The Federal Communications Commission (FCC) has slapped a huge fine on a sprawling robocall operations, Ars Technica reports.
The robocall operation focused on selling “extended warranties” for cars to victims. The ringleaders, Roy Cox and Aaron Jones, had previously been banned from phone marketing. Despite this ban and previously receiving heavy fines, these men continued to operate their illegal phone calls and ignored FCC orders to stop. In turn, the FCC fined them $300 million after 6 months.
The scam was able to take place due to Avid Telecom, an Arizona-based telecommunications company which routed those calls to numbers on the national do-not-call registry. That company was also sued by the federal government and almost all state attorney generals.
While the 300 million fine is unprecedented, collecting it will be more difficult. The FCC itself does have enforcement powers, and would need to request the DOJ intervene. Cox and Jones have not been charged with crimes, but this could escalate if no remediation occurs.
While telecom fines are hefty and can result in shutting down operations, it might not be enough to stop scam callers. Phone providers such as T-Mobile and Verizon have already been offering filtering services to screen calls. Robocalls are still common unfortunately, but their numbers have been trending lower due to new regulations.
