Privacy Maven

Yes, there are costly consequences when companies violate the Do Not Call List:

Federal regulators on Wednesday announced nearly $7.7 million in settlements with six companies — including Craftmatic Industries and ADT Security Services — accused of calling people on the national Do Not Call list.The Federal Trade Commission said Craftmatic Industries Inc., maker of adjustable beds, would pay the biggest fine — $4.4 million in civil penalties. ADT agreed to a $2 million settlement, the FTC said.

The four other companies were: Ameriquest Mortgage Company, Alarm King, Direct Security Services and Guardian Communications.

“By bringing enforcement actions, like those announced today, we will ensure that the small number of bad actors pay a price for not adhering to the law and respecting consumers’ privacy requests,” said FTC chairwoman Deborah Platt Majoras.

Craftmatic and three of its subsidiaries were accused by the FTC of running a sweepstakes for a Craftmatic bed and using the phone number that consumers provided on the entry form to later make sales calls to entrants even though their numbers were on the Do Not Call list.

Majoras said the company was not upfront with people that they’d be getting sales calls.

“You’re really trying to fool consumers into giving up their phone number so you can turn around and call them,” the chairwoman told reporters.

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The registry prohibits telemarketers from calling phone numbers on the list. Companies face fines of up to $11,000 for each violation.

Organizations engaged in charitable, political or survey work are exempt. Companies that have an established business relationship with a customer also may call for up to 18 months after the last purchase, payment or delivery.

The latest enforcement actions bring to 34 the number of Do Not Call cases the government has filed against companies since the registry began in June 2003. The biggest case to date involved satellite television provider DirecTV Inc., which paid a $5.3 million settlement.