DOJ Slaps $10 Million Penalty on XCast for Robocall Violations

In a landmark turn of events, the U.S. Department of Justice has doled out a stern $10 million penalty to XCast, a VoIP service player, for their hand in a vast illegal robocall scheme. This stringent move underscores a steadfast commitment to battling the scourge of unauthorized telemarketing that plagues American consumers.

In the wake of these revelations, the DoJ asserted that XCast trampled the Telemarketing Sales Rule (TSR) by disseminating billions of robocalls. Many of these calls deceptively masqueraded as government entities, duping consumers by targeting numbers on the National Do Not Call Registry. Additionally, these communications peddled false information to inveigle victims into making purchases.

To curtail future transgressions, a detailed settlement requires the company to implement rigorous customer screening and actively thwart potential illegal telemarketing activities. XCast now grapples with a civil penalty judgment of $10 million, which hangs in suspension due to the company’s professed financial inability to pay. Moreover, the decree obligates XCast to cease associating with firms that flout compliance standards. Beyond the DoJ’s pursuit of justice, the Federal Trade Commission chimes in, permanently barring XCast from enabling entities that fail to authenticate calls through the incisive STIR/SHAKEN Authentication Framework or display invalid Caller ID numbers.

Meanwhile, the FTC levied its firepower on Response Tree, banning the company from robocalling or contacting numbers on the Do Not Call list. This move stemmed from a complaint highlighting Response Tree’s operations of multiple deceptive websites that tricked consumers into relinquishing personal details, later peddled to telemarketers for illegal calling.

These overarching enforcement efforts are a mark of the collaboration between the DoJ and the FTC, embodying a coalesced front against the pervasive issue of unauthorized telemarketing. Stalwarts in this battle, such as Trial Attorney Zachary Dietert and Assistant Director Rachael Doud, bear the torch, striving to shield consumers from these duplicitous practices.

For individuals and entities, imperative guidance on complying with the Telemarketing Sales Rule is accessible through the FTC’s resources. In a similar vein, for those seeking deeper insights into the Consumer Protection Branch’s enforcement endeavors, the Justice Department’s civil website offers a trove of information and updates.

American consumers can breathe a bit easier, for now, knowing that regulatory agencies stand vigilant against the unrelenting tide of illegal robocalls, undeterred in their quest to maintain fair play and integrity in the market space.