Penalty Amount
$5,800,000
The FTC settled with background report providers TruthFinder and Instant Checkmate, charging they deceived consumers about the accuracy of their reports (often mischaracterizing traffic tickets as criminal records) and violated the Fair Credit Reporting Act (FCRA) by operating as consumer reporting agencies without following its requirements, including ensuring accuracy and limiting permissible purposes. The companies will pay a $5.8 million penalty and implement a comprehensive FCRA compliance monitoring program.
Under the proposed order, TruthFinder and Instant Checkmate must pay a $5.8 million penalty. They are permanently prohibited from misrepresenting report accuracy and from failing to comply with the FCRA when operating as consumer reporting agencies. They must establish a comprehensive monitoring program to ensure FCRA compliance, mandate that endorsers disclose material connections, and monitor such endorsers.
In-house legal teams should review vendor agreements with background report providers to ensure clauses mandate strict FCRA compliance, accuracy certifications, and permissible use restrictions. For organizations acting as consumer reporting agencies, customer agreements must incorporate FCRA-required disclosures, accuracy guarantees, and audit rights. Key clauses to examine include data accuracy representations, compliance warranties, indemnification for FCRA violations, and limitations on use for employment or tenant screening. Recommended changes may involve adding FCRA compliance addendums, requiring regular accuracy audits, implementing robust data source verification protocols, and clarifying permissible purpose definitions to avoid misuse.
Entity
TruthFinder; Instant Checkmate
Industry
Data BrokerOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2023/09/ftc-says-truthfinder-instant-checkmate-deceived-users-about-background-report-accuracy-violated-fcra
truthfinder complaint
https://www.ftc.gov/system/files/ftc_gov/pdf/truthfinder_complaint.pdf
truthfinder proposed order
https://www.ftc.gov/system/files/ftc_gov/pdf/truthfinder_proposed_order.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"TruthFinder and Instant Checkmate"
"pay a $5.8 million penalty"
"deceived consumers about whether consumers had criminal records and that the companies violated the Fair Credit Reporting Act (FCRA) by operating as consumer reporting agencies while, among other things, failing to ensure the maximum possible accuracy of their consumer reports"
"failed to investigate and respond to consumer complaints about inaccuracies in their reports, as required by the FCRA"
"marketing and sold those reports for employment and tenant screening purposes"
"Fair Credit Reporting Act (FCRA)"
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.
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.
$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.
$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.
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.
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.