Court Rules
All enforcement actions
SettlementCritical Risk

FTC and CFPB Settles with TransUnion for $15M Over Inaccurate Tenant Screening Reports

Trans Union LLCOctober 12, 2023Federal Trade Commission

Penalty Amount

$15,000,000

Summary

The FTC and CFPB settled with Trans Union LLC and its subsidiary for violating the Fair Credit Reporting Act by including inaccurate and incomplete eviction records in tenant screening reports, harming consumers' ability to obtain housing. The settlement requires Trans Union to pay $15 million, with $11 million for consumer compensation and $4 million as a civil penalty, and to implement measures to ensure report accuracy and disclose data sources.

Remedy

Trans Union must pay $15 million ($11 million to compensate affected consumers and $4 million civil penalty), implement procedures to ensure accuracy of tenant screening reports, prevent inclusion of problematic records, disclose sources of information, provide consumers with their file upon request, and make an adverse action notice letter available on their website.

Monetary PenaltyConsumer RefundsInjunctionCompliance ProgramCorrective Notice

Contract Impact

In-house legal teams should review vendor agreements with data providers (e.g., court record vendors) to ensure they include robust data accuracy warranties, audit rights, and requirements for the vendor to correct inaccuracies. Customer agreements with landlords, property managers, and screening service clients must be examined for clauses guaranteeing FCRA-compliant report generation, mandatory disclosure of all data sources used, and clear procedures for handling consumer disputes and reinvestigations. Data processing addendums (DPAs) should be updated to mandate specific accuracy metrics, regular data source validation, and protocols for promptly removing incomplete or outdated eviction records. Necessary changes include adding express certifications of FCRA compliance, requiring TransUnion to provide clients with summaries of data sourcing methodologies, and strengthening indemnification provisions to cover liabilities from inaccurate reporting.

Contract Search Terms

tenant screening report accuracy standardsdata source disclosure requirementsFCRA compliance certificationconsumer dispute resolution procedureseviction record reporting policiesaudit rights for data accuracyindemnification for FCRA violationsdata provider warranties

Laws Cited

Fair Credit Reporting Act

Violation Types

Entity Details

Entity

Trans Union LLC

Also known as: TransUnion

Industry

Data Broker

Official Sources

Source Evidence

Entity Name
"Trans Union LLC"
Fine Amount
"pay a total of $15 million"
Laws Cited
"violated the Fair Credit Reporting Act (FCRA)"
Violation Types
"failed to ensure the accuracy of the information included in their tenant background screening reports"

Related Enforcement Actions

FTC

12 Unnamed Nudify Tool Providers

The FTC sent warning letters to 12 companies offering 'nudify' tools that generate nonconsensual intimate images, for failing to comply with the TAKE IT DOWN Act (TIDA) by not providing a mechanism for victims to request removal of such content. The letters urge immediate compliance with TIDA, which requires platforms to remove nonconsensual intimate images within 48 hours of a valid request. Noncompliant companies may face future legal action and civil penalties of up to $53,088 per violation.

FTC

Covered Platforms

The FTC began enforcing the TAKE IT DOWN Act on May 19, 2026, a law requiring covered platforms to establish a process for victims to request removal of nonconsensual intimate images and delete such content within 48 hours of a valid request. The agency launched a consumer complaint portal, issued compliance guidance for businesses and consumers, and sent reminder letters to major platforms including Meta, TikTok, and X about their obligations under the law. No specific penalties or enforcement actions against individual companies were announced in this release.

FTC

Cliq Inc.

$6.5M

A federal court held Cliq Inc. and its executives Andrew Phillips and John Blaugrund in civil contempt for multiple violations of a 2015 FTC order requiring the payment processor to prevent enabling consumer fraud. The court found the defendants facilitated fraud by processing transactions for high-risk merchants, avoiding fraud monitoring, failing to conduct required underwriting, and ignoring chargeback thresholds. The court imposed $6.5 million in civil contempt sanctions against the defendants.

FTC

Chris Terry, Isis Terry, IM Mastery Academy, IYOVIA, iMarketsLive, IM Academy

$795.8M

The FTC and State of Nevada settled charges with lead defendants of the IM Mastery Academy MLM scheme, including Chris and Isis Terry and their affiliated companies, over false earnings claims used to promote financial training programs and a multi-level marketing venture. The stipulated order imposes a $795.8 million judgment, with defendants surrendering nearly $90 million in assets including luxury real estate, vehicles, jewelry, and a yacht, totaling over $100 million with prior judgments from other involved defendants. The order also bans defendants from selling trading-training services, prohibits false earnings claims, and restricts deceptive practices including negative-option misrepresentations and telemarketing violations.

FTC

B.E.S.T. GDR LLC, d/b/a Premium Home Service

The FTC and State of Illinois, via the Department of Justice, filed a complaint against B.E.S.T. GDR LLC (d/b/a Premium Home Service) and its owner Yosef Bernath for creating thousands of fake home repair business listings with fabricated five-star reviews to deceive consumers. The defendants allegedly routed consumer calls to unqualified representatives, arranged for unlicensed technicians, and violated the FTC Act, Reviews and Testimonials Rule, Gramm-Leach-Bliley Act, and Illinois consumer protection laws. No monetary penalty has been imposed yet as the case is in initial filing stages.

FTC

Amazon, Alphabet, Apple, Automattic, Bumble, Discord, Match Group, Meta, Microsoft, Pinterest, Reddit, SmugMug, Snapchat, TikTok, X

Federal Trade Commission Chairman Andrew N. Ferguson sent letters to over a dozen major technology companies reminding them of their obligation to comply with the Take It Down Act (TIDA) by May 19, 2026. TIDA requires covered platforms to establish a process for victims, including children, to request removal of nonconsensual intimate images, with takedown of content and all identical copies required within 48 hours of a valid request. The FTC also issued supplemental guidance to help companies prepare for compliance and warned that it will monitor and enforce violations of the law.