On January 7, the Federal Trade Commission (FTC) announced that it had agreed to a settlement with a company that collected and generated leads for financial services products. In its simultaneously-filed complaint in the U.S. District court for the Central District of California, the FTC alleged that the company collected consumer data through a network of websites, but then it sold that sensitive financial information (including social security numbers and bank account information) to companies that did not make loans, in violation of the Federal Trade Commission Act (FTCA). Additionally, the FTC alleged the company violated the Fair Credit Reporting Act (FCRA) by obtaining and reselling credit score-related information with proper consent.
The companies entered a settlement with the FTC and agreed to a civil penalty of $1.5 million. Additionally, the companies agreed to a prohibition on making misleading statements to consumers, specifically including statements about how any personal data or information will be used, among other restrictions and limitations.
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