- The FTC reached a settlement with lead generation company ITMedia Solutions LLC and a number of related entities and individuals (collectively “ITMedia”) to resolve allegations that ITMedia used misleading marketing tactics to collect sensitive financial information from millions of consumers in violation of the FTC Act and the Fair Credit Reporting Act.
- The complaint, filed concurrently with the stipulated order, alleges that ITMedia operated hundreds of websites that prompted consumers to share sensitive financial information, including Social Security numbers and bank account information, under the guise of applying for loans. In reality, ITMedia did not connect consumers with lenders but harvested their information and sold it to other companies as marketing leads.
- Under the terms of the stipulated order, ITMedia will pay a civil money penalty of $1.5 million. In addition, among other things, ITMedia will be banned from selling consumers’ personal information except for a limited set of circumstances and will be required to establish procedures to screen those to whom ITMedia sells, transfers or discloses consumer sensitive financial information and to monitor their use of such information.
- As previously reported, in 2021, the FTC reached a $114.3 million settlement with ITMedia client Lead Express, Inc., a payday lending company, and related companies and individuals (collectively “Lead Express”) to resolve allegations that it used deceptive marketing practices and unauthorized bank withdrawals to overcharged consumers millions of dollars on payday loans.