The UK’s data protection watchdog fined two Brit businesses with offshore call centers £550,000 (c $735,000) over illegal automated marketing calls.
Both companies equipped their offshored call handlers with pre-recorded messages to select when targeting elderly and other vulnerable people in the UK.
Andy Curry, head of investigations at the Information Commissioner’s Office (ICO), said: “We’ve heard disturbing reports of how unscrupulous companies are using robo technology to fool elderly and vulnerable people.
“We understand how distressing these calls can be and will work on the public’s behalf to catch those responsible.”
The ICO said the use of what it calls “robo call technology” – avatar software that allows callers to present themselves as people they are not – is making it more difficult to discern genuine calls from those made by predatory marketeers.
It said the telltale signs of such calls include slight pauses before responses (indicating call handlers selecting recordings to play), limited flexibility to answer offbeat questions, identical voices and tones, and no background noise or natural breaks in speech.
“We urge the public to take note of our tips to spot these robo calls so they can tell us when they’ve received one,” Curry said. “This will help us investigate and take enforcement action.”
Avatar software was used by both British companies recently fined by the regulator.
These types of marketing calls are not strictly illegal in the UK, but they must be made only to individuals who have freely given their informed consent to receiving them.
Green Spark Energy and Home Improvement Marketing were both fined on August 28, £250,000 (around $334,000) and £300,000 (around $400,000) respectively.
The ICO and Telephone Preference Service received a combined 497 complaints about Green Spark Energy, including from elderly people and cancer patients, from the circa 9.5 million calls it made within a 12-month period.
The audio from one of the company’s robo calls was included in the ICO’s news release. Call handlers would pose as either Jo, Helen, or Ian – self-proclaimed “local energy advisors” warning of the health risks related to fibreglass insulation.
Some recorded responses aimed to spark a sense of fear in customers that their loft insulation was hazardous, and cited warnings from the British Lung Foundation, now known as Asthma + Lung UK, that it could lead to damage or mould.
The charity later published a blog dispelling these falsified claims.
Of the calls, one complainant noted: “[They] said local energy advisor – selling insulation. I do not understand why they can try to scam me if I am registered with the TPS. I am 91 and battling cancer, my wife has advanced Alzheimer’s.”
Another said: “Loft insulation, scare tactics by saying that it contained asbestos and was therefore dangerous. It is unethical to try and scare a vulnerable elderly person by raising the prospect of asbestos in loft installation, particularly when that is nonsense and it’s fibreglass.”
Home Improvement Marketing’s automated avatar software calls, of which it made 2.4 million between May 31, 2023, and August 31, 2023, resulted in 274 complaints.
Both companies shared a director, Matthew Terry. He remains the director of Home Improvement Marketing and was the director of Green Spark Energy until March 11, 2024.
The ICO says it raided Terry’s home in March 2024, seized his devices, and found various artefacts related to the running of both companies.
“Among the items seized was an iPhone which was forensically analysed and included a document which set the objective of telesales agents to ‘book appointments through cold calling homeowners for GSE’s sales reps to attend their homes to carry out a free loft inspection and ultimately sell the Huntsman Spray Foam product,'” the ICO said.
“Also on his mobile phone were WhatsApp messages discussing how to avoid getting caught by us.
“According to Mathew Terry, due diligence checks were not conducted into data providers, and he was unable to evidence consent, stating, ‘no consent was obtained.'”
According to Companies House, Home Improvement Marketing’s status remains as an active company. However, there is an active proposal to strike it off the register, suggesting it may soon be facing dissolution.
Green Spark Energy remains an active company, but under different leadership following Terry’s resignation. ®
