FTC addresses recent scourge of robocalls

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					                                                                                                                           However, the real reason why
: Database marketing agency                                                                                             data quality has become so impor-
Merkle has acquired data quality                                                                                        tant in 2009 and why an acquisition
solutions provider CognitiveData,                                                                                       like this makes sense for Merkle is
a company that has quickly grown                                                                                        because costs continue to rise for     : The FTC filed suit in Chicago
since coming on the scene in 2001                                                                                       mail, and marketers are looking for    federal court on May 14 against
as a result of its proprietary data                                                                                     ways to be “smarter” about how         companies it said were responsible
hygiene technology. Terms of the                                                                                        they go to market, said Patrick.       for millions of deceptive, computer-
deal were not disclosed.                                                                                                   “Once marketers learn to mail       ized phone calls offering extended
   The move reflects the growing                                                                                        smarter, they continue to mail bet-    vehicle warranties.
importance of data and analytics                                                                                        ter even after the economic envi-        In two related complaints, the FTC
to today’s marketers and, there-                                                                                        ronment gets better,” he said.         took action against the promoter
fore, to marketing service pro-                                                                                            Peg Kuman, CEO of Telematch,        of the warranties, Transcontinental
viders and agencies. The current                                                                                        agrees. “Particularly in a climate     Warranty Inc., as well as the tele-
economic environment is simply                                                                                          like this, people are much more        marketing companies hired to carry
accelerating trends that have been                                                                                      focused on knowing who their           out the campaign: Voice Touch Inc.
pushing marketers toward a closer                                                                                       best customers are,” Kuman said.       and affiliate Network Foundations
examination of data over the past                                                                                       “To that degree, the more you can      LLC. The companies could not be
few years, such as increasing costs     made two acquisitions to improve          The economy “is driving sig-          learn about what makes buyers          reached for comment.
and demands from higher-ups for         its data dashboarding, analytics and   nificant attention to data quality”      respond and what makes non-              “The FTC is seeking a tempo-
greater accountability.                 database management.                   among marketers, said Don Pat-           buyers non-responsive will make        rary restraining order to put an
   Epsilon recently created a new          Even more traditional advertis-     rick, COO at Merkle.                     you a better marketer.”                immediate halt to these calls,” said
business intelligence division, Epsi-   ing agencies are shining a light          In fact, in the past year, five out      While Merkle’s expertise lies in    chairman Jon Leibowitz.
lon Targeting, which combines its       on data, with WPP recently part-       of Merkle’s top 10 clients have          building databases and high-vol-         The agency contends the com-
data services, databases and co-op      ne
				
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posted:6/13/2010
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Description: The agency contends the companies are operating a "massive telemarketing scheme" to deceive consumers and pressuring them to buy extended warranties. According to the FTC, one defendant claimed that he makes 1.8 million dials daily.
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