WASHINGTON, D.C. — In a concerted effort to protect American consumers from the nuisance of robocalls, the Federal Trade Commission (FTC) has ramped up its enforcement of telemarketing laws over the past year. The agency has focused on blocking illegal calls originating overseas, working in tandem with the Federal Communications Commission (FCC).
The FTC’s primary weapon in this battle is Project Point of No Entry (PoNE), launched in April 2023. This initiative targets “gateway” Voice over Internet Protocol (VoIP) service providers — the point of entry for many overseas calls into the U.S. These providers have been warned that they must act to prevent illegal robocalls from entering the country.
Project PoNE is proving effective. Over the past year, it has targeted more than two dozen service providers involved in millions of illegal robocall campaigns. The project’s approach involves identifying VoIP service providers that are routing or transmitting illegal calls from overseas, demanding they cease such actions, and then monitoring them for compliance. Those who fail to comply face law enforcement investigations and potential lawsuits.
“Illegal robocalls are a scourge that waste Americans’ time and defraud them of money. VoIP providers knowingly enable these scammers, allowing robocalls to proliferate on a massive scale,” said FTC Chair Lina M. Khan. “The FTC will continue to crack down on upstream actors that facilitate fraud, and we’ll keep working with the FCC to protect Americans in the fight against illegal telemarketing.”
“Coordination among federal partners is key when cutting off the scourge of illegal robocalls from abroad,” said FCC Chairwoman Jessica Rosenworcel. “These results of our recent actions are clear: together we are stronger in our efforts to protect American consumers from fraudulent and harassing international robocallers.”
In partnership with the Industry Traceback Group (ITG), FCC, and state attorneys general, Project PoNE has identified 24 target VoIP service providers responsible for routing and transmitting illegal robocalls between 2021 and 2023, connected to approximately 307 telemarketing campaigns.
These campaigns represent hundreds of thousands, if not millions, of calls. According to ITG data, after being contacted by Project PoNE staff, 22 of the 24 targeted providers significantly curbed or entirely stopped the flow of illegal robocalls through their networks. This led to a decrease in tracebacks from 1,043 last year to 306 this year — a reduction of over 70%.
Most recently, the FTC issued cease and desist letters to seven additional targets. These VoIP providers were identified as the point of entry for illegal robocalls entering the U.S., and they were connected to a total of 452 tracebacks.
The targets were involved in approximately 154 illegal robocall campaigns, including government and business impersonator scams, utility disconnection scams, and student loan and credit card debt relief schemes, among others. Some campaigns specifically targeted Chinese-speaking communities in the U.S. with robocalls in Chinese, falsely claiming affiliation with the “Chinese Consulate,” a well-known package delivery company, or a major telephone service provider.
The FTC’s most recent action was coordinated with the FCC, which issued separate letters to the same targets. Last year, the FCC also issued an order against a VoIP service provider targeted by Project PoNE. The combined efforts of both agencies send a strong message to VoIP service providers: They must act as vigilant gatekeepers against illegal overseas robocalls.
For the telemarketing industry, these developments underscore the urgent need for compliance with federal regulations. The FTC’s aggressive enforcement actions serve as a clear warning to those who fail to adhere to the rules. Moreover, the success of Project PoNE demonstrates that illegal robocall campaigns can be significantly reduced, improving the reputation and effectiveness of legitimate telemarketing efforts.
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