FTC Tries to Stop Robo-Calls

The Federal Trade Commission is asking a federal court to shut down a telemarketing campaign that is responsible for up to 1 billion robo-calls that tell people the warranty on their cars is about to expire. The calls target people regardless of whether they have warranties or even own cars.

According to the papers the FTC filed with the court, the robo-calls have prompted tens of thousands of complaints from consumers who are either on the Do Not Call Registry or have asked not to be called. Consumers received the calls at home, work, and on their cell phones, sometimes several times in one day. Businesses, government offices and even 911 dispatchers have received the calls.

Those who answer the calls are told to “press one” to speak to a “warranty specialist.” The “specialists” then try to sell consumers a service contract for between $2,000 and $3,000, which they falsely portray as an extension of the vehicle’s original warranty.

The sellers of these extended auto warranties have allegedly taken in more than $10 million.