FTC Secures $10 Million Settlement in Massive Spam Text and Robocall Scheme

The Federal Trade Commission (“FTC”) has successfully concluded a landmark case against a group of scammers who orchestrated a widespread scheme involving millions of unwanted text messages, illegal robocalls, and mobile cramming. The defendants in this case will pay a total of approximately $10 million to settle charges, providing a strong warning to those engaging in deceptive marketing practices. The operation, which spanned across multiple companies and individuals, used enticing offers of "free" gift cards from major retailers like Best Buy, Walmart, and Target to lure consumers into a series of deceptive actions. These messages led consumers to websites that tricked them into divulging personal information, enrolling in paid subscriptions, and unknowingly consenting to unauthorized charges on their mobile phone bills. The settlement represents a significant step in the FTC's ongoing crackdown on these harmful practices. Under the terms of the settlement, three groups of defendants have agreed to pay substantial amounts to the FTC. The first group, responsible for sending millions of illegal text messages, will pay $7.8 million. This group, including Acquinity Interactive and its affiliates, is accused of facilitating the scam through deceptive "free" offers and unauthorized charges on consumers' mobile bills. These defendants are now banned from sending unwanted text messages, placing charges on any telephone bills, and making false claims about products being free. They are also prohibited from using affiliates who engage in similar deceptive practices and must obtain express consumer consent before billing them.