FTC Sues VoIP Provider for Alleged Robocall Scheme

The FTC sued XCast Labs for an alleged robocall scheme involving telemarking calls to numbers listed on the do not call registry, saying the VoIP provider "funnel[ed] hundreds of millions of illegal robocalls through its network, even after receiving multiple warnings," the agency said in a Friday news release. XCast Labs "played a key role in helping telemarketers flood homes with unlawful robocalls, including robocalls impersonating the Social Security Administration,” said Bureau of Consumer Protection Director Samuel Levine. The FTC previously sent letters to VoIP providers, including XCast, warning that "assisting and facilitating illegal telemarketing or robocalling was against the law." Many of the calls were "part of organized campaigns designed to generate telemarketing leads," the agency said. Commissioners' 4-0 vote to authorize staff to refer the complaint to DOJ was taken before former Commissioner Christine Wilson's departure from the agency, the FTC said.