Sage Says It Risks ‘Enhanced’ FCC Scrutiny From Mercantile’s Abuses

Debt collector Mercantile Adjustment Bureau’s motion to dismiss Sage Telecom’s first amended complaint (see 2301190057) “is premised on self-serving characterizations of Merc’s own business practices,” said Sage’s response Thursday (docket 3:22-cv-02737) in U.S. District Court for Northern Texas in Dallas. The motion is “at odds” with the allegations in the complaint, and doesn't mesh with commercial reality or "even common sense,” it said. Sage provides discounted internet and phone service to low-income Texas consumers through state and federally funded programs. It alleges at least 187 subscribers to its Lifeline services received multiple telephone solicitations in the past two years from a phone number owned by Mercantile, in violation of Texas’ Business & Communications Code 302.251. Mercantile’s motion to dismiss said Sage lacks standing because it didn't receive any calls itself and thus didn't suffer damages. Under the “regulatory ambit” of the FCC for the Lifeline services it provides, Sage is required to demonstrate it will satisfy applicable consumer protection and service quality standards, said Sage’s response. “Sage is not only authorized to make consumer protection claims on behalf of Lifeline Subscribers, it is required to do so in order to stay in business,” it said. By targeting consumers “indiscriminately,” Mercantile places the accuracy of Sage’s data reporting to the government at risk, and subjects Sage “to enhanced scrutiny by the FCC,” it said. If Sage overstates the number of legitimate calls made to Lifeline subscribers by including the “illegitimate calls” from Mercantile, “taxpayers bear the ultimate burden,” it said. “The motion should be denied so that the case can proceed to discovery and so that Merc’s business practices can be assessed in view of the broad protections” of the Texas statute, it said.