Experian has been fined $650,000 by the Federal Trade Commission (FTC) for sending unsolicited product and marketing messages to customers who did not opt in to receive them.
According to a complaint filed by the Department of Justice on behalf of the FTC, Experian Consumer Services (ECS), also known as ConsumerInfo.com, Inc., spammed users with marketing offers after they created accounts to manage their credit reports. These emails failed to provide a way for recipients to opt out, which contravenes the CAN-SPAM Act.
“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,” stated Samuel Levine, director of the FTC’s Bureau of Consumer Protection. “You always have the right to unsubscribe from marketing messages, and the FTC takes enforcing that right seriously.”
Consumers must create an account with ECS to freeze or manage their Experian credit information online. However, the complaint alleges that these consumers received promotional emails for Experian’s services, such as those advertising Experian Boost and a free ‘Dark Web’ scan. Notably, these emails lacked an unsubscribe option for users wanting to avoid further marketing communications.
Experian claims that these emails are necessary for important account-related information; however, the complaint asserts that they instead promote various products and services unrelated to consumers’ accounts.
In addition to the $650,000 penalty, the proposed order will prevent ECS from sending marketing emails without including a means for recipients to opt out. This order must receive approval from a federal court before it can be enforced.