Consumer Action Non-Profit Org. 1170 Market Street, Suite 500 U.S. Postage San Francisco, CA 94102 PAID San Francisco, CA CONSUMER Permit # 10402 ACTION Change Service Requested NEWS www.consumer-action.org • Spring 2019 The robocall scourge Lawmakers throw down the gauntlet on robocalls By Ruth Susswein toKENs, or SHAKEN). In May, FCC chief Ajit Pai called on he Federal Communica- phone carriers to hurry up and tions Commission (FCC) voluntarily implement the call estimates that nearly half authentication system by the end T(46%) of all robocalls are from of 2019, or be forced to do so by scammers. All parties, including the commission. representatives from the telecom industry, are looking for lawmak- The TRACED Act would give ers to get tough on illegal robo- the FCC—the nation’s tele- callers. New laws may be an easy com regulator—more time and lift, but whether or not they’ll authority to take enforcement be effective against out-and-out action against robocall violators. scammers remains to be seen. Currently, the FCC can only take action against robocallers Unlike with many other issues, for one year from when the call the U.S. Congress has united was placed. The TRACED Act around its desire to find useful would extend that time to three Relentless robocalls ways to combat the unwanted years, as well as require the FCC automated calls popularly re- to craft rules to help prevent calls anger consumers ferred to as “robocalls.” In April, or texts with spoofed numbers the Senate Commerce Com- from ever reaching consumers’ By Lauren Hall Spoofed robocalls are an mittee unanimously approved phones. It also would broaden increasing problem for phone legislation that would provide the enforcement authority of hose automated tele- owners. These calls use fraudu- consumers with some relief from phone calls that deliver the Federal Trade Commission lent caller identification (Caller fraudulent, unwelcome robocalls. (FTC). pre-recorded messages to ID) information to disguise the Tyour landline or cell phone—aka While innovative approaches The TRACED Act would allow caller’s true identity. For instance, to stopping the scourge of illegal “robocalls”—are bombarding a con artist will “spoof” (fake) for increased penalties for inten- consumers’ devices at alarm- robocalls are more than welcome, tional violations of telemarketing the name and/or number on a it must be acknowledged that ing rates. Consumers received a phone’s call display to make it regulations, up to $10,000 per whopping 47 billion robocalls slightly more than half of robo- robocall. If the intentional viola- seem like the call’s coming from calls are from legitimate business- last year alone. Estimates are that a government office (e.g., the tions continued, the fine could nearly half of them were from es. The National Consumer Law jump to $30,000 per call. The IRS or Social Security Adminis- Center’s Margot Saunders says scammers. tration), a neighbor or even your bill calls for civil penalties for that companies making legiti- legitimate businesses that repeat- Unless you have explicitly own phone number! Spoofing mate robocalls would largely be consented to the calls, robocalls legitimate numbers makes it edly call numbers that have been spared in some of the legislation recycled (“reassigned”) to other are generally prohibited under more likely you will answer the being considered by Congress, the federal Telephone Consumer phone and fall for the con. Caller customers or simply repeatedly but points out that legitimate flout the law. The bill would Protection Act (TCPA), especial- ID spoofing software is widely businesses making illegal calls to ly on cell phones. (Certain types available and can send thousands extend the window for the FCC cell phones without consent is a to catch and take civil enforce- of robocalls, such as political or of calls for very little money. major reason 2018 was the worst charitable pitches, may be legal.) ment action against intentional Robocalling is a huge and year on record for robocalls. violations from one to three years But scammers and other disrepu- growing problem: In 2017, seven table callers don’t really care. TRACED ACT (S.151): The after a robocall is placed. The million consumers complained Telephone Robocall Abuse Crim- bill also eliminates a requirement You might welcome robocalls to the Federal Communications inal Enforcement and Deterrence that are automated calls from that the FCC warn companies Commission (FCC) and Federal (TRACED) Act would require before bringing an enforcement your child’s school about early Trade Commission (FTC) about telephone companies to adopt school closings, or from your action against them if they subse- robocalls. According to the FCC, technology to authenticate calls quently skirt the law. State attor- pharmacy about prescription robocalls make up 60 percent and alert consumers if an incom- refills or pickups. However, neys general across the country of all the complaints it receives. ing call was from a “spoofed” support