Consumer Telcom Agrees to Compliance Orders in DOJ Fraud Settlement

The DOJ and Consumer Telcom agreed to a settle a Communications Act fraud lawsuit involving CTI’s “unlawful practices” of changing consumers’ telephone service provider without their knowledge or permission. Under the settlement's terms, CTI will designate within 30 days of the effective date a compliance officer responsible for developing, implementing and administering a plan that complies with the consent judgment (docket 2:23-cv-00161) and communications laws. The company will maintain a compliance manual and training program for employees and report any noncompliance with specified sections of the Communications Act, including truth-in-billing regulations, to the FCC, it said. The company must file compliance reports within six, 12, 18, 24 and 38 months of the effective date. It has 90 days to implement and comply with complaint-handling procedures and must forward all complaint-related documents to the FCC within 30 days of receipt. CTI will cease all outbound telemarketing activity and refund each complainant up to $100, unless it can provide proof of prior refund, said the settlement. Payment of the $53,320 judgment will constitute final settlement, it said.