What robocall scam is the FTC banning?

If you live in the U.S. and have a phone, you’ve probably received those spam calls “about your car’s extended warranty.” If you read that last sentence in a robotic telemarketer voice, then you know what we’re talking about.

Fortunately, U.S. regulators are looking to crack down on these incredibly annoying scammers. American Vehicle Protection Corporation (AVP) and two affiliated companies, CG3 Solutions and Tony Gonzalez Consulting Group, are facing serious punishment for engaging in these scams.

Proposed court orders released March 23 would institute a lifetime ban from the vehicle warranty industry and telemarketing for all three companies and their owners. It all started in February last year, when the Federal Trade Commission (FTC) charged the companies for being in violation of the FTC Act and the Telemarketing Sales Rule. The FTC’s complaint alleges that AVP made the unsolicited calls to thousands of U.S. residents, some of whom were on the federal Do Not Call Registry, offering fake vehicle coverage policies. According to the complaint, since 2018 they have scammed Americans out of more than $6 million. The defendants have reportedly agreed to the court orders.