Forrest S. Baker III, Deceptive Telemarketing, Utah 2016

Utah telemarketers Feature Films for Families Inc., Corporations for Character L.C., and Family Films of Utah Inc., along with their owner Forrest S. Baker III, have been hit with a permanent injunction and a hefty fine for their deceitful telemarketing practices.

A federal court has ordered the defendants to cease making false claims regarding the use of sales proceeds and charitable donations, as well as the sales purpose of calls. The court also found that they repeatedly ignored consumers’ prior do-not-call requests, transmitted inaccurate caller-identification information, failed to make required oral disclosures, and abandoned calls.

The court’s verdict, entered on May 25, 2016, followed an eight-day trial and found the defendants committed more than 117 million knowing violations of the Telemarketing Sales Rule, including 99 million calls to phone numbers on the Do Not Call Registry, and over four million additional calls with misleading statements to induce DVD sales.

This verdict marked the first-ever in an action to enforce the Telemarketing Sales Rule and Do Not Call Registry rules. The stipulated final order permanently enjoins the defendants from engaging in such deceptive and abusive telemarketing practices.

The stipulated order also imposes a civil penalty judgment of approximately $45.4 million, with all but $487,735 conditionally suspended due to the defendants’ inability to pay the entire penalty.

Acting Assistant Attorney General Chad A. Readler stated, “Unwanted telemarketing calls invade the privacy of American consumers. The Justice Department will continue to work with the Federal Trade Commission to ensure telemarketers adhere to laws designed to protect against abusive and deceptive telemarketing practices.”

Tom Pahl, Acting Director of the FTC’s Bureau of Consumer Protection, added, “As this case demonstrates, the FTC is aggressively pursuing law enforcement action against those that violate our nation’s Do Not Call rules, including those that use deception to secure sales or donations.”

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