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Financial Services Law Insights and Observations

FCC warns provider to stop transmitting illegal robocalls

Federal Issues FCC Robocalls Consumer Protection Enforcement

Federal Issues

On August 1, the FCC’s Enforcement Bureau notified a gateway intermediate provider and originator that it is allegedly transmitting and originating illegal robocalls, which could result in the FCC permitting downstream service providers to block its traffic permanently if it fails to take action. The illegal robocalls allegedly involved attempts to engage with consumers by informing consumers of fake purchase orders or asking them to confirm their order. Noting that the provider is “closely connected” to two other entities that had previously received similar enforcement letters, the FCC warned that continually changing corporate formations and serving those same entities and related principals could constitute “willful attempts to circumvent the law to originate and carry illegal traffic.” Among other things, the provider is required to investigate the identified transmissions, block all of the identified traffic if the investigation confirms that the entity served as the gateway provider for the illegal transmissions, and report the results to the FCC’s enforcement bureau.