Idaho Attorney General Lawrence Wasden has filed suit against two vehicle service contract sellers for auto dialer calls, according to The Examiner:
"The lawsuits are against U.S. Fidelis and Credexx which have used direct mail postcards and auto-dialers to market auto service contracts in Idaho."
The suit, according to The Examiner, alleges that U.S. Fidelis "misrepresented to consumers the coverage of the contracts and misled them into believing the contracts were extensions of their manufacturer's warranties," and that Credexx "sent direct mail advertising to Idahoans falsely claiming that their consumer's auto warranties had expired or were about to expire," offering renewal services.
So where does auto-dialing come in? Wasden alleges that they both violated Idaho's telephone solicitation statutes and rules. The point may be academic however, as both companies have stopped doing business and U.S. Fidelis has filed for Chapter 11 bankruptcy in Missouri.
The lawsuits brings up again the issue of the FCC's (News - Alert) pushing to prohibit auto dialer calls to mobile devices, "which would - in my opinion - do a wonders for my aggravation every time I receive an unwanted call," according to TMC's (News - Alert) Kelly McGuire.
According to Morrison & Foerster, a law firm in New York, the government proposal could affect a range of companies in the banking, loan, credit and collections industries, thus limiting the amount of contact with consumers, McGuire reports:
"Although it probably comes as no surprise that marketing calls to cell phones are restricted, for example by the do-not-call rules, these new restrictions would apply to any call to a cell phone, including calls to collect a debt, notify a customer of a payment due, or request additional information to complete an application," the attorneys said.
Such wording could have possibly prevented the alleged offenses in Idaho as well.
The rule would make fewer companies exempt from the do-not-call list, McGuire noted, "which could - potentially - increase the rate of those in financial trouble, with the lack of auto dialer communication capabilities to cells, and the diminishing amount of consumers with landlines."
David Sims is a contributing editor for TMCnet. To read more of David's articles, please visit his columnist page. He also blogs for TMCnet here.
Edited by Kelly McGuire