FTC obtains order banning home security company from outbound telemarketing  

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The Federal Trade Commission (FTC) obtained a final court order prohibiting a home security installation company from engaging in almost all outbound telemarketing.

According to the FTC, a District Court Judge in Rhode Island issued the order against Alliance Security Inc. previously known as Versatile Marketing Solutions, Inc. as well as its founder and CEO Jasjit “Jay” Gotra.

Alliance Security and its CEO are repeat violators of TSR, FCRA

In 2018, the Commission filed a lawsuit against Alliance Security and Gotra for making more than a million calls on numbers listed on the National Do Not Call Registry and for conducting unlawful credit checks on unsuspecting potential customers.

Alliance Security and Gotra repeatedly violated the Telemarketing Sales Rule (TSR), which prohibits calls to numbers on the DNC Registry. The company’s employees allegedly made illegal outbound calls to sell its service.

The company settled a similar allegation in 2014. Instead of complying with the 2014 court order, Alliance Security and Gotra violated the TSR again by making abusive and illegal telemarketing calls and by contracting with third-party telemarketers that also made unlawful calls, according to the FTC.

The Commission also alleged Alliance Security and Gotra violated the Fair Credit Reporting Act (FCRA) by obtaining consumers’ credit reports and credits scores without their consent or without a permissible purpose. It even attempted to get the credit reports or former President Barack Obama and President Donald Trump.

The final court order resolves the Commission’s complaint against the company and Gotra.

In addition to the outbound telemarketing ban, the order prohibits Alliance Security and Gotra from violating FCRA and from misrepresenting their relationship with any other businesses.

In a statement, FTC Bureau of Consumer Protection Director Andrew Smith said, “Illegal telemarketing calls aren’t the way to sell home alarm services or anything else. We fight against unwanted calls on many fronts, and we’re in it for the long haul.”