The FTC Takes Action to Stop Voice Over Internet Provider from Facilitating Illegal Telemarketing Robocalls, Including Scams Relating to the Pandemic

The Federal Trade Commission (“FTC”), on the 26th of April 2022, took action against Voice over Internet Protocol (“VoIP”) service provider VoIP Terminator, Inc., a related company, and the firm’s owner for assisting and facilitating the transmission of millions of illegal pre-recorded telemarketing robocalls, including those they knew or should have known, were scams, to consumers nationwide. Many of the calls originated overseas and related to the COVID-19 pandemic, with the defendants allegedly failing to act as a gatekeeper to stop them from entering the country.

The case is Agency’s third case in the past two years against a VoIP Service Provider. Defendants helped scammers blast millions of illegal robocalls into American consumers’ homes.

Acting on the Commission’s behalf, the U.S. Department of Justice filed the complaint announced in federal district court, along with an order permanently stopping the defendants from such illegal conduct. The order also includes a suspended civil penalty of more than $3 million.

The FTC’s complaint[1] alleges Florida-based defendant VoIP Terminator, Inc., Virginia-based defendant BLMarketing, Inc., and the companies’ owner Muhammad Usman Kahn facilitated the violation of the FTC’s Telemarketing Sales Rule (TSR) during their operation as a VoIP service provider.

Specifically, according to the complaint, the defendants continued to provide VoIP services to customers despite knowing or consciously avoiding knowing the customers were:

  1. Using the services to place calls to numbers on the FTC’s Do Not Call (DNC) Registry;
  2. Delivering prerecorded messages; and
  3. Displaying spoofed caller ID services to callers involved in scams related to credit card interest rate reduction, tech support, and the COVID-19 pandemic.

Enforcement Action

The FTC’s proposed order settling the complaint[2] requires VoIP Terminator to:

  • Stop robocalling consumers.
  • Halt TSR violations.
  • Create new procedures to block suspected robocalls. 
  • Require VoIP Terminator to screen customers. 

While the order imposes a $3,256,190 judgment against the defendants, it has been suspended based on the company’s inability to pay.

You can reach further information here.