DOJ Slashes XCast With $10 Million Fine Over Massive Illegal Robocall Operation

Illegal Robocall

The U.S. Department of Justice (DoJ) said Tuesday that it has reached a settlement with VoIP service provider XCast over allegations that it has facilitated illegal telemarketing campaigns since January 2018, in violation of the Telemarketing Sales Rule (TSR).

In addition to prohibiting the company from violating the law, the established order requires it to comply with other compliance measures, including establishing a process for screening its customers and calling for potentially illegal telemarketing. The order, which also imposes a $10 million civil penalty, has been stayed due to XCast’s inability to pay.

“XCast provided VoIP services that sent billions of illegal robocalls to U.S. consumers, including scam calls fraudulently claiming to be from government agencies,” the DoJ said. said in a press release.

These calls delivered pre-recorded marketing messages, most of which were sent to numbers listed on the National Do Not Call Registry. To make matters worse, a majority of calls falsely claimed to be affiliated with government agencies or contained outright false or misleading information in an attempt to trick victims into making purchases.

For example, some calls claimed to be from the Social Security Administration and threatened to cut off the recipient’s utilities unless immediate payments were made. In other cases, consumers were urged to take quick action to reverse bogus credit card charges.

As part of the proposed settlement, XCast has been ordered to sever ties with companies that do not comply with U.S. telemarketing laws.

The US Federal Trade Commission (FTC) said in a statement that the Los Angeles-based company did nothing despite being warned several times that illegal robocallers were using its services.

“The order permanently prohibits FTC. said.

The development comes as the FTC announced a ban on Response Tree making robocalls or assisting anyone else in calling phone numbers on the Do Not Call registry.

The complaint accused the Californian company that operates more than 50 websites such as PatriotRefi[.]com, ResidenceDefense[.]com and TheRetailRewards[.]com, which used manipulative shady patterns to “trick consumers into providing their personal information for so-called mortgage refinancing loans and other services.”

The defendants then allegedly sold the collected information of hundreds of thousands of consumers to telemarketers who used it to make millions of illegal telemarketing calls, including robocalls, to consumers across the country.



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