Federal Trade Commission (FTC) staff have issued warnings to website operators that sell Employer Identification Number (EIN) services. The warning highlights potential violations of the FTC Act and the Impersonation Rule, which prohibit misrepresenting affiliation with government agencies. These services charge consumers up to $300 per EIN, a number that can be obtained free of cost directly from the Internal Revenue Service (IRS) website.
"Impersonating the government is unlawful, period," said Chris Mufarrige, Director of the Bureau of Consumer Protection. "The FTC is warning businesses that sell services the government provides to review their websites and advertisements for symbols and words that mislead consumers."
The FTC staff letters cite consumer complaints indicating that some website operators use misleading practices to suggest affiliation with the IRS. These practices include using IRS-like seals, logos, and formatting; incorporating the acronym "IRS" in domain names; using terms like "IRS" or "EIN Assistant" prominently; and failing to disclose clearly that their services are not directly associated with the IRS or any government website.
Consumers noted that the service fees charged by these operators were not sufficiently disclosed, even though the IRS offers EINs for free. Legal actions may follow any violations of the FTC Act and Impersonation Rule. Violators may face civil penalties of up to $53,088 per violation and might be required to provide refunds to consumers.
The letters suggest no current legal breaches by recipients but advise operators to reassess their marketing practices—including online ads, website content, and promotional materials—to ensure compliance.
In recent years, the FTC has pursued legal measures against deception of this nature in cases including FTC v. Superior Servicing LLC, FTC v. Panda Benefit Services, LLC, FTC v. DOTAuthority.com, Inc., and FTC v. Forms Direct, Inc.
The FTC is committed to fostering competition and safeguarding consumers. The agency emphasizes it will never demand money or make threats, nor ask for money transfers, or promise prizes. Consumer topics and ways to report fraud can be accessed through consumer.ftc.gov and ReportFraud.ftc.gov.
