Septic Tank Cleaning Products Company Settles Over Millions Of Alleged Illegal Robocalls – Consumer Protection

United States:

Septic tank cleaning products company settles millions of allegedly illegal robocalls

July 27, 2021

Cozen O’Connor

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• The Federal Trade Commission (“FTC”) has reached an agreement with septic tank cleaning products maker Environmental Safety International, Inc. and related parties (collectively “ESI”) to investigate allegations of making tens of millions of illegal robocalls in violation of telemarketing hat and the Consumer Fraud and Abuse Prevention Act and the Telemarketing Sales Rule.
• The complaint alleged, among other things, that ESI and its telemarketer made misleading calls, including numbers in the Do Not Call Registry, which incorrectly identified ESI as an environmental company. The calls offered free information, but when consumers expressed an interest in the free information, they received a sales pitch instead. The complaint also alleged that ESI falsely threatened customers with open balances on their accounts by referring them to a debt collection agency or attorney.
• Under the terms of the established order, ESI is subject to a civil penalty of $ 10.2 million, of which it pays approximately $ 1.65 million and the remainder is on hold for insolvency. ESI will also be permanently banned from telemarketing and must inform all ESI customers with unpaid credits, among other things, that their credits have been canceled and do not need to be paid.

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