FTC ready to act on car warranty robocalls

Share this content:

The Federal Trade Commission is close to taking legal action against companies responsible for the thousands of computerized car warranty calls reaching consumers nationwide, according to a letter from the agency chairman to Sen. Charles Schumer (D-NY).

The robocalls, which warn of expiring car warranties and pitch sales of new extended warranties, have been hitting cell phones and landlines even if a consumer is already listed on the National Do Not Call Registry. 

In a letter to Chairman Jon Leibowitz earlier this week, Schumer called on the FTC to take immediate steps to clamp down on the companies behind the calls and determine whether they violated any laws enforced by the FTC.

In a press conference today, Schumer and Virginia Sen. Mark Warner, who have each received such calls, released Leibowitz' response.

“While all Commission investigations are non-public, let me assure you that the Commission is very much aware of the problem that prompted your letter,” Leibowitz wrote to Schumer. “Law enforcement action in this area can be expected imminently.”

Leibowitz also noted the FTC had placed a button on its Web site homepage to enable people to lodge a complaint on the calls.

“It's about time these robocalls were terminated,” Schumer said in a press release today. “This prompt, aggressive action by the FTC should provide a bit of relief to the Americans besieged by these fraudulent calls. Almost everyone knows someone who's received these calls. It's about time we find out who's behind them, and put a stop to this harassment.

“In addition to violating the ‘Do Not Call List' law, these scammers are peddling phony car warranties that exploit consumers,” Warner said in the release.

The Associated Press reported that the calls have prompted about 300,000 inquiries and 4,000 complaints nationwide over the past two years, according to the Better Business Bureau, and 40 states are investigating the companies behind the calls.

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above