The FTC filed a complaint against MyLife.com, Inc. and its CEO for deceiving consumers with 'teaser background reports' that falsely claimed to include criminal and arrest records, and for violating the Fair Credit Reporting Act by failing to ensure accuracy and permissible purpose. The company also engaged in misleading billing practices under the Restore Online Shoppers’ Confidence Act and Telemarketing Sales Rule.
In-house legal teams should review all agreements where MyLife.com acts as a data provider or consumer reporting agency. Focus on vendor agreements with data sources to ensure they include robust accuracy and update obligations, and customer/subscriber agreements for compliance with the Fair Credit Reporting Act (FCRA). Key clauses to scrutinize are those defining 'consumer report,' establishing permissible purpose certifications, detailing accuracy procedures, and governing data sourcing. For billing practices under ROSCA and the Telemarketing Sales Rule, review auto-renewal terms, negative option marketing disclosures, and cancellation mechanisms. Required changes may include: (1) amending customer agreements to clearly disclose that 'teaser' reports may not contain the claimed criminal/arrest records, (2) strengthening FCRA compliance clauses with explicit accuracy and dispute resolution protocols, and (3) revising billing terms to provide clear, conspicuous disclosures of auto-renewal terms and easy cancellation methods.
Entity
MyLife.com, Inc.
Also known as: MyLife.com
Industry
Data BrokerOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2020/07/ftc-alleges-california-purveyor-background-reports-misled-consumers-think-its-reports-individuals
us v. mylife.com inc and jeffrey tinsley 2 20 cv 06692 0
https://www.ftc.gov/system/files/documents/cases/us_v._mylife.com_inc_and_jeffrey_tinsley_2_20-cv-06692_0.pdf
united states files complaint stop deceptive and improper sa
https://www.justice.gov/opa/pr/united-states-files-complaint-stop-deceptive-and-improper-sales-consumer-background-reports
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"MyLife.com, Inc."
"Fair Credit Reporting Act (FCRA)"
"Restore Online Shoppers’ Confidence Act"
"Telemarketing Sales Rule"
"failing to maintain reasonable procedures to verify how its reports would be used, to ensure the information was accurate, and to make sure that the information it sold would be used only for legally permissible purposes."
$33.9M
The FTC and DOJ settled with MyLife.com, Inc. and its CEO for deceiving consumers with misleading background reports that falsely implied criminal records and for engaging in difficult-to-cancel subscription practices. MyLife violated the Fair Credit Reporting Act, Restore Online Shoppers’ Confidence Act, and Telemarketing Sales Rule. The settlement includes a permanent ban on negative option marketing, $33.9 million in judgments for consumer refunds, and a monitoring program.
$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.