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FTC Slams Dish Network Marketers

Companies accused of violating Do Not Call Rule

July 17, 2008 

The orders, filed by the U.S. Department of Justice on the FTC's behalf, also bar the defendant corporations, Planet Earth Satellite, Inc. and Star Satellite, LLC, as well as their presidents, from violating the FTC's Telemarketing Sales Rule (TSR) when calling consumers.

"These settlements reemphasize that we expect marketers to comply with the Telemarketing Sales Rule," said Lydia Parnes, Director of the FTC's Bureau of Consumer Protection. "But, if or when they don't, the FTC will take action to protect consumers' privacy."

The complaint against Planet Earth charges that the company and its president violated the DNC Rules by illegally calling consumers whose phone numbers are on the DNC Registry. Planet Earth, an Arizona company, marketed Dish Network programming.

The complaint against Star Satellite charges that the defendants violated the Do Not Call provisions of the TSR by abandoning outbound telemarketing calls to consumers, because they failed to connect the call to a live telemarketer within two seconds after a consumer answers.

The court orders entered against the defendants settle the Commission's charges in both cases. The order against the Planet Earth defendants prohibits them from calling consumers whose phone numbers are on the DNC Registry. The order also prohibits the defendants from violating other provisions of the TSR, and includes monitoring terms to ensure their compliance.

Based on their inability to pay more, the order required the Planet Earth defendants to pay $20,000 as a civil penalty, and suspends a judgment of more than $7 million. However, if the defendants are found to have misrepresented their financial condition to the FTC, the entire amount will become due.

The order against Star Satellite and its president bars them from abandoning any outbound telephone calls to consumers by failing to connect the call to a live telemarketer within two seconds after a consumer answers.

The order also prohibits these defendants from violating other provisions of the TSR, and includes monitoring terms to ensure their compliance. Moreover, the order enters a judgment of $4.37 million against the Star Satellite defendants, and requires the relief defendants to disgorge $56,665. However, due to the defendants' inability to pay, the total combined payments by defendants and relief defendants is $75,000 - including the $56,665 in disgorgement. If the defendants are found to have misrepresented their financial condition to the FTC, the entire amount will become due.

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