FTC vs. Home Alarm System Company & Lead Brokers

jbushart · March 24, 2014, 3:09am

I have had a lead broker and a few of his customers “tell” me such on the message board, that there are no telemarketing waivers being slipped into home inspection agreements … but this is what the lead broker requires inspectors receiving his kickbacks in exchange for private customer data to publish in their inspection agreements…

This, in case you do not recognize it, is a waiver to a “Do Not Call” list.

Actually, it is an “attempted” waiver in that one state attorney general who read it said that it is “legally invalid” and that he will prosecute with or without this clause when anyone in his state on a “Do Not Call” list is contacted … but it still says what it says, “legally invalid” or not.

Harassing telemarketing calls from alarm systems salesmen are hitting consumers all over the country. Reading the comments from consumers in this article, I couldn’t help but recall Thornberry’s claim that he is using telemarketers from all over the country making 30,000 telephone calls per month.

Here is the FTC, in a court action against an alarms systems company, describing in their petition how the lead brokers work.

VMS’s telemarketing operation involves two steps. First, VMS buys sales leads from lead generation companies, where the lead generation companies represent that the leads have given their permission to be called about home security systems and home security monitoring. Second, VMS calls the leads to induce the purchase of VMS’s home security goods and services.

VMS has bought and called millions of sales leads from various lead generators. Between November 2011 and July 2012, VMS initiated more than 2 million outbound telephone calls to consumers to market and sell its home security goods and services.

Using these leads to induce the purchase of VMS’s goods or services, VMS
initiated millions of outbound telephone calls to telephone numbers on the National Do Not Call Registry. Between November 2011 and July 2012 VMS made at least 1 million outbound telephone calls to phone numbers listed on the National Do Not Call Registry.

And here is my personal favorite that I think you will find familiar …

How “ethical” is it to allow a lead broker to use your home inspection agreement for this nonsense?

Nick and Chris are of the opinion that no one is called until they agree to be called by email.

Nick and Chris assume that everyone who buys a new home has an email address and that all of their unsolicited emails are read by them.

Now … if you believe what Nick and Chris believe … that only those who agree, by email, are contacted by Thornberry … what do you think happens to those who do NOT respond to the email and do not agree to be called?

Could they be resold as described by the FTC … ?

Remember … the “TPSP” in the signed agreement is still unidentified. Thornberry, for unstated reasons, insists upon it.

It’s also important to note that, just as the attorney general wrote to me, the FTC has also found these telemarketing waivers to be “legally invalid” and are prosecuting telemarketing violators. What individual inspector wants his clients to be victimized in this manner through his contract?

NACHI won’t punish you for doing it … but that does not make it “ethical”, IMO.

rhensel · March 24, 2014, 3:12am

LMAO…go read the links he sent…

TOOO Damn funny! How is trying to tie this together with what Nathan does! Not even close. My God he will stop at nothing to try and make thing that don’t connect, to connect!

