Vehicle Protection Association Supports Federal Trade Commission Settlement on Robocalling
FTC settlement reinforces rules put forth by Federal Communications Commission in February.
ST. LOUIS – April 2, 2012 – The Vehicle Protection Association (VPA), an association formed to promote regulatory transparency, education and accountability for marketing and servicing automotive service contracts, today announced its support for the Federal Trade Commission’s telemarketing settlement with two telemarketing companies that illegally called millions of consumers. The settlement requires the defendants to cease all robodialing activity and forfeit approximately $3 million in assets.
According to the FTC complaint, SBN Peripherals and Asia Pacific Telecom Inc. conducted illegal prerecorded phone calls, claiming to have pressing information about consumers’ auto warranties or credit card interest rates. Those consumers were then subjected to deceptive marketing and sales practices. The VPA strongly condemns illegal robodialing calls and deceptive marketing practices and has taken numerous steps to protect consumers who are in the market for vehicle service contracts.
“This settlement highlights the importance of honest and ethical marketing practices, which are a cornerstone of the mission of the Vehicle Protection Association,” said Chris Carenza, executive director of the VPA. “Consumers in the market for a vehicle service contract should seek out VPA-certified companies to ensure they are being treated fairly throughout every step of the process.”
All VPA members have agreed to abide by the VPA Standards of Conduct, a uniform ethical code of conduct designed to protect consumers who purchase auto service contracts. Members are prohibited from engaging in robocalling and are required to adhere to all applicable state and federal laws and regulations regarding automatic telephone dialing. VPA-certified companies have taken the additional step of undergoing a rigorous third-party audit to ensure that they are in compliance with accepted industry standards of behavior. A full list of VPA-certified vendors is available on the organization’s website.
In February the VPA endorsed the Federal Communication Commission’s decision to require companies to earn consent from consumers prior to any robocalling. To protect themselves from unwanted calls, consumers should add their names to the National Do Not Call Registry by visiting DoNotCall.gov.
About the Vehicle Protection Association
The Vehicle Protection Association (VPA) is a not-for-profit trade association representing firms that are active in the automotive service contract industry. Members include service contract marketers, administrators, insurers, payment providers and software providers. VPA currently has more than 60 members. The organization is committed to ensuring regulatory compliance among members, educating consumers on their rights, and otherwise ensuring the integrity of the automotive service contract industry. For more information, visit www.vpanet.org.
For more information:
Chris Carenza, Executive Director
Vehicle Protection Association (VPA)
Phone: (314) 667-5654