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"
$750K
The FTC finalized an order against Vanilla Chip LLC (doing business as TruHeight) and its principals for deceptively advertising height-enhancing supplements for children and teens without scientific evidence. The company also used fake reviews and incentivized 5-star ratings. The order requires a $750,000 payment and prohibits false health claims and deceptive review practices.
$2.3M
The FTC alleged that RentGrow, a tenant screening company, violated the Fair Credit Reporting Act (FCRA) by failing to use reasonable procedures to ensure the accuracy of its reports, including by reporting duplicate records and failing to disclose data sources. RentGrow agreed to pay a $2.25 million penalty and is prohibited from further FCRA violations and from misrepresenting dispute outcomes.
The FTC and New York Attorney General took action against Handy Technologies for deceptive earnings claims and failure to disclose fees and fines that led to millions of dollars being withheld from workers' wages. The FTC is sending over $2.7 million in refunds to 62,893 affected consumers.
$35.0M
The FTC alleged that Hopper, a travel booking app, charged consumers hidden and pre-selected fees (Tip and VIP Support) without their consent, misrepresented the benefits of VIP Support and Price Freeze services, and failed to clearly disclose total prices. Hopper agreed to pay $35 million for consumer redress and is prohibited from misrepresenting fees under a proposed order.
$1.5M
The FTC finalized a settlement with Publishing.com LLC and its principals for misleading consumers about potential earnings from self-publishing products. The company will pay $1.5 million and is prohibited from making unsubstantiated earnings claims, failing to disclose refund terms, and misrepresenting endorsements and reviews.
The FTC is seeking public comment on a proposed policy statement addressing concerns that AI companies may be manipulating AI system outputs contrary to consumer expectations for objectivity and accuracy. The statement explains that such conduct could be considered deceptive under Section 5 of the FTC Act. The public comment period runs until July 31, 2026.