WASHINGTON--The Federal Trade Commission will require Experian Consumer Services, which offers consumers access to their Experian credit information, to pay $650,000 to settle charges it sent consumers unsolicited email without offering them a way to opt out of such messages.
Such opt-outs are required under the CAN-SPAM Act.
In a complaint filed by the Department of Justice on behalf of the FTC, the agency said California-based Experian Consumer Services (ECS), also known as ConsumerInfo.com, Inc., spammed consumers with marketing offers after they signed up for an account with the company in order to manage their Experian credit report information.
According to the FTC complaint, in the emails the company failed to provide clear and conspicuous notice of consumers’ ability to opt out of receiving additional marketing messages and a mechanism for doing so, in violation of the CAN-SPAM Act.
Missing Link
“Consumers who wish to freeze or take other steps to manage their Experian credit information online must create an account with ECS,” the FTC said. “The complaint charges that consumers who signed up for a free membership account with ECS were then sent emails promoting Experian’s products and services such as one touting Experian Boost, which promotes ways for consumers to boost their credit scores, and another that offers a free ‘Dark Web’ scan. But the emails did not contain an unsubscribe link consumers could use to keep from receiving even more marketing emails.”
The FTC noted Experian includes a notice at the bottom of the emails informing recipients that they are receiving the messages because they “contain important information about your account.”
Prohibition On Certain Messages
“Contrary to Experian’s claims, however, the complaint charges that the emails are not related to consumers’ accounts and instead market or promote products and services,” the FTC said. “Therefore, the emails must provide consumers with a way to unsubscribe from receiving future messages.”
In addition to the $650,000 penalty, the agency said the proposed order prohibits ECS from sending marketing emails that fail to offer a mechanism to opt out of such messages. The order must be approved by a federal court before it can go into effect.
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