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Financial Services Law Insights and Observations

FCC Cites Two Companies over Unauthorized Telemarketing Allegations

TCPA FCC Enforcement

Privacy, Cyber Risk & Data Security

On September 11, the FCC issued citations against a Pennsylvania-based financial institution and a transportation network company (TNC), alleging that both companies engaged in unlawful business practices by infringing consumers’ rights to be free of unauthorized telemarketing robocalls to residential and wireless phones. The financial institution’s citation alleges that the bank required customers to agree to receive autodialed telemarketing texts in order to use its online banking and Apple Pay services. The TNC’s citation alleges that, although it allows consumers who sign up for ride-sharing service to opt out of receiving autodialed or prerecorded telemarketing calls and texts, the TNC does not allow users to access the service if they exercise these opt out rights. Both citations allege that these practices violate the FCC’s rules implementing the Telephone Consumer Protection Act (TCPA), and direct the companies to take immediate steps to come into compliance with the FCC’s rules, orders, and the TCPA prohibition against unlawful marketing and advertising calls. The FCC also warned that future violations may result in monetary forfeitures.