Federal Trade Commission Announced a Settlement with Experian for Spamming
Earlier this month, the Federal Trade Commission (“FTC”) announced a settlement with Experian after they charged Experian with spamming consumers who signed up for company accounts with marketing emails consumers couldn’t opt-out of.
The Department of Justice, acting on behalf of the FTC, filed a complaint alleging that Experian Consumer Services (“ECS”), a California-based company also known as ConsumerInfo.com, Inc., sent unsolicited marketing offers to customers who had registered for an account to manage their Experian credit report information. The complaint claims that the corporation violated the CAN-SPAM Act by failing to give customers a clear and obvious notice in the emails about their option to opt out of receiving further marketing messages, along with a method for doing so.
Customers must register for an account with ECS in order to manage their Experian credit information online, including freezing it. According to the complaint, after registering for a free membership account with ECS, customers allegedly received emails endorsing Experian's goods and services, including one that offered a free "Dark Web" scan and another that touted Experian Boost, which helps customers raise their credit scores. However, there was no unsubscribe link in the emails for customers to use to stop receiving more marketing communications.
At the bottom of these emails, Experian notifies the receiver that the communications are being sent because they "contain important information about your account." In contrast to Experian's assertions, the complaint alleges that the emails advertise or promote goods and services rather than having anything to do with customers' accounts. Customers must therefore be able to unsubscribe from getting future emails from the emails.
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection said, “Signing up for a membership doesn’t mean you’re signing up for unwanted email, especially when all you’re trying to do is freeze your credit to protect your identity. You always have the right to unsubscribe from marketing messages, and the FTC takes enforcing that right seriously.”
The proposed ruling forbids ECS from sending marketing emails without providing a way for recipients to opt out of receiving them, in addition to the $650,000 fine. Experian Consumer Services, will be forced by the Federal Trade Commission to pay $650,000 to resolve the allegations, as mandated by the CAN-SPAM Act. Before the order can take effect, a federal court must approve it.
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