Marriott International, Inc. has emerged victorious in a landmark lawsuit, securing an $8 million judgment against international robocall operators who executed tens of millions of fraudulent calls exploiting Marriott’s name and reputation. The court ruling, delivered by the U.S. District Court for the Eastern District of Virginia, is a significant win for the hospitality giant and a critical step in safeguarding consumer rights against deceptive telemarketing practices.

The legal battle, which began in May 2021 as a “John Doe” lawsuit, targeted unknown perpetrators using Marriott’s brands under false pretences to sell vacation and timeshare promotions. Marriott, in collaboration with cybersecurity firms, meticulously tracked the source of these fraudulent calls and eventually revealed the true identities of those responsible.

A Surge in Robocall Scams

In recent years, illegal robocalls claiming to be from Marriott surged to unprecedented levels, peaking in 2020 with over seven million calls per month. Consumers across the U.S. were bombarded with offers from alleged “Marriott representatives,” causing frustration and leading many to mistakenly associate the hotel group with intrusive telemarketing schemes.

These robocalls tarnished Marriott’s reputation and violated state and federal laws designed to protect consumers from misleading and harassing telemarketing practices. As the scale of the fraudulent activity became clear, Marriott took decisive legal action to hold the culprits accountable.

Exposing the Fraudulent Network

To support its fight, Marriott enlisted the services of YouMail, a leading technology provider specializing in tracking robocall activities, along with the Industry Traceback Group, an organization dedicated to identifying sources of illegal telemarketing. Using these sophisticated tools, Marriott was able to pinpoint the origin of the illicit robocalls and identify the bad actors involved.

In 2022, Marriott amended its initial lawsuit, adding ten defendants based in the United States and abroad. The legal proceedings revealed that these entities ran an elaborate scheme to defraud consumers, leveraging Marriott’s name to build credibility for their deceptive offerings. The defendants included telemarketing firms and timeshare operators who manipulated unsuspecting consumers into purchasing promotions under pretences.

Landmark Judgement Against International Operators

The recent judgment specifically targeted two foreign defendants: Cancun Ink Corp. S.A. de C.V., a Mexico-based telemarketer, and Deep Blue Desarrollos S. de R.L. de C.V., a Mexican timeshare resort that previously operated under the name Vallarta Gardens and has since rebranded as Kovay Gardens. The U.S. District Court found that these entities were collectively responsible for over 66 million fraudulent robocalls made between 2018 and 2022, using Marriott’s trademarks without authorization.

The court’s ruling awarded Marriott $8 million in statutory damages. It issued a broad injunction prohibiting these defendants and any parties “in active concert or participation” with them from further using Marriott’s trademarks or engaging in deceptive practices.

Protecting Consumers and Restoring Trust

Marriott’s Executive Vice President and General Counsel, Rena Hozore Reiss, emphasized that the company’s primary objective in pursuing the lawsuit was to protect its customers from misleading and harassing communications.

“While we pursued this litigation to protect our trademarks, our primary objective in the suit was to protect customers from unlawful, harassing, and deceptive robocalls,” Reiss stated following the court’s decision. “We are pleased with the outcome of the case and will continue to aggressively pursue those who misuse our name and harass our customers.”

Collaboration for Consumer Protection

The case also highlighted the critical role that technology partners like YouMail played in bringing the fraudsters to justice. YouMail’s CEO, Alex Quilici, noted the importance of collaboration in tackling such widespread fraud.

“In working with Marriott, we were able to help identify certain entities originating fraudulent robocalls and provide evidence of the scale and effect of these robocall campaigns,” Quilici said. “We are pleased that our collaboration helped address a frustrating issue for Marriott, its customers, and everyone getting those calls.”

A Warning to Future Fraudsters

Marriott’s victory is not just a win for the company but a solid message to others who may attempt to misuse its brand. With this legal precedent, the hospitality leader has set a standard for aggressively defending its reputation and ensuring that consumers are protected from deceptive practices.

This case reminds us of the importance of vigilance in safeguarding brand integrity and consumer trust in an increasingly interconnected digital world. As the battle against robocall fraud continues, Marriott’s victory is a beacon for companies facing similar threats and a warning to those who seek to exploit reputable brands for malicious gain.

Written by: Michelle Warner

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