Lead Generator to Pay FTC $1.5 Million over Deceptive Solicitations

The Federal Trade Commission (FTC) recently announced that a California based lead generator, which had collected sensitive information from millions of consumers under the guise of connecting them with lenders, will pay $1.5 million in civil penalties and face restrictions on selling consumers’ personal information.

The FTC complaint alleged that the lead generator operated hundreds of websites that enticed consumers to share sensitive financial information, including bank accounts and social security numbers.  The lead generator sold that information to third-parties, including marketing companies, which the FTC said put consumers at risk of identity theft and scams.

The FTC further alleged that the obtaining and selling of consumer credit scores violated the Fair Credit Reporting Act (FCRA) by obtaining and reselling consumers’ credit scores without a permissible purpose.

The lead generator agreed to a settlement with the FTC that, in addition to a $1.5 million civil penalty, includes a prohibition on making misleading statements to consumers about how personal information will be used, and limitations on the selling of consumers’ data.

In May 2020, WBK covered the FTC’s warning to the same company here.