Cookware Company Settles With West Virginia AG for $320,000 Over Alleged Telemarketing Violations

The West Virginia Attorney General's office filed a lawsuit against cookware company NuWave, LLC, for allegedly violating the State's consumer protection law and telemarketing act. NuWave agreed to settle the lawsuit for over $300,000, most of which will be paid back to affected consumers. According to a local news story about this settlement, "neither NuWave nor its vendors were registered and bonded as telemarketers with the West Virginia Tax Department." NuWave also allegedly used deceptive "Buy one, get one free" pitches in the marketing calls to consumers. This should be a reminder to regularly compare your calling practices with state regulations in every state that you call into. Make sure you have the necessary telemarketing licenses and telemarketing bonds, and be sure that you are following any unique, local telemarketing rules. Consult with a TCPA Attorney if you need help responding to an Attorney General in a TCPA case.

Debt Collector Using Local Numbers Found Not To Be Deceiving 

Diversified Consultants, Inc., a debt collection company, pushed out numbers that were local to call recipients on their caller-IDs. A consumer sued Diversified Consultants, alleging that the practice was deceiving as the company had no local presence in the State of Pennsylvania where the calls were received. A Judge granted the defendant's motion to dismiss, citing section 1692e of the FDCPA.

"Section 1692e’s list of prohibited conduct generally characterizes three categories of harmful practice, to wit: misleading consumers about the debt collector’s identity, about the character of the debt itself, and about the consequences of a consumer’s decision about the debt...The use of a particular phone number, by a Defendant whose business location is covered by a different area code, is not materially misleading information or prohibited conduct under the FDCPA."

Read the court's full opinion here. This ruling is great news for debt collectors who may choose to make calls displaying local phone numbers, but non-debt collection callers should not get too excited about this. Caller-ID spoofing is still very much frowned upon under the TCPA. Businesses making marketing calls should only display phone numbers that they legitimately own. Telemarketers who make marketing calls should make sure they understand all telemarketing regulations, autodialer laws, robocall laws, cell phone telemarketing rules, and do-not-call regulations.

FTC Returns $6 Million To Consumers Affected by Alleged Deceptively Marketed Health Products 

The FTC filed a lawsuit against health product company Tarr, Inc. over allegations that the company, "used unsupported claims, fake magazine and news sites, bogus celebrity endorsements, and phony consumer testimonials to market their products." Soon, the FTC will be mailing out $6 million in refunds to consumers, averaging about $27.00 per person. Read the FTC's press release about this settlement and the corresponding refunds here. This FTC action, like most others, likely arose as a result of consumer complaints. Make reducing and resolving consumer complaints a top priority for your business.