Wednesday, December 1, 2021
Consumer Protection: Advertising and Telemarketing
- The FTC finalized a settlement with New York-Based Lifewatch, Inc, an ambulatory cardiac monitoring service, which will result in paying back more than $1.8 million to consumers, including many older Americans. The FTC’s complaint, filed jointly with the Florida Attorney General’s Office, alleged that the defendants bombarded consumers with at least a billion unsolicited robocalls to pitch supposedly “free” medical alert systems. These pre-recorded messages claimed that Lifewatch’s medical alert system was endorsed or recommended by reputable organizations like the American Heart Association. The company’s telemarketers often told consumers that a medical alert system had been purchased for them, and they could receive it “at no cost whatsoever.” Consumers eventually learned that they were responsible for monthly monitoring fees and that it was difficult to cancel without paying a penalty. The defendants are also banned from telemarketing and misrepresenting the terms associated with the sale of any product or service.