The FTC filed a complaint against MyLife.com, Inc. and its CEO for deceiving consumers with 'teaser background reports' that falsely claimed to include criminal and arrest records, and for violating the Fair Credit Reporting Act by failing to ensure accuracy and permissible purpose. The company also engaged in misleading billing practices under the Restore Online Shoppers’ Confidence Act and Telemarketing Sales Rule.
In-house legal teams should review all agreements where MyLife.com acts as a data provider or consumer reporting agency. Focus on vendor agreements with data sources to ensure they include robust accuracy and update obligations, and customer/subscriber agreements for compliance with the Fair Credit Reporting Act (FCRA). Key clauses to scrutinize are those defining 'consumer report,' establishing permissible purpose certifications, detailing accuracy procedures, and governing data sourcing. For billing practices under ROSCA and the Telemarketing Sales Rule, review auto-renewal terms, negative option marketing disclosures, and cancellation mechanisms. Required changes may include: (1) amending customer agreements to clearly disclose that 'teaser' reports may not contain the claimed criminal/arrest records, (2) strengthening FCRA compliance clauses with explicit accuracy and dispute resolution protocols, and (3) revising billing terms to provide clear, conspicuous disclosures of auto-renewal terms and easy cancellation methods.
Entity
MyLife.com, Inc.
Also known as: MyLife.com
Industry
Data BrokerOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2020/07/ftc-alleges-california-purveyor-background-reports-misled-consumers-think-its-reports-individuals
us v. mylife.com inc and jeffrey tinsley 2 20 cv 06692 0
https://www.ftc.gov/system/files/documents/cases/us_v._mylife.com_inc_and_jeffrey_tinsley_2_20-cv-06692_0.pdf
united states files complaint stop deceptive and improper sa
https://www.justice.gov/opa/pr/united-states-files-complaint-stop-deceptive-and-improper-sales-consumer-background-reports
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"MyLife.com, Inc."
"Fair Credit Reporting Act (FCRA)"
"Restore Online Shoppers’ Confidence Act"
"Telemarketing Sales Rule"
"failing to maintain reasonable procedures to verify how its reports would be used, to ensure the information was accurate, and to make sure that the information it sold would be used only for legally permissible purposes."
$33.9M
The FTC and DOJ settled with MyLife.com, Inc. and its CEO for deceiving consumers with misleading background reports that falsely implied criminal records and for engaging in difficult-to-cancel subscription practices. MyLife violated the Fair Credit Reporting Act, Restore Online Shoppers’ Confidence Act, and Telemarketing Sales Rule. The settlement includes a permanent ban on negative option marketing, $33.9 million in judgments for consumer refunds, and a monitoring program.
The FTC referred a complaint against REPS & Company Inc. and company executives, alleging they bypassed ticket-issuer security controls and purchasing limits to acquire millions of tickets for resale. The complaint was filed by the Department of Justice, and the case will be decided by the court; the press release does not report a penalty or other remedy imposed.
The FTC sued Digital Forensics Corporation LLC and affiliated defendants, alleging they misled sextortion victims with promises of investigative and monitoring services that often were not provided, and used fake positive reviews. A federal court granted the FTC’s request to temporarily halt the defendants’ activities; the complaint remains for the court to decide.
The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.
The FTC sent warning letters to 24 large healthcare services companies, cautioning that incomplete, inaccurate, or untimely pricing information for scheduled medical care may be unfair or deceptive. The letters urge recipients to review their price-disclosure practices and take corrective action; they announce no fine or formal order.
$1.9M
The FTC alleged that Premier Franchising Group LLC and Franchise Fastlane LLC made deceptive and unsubstantiated claims about the Premier Martial Arts franchise opportunity and violated the Franchise Rule. The proposed settlements require the companies to pay a combined $1.85 million to compensate franchisees, prohibit certain misrepresentations, and require Franchise Rule compliance; certain franchisees may also cancel their agreements without penalty.