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.
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
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.
$18.0M
Consumer fraud enforcement action where the FTC settled with Air AI for misleading entrepreneurs with false earnings and refund guarantees. The company will be banned from marketing business opportunities and pay a suspended $18 million judgment with $50,000 for consumer relief. Violations included failure to provide required disclosures and false claims under the Telemarketing Sales Rule and Business Opportunity Rule.
$17.0M
Consumer fraud enforcement action where the FTC settled with Xponential Fitness for violating the Franchise Rule by misrepresenting key information to franchisees, including time to open and costs. The settlement includes a $17 million monetary judgment for redress and prohibits future misrepresentations.
Consumer fraud and advertising enforcement action where the FTC sent warning letters to 97 auto dealership groups for deceptive pricing practices, such as advertising prices that exclude mandatory fees, misleading consumers about total costs. The letters stress the need for truthful and transparent pricing in the automotive industry.
$100.0M
The FTC and 11 states settled with Walmart for $100 million over deceptive earnings claims in its Spark Driver gig worker app, where drivers were misled about base pay, tips, and incentives. The settlement also addressed GLBA violations for failing to provide proper notice regarding the handling of drivers' financial information. Walmart must implement an earnings verification program and is banned from misrepresenting driver earnings.
The FTC issued a policy statement announcing it will not enforce COPPA against operators that collect age verification data under specific conditions. The policy aims to encourage the use of age verification technologies to protect children online. Operators must limit data use, ensure security, provide notice, and use accurate verification methods.