the TRACED Act. companies using “autodialers” The complaints have steadily (faked) number. (Depending on to send out thousands of robo- increased despite the fact that Another bill, the Robocall your carrier, it may say “Suspi- Enforcement Enhancement calls a minute to people who consumers are taking what steps cious” or “Spam?” before the haven’t consented to receiving they can to protect themselves. Act (S.2694), also would extend incoming number on Caller ID.) the time the FCC has to pursue them are doing so illegally. Even Consumers have placed more This technology is called STIR/ prerecorded calls from legitimate robocall and Caller ID spoofing than 230 million phone num- SHAKEN (Secure Telephony violations, and would authorize companies offering you a hotel bers on the FTC’s Do Not Call Identity Revisited, or STIR, stay, a new credit card or a home the agency to act without the Registry (https://www.donotcall. and Signature-based Handling currently required warning. security system are prohibited gov/). Doing so prevents legiti- of Asserted Information using without consumer permission. See “Relentless” on page 2 See “Lawmakers” on page 2 could be hit with a $2,000 pen- which, or on whose behalf, they Consumer Action Lawmakers alty per call. are calling. (Learn more: https:// www.consumer-action.org Continued from page 1 In 2018, Connecticut passed a tinyurl.com/y6d2h3ua.) law adding criminal fines to the The FCC created rules to Consumer Action has been a Stopping Bad Robocalls Act champion of underrepresented state’s anti-robocall law. Massa- implement the TCPA and estab- consumers nationwide since 1971. (H.R.946): This bill would re- chusetts floated a bill that would lished the Do Not Call Registry, A non-profit 501(c)(3) organization, quire call authentication technol- ban robocalls to cell phones (un- which allows consumers to regis- Consumer Action focuses on ogy to end spoofing and make der state law) and increase penal- ter their landline and cell phone financial education that empowers Caller ID reliable. It would help low- and moderate-income ties to $10,000 per violation, and numbers at https://www.donotcall. and limited-English-speaking prevent robocallers from evad- New Jersey lawmakers launched gov/ or 888-382-1222, at no consumers to financially prosper. ing the law via a better definition a bill to press the FCC to require charge. Marketers are prohibited of “autodialer,” clarify that the By providing financial education phone companies to provide free from calling numbers on the Do materials in multiple languages, TCPA applies to text messages, robocall blocking for cell phones Not Call list. You also can verify a free national hotline and and affirm that consumers may and landlines. ongoing financial services revoke any previously given per- research, Consumer Action helps mission to receive robocalls. In reality most consumers assert their rights of these mea- Robocall loopholes in the marketplace and make ROBOCOP (Repeated Objec- sures would not ithout your permission, robocalls to your financially savvy choices. tionable Bothering of Consum- block all robo- cell phone are illegal, but “non-commer- ers on Phones) Act (S.1212 and calls. They will W Advice and referral hotline cial” robocalls may be placed to your landline H.R.2298): This bill would re- not stop fraud- Submit consumer complaints to without your permission. Non-profit groups, quire phone companies to supply sters who don’t our hotline: political organizations and pollsters are allowed customers with free call-blocking spoof phone https://bit.ly/CA_hotline_ENG to robocall your landline even if your phone tools. The ROBOCOP Act also numbers, nor (415) 777-9635 number’s on the Do Not Call list. would require phone companies will they stop Chinese, English and Spanish to verify that Caller ID is accu- spoken legitimate com- Debt collectors often place robocalls to cell rate (with exceptions for medical panies (student and landlines if you gave consent when you San Francisco offices and domestic abuse shel- loan lenders, took out the loan, even inadvertently. 1170 Market Street, Suite 500 ters, among other select entities). credit card If you are on the Do Not Call list, all telemar- San Francisco, CA 94102 It also would give consumers the companies, debt keting calls (robo- and otherwise) are prohibited (415) 777-9648 right to sue a phone company collectors, etc.) unless you have given the caller permission. Email: [email protected] that violates the law. from making For more about this, see “When telemarketing Ken McEldowney State legislation legally allowed protections don’t apply” on page 4. Executive Director calls. While Congress and the FCC Michael Heffer On June 6, the Business Manager consider how to solve the re- if your phone number is on the lentless robocall problem, some FCC voted to allow phone com- Kathy Li panies to automatically block list or report unwanted calls to Director, San Francisco (SF) Office states have stepped up to combat the FTC at the site.