FTC Imposes Sugging Fines

In the US, the Federal Trade Commission (FTC) and ten state attorneys general have imposed fines on a Florida-based cruise line company and several other firms which helped it conduct a telemarketing campaign under the guise of political polling - otherwise known as 'sugging'.

The Marketing Research Association (MRA) initially called for legal action after at least one of its members was falsely identified by the defendants as the company behind the 'telephone surveys'. Following an investigation by the FTC and its state partners, it was found that the companies had illegally sold cruise vacations using political survey robocalls which incorporated a sales pitch for a cruise to the Bahamas.

According to the complaint, the nine-month campaign averaged approximately twelve to fifteen million illegal sales calls a day and generated millions of dollars. Consumers who answered these calls typically heard a pre-recorded message from 'John from Political Opinions of America', who invited them to participate in a 30-second research survey, after which they could 'press one' to receive a two-day cruise to the Bahamas. Those who completed the survey and pressed one were connected to a live telemarketer working on behalf of Caribbean Cruise Line, Inc. (CCL), to market its cruise vacations, and sell pre-boarding hotels, cruise excursions, enhanced accommodation and other travel packages.

CCL and a number of companies who helped the company with the illegal robocall campaign have agreed to settle charges of illegal telemarketing, robocalls, and caller ID falsification - with CCL receiving a civil penalty of $7.73m, which will be partially suspended after the firm pays $500k. Litigation continues against several other parties charged with assisting this illegal conduct.

MRA Director of Government Affairs Howard Fienberg comments: 'We're particularly pleased to see the FTC and state AGs targeting this kind of fraud - sales under the guise of research, which discredits the entire research profession. Every time a respondent encounters unethical mixing or masquerading, it threatens the ability of bona fide researchers to reach respondents and to prevent excessive government regulation.'

Web site: www.marketingresearch.org .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.