The Federal Trade Commission obtained a stipulated final order that permanently bans Alliance Security Inc. from telemarketing. The FTC also obtained a preliminary injunction barring Alliance’s founder and CEO, Jasit “Jay” Gotra, from telemarketing until the final resolution of the case against him. Gotra is the sole remaining defendant in a 2018 FTC case against Alliance, Gotra, and their telemarketers for calling more than one million consumers whose numbers are on the National Do Not Call (DNC) Registry.
According to the FTC’s complaint, Alliance and Gotra are repeat violators of the Telemarketing Sales Rule (TSR), which prohibits calls to numbers on the DNC Registry. Alliance installed home security systems, and its employees allegedly made outbound calls to solicit the sale of the systems and associated security monitoring services. Gotra and Alliance (then known as Versatile Marketing Solutions, Inc.), previously settled similar FTC allegations against them in a 2014 court order.
The 2018 complaint alleges that Alliance and Gotra never complied with the 2014 court order. Instead, Alliance and Gotra violated the TSR again by making one million additional illegal calls. The complaint also alleges that Alliance and Gotra obtained consumers’ credit scores without consumers’ knowledge or permission, and without having a permissible purpose, in violation of the Fair Credit Reporting Act.
The Orders Announced Today
The U.S. District Court for the District of Massachusetts has now issued orders against Alliance and Gotra. The stipulated final order against Alliance, to which it has agreed, resolves the FTC’s allegations against the company. The order permanently bans the company from all telemarketing and from obtaining or using consumer credit reports without written authorization. It also prohibits Alliance from misrepresenting its affiliation or association with other alarm companies, and imposes a suspended $9,845,021 judgment against the company, based upon its inability to pay. The judgment will become due in full if it is later determined that Alliance misrepresented its financial condition to the Commission.
The case against Gotra continues, but the preliminary injunction order protects consumers from his abusive telemarketing and illegal credit inquiries while litigation is ongoing. That order, which remains in place until the resolution of the litigation, bars Gotra from outbound telemarketing and from obtaining or using consumer credit reports without written authorization. The Massachusetts court has transferred the case to federal court in Rhode Island, where Gotra lives, and where the case will proceed against him.
Additional Case History
According to the FTC, Alliance contracted with third-party telemarketers that made outbound calls pitching its products and services. In 2018, the FTC brought claims against two of these telemarketing firms and their owners for calling numbers on the DNC Registry. In addition to claims for the DNC violations, the FTC also charged these telemarketers with violating the TSR by not identifying the seller in their calls. The FTC previously announced settlements with these third-party telemarketers, Defend America LLC and Power Marketing, and their principals, Jessica Merrick and Kevin Klink.
NOTE: Stipulated final orders have the force of law when approved and signed by the District Court judge.
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