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America January 13, 2025 3 mins read

Telemarketing Firm Accused of Violating Massachusetts Consumer Protection Laws

America ı By Rochdi Rais

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A telemarketing firm that worked with health insurance broker Benefytt Technologies is facing allegations of repeatedly violating Massachusetts consumer protection and do-not-call laws, according to a consumer’s complaint filed in Middlesex County Superior Court on Friday.

Robert Doane, the plaintiff, claims in the suit that he discovered in 2022, through an email response to a demand letter sent to Benefytt, that the source of dozens of unsolicited calls he received in 2018 was Health Benefits Group Inc., a Florida-based telemarketing firm. The complaint names Health Benefits Group, its former CEO Matthew Herman, and several others, accusing them of violating the Massachusetts Telephone Solicitation Act, the Consumer Protection Act, and privacy laws. Doane is seeking damages, disgorgement of profits, and an injunction to prevent the companies from doing business in the state.

Herman, who also ran other telemarketing companies servicing Benefytt, the former CEO of Enhance Health, according to the suit. “With Benefytt's encouragement and authorization, Health Benefits and Herman utilized domestic and overseas telemarketers to repeatedly, harassingly, deceptively, and illegally place hundreds of thousands of cold calls to Massachusetts consumers to sell Benefytt products,” Doane alleges in the complaint.

Doane asserts that he received multiple unsolicited calls in 2018, despite being listed on the Do Not Call Registry. He further claims the calls came from spoofed numbers that could not be returned. Suspecting Benefytt was behind the calls, Doane said he feigned interest to identify the callers. He was told by live agents that he had requested information, that he was speaking with a licensed insurance agent, and was pressured to provide personal information.

According to the lawsuit, Doane requested an application to identify the company behind the calls, but he was required to provide additional information, including a credit card number for a supposed enrollment fee. He then received an email with the application, which he did not sign. The calls persisted, and Doane claims he was insulted by an employee using a homophobic slur and vulgar language after revealing he was trying to identify the callers.

Doane said the harassment continued for several weeks until he sent a demand letter under Massachusetts' consumer protection laws. The lawsuit notes that in January 2022, Benefytt’s counsel disclosed that Health Benefits Group was the independent telemarketing firm responsible for the calls.

While the complaint does not name Benefytt as a defendant, the company had previously settled with the Federal Trade Commission (FTC) in 2022, agreeing to a $100 million settlement over allegations that it marketed fraudulent health insurance plans through deceptive telemarketing and online ads. In 2023, Benefytt filed for Chapter 11 bankruptcy protection and had a reorganization plan approved despite opposition from plaintiffs in various lawsuits filed under the Telephone Consumer Protection Act.

Doane has been active in pursuing telemarketing-related legal actions, including a case against a Georgia firm that allegedly used his Massachusetts phone number to spoof calls and generate angry responses from consumers.

Counsel for Doane did not immediately respond to requests for comment, and representatives for Health Benefits Group and Herman were unavailable. Doane is represented by Richard B. Reiling of Bottone Reiling and David Pastor of Pastor Law Office PC.

The case is titled Doane v. Health Benefits Group Inc. et al., case number 2581CV00078, in the Middlesex County Superior Court of Massachusetts.

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Rochdi Rais

Rochdi Rais is the Fractional Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

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