Credit reporting agency Experian fined $650K over deceptive email practices
The department of Justice (DoJ) and the Federal Trade Commission (FTC) said that Experian has agreed to a permanent
WASHINGTON: Credit reporting agency Experian has been fined $650,000 by the US regulators for deceptive marketing email practices.
The department of Justice (DoJ) and the Federal Trade Commission (FTC) said that Experian has agreed to a permanent injunction and a $650,000 civil penalty as part of a settlement to resolve alleged violations of the country's acts.
The case, filed in the US District Court for the Central District of California, involved emails Experian sent to consumers who had created free accounts to control third-party access to their credit reports.
The regulators’ complaint alleged that Experian had sent customers with free credit monitoring memberships deceptive marketing emails that lacked both “clear and conspicuous notice” of the ability to opt out and “a mechanism for doing so.”
The emails did not give the recipients notice that they could opt-out of future such emails or provide any opt-out mechanism.
“These emails implied that they contained important information about the recipient’s account, even though they were commercial in nature. The government received many consumer complaints that these emails contained no opt-out mechanism,” the DoJ said in a statement late on Tuesday.
“Consumers have the right to opt-out of email advertising that they do not want,” said Principal Deputy Assistant Attorney General, Brian M Boynton.
“Signing up for a membership doesn’t mean you’re signing up for unwanted email, especially when all you’re trying to do is freeze your credit to protect your identity,” added Director Samuel Levine of the FTC’s Bureau of Consumer Protection.
According to the injunction, Experian is permanently forbidden from sending “transactional or relationship” messages if they fall under the FTC’s definition of commercial advertisements.
