Last Updated on March 15, 2023 by John Fischer
PhoneBurner is a cloud-based phone dialer software that enables sales teams to make more calls in less time. While the software can be an effective tool for telemarketing and sales, it has also been subject to regulatory action by the Federal Trade Commission (FTC).
In 2016, the FTC filed a complaint against PhoneBurner alleging that the company made false and misleading claims about its ability to prevent calls to numbers on the National Do Not Call Registry. The complaint also alleged that PhoneBurner engaged in deceptive marketing practices by claiming that its software was “100% TCPA-compliant,” even though the company did not have a mechanism to obtain prior express written consent from consumers before making telemarketing calls.
As part of a settlement agreement, PhoneBurner agreed to pay a $500,000 penalty and implement measures to ensure compliance with the TCPA and the Telemarketing Sales Rule (TSR). These measures included obtaining consent before making telemarketing calls, maintaining accurate do-not-call lists, and providing clear disclosures to consumers about the purpose of the calls.
The PhoneBurner case underscores the importance of compliance with regulations governing telemarketing and sales, including the TCPA and the TSR. Companies that use phone dialers or engage in telemarketing should ensure that they have proper consent, maintain accurate do-not-call lists, and comply with all applicable regulations to avoid regulatory action and potential penalties.