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FTC Files Charges Against Auto Warranty Robocallers

The Federal Trade Commission Sign and Seal outside the FTC's headquarters

The Federal Trade Commission (FTC) announced that they have filed a complaint in federal court against a Florida-based group of defendants who are accused of being a part of one of the more widespread and notorious robocall campaigns of recent years. The defendants—American Vehicle Protection Corp. (AVP) and their business partners—are accused of calling hundreds of thousands of people to sell overpriced “extended automobile warranties.” The FTC accuses them of using deceptive telemarketing tactics and calling consumers on the federal Do Not Call (DNC) Registry, in violation of both the FTC Act and the FTC’s Telemarketing Sales Rule (TSR). The FTC voted 4-0 to approve the action and the complaint was filed in the Southern District of Florida court.

It is rare to see the FTC take these sorts of enforcement actions for violations of the DNC list and TSR. It is also notable that the FTC is pursuing some of the most notorious actors in the telemarketing industry, whose campaigns have unfortunately become representative of the industry as a whole for many consumers. We will continue to monitor any developments in this case.