U.S. Government Finally Acknowledges the Menace of Robocalls

The issue of robocalls, pre-recorded marketing or scam pitches made to mobile phone users from unfamiliar numbers, continues to plague Americans. According to the National Consumer Law Center (NCLC), around 33 million robocalls are made each day, amounting to over 50 billion a year. Not only are these calls a nuisance, but they also pose a significant financial threat. In 2022 alone, approximately 68 million Americans lost over $29 billion to scam callers.

Furthermore, these incessant robocalls have eroded trust in valid phone calls and undermined the value of the nation’s telecommunications infrastructure. Margot Saunders, senior counsel at NCLC, highlights the frustration that these calls are mostly illegal. Government regulations stipulate that telemarketing calls are only legal if the recipient has provided “prior express written consent.” However, many sellers and their telemarketers fail to obtain this consent.

The reason behind their ability to continue making these calls is that big companies often hire telemarketing firms to make calls on their behalf. These firms acquire consumer information, including consent, from other companies in a practice known as lead generation. Lead generators then sell this information to various callers and sellers, resulting in consumers unwittingly agreeing to be contacted by numerous loosely affiliated companies.

In response to this issue, the Federal Communications Commission (FCC) approved regulations on December 13 that make it more difficult for sellers to make calls using numbers obtained from the lead generation industry. The new regulations explicitly state that telemarketing robocalls are only allowed if the specific consumer has given written consent to the actual seller, not just the telemarketing company.

FCC Chairwoman Jessica Rosenworcel emphasized that this decision aims to restore power to consumers, allowing them to choose who they want to communicate with and when. The vote is expected to significantly reduce the number of robocalls made. Congress has determined that each illegal call can lead to $500 in damages, making it harder for sellers to evade responsibility.

The Electronic Privacy Information Center predicts that the FCC’s decision will eliminate the majority of unwanted telemarketing calls and texts. However, it may take some time for the effects to be fully felt. If companies continue to disregard the rules, regulators may need consumers to report them and file lawsuits to hold them accountable. This process can be challenging and time-consuming, as it involves answering a robocall, identifying the seller, and initiating a lawsuit under the Telephone Consumer Protection Act.

Nevertheless, the industry is preparing for an influx of lawsuits under the Act. Defense attorneys expect a doubling or even tripling of lawsuit filings in the future, according to Reuters. Ultimately, the FCC’s vote is a step towards curbing the robocall epidemic, providing consumers with some relief from these persistent and intrusive calls.