Predatory litigation is a prevalent issue in the telemarketing industry, as call centers are frequently targeted by plaintiffs and their attorneys seeking to extract large settlements or penalties for alleged violations of telemarketing regulations. One of the most common violations that call centers face is calling individuals who are on the National Do Not Call Registry, which is a list of phone numbers that consumers have chosen to have removed from telemarketing lists.
The Federal Trade Commission (FTC) enforces the National Do Not Call Registry, and it has the authority to impose fines of up to $43,792 per violation. In recent years, the FTC has imposed several large fines on companies for calling individuals on the registry.
For example, in 2018, Dish Network LLC, a satellite television provider, agreed to pay a $280 million settlement for telemarketing violations, including calling individuals on the National Do Not Call Registry. This settlement is one of the largest in history for telemarketing violations.
There are significant financial risks that call centers can face as a result of predatory litigation for calling individuals on the National Do Not Call Registry. In order to protect themselves from litigation and large fines, call centers should take steps to ensure compliance with the National Do Not Call Registry. This can include implementing robust compliance programs, training employees on telemarketing regulations, and conducting regular audits to ensure compliance with all applicable laws and regulations.
Additionally, call centers should also use a list scrubber service to verify the phone numbers they are calling against the National Do Not Call Registry, this way they can be sure they are not calling numbers that should not be called.
In conclusion, predatory litigation is a prevalent issue in the telemarketing industry and call centers should be aware of the significant financial risks they can face as a result of these lawsuits. By implementing robust compliance programs, training employees, and staying informed about the latest developments in telemarketing regulations, call centers can better protect themselves from predatory litigation and the large fines that can come with it.
