Robocallers settle FTC complaint

Two brothers will pay a fine for illegal calls that generated leads for the solar energy industry.

Two brothers behind a telemarketing operation that made millions of illegal robocalls promising consumers energy savings have settled a federal complaint brought against them, Federal Trade Commission officials said Wednesday.

The FTC complaint said Francisco Salvat and the California companies he controlled along with Julio Salvat, an officer of the companies, placed the recorded calls to consumers on the Do Not Call Registry, then generated leads to sell to solar panel installation companies.

The FTC alleged the defendants’ robocalls made statements such as: “This is an urgent call about your energy bill,” and “Stop the 14 percent increase coming soon.” Consumers were told to press “1” to lower their electric bill. Those who did were transferred to a telemarketer who asked if they were also interested in solar panels.

If the consumer said yes, the telemarketer scheduled an appointment with a private solar installation company and sold the consumer’s information to that company as a customer lead. The defendants allegedly sent phony caller ID information and often continued to call consumers even after they asked not to be called again, according to the complaint.

The court order bans the companies and Francisco Salvat from all telemarketing, and bars Julio Salvat from violating the FTC Telemarketing Sales Rule. The order imposes a civil penalty of $1.4 million against the defendants, which will be partially suspended upon payment of $155,000.

The defendants allegedly claimed to be a nonprofit organization trying to help consumers reduce their energy costs.

The court order announced Wednesday resolves charges the defendants violated the Telemarketing Sales Rule by 1) calling consumers whose numbers are on the DNC Registry; 2) continuing to call consumers who had previously asked not to be called; 3) failing to transmit accurate caller ID information; and 4) making illegal robocalls.

Julio Salvat also is banned from selling lists containing phone numbers of consumers on the DNC Registry and violating the caller ID provisions of the Registry rules.

The commission vote approving the proposed stipulated final order was 2-0.

The proposed order was filed in the U.S. District Court for the Central District of California, and has now been signed by the judge. It resolves the FTC’s charges against KFJ Marketing LLC; Sunlight Solar Leads LLC; Go Green Education; and Francisco J. Salvat and Julio E. Salvat, individually and as officers of the corporate defendants.