FTC, 6 Firms Settle Do Not Call Charges

Federal regulators yesterday announced nearly $7.7 million in settlements with six companies accused of calling people on the national Do Not Call list.

The Federal Trade Commission said Craftmatic Industries, a maker of adjustable beds, would pay the biggest penalty, $4.4 million. ADT Security Services agreed to a $2 million settlement, the FTC said.

The four other companies were Ameriquest Mortgage, Alarm King, Direct Security Services and Guardian Communications.

"By bringing enforcement actions like those announced today, we will ensure that the small number of bad actors pay a price for not adhering to the law and respecting consumers' privacy requests," said FTC Chairman Deborah Platt Majoras.

Craftmatic and three of its subsidiaries were accused by the FTC of running a sweepstakes for a bed and using the phone number that consumers provided on the entry form to later make sales calls to entrants even though their numbers were on the Do Not Call list. Majoras said the company did not tell people that they'd be getting sales calls.

ADT and two dealers were accused of directly marketing security systems to consumers whose numbers were on the Do Not Call list.

The government has filed 34 cases against companies since the Do Not Call registry began in June 2003. The biggest case was against DirecTV, which paid $5.3 million.