(Direct Newsline)— has agreed to pay $5.3 million to settle Federal Trade Commission charges that the satellite television provider and companies it hired to promote its services violated federal do-not-call registry rules, the FTC announced Tuesday.

If a federal judge approves the proposed settlement, it will be the largest civil penalty ever for an FTC enforcement of a consumer protection law, the commission said.

The U.S. Department of Justice filed the complaint on the FTC’s behalf in federal district court in Los Angeles. The complaint names DirecTV and a series of telemarketing companies and their officers that the FTC alleges violated do-not-call rules.

“This multimillion dollar settlement drives home a simple point: Sellers are on the hook for calls placed on their behalf and for their benefit,” said FTC chairwoman Deborah Platt Majoras during a press conference in Washington. “The do-not-call rule applies to all players in the marketing chain.”

Previous to this settlement, the FTC’s largest civil penalty was “in the $4 million range” against Mazda in 1999, said Platt Majoras. The biggest do-not-call penalty had been $500,000 against a company called Flagship, she said.

Calls placed on behalf of DirecTV “were among the biggest single categories of do-not-call complaints the FTC has ever received,” she said. The FTC began to get complaints about DirecTV in Nov. 2003, said Platt Majoras.

The FTC’s complaint also alleged that one company, Global Satellite LLC, conducted telemarketing on DirecTV’s behalf using pre-recorded pitches in violation of the Telemarketing Sales Rule. The rule requires that 97% of telemarketing calls must have a live sales representative on the line within two seconds of the consumer answering the call.

DirecTV blamed former affiliates for the violations: “The majority of the complaints the FTC received related to telemarketing calls placed by a small number of former independent retailers, who ignored DirecTV policies prohibiting unauthorized telemarketing,” the company said in a statement. “DirecTV has agreed to continue to closely monitor independent retailers to ensure that their telemarketing practices comply with the law and DirecTV’s polices.”

The American Teleservices Association, which was a vocal opponent of the do-not-call registry before it was implemented, released a statement yesterday supporting the FTC’s action.

“As the only association dedicated exclusively to the teleservices industry, any action that improves the image of the channel is going to be welcome,” said ATA CEO Tim Searcy in the statement. “The ATA is glad to see the FTC showed restraint with this enforcement. The settlement allows DirecTV to move on and conduct business that is compliant.”

Consumers have placed more than 110 million telephone numbers on the national do-not-call registry since it was implemented in June 2003, according to the FTC.

One and a half percent of the people on the list have called to complain that they’re getting unwanted telemarketing calls, according to Platt Majoras. The FTC receives between 2,000 and 3,000 do-not-call related complaints from consumers a day, she said.

Federal law requires telemarketers to search the do-not-call registry every three months and avoid calling phone numbers on it. Violators face penalties of up to $11,000 per call. Political organizations, charities and telephone surveyors are exempt.

The law also contains exemptions for calls to consumers with who the company has a business relationship.

If the FTC’s settlement with DirecTV is approved, it ends the commission’s litigation against the following five defendants: DirecTV; Communication Concepts, LLC, also doing business as Rogers Group; Jim Turner, individually and as an officer of Communication Concepts; American Communications of the Triad; and Michael Gibson, individually and as an officer of American Communications of the Triad.

The orders against Communication Concepts and American Communications require the companies to pay civil penalties of $25,000 and $50,000, respectively. The orders contain judgments of $205,000 against Communications Concepts and $746,300 against American Communications, both which were suspended because the companies have been deemed unable to pay.

The FTC said is still suing the following seven defendants for allegedly violating do-not-call rules on DirecTV’s behalf: D.R.D., Inc., also doing business as Power Direct; Daniel R. Delfino, individually and as an officer of D.R.D.; Nomrah Records, also doing business as Direct Activation; Mark Harmon, individually and as an officer of Nomrah Records; Global Satellite, LLC, also doing business as Mavcomm; William King, individually and as an officer of Global Satellite; and Michael Gleason, individually and as an officer of Global Satellite.

