Calif. marketing company hit with $691K penalty

By Bryan Cohen | May 22, 2014

TOPEKA, Kan. (Legal Newsline) - Kansas Attorney General Derek Schmidt announced a $691,500 order against a California marketing company on Tuesday that allegedly violated the Kansas No-Call Act.

The Los Angeles-based Variable Marketing LLC was the subject of 34 complaints from Kansas consumers, six of which were made to Schmidt's office and 28 to the Federal Trade Commission. Variable Marketing allegedly attempted to sell auto insurance to consumers who were on the Do-Not-Call list. The company's representatives also allegedly said they were with the Kansas Division of Motor Vehicles.

"The law requires companies to be honest with Kansas consumers about who they are and what they are selling - and to respect their wishes if they have registered on the Do-Not-Call list," Schmidt said. "When companies have violated the law, our office will take action to protect Kansas consumers."

Shawnee County District Judge Larry Hendricks entered a default judgment against Variable Marketing, requiring the company to pay $691,500 in penalties and fees.

Schmidt reminded consumers that starting on July 1, a new law will take effect allowing his office to pursue violations of the No-Call Act when a telemarketer calls a consumer's registered cell phone. Kansans may register their phones on the Do-Not-Call list on Schmidt's consumer protection website.

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