Business credit reporting company Dun & Bradstreet has agreed to pay $5.7 million to settle allegations that it violated a 2022 order from the Federal Trade Commission (FTC). The FTC accused the firm of providing inaccurate information about its products before customers renewed their subscription services, leading to overcharging, and misrepresenting that purchasing fee-based products would improve business credit scores.
“Our signed orders are not suggestions,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “This settlement is another example of the Bureau’s effort to reinvigorate its fraud program and protect small businesses from deceptive and unlawful conduct.”
In 2022, the FTC found that Dun & Bradstreet had misled businesses about product value and failed to correct errors on business credit reports. That year’s settlement required D&B to inform customers of key facts before automatically renewing paid service subscriptions, banned switching subscribers into more expensive products without consent through automatic renewal, prohibited misrepresentation regarding product price or features, and mandated record-keeping for telemarketing calls.
The Department of Justice filed a proposed complaint on behalf of the FTC alleging D&B violated these terms by failing to accurately disclose product list prices in renewal notifications, allowing employees to tell potential customers that fee-based products could improve their business credit score, and not retaining necessary voice recordings for certain offers.
Under the new agreement, D&B will pay $3.7 million in consumer refunds and more than $2 million in civil penalties. The company also agreed to update its compliance measures by keeping an independent quality assurance provider to monitor telemarketing employee representations; implementing a comprehensive compliance program; requiring annual leadership certification regarding order compliance; and notifying the Commission within 60 days if there are failures related to autorenewals, trade data updates, or record retention.
The FTC commissioners voted unanimously (3-0) to refer this case for prosecution by the Department of Justice. The final order must be approved by a judge in U.S. District Court for the Middle District of Florida.
“Stipulated final orders have the force of law when approved and signed by the District Court judge,” according to the release.
The lead attorneys handling this matter for the FTC are Christopher J. Erickson and Taylor H. Bates from its Bureau of Consumer Protection.
The Federal Trade Commission states it aims to promote competition while protecting consumers through education efforts. Consumers can learn more at consumer.ftc.gov or report issues at ReportFraud.ftc.gov.
