LANSING – Yesterday, Michigan Attorney General Dana Nessel joined a coalition of 28 attorneys general in filing an amicus brief (PDF) in support of the Federal Communications Commission’s (FCC) One-to-One Consent Rule. The coalition argues the rule is a critical measure designed to curb the flood of robocalls harassing consumers.

The One-to-One Consent Rule, adopted in late 2023, requires telemarketers and lead generators to obtain explicit consent from consumers before contacting them and selling their contact information. It also prevents lead generators from obtaining blanket consent on behalf of multiple businesses, a practice that has misled consumers and resulted in an overwhelming volume of unwanted calls or messages. Attorney General Nessel previously joined a bipartisan coalition of 29 attorneys general advocating for the FCC to adopt the rule. Despite its consumer protection benefits, the United States Court of Appeals for the Eleventh Circuit recently vacated the rule, ruling that the FCC lacked the authority to promulgate it.

According to the Federal Trade Commission (FTC), consumers reported losing more than $1.2 billion to scams perpetrated through robocalls and text messages in 2023. In their brief, the coalition argues that the One-to-One Consent Rule is a critical enforcement tool that complements state efforts to stop illegal robocalls. By ensuring clear and explicit consent, the rule prevents lead generators from exploiting consumers’ contact information for profit, an authority the coalition contends the FCC has the power to enforce under the Telephone Consumer Protection Act.

“My colleagues and I have worked hard to crack down on illegal robocalls in our states, and this FCC rule is a crucial tool for stopping these relentless, intrusive calls at the source,” Nessel said. “I urge the court to reinstate this essential protection, giving consumers greater control over who can contact them.”

Attorney General Nessel is an Executive Committee member of the Anti-Robocall Multistate Litigation Task Force that is leading a national effort to reduce the number of unwanted automated calls Michigan residents receive. As part of her national anti-robocall efforts, the Attorney General took action last December against four voice service providers and iDentidad Telecom, warning them about transmitting suspected illegal robocall traffic on their networks. The Attorney General, alongside her partners on the Task Force, issued a warning to a company accused of sending scam election robocalls to New Hampshire residents during the state’s primary. Attorney General Nessel also joined a coalition of 26 attorneys general in sending a letter to the Federal Communications Commission in 2024 urging strict federal restrictions on the use of AI by telemarketers due to its potential for abuse.

Attorney General Nessel also filed criminal charges in 2020 against two political operatives who orchestrated a series of robocalls aimed at suppressing the vote in the 2020 presidential election. The two operatives, Jack Burkman and Jacob Wohl, were charged with intimidating voters and conspiracy to commit an election law violation, among other felonies. Last year, the Michigan Supreme Court upheld a state statute that prohibits false speech made in an attempt to deter or influence a vote.

Joining Attorney General Nessel in filing this brief are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawai’i, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, Rhode Island, South Carolina, South Dakota, Utah, Vermont, Virginia, Washington, West Virginia, and Wisconsin.

Attorney General Nessel released a video alerting Michiganders to the gift card scam, detailing how the scam is believed to operate, and offering tips to avoid becoming a victim.  

LANSING – On Friday, Michigan Attorney General Dana Nessel announced that her FORCE Team arrested two Chinese nationals at a Dearborn hotel on March 5, and last week charged each with one count of Conducting a Criminal Enterprise, a 20-year felony, and two counts of Possession of a Fraudulent or Altered Transaction Device. Guangji Zhang, 46, of Irvine, California, and Huachao Sun, 35, of Los Angeles, were each arraigned in the 51st District Court in Waterford before Judge Richard Kuhn on Friday March 7, and are accused of conducting a large-scale fraud scheme.

It is alleged these men were conducting a fraud scheme that begins with the theft of empty, unsold gift cards from retail stores. The cards are then tampered with to reveal their unique redemption numbers, recorded by the scammers, then concealed once again with an adhesive to appear as though they have not been tampered with. It is alleged that the scammers then return the altered gift cards to their original intended retail point of sale and use computer programs to monitor when any card is activated with a balance of funds. As soon as a shopper places a balance on the card, the scammer is able to transfer the balance into another digital account. The gift card, when given as a gift and redeemed, is already depleted.

Attorney General Nessel released a video alerting Michiganders to the gift card scam, detailing how the scam is believed to operate, and offering tips to avoid becoming a victim.

This investigation was initiated by a special agent of the United States Postal Inspection Service, a federal partner of the Attorney General’s FORCE Team. A package determined to be suspicious by the USPIS agent was found to contain more than 1,500 gift cards and was addressed to the two defendants at a hotel in Dearborn. The FORCE Team, alongside detectives from the Michigan State Police Fraud East team, surveilled the package recipients who, allegedly, visited Meijer locations in White Lake, Waterford, Auburn Hils, Southgate, Allen Park, and Taylor over two days placing altered gift cards back among store stock. On March 5th, the men were arrested at their hotel and search warrants were executed on their vehicle and hotel room. In all, the Attorney General alleges, the men possessed more than 3,000 gift cards.

“Sophisticated fraud schemes undermine consumer trust and can cause significant financial harm, and I am proud of my FORCE Team for their efforts to shut down these operations and hold bad actors accountable,” Nessel said. “They will continue to pursue and prosecute those who engage in scams targeting Michigan residents and businesses. I urge everyone to stay alert and be cautious when buying gift cards. Taking a few extra moments to check for tampering can save you from becoming a victim.”

Each defendant will next appear before the 51st District Court on March 18 at 2:30 p.m. for a probable cause conference.

The FORCE Team and the Organized Retail Crime Unit were established in January 2023 by the Attorney General to target criminal organizations that steal products from retailers to repackage and sell for a profit. Two assistant attorneys general serve the unit full time, working with special agents within the Department of Attorney General and Michigan State Police detectives to investigate and prosecute these crimes. The FORCE team also partners with the FBI’s Detroit Fraud and Financial Crimes Task Force and the Postal Inspection Service. This is a first-in-the-nation unit, unique in the 50 states as being the first such unit with embedded, dedicated staff from the Department of Attorney General.

The FORCE Team is dedicated to working collaboratively with retailers and local law enforcement agencies to combat organized retail crime. FORCE is an acronym that stands for Focused Organized Retail Crime Enforcement. Recent corporate partners on investigations have included Sam’s Club/Walmart, Meijer, Target, Home Depot, TJ Maxx, Rite-Aid, Lululemon, Ulta Beauty, Amazon, and Lowe’s.