XCast Labs Settles FTC Charges Over Billions of Illegal Robocalls

The company, unable to pay the $10 million fine, must now implement a screening process to prevent future violations.

XCast Labs Inc., a Voice over Internet Protocol (VoIP) service provider, has agreed to a court order resolving allegations that it facilitated billions of illegal robocalls, including scam calls fraudulently claiming to be from government entities.
The company was fined $10 million as part of the settlement, but the fine was waived due to XCast's inability to pay. The fine would become immediately due if XCast is later found to have misrepresented its financial condition.
Many of the robocalls failed to truthfully identify the seller of the services being marketed, falsely claimed affiliation with government entities, contained other false or misleading statements to induce purchases, or were transmitted with 'spoofed' caller ID information.
At least two billion of the calls were made to numbers that were on the National Do Not Call Registry.
Despite receiving a 2020 warning letter from the FTC and being alerted that specific customers were making illegal calls, XCast took no action.