rhensel · March 24, 2014, 3:13am

Using these leads to induce the purchase of VMS’s goods or services, VMS has
initiated hundreds of thousands of outbound telephone calls consumers who have previously
informed VMS that they do not wish to receive calls by or on behalf of VMS. Between
November 2011 and July 2012, VMS placed at least one-hundred thousand outbound telephone
calls to phone numbers of consumers who had previously asked VMS not to contact them.
During its telemarketing calls, VMS tells consumers that they have been selected
to receive a free home security system so long as the consumer agrees to purchase a multi-year
home security monitoring plan.
VMS claims that it buys most of its sales leads from lead generators which
purport that they have obtained consumers’ express consent to receive telemarketing calls about
a home security system or that the consumer has requested additional information about having a
home security system installed in their home.
Case 1:14-cv-10612-PBS Document 1 Filed 03/10/14 Page 5 of 106
For example, VMS bought leads for more than four years from a lead generation
company that called consumers purportedly to conduct a “safety survey.”
The “safety survey” calls were placed to consumers whose telephone numbers
were listed on the National Do Not Call Registry and to consumers who had not given the lead
generator or VMS permission or consent to call them.
The “safety survey” included generic questions such as, “Do you have at least 2
smoke detectors in your home?”, “Do you have fire extinguishers in your home?”, and “[W]hen
it comes to protecting the home and family, would your main concern [sic] for fires, burglaries or
medical emergencies?”.
The “safety survey” would then ask consumers to provide their name and indicate
whether they owned their homes.
The “safety survey” would then close with the following: “For participating in
our survey, there is a chance you could be selected to receive a new G.E. Life Safety System. If
you are selected, when would be the best time to reach you?”
If a consumer provided a time to call and indicated that he or she was a
homeowner, the lead generator sold the consumer’s name and telephone number as a home
security lead.
VMS purchased thousands of these “safety survey” home security leads. At its
peak, VMS bought 20,000 “safety survey” home security leads every month.
At no time during these “safety survey” lead generation calls did the lead
generator indicate to consumers that they would be receiving a follow-up call from VMS.
Case 1:14-cv-10612-PBS Document 1 Filed 03/10/14 Page 6 of 107
The “safety survey” was not a bona fide survey. Rather, the lead generator used
“safety survey” as a pretext to identify consumers who might be interested in purchasing a home
security system or home security monitoring services and receive calls regarding such interest.
VMS also has purchased leads from lead generators who, since September 1,
2009, have used outbound telephone calls that deliver prerecorded messages. These types of
calls are commonly referred to as “robocalls.”
For example, VMS bought leads from lead generators that use robocalls often
featuring a male voice claiming to be “Tom from Home Protection.” These robocalls typically
cite FBI burglary statistics and ask consumers to press “1” to hear about the installation of a free
home security system, often if the consumer is willing to place a small sign in his or her yard.
Consumers who press “1” on their telephones in response to the robocall message then hear a
message telling them that a representative will call them back shortly about the free home
security system.
If a consumer presses “1” on their telephone in response to the robocall to indicate
interest in a free home security system, these lead generators sell the consumer’s telephone
number as a home security lead.
VMS purchased thousands of these robocall-generated home security leads.
At its peak, VMS bought 20,000 robocall-generated home security leads from one
such lead generator every week.
These home security lead generation robocalls were sent to consumers whose
telephone numbers were listed on the National Do Not Call Registry and to consumers who had
not given the lead generators their express written consent to receive robocalls from the lead
generators or VMS.
Case 1:14-cv-10612-PBS Document 1 Filed 03/10/14 Page 7 of 108
The home security lead generation robocalls did not inform consumers that VMS
would be contacting them about the installation of a free home security system.
VMS has received numerous complaints about both the “safety survey” and
robocall lead generation calls.
When VMS called the leads it purchased from the “safety survey” and robocall
lead generators, many consumers complained to VMS that they had received a robocall and/or
that they had been called despite the fact that their phone numbers were on the National Registry.

gromicko · March 24, 2014, 3:13am

The lawsuit filed by the FTC is nevertheless very interesting to me. I’m all ears.

rhensel · March 24, 2014, 3:13am

LMAO…Nick are you really falling for this?

gromicko · March 24, 2014, 3:17am

The lawsuit http://www.ftc.gov/system/files/documents/cases/140312vmscmpt.pdf is very interesting to me. Here is my immediate reaction:

The plaintiff if the FTC (United States of America)… not just joe blow.
The defendant deals in security alarm leads.
It appears those leads are purchased from somewhere. Where?

I’d like to know for sure that the consumer leads didn’t originate from the inspection industry.

rhensel · March 24, 2014, 3:17am

I agree with the FTC…if Nathan is crack calling people telling them he is with the FBI, then FRY him!

If Nathan is being asked not to call and he keeps calling…FRY HIM!

If Nathan is using a bogus safety survey to get his clients…then FRY HIM…

Is Nathan using Robo calls? Not that I know of, it is ACTUAL people calling.

#40 EXPRESSED Written consent…when they sign my contract they are giving EXPRESSED written consent!

#41, we tell them they will be getting a call about the alarm system!

He took ONE instance and trying to make it fit Nathans business model…

Come on!

rhensel · March 24, 2014, 3:18am

Huh?..It TELLS you where they were from…a safety survey #26

gromicko · March 24, 2014, 3:20am

You keep bringing up a particular vendor Russell, not me.

I just want to know for sure that none of the consumer leads originated from the inspection industry.

gromicko · March 24, 2014, 3:22am

Not necessarily. Read #20 of http://www.ftc.gov/system/files/documents/cases/140312vmscmpt.pdf

Note the word “companies” is plural. The FTC didn’t reveal these lead generation companies by name. I’d just like to know for certain that the consumer leads weren’t extracted from home inspectors, even indirectly.