After Multiple Warnings, VoIP Provider Settles Charges Over Robocalls

WASHINGTON—Voice over Internet Protocol (VoIP) provider XCast Labs, Inc., has agreed to settle Federal Trade Commission charges that it funneled hundreds of millions of illegal robocalls through its network, even after receiving multiple warnings about the unlawful conduct.

Under the proposed court order, XCast Labs will be required to implement a screening process and to end its relationships with firms that are not complying with telemarketing-related laws. In a statement, the Department of Justice litigated the case and filed the proposed order on the FTC’s behalf.

“XCast was warned several times that illegal robocallers were using its services and did nothing,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said in a statement. “Companies that turn a blind eye to illegal robocalling should expect to hear from the FTC.”

‘Protecting Consumers’

“Today’s order is another example of the Justice Department’s efforts to protect American consumers from illegal robocalls and to stop telecommunications providers from enabling those calls,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to work with the Federal Trade Commission to enforce the Telemarketing Sales Rule.”

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