FTC says violation of 'Do Not Call' rule is largest civil assessment ever obtained.
December 13, 2005: 1:02 PM EST NEW YORK (CNN/Money.com) -
Officials announced a $5.34 million settlement Tuesday with satellite TV provider DirecTV over alleged violations of the Do Not Call rule, the largest civil penalty ever obtained by the Federal Trade Commission in a consumer protection enforcement case.
The FTC's action "demonstrates that the registry is a program consumers can continue to believe in," said FTC Chairwoman Deborah Platt Majoras at a press conference held Tuesday morning. "Sellers are on the hook for calls placed on their behalf and for their benefit," she added. "It is not named the Do Not Call Registry for nothing."
DirecTV (down $0.06 to $13.71, Research), five firms telemarketing on the company's behalf, as well as six principals of the telemarketing firms were involved in the case, which Majoras said accounted for the single biggest category of do-not-call violations the commission has ever received.
In response, DirecTV issued a statement that said, "DIRECTV wholly supports the national Do-Not-Call Registry and our agreement with the FTC reflects our commitment to prevent unwanted and unlawful telemarketing calls to existing and potential DIRECTV customers." http://money.cnn.com/2005/12/13/news/fortune500/ftc_directv/index.htm?cnn=yes
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