June 30, 2022

Volume XII, Number 181

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Telecommunications Companies Forced to Turn Over Documents in Response to FTC CID

On February 14, 2022 the FTC announced that, at the agency’s request, federal courts in California ordered two Voice over Internet Protocol (“VoIP”) service providers to produce information as part of ongoing investigations by the FTC into telemarketing calls and robocalls made in violation of the Telemarketing Sales Rule (“TSR”). Failure to comply with the court orders could result in the VoIP service providers being held in contempt of court.

According to the FTC, billions of these illegal calls pass-through VoIP service providers every year.  The TSR makes it unlawful to provide “substantial assistance” to “any seller or telemarketer when that person knows or consciously avoids knowing that the seller or telemarketer is engaged” in a prohibited act or practice. VoIP service providers who knowingly provide VoIP services to telemarketers or sellers violating the TSR, therefore, may also find themselves liable under the TSR.

Copyright © 2022, Hunton Andrews Kurth LLP. All Rights Reserved.National Law Review, Volume XII, Number 55
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About this Author

In today’s digital economy, companies face unprecedented challenges in managing privacy and cybersecurity risks associated with the collection, use and disclosure of personal information about their customers and employees. The complex framework of global legal requirements impacting the collection, use and disclosure of personal information makes it imperative that modern businesses have a sophisticated understanding of the issues if they want to effectively compete in today’s economy.

Hunton Andrews Kurth LLP’s privacy and cybersecurity practice helps companies manage data and...

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