FTC Settlement Highlights Growing Concerns Over Illegal Telemarketing Practices

(FTC) – Unwanted telemarketing calls continue to frustrate consumers across the country, particularly when companies use hidden tactics to obtain personal information.

The Federal Trade Commission announced a settlement with Citizens Disability, a company that sold Social Security disability advocacy services primarily through telemarketing.

While some calls are random, others come from websites that trick people into sharing their data through offers for coupons, sweepstakes, or product quotes, such as insurance or warranties.

Those site owners can then sell the information to telemarketers without consent. For anyone listed on the National Do Not Call Registry, receiving such sales calls is illegal. The consequences of these practices were evident in a recent enforcement action.

According to the FTC, the company bought people’s information from websites promoting sweepstakes and similar offers, then made millions of illegal calls, including robocalls.

The complaint also states that Citizens Disability falsely claimed it was returning calls about Social Security disability benefit eligibility, even when people never asked to be contacted.

These tactics violate consumer protections and fuel the rise of unwanted and deceptive calls. The FTC’s action serves as a reminder that companies must follow the law when contacting individuals and cannot mislead people to sell services.

Consumers can take steps to limit unwanted calls and protect themselves from scams. Being cautious before sharing personal information online is essential. Searching a website’s name along with terms like “complaint,” “review,” or “scam” can reveal potential red flags. Reporting illegal robocalls at DoNotCall.gov also helps enforcement agencies track and stop abusive callers.

People who have registered their phone numbers on the National Do Not Call Registry should not receive live sales calls from businesses they have not previously interacted with. If those calls continue, it may be a sign of illegal telemarketing practices.

For additional guidance on preventing unwanted calls and recognizing scams, consumers can visit ftc.gov/calls and ftc.gov/robocalls.