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Feds, States Sue Dish Network

Telemarketers violated Do Not Call rules, suits charge

March 26, 2009

The firm also stands accused of violating the Telemarketing Sales Rule, or TSR, by assisting and supporting its authorized dealers in telemarketing Dish Network services via robocalls that deliver recorded telemarketing messages when consumers answer their phones.

The complaint is being brought jointly with the Attorneys General of California, Illinois, Ohio, and North Carolina. In addition to the TSR violations alleged by the United States, the complaint includes allegations brought solely by the state Attorneys General.

They include allegations that Dish Network violated the Telephone Consumer Protection Act (TCPA) and state law – either directly or indirectly as a result of third parties acting on its behalf – by calling numbers on the Do Not Call Registry and by placing telemarketing calls that deliver prerecorded messages to live consumers.

The National Do Not Call Registry allows consumers to “opt-out” of unsolicited telephone contact from marketers trying to sell a product or service. The list has been effective at protecting millions of Americans from unwanted telemarketing calls at home, according to Eileen Harrington, Acting Director of the FTC s Bureau of Consumer Protection.

“But because a few bad actors still don't get it, we want to make it crystal clear. If you call consumers whose numbers are on the Do Not Call Registry, you re breaking the law.,” she said.

The complaint seeks a permanent injunction against Dish Network that prohibits the satellite TV provider from violating the TSR -- including its Do Not Call provisions and abandoned call restrictions -- either directly or through its authorized dealers; requires Dish Network to monitor and enforce its authorized dealers compliance with the TSR; and prohibits Dish Network from assisting and facilitating violations.

The complaint announced against Dish Network by the Federal Trade Commission is being brought jointly with the attorneys general of California, Illinois, Ohio, and North Carolina as co-plaintiffs.

In addition to the TSR violations alleged by the federal government, the complaint includes allegations brought solely by the state AGs. They include allegations that Dish Network violated the Telephone Consumer Protection Act and state law -- either directly or indirectly as a result of third parties acting on its behalf -- by calling numbers on the Do Not Call Registry and by placing telemarketing calls that deliver prerecorded messages to live consumers.

The Justice Department is also filing complaints against two of Dish Network s authorized dealers, accusing them of violating the Telemarketing Sales Rule by calling consumers whose numbers are on the Registry. The principals of those authorized dealers are also named in those complaints.

The three complaints were filed against:

• Dish Network, LLC, formerly known as EchoStar;
• Vision Quest, LLC, and its principal Brian K. Cavett; and
• New Edge Satellite, Inc., and its principal Derek LaVictor.

Justice also brought suit in the summer of 2008 against two other Dish Network authorized dealers and their principals: Planet Earth Satellite, Inc., d/b/a Teichert Marketing; and Star Satellite, LLC, d/b/a Tenaya Marketing. These dealers settled the charges against them.

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