FTC Shuts Down A Massive Charity Telefunding Scam Operation

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ACS and its co-defendants allegedly practiced high-pressure tactics to encourage well-meaning Americans to give money to charities. They allegedly pocketed as much as 90 cents of every dollar they collected from donors on behalf of charitable orga

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nizations that failed to provide the services they promised.

The defendants made their deceptive fundraising calls on behalf of multiple organizations since at least 2008. Previously, they were the subject of 20 law enforcement actions for their fundraising practices.

ACS and its co-defendants “knowingly violated” the Telemarketing Sales Rule” by using robocall technology in its fundraising calls. They also violated the the FTC Act and numerous state laws, according to the complaint.

In a statement, FTC Bureau of Consumer Protection Acting Director Daniel Kaufman said, “Deceptive fundraising can be big business for scammers, especially when they use illegal robocalls.” He added that the Commission and its state partners “are prepared to hold fraudsters accountable when they target generous consumers with lies.”

ACS and its co-defendants settle the complaint

ACS and its co-defendants agreed to settle the allegations against them. Under the terms of the settlements, each of the defendants will be permanentlty prohibited from conducting or consulting on any fundraising activities and from conducting any type of telemarketing to sell goods or services.