Penalty Amount
$650,000
The FTC settled charges against Experian Consumer Services for violating the CAN-SPAM Act by sending marketing emails to consumers who signed up for credit management accounts without providing an opt-out mechanism. The emails promoted products like Experian Boost and Dark Web scans but lacked unsubscribe links. Experian must pay $650,000 and is prohibited from future violations.
Experian must pay a $650,000 penalty and is enjoined from sending marketing emails without an opt-out mechanism through a consent decree.
In-house legal teams should review all customer-facing agreements, particularly those for credit management, credit monitoring, or identity protection services (e.g., Experian Boost enrollment). Focus on clauses governing marketing communications, consent to receive promotional emails, and the specific mechanism provided for opting out. Agreements must clearly distinguish between transactional/account-related messages and marketing offers, and must include a functional, conspicuous unsubscribe method in every marketing email as mandated by the CAN-SPAM Act. Teams should audit how consent is obtained during account sign-up and ensure marketing email practices align with the explicit terms of the customer agreement. Updates may be needed to add or clarify opt-out instructions, revise consent language, and implement processes to honor opt-out requests promptly.
Entity
Experian Consumer Services
Also known as: Experian
Industry
Financial ServicesOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2023/08/ftc-charges-experian-spamming-consumers-who-signed-company-accounts-marketing-emails-they-couldnt
1ECSComplaint
https://www.ftc.gov/system/files/ftc_gov/pdf/1ECSComplaint.pdf
4 2 ECSProposedOrder
https://www.ftc.gov/system/files/ftc_gov/pdf/4-2-ECSProposedOrder.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Experian Consumer Services"
"$650,000"
"CAN-SPAM Act"
"failed to provide clear and conspicuous notice of consumers’ ability to opt out"
"did not contain an unsubscribe link"
$750K
The FTC finalized an order against Vanilla Chip LLC (doing business as TruHeight) and its principals for deceptively advertising height-enhancing supplements for children and teens without scientific evidence. The company also used fake reviews and incentivized 5-star ratings. The order requires a $750,000 payment and prohibits false health claims and deceptive review practices.
$2.3M
The FTC alleged that RentGrow, a tenant screening company, violated the Fair Credit Reporting Act (FCRA) by failing to use reasonable procedures to ensure the accuracy of its reports, including by reporting duplicate records and failing to disclose data sources. RentGrow agreed to pay a $2.25 million penalty and is prohibited from further FCRA violations and from misrepresenting dispute outcomes.
The FTC and New York Attorney General took action against Handy Technologies for deceptive earnings claims and failure to disclose fees and fines that led to millions of dollars being withheld from workers' wages. The FTC is sending over $2.7 million in refunds to 62,893 affected consumers.
$35.0M
The FTC alleged that Hopper, a travel booking app, charged consumers hidden and pre-selected fees (Tip and VIP Support) without their consent, misrepresented the benefits of VIP Support and Price Freeze services, and failed to clearly disclose total prices. Hopper agreed to pay $35 million for consumer redress and is prohibited from misrepresenting fees under a proposed order.
$1.5M
The FTC finalized a settlement with Publishing.com LLC and its principals for misleading consumers about potential earnings from self-publishing products. The company will pay $1.5 million and is prohibited from making unsubstantiated earnings claims, failing to disclose refund terms, and misrepresenting endorsements and reviews.
The FTC is seeking public comment on a proposed policy statement addressing concerns that AI companies may be manipulating AI system outputs contrary to consumer expectations for objectivity and accuracy. The statement explains that such conduct could be considered deceptive under Section 5 of the FTC Act. The public comment period runs until July 31, 2026.