Arizona Attorney General Kris Mayes has led a lawsuit against Avid Telecom, a Voice over Internet Protocol (VoIP) service provider, for reportedly making more than 7.5 billion calls to telephone numbers on the National Do Not Call Registry. The suit, which was joined by the attorneys general of 47 states and the District of Columbia, alleges that Avid Telecom focused on generating profits instead of complying with state and federal laws. The company allegedly placed high volumes of calls and billed only for completed calls, ignoring illegal calls in the process. Avid Telecom also sent scam calls to US consumers, including those about Social Security Administration and Medicare fraud, auto warranties, Amazon, DirecTV, credit card interest rate reduction, and employment scams. The robocalls threatened consumers with lawsuits and even arrest.
The lawsuit seeks a permanent injunction to prevent additional illegal robocalls and financial penalties. Among the allegations were that Avid provided services that were customised for robocalling customers and used call spoofing or invalid caller ID numbers. The suit alleges that Avid breached federal and state laws regarding unfair and deceptive trade practices. Neil Ende, the company’s outside legal counsel, said that Avid Telecom was disappointed the AGs had chosen not to communicate their concerns directly before filing the lawsuit.
The Anti-Robocall Multistate Litigation Task Force of 51 US attorneys general and the District of Columbia has been formed to investigate and take legal action against telecommunications companies routing volumes of robocall traffic. The lawsuit alleges that the company’s illegal robocalls violated consumer protection regulations. The Federal Communications Commission registered over 4 million complaints about robocalls last year and has backed efforts to stop them. Avid Telecom, its owner Michael D Lansky, and vice president Stacey S Reeves have been sued by 51 attorneys general over allegations they facilitated the illegal robocalls via their telecoms firm.
Arizona has also filed a lawsuit against Avid Telecom and two of its executives, owner Michael D. Lansky and company vice president Stacey S. Reeves, for more than 970 million robocalls made to the state between December 2018 and January 2023. The alleged marketing, phishing, and scam calls violated federal and state laws and may have caused fraud and identity theft. The calls frequently used spoofed or invalid caller ID numbers to appear as though they came from governmental and law enforcement agencies as well as private companies. The case seeks a jury trial to determine damages.
The lawsuit filed by the attorneys general of 48 US states and the District of Columbia alleged that Avid Telecom made over 7.5 billion illegal robocalls using spoofed or invalid caller ID numbers. The robocalls breached consumer protection regulations and federal and state laws regarding unfair and deceptive trade practices. The lawsuits aim to prove that Avid Telecom, its owner and vice president, breached the federal Telephone Consumer Protection Act and the Telemarketing Sales Rule, as well as state civil fraud and consumer protection statutes. The task force behind the legal action has been formed to investigate telecommunications companies routing volumes of robocall traffic.
Robocalls are a widespread problem in the US, with a Federal Communications Commission registering over 4 million complaints about them last year. Arizona Attorney General Kris Mayes said that Avid Telecom violated federal telemarketing laws by using robocalls to scare victims into making payments. Avid Telecom reportedly made more than 1.3 billion illegal robocalls to US consumers between 2017 and 2021, breaching the Telephone Consumer Protection Act, the Telemarketing Sales Rule, and other telemarketing and consumer laws. The calls threatened consumers with lawsuits and even arrest.
In conclusion, the action taken by the attorneys general against Avid Telecom sends a clear message that illegal robocalls will not be tolerated in the US. With robocalls causing significant harm to consumers and businesses, this lawsuit is a step in the right direction towards stopping these unwanted and often fraudulent calls. The litigation serves as a warning to other service providers that focus on profit over compliance with laws and regulations. The government and the telecommunications industry should continue to work together to eliminate the problem of robocalls and create a safer environment for US consumers.
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