Home security company Alliance Security is under allegations from the Federal Trade Commission for violating the Commission’s Telemarking Sales Rule (TSR) and the Fair Credit Reporting Act, bringing down third party telemarketers Defend America, LLC and Power Marketing Promotions, LLC, companies that illegally assisted Alliance Security in making at least 2 million solicited calls to consumers that violated TSR. While settlements have been resolved with Defend America and Power Marketing, Alliance Security still remains under litigation.
Alliance Security, a home security installation company under the leadership of Jasjit “Jay” Gotra, is charged by the FTC for calling at least 2 million consumers illegally, with over a million of the callers being on the Do Not Call (DNC) Registry. This comes after Gotra settled a similar charge operating under the company name Versatile Marketing Solutions four years ago.
In April 2014 Versatile Marketing received telemarketing and robocall-related charges, a similar misconduct to the current settlement. Gotra was accused of purchasing phone numbers from lead generators, a legal activity made illegal by the company’s blatant disregard to checking if phone numbers were on the DNC registry. In this case, FTC received complaints from consumers regarding Versatile Marketing producing fake surveys and repeatedly calling over 100,000 consumers who had previously asked to be taken off the list.
In this new settlement, Gotra has done similar misconduct, while taking it a step further by contracting Defend America and Power Marketing and authorizing them to market products to consumers on the DNC list as well as illegally calling people without proper identification of themselves. They did this by using spoof caller ID numbers and providing misrepresentation of services, on many occasions saying they were from a competing home security company called ADT. Gotra is also being charged of obtaining consume reports without having permissible purpose, disregarding the Fair Credit Reporting Act.
Defend America and Power Marketing have both settled their cases. According to FTC’s press release, Defend America’s principal Jessica Merrick is permanently banned from telemarketing or assisting in telemarketing. The company received an imposed civil penalty of $2,296,500. Power Marketing’s principal Kevin Klink is permanently banned from selling home security and medical alert devices. The company received an imposed civil penalty of $3,293,512.