Experian Consumer Services, a division of Experian offering consumers access to their credit information, will settle charges by paying $650,000, as mandated by the Federal Trade Commission, for allegedly sending unsolicited emails without providing recipients the option to opt out, as required by the CAN-SPAM Act, according to an Aug. 14 news release.
“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,” Director of the FTC’s Bureau of Consumer Protection Samuel Levine said in the release. “You always have the right to unsubscribe from marketing messages, and the FTC takes enforcing that right seriously.”
The FTC's Department of Justice-filed complaint asserts that Experian Consumer Services, also known as ConsumerInfo.com Inc., based in California, sent marketing offers via email to consumers after they created accounts to manage their Experian credit reports, the release reported. The emails lacked clear notice and a mechanism for recipients to decline further marketing messages, a violation of the CAN-SPAM Act, according to the complaint.
Consumers who wished to manage their Experian credit information online were required to establish an account with Experian Consumer Services. Nevertheless, after creating free membership accounts, consumers reportedly received emails promoting Experian products and services, such as Experian Boost and a free "Dark Web" scan, but these emails did not contain unsubscribe options, the release said.
Experian appended a notice at the bottom of these emails stating that the messages contained "important information about your account." Despite this claim, the complaint alleges these emails were not related to account matters but instead marketed various products and services, according to the release.
Consequently, the FTC charges the emails must include an unsubscribe option for recipients to discontinue future marketing emails. Alongside the $650,000 penalty, a proposed order will bar Experian Consumer Services from sending marketing emails that lack opt-out mechanisms. This order requires approval from a federal court before it can take effect, the release said.
The Commission voted unanimously to refer the complaint and the stipulated final order to the Department of Justice for filing. The complaint and the proposed order were submitted to the U.S. District Court for the Central District of California, the release reported.
Stipulated final orders acquire legal authority upon approval and signing by the district court judge. The FTC, through its Bureau of Consumer Protection, is handling this matter, led by Frances Kern and Elsie Kappler, according to the release.
