FTC seeks to shutter three robodialing firms

The Federal Trade Commission filed suit Friday to shut down three companies that have been selling allegedly deceptive auto warranties through VoIP robocalls, a practice dubbed "vishing." The FTC filed lawsuits against Voice Touch Inc. and Transcontinental Warranty Inc., both based in Florida, and Network Foundations, based in Illinois, alleging that the companies violated Do Not Call registry law by making more than 1 billion robocalls since 2007 to residences, businesses and mobile phones. The calls offer an unnecessary and false car warranty extension that costs several thousand dollars, according to the suit.

FTC Chairman Jon Leibowitz said in a statement that these companies' practices, which the suit claims have generated more than $10 million since 2007, amount to one of the most aggressive telemarketing schemes the commission has ever encountered.

"I'm not sure which is worse, the abusive telemarketing tactics of these companies or the way they try to deceive people once they get them on the phone," Leibowitz said. "Either way, we intend to shut them down."

Network Foundations contends the case is a misunderstanding, while the other two companies declined to comment to CNN Money about the charges.

For more:
- see the CNN Money article here
- see The San Francisco Chronicle's in-depth look at vishing here

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