free trial periods, which would incur costs if the plans were not cancelled; after this, individuals were told they had to find three more people before they’d receive their gifts. None of these requirements, or the necessity of spending money, were disclosed as terms of the “free” offer. And, after people requested that the defendants stop spam texting them, the companies continued to send them spam texts.The FTC is arguing the defendants in this case violated the FTC Act and potentially the Telephone Consumer Protection Act. For violating the FTC Act, the government agency is seeking preliminary and permanent injunctions to keep the defendants from continuing their deceptive and unfair practices, as well as preserving and accounting of the defendants’ assets.The TCPA restricts telephone solicitations, the use of automated telephone equipment, and unsolicited advertisements. Specifically, the TCPA limits the use of automatic dialing systems, prerecorded voice messages, unsolicited text messages, and junk faxes. So, what should you do when you get a robocall or an unsolicited text message? Hang up the phone. Do not press 1 or any other numbers to get off the list. Then, contact Mike Agruss Law, for a free consultation. The Federal Trade Commission has stopped billions, yes billions, of robocalls in the last two years. Mike Agruss Law, will do the same for you. We will aggressively enforce the law to stop robocalls and unsolicited text message. Not only will we stop the calls and text messages, but you may be entitled to money damages, too. Damages in TCPA cases range from $500.00 – $1,500.00 per call or text. 

Submitted Comments

Charles
8 years ago
This number calls and faxes me 15 to 30 times a day on my cellphone. I cannot use my phone because of this harassment.

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