New York’s top legal officer defends FCC’s crackdown on shady data-sharing practices that power robocalls, highlighting growing urgency to protect consumers from widespread fraud

New York – In a significant move to curb the intrusive and often fraudulent robocalls that plague consumers, New York Attorney General Letitia James has joined forces with a bipartisan group of her counterparts from across the United States.

Together, they are taking a stand against telemarketers who exploit consumers’ contact information. This coalition of 27 attorneys general has recently filed an amicus brief in support of a Federal Communications Commission (FCC) rule designed to tighten regulations on the acquisition and distribution of phone numbers by telemarketers.

The FCC’s rule, a part of the Telephone Consumer Protection Act (TCPA), aims to prevent lead generators—companies that collect and sell consumer data—from sharing individuals’ phone numbers with third-party companies without explicit consent.

This rule was challenged in the case of Insurance Marketing Coalition v. Federal Communications Commission, where it was argued that the FCC overstepped its authority. The coalition’s brief, filed in the U.S. Court of Appeals for the Eleventh Circuit, defends the FCC’s mandate, asserting that the rule is crucial for protecting consumers from the deluge of robocalls that not only disturb their peace but also expose them to potential scams.

Attorney General James emphasized the critical nature of this rule, noting that unwanted robocalls have not only become a nuisance but also a vehicle for serious fraudulent activities that have collectively cost consumers over $1.2 billion in losses in 2023 alone. These losses stem from scams conducted through both robocalls and text messages, highlighting the urgency and necessity of robust regulatory actions.

The rule in question seeks to tackle the issue at one of its roots by ensuring that consumer consent is obtained in a clear and conspicuous manner before their contact information is passed on to third parties. This includes situations where consumers enter their information on websites while searching for products or services. The clarity provided by the FCC’s stipulation aims to empower consumers, making them aware of what they are consenting to and offering them a chance to opt-out.

Supporting Attorney General James in this legal endeavor are attorneys general from a wide array of states including Arizona, California, Colorado, and many others, spanning from Connecticut to Washington. This widespread support underscores the national concern over the impacts of robocalls and the collective resolve to implement measures that safeguard consumer rights.

This concerted action by state attorneys general underscores a significant commitment to enhancing consumer protection and fighting back against the exploitation of private information. As this case progresses through the legal system, it stands as a beacon of proactive efforts aimed at reigning in practices that compromise the privacy and financial security of Americans.

The outcome could set a precedent for how consumer data is handled across the industry, potentially leading to a decrease in the volume of robocalls and a boost in consumer confidence in digital communications.