Ariz. Robocall Defendants to Pay $124,000 to Settle FTC Telemarketing Violations

Defendants Vision Solar and Solar Xchange will pay the federal government and the state of Arizona $62,000 each of a $13.9 million suspended civil penalty to settle allegations they violated the FTC Act, the Telemarketing Sales Rule and Arizona’s Consumer Fraud Act and Telephone Solicitations Act, said a stipulated order for a preliminary injunction and monetary judgment Thursday (docket 2:23-cv-01387) in U.S. District Court for Arizona. DOJ brought the complaint July 14 on the FTC’s behalf, plus with Arizona Attorney General Kris Mayes (D), as one of five newly announced FTC enforcement actions against illegal robocalls and telemarketing fraud that marked last week’s debut of Operation Stop Scam Calls (see 2307180035).

Officials who launched the nationwide “enforcement sweep” involving more than 100 federal and state agencies, including the AGs of all 50 states, plus the District of Columbia, alleged Solar Xchange, a seller of residential solar panels, and its lead generator, Vision Solar, were responsible for placing tens of millions of illegal robocalls to phone numbers on the national do not call registry. Officials said more than 150,000 consumers were called at least 50 times each, and more than 12,000 consumers were called at least 100 times each.

The defendants neither admit nor deny any of the allegations in the complaint, said the stipulation. They’re charged with falsely claiming during telemarketing calls that Solar Xchange is affiliated with an electric utility or government entity, it said. They also are alleged to have made “unsubstantiated claims regarding the cost savings associated with installing and using solar panels,” it said. They’re also charged with causing phone numbers to ring, or engaging persons in phone conversations, “repeatedly or continuously with the intent to annoy, abuse, or harass” anyone who answered their calls, it said.

The defendants were advised of their right to a trial but waived it, said the stipulation. They also agreed to bear their own court costs and attorneys’ fees, and to waive "all rights to appeal,” it said.

The injunction includes permanent prohibitions against “abusive telemarketing and telephone solicitations,” said the stipulation. They’re permanently barred from initiating any outbound call to any phone number listed on the national DNC registry, unless they can prove the receiving party gave them express written consent to receive the call, it said. The stipulation requires them to maintain an internal DNC list for people who previously told them they didn’t want to receive phone solicitations.

The stipulation orders the defendants within 90 days to “review and determine the methods used” by their existing lead generators. If any of those leads were obtained by means of an outbound telephone call that doesn’t comply with the order, the defendants will immediately stop buying leads from that generator unless and until they confirm that the lead generator is in compliance, said the stipulation. The compliance requirement also applies to buying leads from any new lead generator, it said.

The plaintiffs’ agreement to suspend part of the monetary judgment “is expressly premised upon the truthfulness, accuracy, and completeness” of the defendants’ sworn financial statements and related documents, said the stipulation. The suspension will be lifted if the court finds the defendants “failed to disclose any material asset, materially misstated the value of any asset, or made any other material misstatement or omission in the financial representations,” it said. If the suspension is lifted, the remaining $13.8 million judgment “becomes immediately due,” it said.