The FTC and CFPB filed an amicus brief with the Third Circuit Court of Appeals to overturn a lower court ruling that exempted furnishers from investigating indirect disputes under the FCRA. The brief argues that all disputes must be investigated to ensure consumers can correct inaccurate credit information and be notified of outcomes, upholding key FCRA protections.
In-house legal teams should review vendor agreements where the company acts as a furnisher of data to credit reporting agencies (like Experian) and customer-facing agreements related to credit reporting services. Key clauses to examine include data accuracy warranties, dispute investigation procedures, compliance with the Fair Credit Reporting Act (FCRA), and obligations to notify consumers of dispute outcomes. Given this enforcement focus, contracts may need amendments to explicitly require investigation of both direct and indirect disputes, establish clear timelines for responses, and ensure robust record-keeping to demonstrate FCRA adherence. Additionally, audit rights and indemnification provisions should be assessed to allocate risk for potential FCRA violations arising from inaccurate data furnishing.
Entity
Experian
Industry
Data BrokerOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2022/09/ftc-cfpb-submit-amicus-brief-defending-consumers-ability-dispute-inaccurate-items-credit-reports
ftc cfpb submit amicus brief defending consumers ability dis
https://www.ftc.gov/legal-library/browse/amicus-briefs/ftc-cfpb-submit-amicus-brief-defending-consumers-ability-dispute-inaccurate-items-credit-reports
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Ingram v. Experian"
"Fair Credit Reporting Act (FCRA)"
"consumers are entitled to be notified about the outcome of their disputes"
The FTC filed a complaint alleging that GovAssist LLC, Entry LLC, and Scott Zuckerman used deceptive paid search ads, misleading service and pricing claims, and fake reviews to deceive consumers seeking passport services. The complaint alleges violations of the FTC Act, the Impersonation Rule, and the Gramm-Leach-Bliley Act; the case will be decided by the court, and no penalty or remedy is reported as imposed.
The FTC issued its annual report to Congress describing fraud trends affecting older adults and the agency’s enforcement, education, and outreach efforts. The report is not a specific privacy enforcement action and announces no penalty or remedy.
The FTC referred a complaint against REPS & Company Inc. and company executives, alleging they bypassed ticket-issuer security controls and purchasing limits to acquire millions of tickets for resale. The complaint was filed by the Department of Justice, and the case will be decided by the court; the press release does not report a penalty or other remedy imposed.
$106.8M
A federal court entered a $106.8 million default judgment against corporate defendants in an alleged debt-relief scheme that impersonated banks and government entities and targeted seniors and veterans. The judgment permanently bans the defendants from the debt-relief industry and imposes additional prohibitions, including on impersonation, telemarketing, and misrepresentations.
The FTC sued Digital Forensics Corporation LLC and affiliated defendants, alleging they misled sextortion victims with promises of investigative and monitoring services that often were not provided, and used fake positive reviews. A federal court granted the FTC’s request to temporarily halt the defendants’ activities; the complaint remains for the court to decide.
The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.