RCR Wireless: FCC continues its robocall fight with fines, warnings and a new response team

FCC continues its robocall fight with fines, warnings and a new response team
By Kelly Hill on March 19, 2021

The Federal Communications Commission this week levied its largest-ever fine against a robocalling operation: $225 million, against two companies which the agency says transmitted around 1 billion robocalls shilling short-term health insurance.

The FCC said that many of the calls made in the first half of 2019 by John C. Spiller and Jakob A. Mears (who used business names including Rising Eagle and JSquared Telecom) were illegally spoofed, and that the companies lied to consumers, falsely claiming to offer health insurance plans from companies such as Blue Cross Blue Shield and Cigna. In at least one case, the agency added, the spoofing led to an unassociated company being overwhelmed with call-backs from angry customers.

“Mr. Spiller admitted to the USTelecom Industry Traceback Group that he made millions of spoofed calls per day and knowingly called consumers on the Do Not Call list as he believed that it was more profitable to target these consumers. Rising Eagle made the calls on behalf of clients, the largest of which, Health Advisors of America, was sued by the Missouri Attorney General for telemarketing violations in February 2019,” the FCC added.

“The individuals involved didn’t just lie about who they were when they made their calls—they said they were calling on behalf of well-known health insurance companies on more than a billion calls. That’s fraud on an enormous scale,” said Acting Chairwoman Jessica Rosenworcel.

These people don't just need a fine. They need their entire corporation to be shut down with all the assets confiscated and all the responsible individuals sentenced to years in prison.

The FCC's (lack of) a new rule and government overreach

In the news today, the FCC chairman nixed plans to allow in-flight cell phone usage. That's not worth commenting on. But his reasoning is. He wrote:

I stand with airline pilots, flight attendants, and America's flying public against the FCC's ill-conceived 2013 plan to allow people to make cellphone calls on planes. I do not believe that moving forward with this plan is in the public interest. Taking it off the table permanently will be a victory for Americans across the country who, like me, value a moment of quiet at 30,000 feet.

Please note his rationale. This has nothing to do with airline safety. Nothing to do with overburdening the cell phone infrastructure. Not even to do with airlines keeping their monopoly on in-flight communication. It's because he doesn't want someone next to himself talking on the phone.

What a complete BS answer. I guess he's unaware that people have been yapping on (expensive) AirPhones for over a decade and that anybody today can have data access to the Internet if they want to pay the airline for on-board Wi-Fi. And I guess he's never sat next to a couple having a loud conversation or a crying baby. Or for that matter, the plane's own engines. There is no such thing as a "moment of quiet at 30,000 feet" and never has been.

But that's not even my point. My point is that this is none of the government's business. The FAA is responsible for making sure that our planes safely get where they're going. The FCC is responsible for making sure our communication system works properly. It is not the responsibility of either (nor anybody else) to decide whether or not someone is allowed to talk while in the air.

Only the airlines should be making rules like this. Let them, and let the market decide what policies should be. If United wants to allow cell phones and American wants to prohibit them, both should be allowed to make their respective decisions. If I want to use my phone in the air, then I'll book my ticket on an airline that allows it. And if I don't want to be on a plane with phone usage, then I'll book my ticket on the airline that prohibits it. But under no circumstance do I want a bunch of government bureaucrats to be making that decision if it doesn't affect the safety of air travel or the stability of the mobile phone network.