DISH Network Corp (DISH) Must Pay $280 Million for ‘Do Not Call’ Violations

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DISH Network Corp (NASDAQ:DISH) was slapped with a record $280 million in fines for using robocalls to consumers on do-not-call lists.

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It’s the largest decision on record for violating the telemarketing law, according to the Department of Justice. The department said a Federal Trade Commission (FTC) investigation determined that DISH violated the commission’s Telemarketing Sales Rule. It prohibits telemarketing calls to phone numbers on the National Do Not Call Registry, telemarketing calls to persons who have asked a seller not to call them, and includes provisions prohibiting robocalls, according to the agency.

DISH Network said it plans to appeal the ruling, calling the penalties unfairly large. DISH said it is being held responsible for telemarketing done by contractors, who it said, in some cases, hid what they were doing the company.

U.S. District Judge Sue Myerscough for the Central District of Illinois issued the order Monday, ordering DISH to pay $168 million to the federal government and $84 million to California, Illinois, North Carolina, and Ohio for federal law violations. Some $28 million in additional fines were awarded to California, North Carolina, and Ohio for violations of relevant state laws.

The judge also prohibited the company from violating do-not-call laws in the future and saddled ordered a 20-year plan for supervision of DISH’s telemarketing activities.

Last month, DISH was reported to be courting Amazon.com, Inc. (NASDAQ:AMZN) to be a foundational customer of a wireless network that the satellite company hopes to establish.

DISH stock is little changed today in lighter-than-average trading. The shares have gained just over 10% in the last six months while rival Netflix, Inc. (NASDAQ:NFLX) has added 32%.


Article printed from InvestorPlace Media, https://investorplace.com/2017/06/dish-network-corp-dish-must-pay-280-million-not-call-violations/.

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