FTC Shuts Down Company that Sold Fraudulent Medical Alert Services

FTC Shuts Down Company that Sold Fraudulent Medical Alert Services
Image: Pixabay
November 13, 2014

An Orlando-based company that made millions from bilking seniors using pre-recorded robocalls settled a complaint by the Federal Trade Commission (FTC) and the Florida Attorney General's Office.

The settlement order includes a judgment of nearly $23 million, which represents how much money the company scammed from elderly victims. Much of that judgment will be suspended after the defendants surrender other assets. The order also bars the defendants from making robocalls and misrepresentations related to the sale of any product or service, and prohibits other telemarketing activities.

The defendants blasted robocalls to senior citizens falsely stating that they were eligible to receive a free medical alert system that was bought for them by a friend, family member, or acquaintance. When victims spoke to a live representative they were told that their medical alert systems were recommended by the American Heart Association, the American Diabetes Association and the National Institute on Aging.

The telemarketers also said that the $35.95 monthly monitoring fee would be charged only after the system had been installed and activated. Consumers were charged immediately, regardless of whether the system was activated or not.