WHAT HEELS: FTC: Automated Auto Warranty Calls Unwarranted

The Federal Trade Commission went to federal court in Chicago on behalf of millions of Americans that have been besieged by deceptive "robo-calls" pressuring people - not all of whom even own a car - to buy new auto warranties before their current service plans expire, reports The Associated Press:

 

The FTC filed suit against two companies and their executives on Thursday, asking a federal court in Chicago to halt a wave of as many as 1 billion automated, random, prerecorded calls and freeze the assets of the companies.

 

Officials say the calls have targeted consumers regardless of whether they have warranties or even own cars and ignore the Do Not Call registry. They say telemarketers have misrepresented service agreements consumers have to buy for warranties that come with the price of the car. …

 

U.S. District Judge John F. Grady issued the temporary restraining order against Transcontinental Warranty Inc. on Thursday and Voice Touch Inc. on Friday.

 

Judge Grady's orders also applied to Transcontinental CEO and President Christopher Cowart, Voice Touch executives James and Maureen Dunne, Voice Touch business partner Network Foundations LLC and Network Foundations executive Damian Kohlfeld.

 

The judge also froze the assets of both companies at the FTC’s behest, in case they are needed to reimburse consumers who have been cheated.

 

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