Penalty Amount
$20,000,000
Consumers Affected
9,000
The FTC settled with Vivint Smart Home, Inc. for misusing consumer credit reports to qualify customers for financing without permission, harming innocent third parties' credit. Vivint agreed to pay $20 million, with over $4.7 million for consumer compensation, and established a Customer Service Task Force.
Vivint must pay $20 million in total, with more than $4.7 million allocated for consumer compensation through a claims process, and establish a Customer Service Task Force to assist affected consumers.
In-house legal teams should review customer financing agreements, vendor contracts with financing partners, and sales representative guidelines/scripts. Key clauses to examine include: (1) credit check authorization provisions to ensure explicit, documented consent is obtained from the correct individual before pulling a credit report; (2) data sharing and third-party beneficiary clauses to prevent unauthorized use of another person's credit information; (3) cosigner or guarantor agreement terms to verify separate, informed consent is obtained from the cosigner; (4) representations and warranties regarding Fair Credit Reporting Act (FCRA) compliance; and (5) audit rights to monitor FCRA adherence. Changes may be needed to mandate identity verification procedures that do not rely on substituting or adding third-party credit data, implement separate consent mechanisms for cosigners, and strengthen compliance certifications with specific FCRA requirements.
Entity
Vivint Smart Home, Inc.
Also known as: Vivint
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2023/08/ftc-announces-claims-process-consumers-whose-credit-reports-were-misused-home-security-firm-vivint
Vivint
https://www.ftc.gov/Vivint
smart home monitoring company vivint will pay 20 million set
https://www.ftc.gov/news-events/news/press-releases/2021/04/smart-home-monitoring-company-vivint-will-pay-20-million-settle-ftc-charges-it-misused-consumer
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Vivint Smart Home, Inc."
"pay a total of $20 million"
"Fair Credit Reporting Act (FCRA)"
"using the credit history of another person with a similar name or adding a friend or relative of the customer as cosigner without their permission"
"2021/04/"
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.