Are you in the telemarketing business? Here’s what to know about Citizens Disability

The FTC is committed to fighting illegal telemarketing. For proof, look no further than the recently announced settlement with Citizens Disability, LLC and its subsidiary, CD Media, LLC (collectively, “Citizens”), which sell services to assist consumers with Social Security Disability Insurance (SSDI) claims.

According to the FTC, Citizens was responsible for tens of millions of illegal telemarketing calls that often sought to mislead consumers seeking information about their benefits.

The FTC alleges that Citizens relied on unlawful calls facilitated through its call centers and by third party lead generators and telemarketers to sell its services. According to the complaint, in millions of calls — including prerecorded robocalls — Citizens claimed it was responding to a consumer having “recently inquired about [their] eligibility for social security benefits.” But the FTC alleges that wasn’t true. Instead, Citizens called consumers after they had visited websites known as “consent farms,” operated by companies that deceive consumers into providing their personal information to facilitate unwanted telemarketing calls. Through these sites, consumers looking for things like online coupons or a quote for home insurance are prompted to check a box or click a link that unknowingly signs them up to be contacted by companies like Citizens. To make matters worse, Citizens made over 25 million calls to consumers who had their numbers on the National Do Not Call (DNC) Registry — having already taken steps to avoid telemarketing calls.

The FTC alleges that Citizens’ practices violated the Telemarketing Sales Rule (TSR) and the FTC Act. According to the terms of the settlement, Citizens is prohibited from making certain robocalls and calls to numbers on the DNC Registry, and from misrepresenting why they’re calling consumers. Citizens is also subject to a $2 million civil penalty judgment.  

Consumers have the right to not be inundated with telemarketing calls they don’t want. Does your business do telemarketing or work with telemarketers? Comply with the law:

• Be honest with consumers about who you are, why you’re calling, and what you’re calling about.
• Comply with all aspects of the Telemarketing Sales Rule, including accounting for the DNC Registry and the rules for robocalls. (And if you partner with third party telemarketers and know or consciously avoid knowing about their unlawful conduct, that can also lead to liability under the TSR.)
• Don’t rely on flimsy justifications for consumer consent, such as disclaimers hidden in small print or hyperlinks. If you’re relying on a consumer’s consent to make a telemarketing call, that consent must be obtained through legitimate methods that are free of obfuscation.