Penalty Amount
$33,900,000
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.
Permanent ban on negative option marketing, $33.9 million in judgments for consumer refunds (with $16 million partially suspended), and requirement for MyLife to implement a monitoring program for FCRA compliance.
In-house legal teams should review all customer-facing subscription agreements, service terms, and any vendor/data provider contracts where background reports are involved. Key clauses to scrutinize include: negative option/auto-renewal provisions, cancellation and termination procedures (ensuring they are simple and not 'difficult-to-cancel'), disclosures related to report content and limitations (especially regarding criminal/arrest records), billing and payment terms, refund policies, and any representations about data accuracy. Given the FCRA violation, contracts involving consumer reports must include robust compliance warranties and indemnification clauses. Changes may be needed to simplify cancellation processes, add clear, non-misleading disclosures about what reports contain (or do not contain), implement explicit consent for billing cycles, and strengthen FCRA-related obligations and audit rights.
Entity
MyLife.com, Inc.
Also known as: MyLife.com
Industry
Data BrokerOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2021/12/ftc-doj-obtain-ban-negative-option-marketing-21-million-consumers-deceived-background-report
1823022mylifestipulatedorder
https://www.ftc.gov/system/files/documents/cases/1823022mylifestipulatedorder.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"MyLife.com, Inc."
"Tinsley and MyLife agreed to separate judgments totaling $33.9 million."
"violated the Fair Credit Reporting Act (FCRA)"
"violated the Restore Online Shoppers’ Confidence Act"
"violated the Telemarketing Sales Rule"
"deceived consumers with misleading 'teaser background reports'"
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.
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.