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"
The FTC filed a complaint alleging that GovAssist LLC, Entry LLC, and Scott Zuckerman used deceptive paid search ads, misleading service and pricing claims, and fake reviews to deceive consumers seeking passport services. The complaint alleges violations of the FTC Act, the Impersonation Rule, and the Gramm-Leach-Bliley Act; the case will be decided by the court, and no penalty or remedy is reported as imposed.
The FTC issued its annual report to Congress describing fraud trends affecting older adults and the agency’s enforcement, education, and outreach efforts. The report is not a specific privacy enforcement action and announces no penalty or remedy.
The FTC referred a complaint against REPS & Company Inc. and company executives, alleging they bypassed ticket-issuer security controls and purchasing limits to acquire millions of tickets for resale. The complaint was filed by the Department of Justice, and the case will be decided by the court; the press release does not report a penalty or other remedy imposed.
$106.8M
A federal court entered a $106.8 million default judgment against corporate defendants in an alleged debt-relief scheme that impersonated banks and government entities and targeted seniors and veterans. The judgment permanently bans the defendants from the debt-relief industry and imposes additional prohibitions, including on impersonation, telemarketing, and misrepresentations.
The FTC sued Digital Forensics Corporation LLC and affiliated defendants, alleging they misled sextortion victims with promises of investigative and monitoring services that often were not provided, and used fake positive reviews. A federal court granted the FTC’s request to temporarily halt the defendants’ activities; the complaint remains for the court to decide.
The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.