California-based XCast enters into $10 million settlement over robocalls

Jan. 2 (UPI) -- A California-based telecommunications entered into a $10 million settlement with the government Tuesday over billions of robocalls it facilitated.

The Justice Department said XCast Labs Inc. violated the Telemarketing Sales Rule by facilitating the illegal calls.

"Many of the calls failed to truthfully identify the seller of the services being marketed, falsely claimed affiliation with government entities, contained other false or misleading statements to induce purchases, or were transmitted with 'spoofed' caller ID information," the department said in a press release.

According to a complaint filed May 12, many of the robocalls would deliver prerecorded messages to the recipients.

The department said XCast, "transmitted billions of illegal robocalls to American consumers, including scam calls fraudulently claiming to be from government agencies."

The settlement requires XCast to comply with the Telemarketing Sales Rule in the future.

"The stipulation order, which was entered today by the U.S. District Court, for he Central District of California, prohibits XCast from violating TSR and has additional provisions to ensure its compliance," the Justice Department said.

The Justice Department says XCast will have to screen future calls to identify potential scammers.

The Federal Trade Commission said it would continue to crack down on robocalling.

"Companies that turn a blind eye to illegal robocalling should expect to hear from the FTC," said Director of the FTC's Consumer Protection Bureau Samuel Levine.

Though the Justice Department imposed the $10 million penalty, it suspended it because, it said, the company does not have the means to pay it.