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"
$930K
The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.
The FTC announced it is seeking public comment on a proposed enforcement policy statement regarding personalized pricing, which is the use of personal data to set prices based on what a company believes an individual consumer is willing to spend. The statement warns that undisclosed collection or use of personal data for personalized pricing could violate the FTC Act's prohibition on unfair or deceptive practices. The Commission voted 2-0 to authorize the Federal Register notice.
$4.0M
The FTC and Connecticut secured a $4 million settlement with Chase Nissan LLC (doing business as Manchester City Nissan) over allegations the dealership charged consumers unauthorized fees, including double-charging for 'certified pre-owned' vehicles and inserting charges like total loss protection into financing agreements without consent. The settlement requires $4 million in consumer redress, prohibits misrepresentations about vehicle certification and warranties, mandates prominent disclosure of the maximum total vehicle price, and requires express informed consent for all charges.
The FTC filed a complaint against Credit Glory LLC and related entities for deceptive credit repair practices, including false promises, impersonating debt collectors, charging illegal upfront fees, and using negative option billing without consent. A federal court temporarily halted the operation.
The FTC issued a policy statement abandoning disparate-impact liability, stating it will no longer bring claims based on this theory. It also modified compliance obligations for several companies based on past decisions.
The FTC, along with Utah and California, filed a complaint against Hims & Hers alleging the telehealth provider shared consumers' sensitive health information with third-party advertising platforms without consent, and deceived consumers about billing and cancellation practices. The complaint alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act.