The Department of Justice (DOJ) has fined XCast Labs $10 million for “assisting and facilitating illegal telemarketing campaigns.”

Government agencies have been cracking down on illegal and unwanted robocalls. In its latest effort, the DOJ has fined XCast $10 million for its role in facilitating illegal robocalls. According to the DOJ, XCast transmitted billions of illegal calls that used a variety if means to trick Americans.

According to the complaint filed on May 12, XCast provided VoIP services that transmitted billions of illegal robocalls to American consumers, including scam calls fraudulently claiming to be from government agencies. Those robocalls delivered prerecorded marketing messages, and many of them were delivered to numbers listed on the National Do Not Call Registry. Additionally, many of the calls failed to truthfully identify the seller of the services being marketed, falsely claimed affiliations with government entities, contained other false or misleading statements to induce purchases or were transmitted with “spoofed” caller ID information. 

“Today’s order is another example of the Justice Department’s efforts to protect American consumers from illegal robocalls and to stop telecommunications providers from enabling those calls,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to work with the Federal Trade Commission to enforce the Telemarketing Sales Rule.”

“XCast was warned several times that illegal robocallers were using its services and did nothing,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Companies that turn a blind eye to illegal robocalling should expect to hear from the FTC.”