Platforms, Lead Gen and Ringless Voicemail: The FTC Went After the Whole Debt Relief Robocall Web

There's the platform that sends the calls. The reseller. The lead generators. The telemarketer. The company collecting the payment.

In this case, the Federal Trade Commission (FTC) went after all of them.

So what happened?

On February 17, 2023, the FTC sued an "interconnected web" of companies it says delivered tens of millions of unwanted VoIP and ringless voicemail (RVM) robocalls promoting fake debt relief. The Department of Justice (DOJ) filed the complaint for the FTC in federal court in the Southern District of California.

According to the complaint, as relayed by the FTC:

• From at least 2013 to 2020, Stratics Networks sold wholesale SIP termination to other VoIP providers, including Texas-based Netlatitude and its owner, and sold access to its RVM platform.
• Netlatitude allegedly used Stratics' service to run its own RVM service, which it sold to a foreign debt relief telemarketer.
• Stratics allegedly continued to assist a California-based debt relief scheme, including Kasm and companies tied to Atlas Marketing Partners and Provident Solutions, despite repeated notices from USTelecom's Industry Traceback Group that some traffic was likely illegal.
• Another company allegedly provided debt validation letter writing and payment processing for the scheme.

The alleged Telemarketing Sales Rule (TSR) violations include debt relief misrepresentations, illegal prerecorded calls, failure to identify the seller, charging fees before providing debt relief, and, for the platform defendants, assisting and facilitating violations while knowing or consciously avoiding knowing about them.

These are allegations, and litigation continued against the non-settling defendants.

The Kasm settlement

Lead generator Kasm and its owner agreed to a proposed order that, according to the FTC:

• Bans the alleged misrepresentations and TSR violations.
• Requires them to review their existing lead generators, determine whether any leads were obtained illegally, and stop buying from any that were.
• Imposes a $3.38 million judgment, partially suspended after they pay $7,500.

Read that again. Yes, the order required the lead buyer to audit its lead sellers.

Why should you care?

The phrase "consciously avoiding knowing" should keep platform folks up at night. If tracebacks keep showing up and you keep the customer, the FTC may say you knew. Am I right?

What to do this week

• Treat every traceback notice as a warning shot. Investigate and document it.
• If you sell RVM or SIP, know who's on the other end and what they're sending.
• Audit your lead sources, as the Kasm order requires.
• No upfront fees in debt relief. That's the TSR.

It's not rocket science. Look at what's on your network.

Do the boring stuff. It's what keeps the fun stuff going.