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FTC Files Complaint Against VoIP Provider for TSR Violations

The FTC and DOJ filed a complaint against VoIP provider VoIP Terminator, BLMarketing and their owner, Muhammad Usman Kahn, for apparent violations of the FTC's telemarketing sales rule, said a news release Wednesday. The FTC alleged Kahn and his companies…

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provided VoIP services to customers "despite knowing or consciously avoiding knowing" the numbers called were on the Do Not Call registry and included prerecorded messages. The calls were also spoofed and involved "scams related to credit card interest rate reduction, tech support, and the COVID-19 pandemic," it said. Also Wednesday, FTC commissioners unanimously approved a proposed order to settle the complaint, which would prohibit VoIP Terminator from "assisting and facilitating abusive telemarketing practices," require the company to have "ongoing automated procedures in place to block calls that display unassigned, invalid, or unauthenticated numbers," and ensure it doesn't provide VoIP services to suspected telemarketers. A $3.3 million fine was suspended based on the company's inability to pay, the agency said. “This is our third case in the last two years against VoIP service providers, who should take note of what happens when they ignore the law," said Bureau of Consumer Protection Director Samuel Levine. Kahn didn't comment.