Communications Litigation Today was a Warren News publication.

$10 Million Settlement in Robocalling Scheme, FTC Says

A series of defendants agreed to pay nearly $10 million in a settlement with the FTC for allegedly using text messages to lure customers into a "robocalling" scam. Many customers received illegal robocalls, phony "free" merchandise offers "and unauthorized charges crammed on their mobile phone bills," the FTC said Wednesday in a news release (http://1.usa.gov/1t5fylY). The first set of defendants is required to pay $7.8 million, and the second set must pay $1.4 million, it said. Another set of defendants must pay $100,000 plus proceeds from the sale of certain assets, after an $8 million judgment was suspended "due to the defendants' inability to pay," FTC said. The defendants are banned from illegally telemarketing consumers through robocalling, it said. The commission also dropped charges against two defendants in the cases.