WASHINGTON – U.S. Senator Mark R. Warner issued the following statement after today’s announcement that the Federal Trade Commission has filed charges against several companies charged with making hundreds of millions of deceptive calls to consumers.  

At a Capitol Hill news conference on Tuesday, Senator Warner and Sen. Charles Schumer (NY) announced that this FTC enforcement action was imminent:

“I know thousands of Virginians -- and millions of Americans -- will applaud this aggressive and quick FTC action to shut-down these scam artists. These automated calls are more than a mere nuisance to those consumers who’ve received them at home, at work and on their cell phones – which, depending on their cell plan, can end-up costing them minutes and money.  These scam artists also have pressured unsuspecting consumers into buying bogus vehicle service contracts that they don’t need and that don’t even provide the coverage that was promised. I appreciate FTC Chairman Jon Leibowitz’s prompt attention and aggressive approach to consumer protection.”

In two related complaints filed in federal court, the Commission took action against both the promoter of the phony extended auto warranties, as well as the telemarketing company that it hired to carry out its illegal, deceptive campaign.

In its complaints, the agency contends that the companies are operating a massive telemarketing scheme that uses random, pre-recorded phone calls to deceive consumers into thinking that their vehicle’s warranty is about to expire. Consumers who respond to the robocalls are pressured to purchase extended service contracts for their vehicles, which the telemarketers falsely portray as an extension of the manufacturer’s original warranty.

For more information, visit http://www.ftc.gov/opa/2009/05/robocalls.shtm.