DirecTV has agreed to pay $5.3 million to settle Federal Trade Commission charges that the satellite television provider and companies it hired to promote its services violated federal do-not-call registry rules, the FTC announced Tuesday.

If a federal judge approves the proposed settlement, it will be the largest civil penalty ever for an FTC enforcement of a consumer protection law, the commission said.

The U.S. Department of Justice filed the complaint on the FTC’s behalf in federal district court in Los Angeles. The complaint names DirecTV and a series of telemarketing companies and their officers that the FTC alleges violated do-not-call rules.

“This multimillion dollar settlement drives home a simple point: Sellers are on the hook for calls placed on their behalf and for their benefit,” said FTC chairwoman Deborah Platt Majoras during a press conference in Washington. “The do-not-call rule applies to all players in the marketing chain.”

Previous to this settlement, the FTC’s largest civil penalty was “in the $4 million range” against Mazda in 1999, said Platt Majoras. The biggest do-not-call penalty had been $500,000 against a company called Flagship, she said.

Calls placed on behalf of DirecTV “were among the biggest single categories of do-not-call complaints the FTC has ever received,” she said. The FTC began to get complaints about DirecTV in Nov. 2003, said Platt Majoras.

The FTC’s complaint also alleged that one company, Global Satellite LLC, conducted telemarketing on DirecTV’s behalf using pre-recorded pitches in violation of the Telemarketing Sales Rule. The rule requires that 97% of telemarketing calls must have a live sales representative on the line within two seconds of the consumer answering the call.

DirecTV blamed former affiliates for the violations: “The majority of the complaints the FTC received related to telemarketing calls placed by a small number of former independent retailers, who ignored DirecTV policies prohibiting unauthorized telemarketing,” the company said in a statement. “DirecTV has agreed to continue to closely monitor independent retailers to ensure that their telemarketing practices comply with the law and DirecTV’s polices.”

The American Teleservices Association, which was a vocal opponent of the do-not-call registry before it was implemented, released a statement yesterday supporting the FTC’s action.

“As the only association dedicated exclusively to the teleservices industry, any action that improves the image of the channel is going to be welcome,” said ATA CEO Tim Searcy in the statement. “The ATA is glad to see the FTC showed restraint with this enforcement. The settlement allows DirecTV to move on and conduct business that is compliant.”

Consumers have placed more than 110 million telephone numbers on the national do-not-call registry since it was implemented in June 2003, according to the FTC.

One and a half percent of the people on the list have called to complain that they’re getting unwanted telemarketing calls, according to Platt Majoras. The FTC receives between 2,000 and 3,000 do-not-call related complaints from consumers a day, she said.

Federal law requires telemarketers to search the do-not-call registry every three months and avoid calling phone numbers on it. Violators face penalties of up to $11,000 per call. Political organizations, charities and telephone surveyors are exempt.

The law also contains exemptions for calls to consumers with who the company has a business relationship.

If the FTC’s settlement with DirecTV is approved, it ends the commission’s litigation against the following five defendants: DirecTV; Communication Concepts, LLC, also doing business as Rogers Group; Jim Turner, individually and as an officer of Communication Concepts; American Communications of the Triad; and Michael Gibson, individually and as an officer of American Communications of the Triad.

The orders against Communication Concepts and American Communications require the companies to pay civil penalties of $25,000 and $50,000, respectively. The orders contain judgments of $205,000 against Communications Concepts and $746,300 against American Communications, both which were suspended because the companies have been deemed unable to pay.

The FTC said is still suing the following seven defendants for allegedly violating do-not-call rules on DirecTV’s behalf: D.R.D. Inc., also doing business as Power Direct; Daniel R. Delfino, individually and as an officer of D.R.D.; Nomrah Records, also doing business as Direct Activation; Mark Harmon, individually and as an officer of Nomrah Records; Global Satellite, LLC, also doing business as Mavcomm; William King, individually and as an officer of Global Satellite; and Michael Gleason, individually and as an officer of Global Satellite.