FTC Announces First Settled Consumer Protection Case Against a VoIP Service Provider

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The Federal Trade Commission (FTC) has announced that Globex Telecom, Inc. (Globex) and affiliates will pay a total of $1.9 million to settle a consumer protection case filed by the FTC and State of Ohio. The FTC and Ohio allege that Globex facilitated a scheme with a company, Educare Centre Services (Educare), to promote phony credit card interest rate relief, which cost consumers millions of dollars. Allegedly, Globex had provided Educare with the needed resources to make robocalls to consumers to promote its phony credit card interest rate reduction services.  The announced settlement represents the FTC’s first consumer protection case against a Voice over Internet Protocol (VoIP) service provider.

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