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FTC Charges Consumerinfo.com Over Fees
David Utter
Staff Writer
2007-02-22
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For the second time in less than two years, Consumerinfo's website has run afoul of the Federal Trade Commission.
 | | FTC Charges Consumerinfo.com Over Fees |  |
The FTC nailed Consumerinfo.com again for its disclosure practices. The website purports to offer consumers a "free credit report" but doesn't adequately inform customers they are going to be charged an annual membership for a year of credit monitoring too.
It means Consumerinfo.com, which does business as Experian Consumer Direct, will have to write another six-figure check to the government, for $300,000. This time they are violating an August 2005 settlement where their deceptive practices drew FTC attention.
That investigation ended with a $950,000 settlement, and an agreement not to violate FTC terms dictating they not make deceptive or misleading claims, or fail to make clear and conspicuous terms and conditions available for their offers.
But Consumerinfo.com broke those terms in the FTC's view, and didn't wait long to do so. Documents filed in US District Court for the Central District of California said Consumerinfo.com ran TV commercials in September and October 2005. Those ads did not contain disclosures as required by the August 31st, 2005 settlement:
The FTC alleged that Consumerinfo's advertising and Web sites failed to explain adequately that after the free trial period for the credit-monitoring service expired, consumers automatically would be charged a $79.95 annual membership, unless they notified the defendant within 30 days to cancel the service.
Consumerinfo billed the credit cards that it had told consumers were "required only to establish your account" and, in some cases, automatically renewed memberships by re-billing consumers without notice.
As mandated by law, Americans are entitled to a free credit report once per year. Information about that may be found at the FTC website. The FTC also reminded people that if they ordered a credit report from Consumerinfo.com or Freecreditreport.com between November 1, 2000 and September 15, 2003, they could be entitled to a refund.
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Tags: FTC, Consumerinfo.com
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About the Author:
David Utter is a business and technology writer for SecurityProNews and WebProNews.
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