Penalty Amount
$20,000,000
The FTC settled with Vivint Smart Homes, Inc. for $20 million over allegations that the company misused consumer credit reports to secure financing for unqualified customers, harming consumers' credit. The FTC is now distributing approximately $500,000 in refunds to affected consumers.
Vivint was ordered to pay $20 million in penalties and is distributing refunds to harmed consumers.
In-house legal teams should review all customer financing agreements, vendor contracts with third-party lenders, and service agreements involving credit-based financing. Key clauses to examine include those governing the authorization and scope of credit report pulls, requirements for obtaining explicit cosigner consent, data sharing permissions with financing partners and debt collectors, and representations regarding applicant eligibility. Contracts may need amendments to mandate strict verification of applicant identity before credit pulls, prohibit the use of unrelated third parties' credit data, require clear disclosure of cosigner obligations, and establish procedures for promptly correcting credit reporting errors and addressing identity theft claims.
Entity
Vivint Smart Homes, Inc.
Also known as: Vivint
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2024/12/ftc-sends-payments-consumers-harmed-vivints-misuse-consumer-credit-reports
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
RefundsbyCase
https://public.tableau.com/app/profile/federal.trade.commission/viz/Refunds_15797958402020/RefundsbyCase
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Vivint Smart Homes, Inc."
"Will Pay $20 Million"
"obtained financing for unqualified customers by using the credit history of an unrelated third party with the same or similar name, or adding cosigners without their permission."
"in April 2021"
$930K
The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.
The FTC announced it is seeking public comment on a proposed enforcement policy statement regarding personalized pricing, which is the use of personal data to set prices based on what a company believes an individual consumer is willing to spend. The statement warns that undisclosed collection or use of personal data for personalized pricing could violate the FTC Act's prohibition on unfair or deceptive practices. The Commission voted 2-0 to authorize the Federal Register notice.
$4.0M
The FTC and Connecticut secured a $4 million settlement with Chase Nissan LLC (doing business as Manchester City Nissan) over allegations the dealership charged consumers unauthorized fees, including double-charging for 'certified pre-owned' vehicles and inserting charges like total loss protection into financing agreements without consent. The settlement requires $4 million in consumer redress, prohibits misrepresentations about vehicle certification and warranties, mandates prominent disclosure of the maximum total vehicle price, and requires express informed consent for all charges.
The FTC filed a complaint against Credit Glory LLC and related entities for deceptive credit repair practices, including false promises, impersonating debt collectors, charging illegal upfront fees, and using negative option billing without consent. A federal court temporarily halted the operation.
The FTC issued a policy statement abandoning disparate-impact liability, stating it will no longer bring claims based on this theory. It also modified compliance obligations for several companies based on past decisions.
The FTC, along with Utah and California, filed a complaint against Hims & Hers alleging the telehealth provider shared consumers' sensitive health information with third-party advertising platforms without consent, and deceived consumers about billing and cancellation practices. The complaint alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act.