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ARTICLE · 11 MARCH 2021

Robocalling + Sham Charities = $110 Million Judgment

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
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Frankfurt Kurnit Klein & Selz PC

Frankfurt Kurnit Klein & Selz PC

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If you run, or run campaigns to support, a charity that engages professional fundraisers, this latest enforcement action announced by the FTC...

United StatesCorporate/Commercial Law

If you run, or run campaigns to support, a charity that engages professional fundraisers, this latest enforcement action announced by the FTC should serve as an important cautionary reminder about the importance of due diligence.

The FTC recently announced a settlement with Associated Community Services (ACS) and a number of related defendants imposing a $110+ million judgment.  The action, brought with  46 agencies from 38 states and D.C., involved a massive "telefunding" operation.  As alleged in the complaint, the defendants not only conducted a robocall "onslaught" using soundboard technology to solicit donations, in violation of the Telemarketing Sales Rule, but they kept most of money they collected rather than provide it to the charities. 

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www.fkks.com

This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Originally published by the New York Legal Ethics Reporter

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

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