FCC proposes record $300 million fine against robocallers after making 5 BILLION calls

The company made a whopping 5 billion scam calls over the course of three months last year, which the agency says is enough to “call every person in the United States 15 times.”

Because the robocallers met the definition of “flagrant violations,” the FCC decided to impose its highest-ever fine: $299,997,000.

Consumers were called incessantly, often starting with something like, “We’ve been trying to reach you about your car’s extended warranty,” and asking them to talk to a “warranty specialist.”

People used the terms “incessant” and “harassment” to describe the calls, the FCC says.

“We will relentlessly pursue the groups behind these plans by restricting their access to U.S. communications networks and holding them accountable for their conduct,” law enforcement agency chief Loyaan A. Egal said in a statement. statement.

“This latest Commission action further illustrates the benefits of our working relationships with federal and state law enforcement partners, including the Ohio Attorney General’s Office, to combat illegal robocalls.”

The robocall operation was led by Roy Cox, Jr. and Michael Aaron Jones through their company Sumco Panama and other domestic and foreign entities.

The operation violated the spoofing and robocalling law. Under the Telephone Consumer Protection Act, robocalls to mobile phones require permission from the called party – and if those calls involve telemarketing, that permission must be in writing.

Under the Truth in Caller ID Act, spoofing is prohibited when done to harm, either by tracking or defrauding consumers.

In this case, many of the robocalls came from foreign calling entities, but they used neighborly spoofing tactics that made the caller ID appear local to US consumers.

In addition, the calls misrepresented the service being offered and made false or misleading statements to attempt to induce certain behavior.

The proposed fine is significantly higher than the FCC’s previous record of $225 million against a telemarketer based in Texas set in 2021. Other fines may be in the pipeline

In July of this year, the FCC took the first steps against the operation by issuing the agency’s first-ever “K4 Notice” and “N2 Order” — actions that ordered all US-based voice service providers to stop carrying specified traffic related to the car warranty scam.

That order resulted in a 99% drop in the volume of such calls since June, according to RoboKiller.

The proposed fine is significantly higher than the FCC’s previous record of $225 million against a telemarketer based in Texas set in 2021. Other fines may be in the pipeline, as the agency has also taken action against a voice service provider called Urth Access – to which it is traced nearly 40% of student loan debt counseling scammers in October.

The scam calls have gotten so bad that research shows that many Americans simply refuse to pick up the phone.

The company made a whopping 5 billion scam calls over the course of three months last year, which the agency says is enough to have “called every person in the United States 15 times.”