{ "topic": "fcra", "generated_at": "2026-03-27T00:38:02.783Z", "total_provisions": 393, "provisions": [ { "provision_number": "I", "title": "Civil Penalty", "category": "affirmative_obligation", "summary": "Defendant is ordered to pay a $35,000 civil penalty pursuant to Section 621(a) of the FCRA, with funds held in escrow by former counsel to be transferred to the Commission within 5 days of entry of the Order.", "verbatim_text": "A. Defendant is ordered to pay a civil penalty of $35,000 (thirty-five thousand dollars), pursuant to Section 621(a) of the FCRA, 15 U.S.C. § 1681s(a).\n\nCommission. Within five (5) days of entry of this Order, Mr. McKnight shall transfer the sum to the Commission by electronic funds transfer in accordance with instructions previously provided by a representative of the Commission.\n\nC. Defendant relinquishes all dominion, control, and title to the amount paid pursuant to this Section I to the fullest extent permitted by law. Defendant shall make no claim to or demand return of these funds, directly or indirectly, through counselor otherwise.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "01.10_navone_gregory", "company_name": "Gregory Navone", "date_issued": "2010-01-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 628 of the Fair Credit Reporting Act, 15 U.S.C. § 1681w; and the Disposal Rule, 16 C.F.R. § 682.1 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/072-3067-navone-gregory", "docket_number": "2:08-cv-01842" }, { "provision_number": "II", "title": "Prohibited Business Activities", "category": "prohibition", "summary": "Defendant is permanently restrained from misrepresenting the privacy or security of personal information and from violating Section 628 of the FCRA or the Disposal Rule by failing to properly dispose of consumer information.", "verbatim_text": "1. Misrepresenting in any manner, expressly or by implication, the extent to which the privacy, confidentiality, or integrity of any personal information collected from or about consumers is maintained or protected; and\n\n2. Violating Section 628 of the FCRA or the Disposal Rule, including, but not limited to, by maintaining or otherwise possessing consumer information for a business purpose and failing to properly dispose of such information by taking reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Prohibition" ], "case_id": "01.10_navone_gregory", "company_name": "Gregory Navone", "date_issued": "2010-01-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 628 of the Fair Credit Reporting Act, 15 U.S.C. § 1681w; and the Disposal Rule, 16 C.F.R. § 682.1 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/072-3067-navone-gregory", "docket_number": "2:08-cv-01842" }, { "provision_number": "III", "title": "Required Information Security Program", "category": "affirmative_obligation", "summary": "Defendant must establish, implement, and maintain a comprehensive written information security program for any business he controls that collects, maintains, or stores personal information from consumers, including specific administrative, technical, and physical safeguards.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant, for himself and for any business entity that he controls, directly or indirectly, if he or such business entity collects, maintains, or stores personal information from or about consumers, shall, no later than the date of entry of this Order, establish and implement, and thereafter maintain, a comprehensive information security program that is designed to protect the security, confidentiality, and integrity of personal information collected from or about consumers. Such program, the content and implementation of which must be fully documented in writing, shall contain administrative, technical, and physical safeguards appropriate to Defendant or the entity's size and complexity, the nature and scope of Defendant or the entity's activities, and the sensitivity of the personal information collected from A. The designation of an employee or employees to coordinate and be accountable for the information security program.\n\nB. The identification of material internal and external risks to the security, confidentiality, and integrity of personal information that could result in the unauthorized disclosure, misuse, loss, alteration, destruction, or other compromise of such information, and Page 6 of 17 Case 2:08-cv-01842-KJD-LRL Document 41 Filed 12/30/09 Page 7 of 17 the assessment of the sufficiency of any safeguards in place to control these risks. At a minimum, this risk assessment should include consideration of the risks in each relevant area of operations, including, but not limited to: (1) employee training and management; (2) information systems, including network and software design, information processing, storage, transmission, and disposal; and (3) prevention, detection, and response to attacks, intrusions, or other system failures.\n\nC. The design and implementation of reasonable safeguards to control the risks identified through risk assessment, and regular testing and monitoring of the effectiveness of the safeguards' key controls, systems, and procedures.\n\nD. The development and use of reasonable steps to select and retain service providers capable of appropriately safeguarding personal information received from Defendant or the entity, and requiring service providers by contract to implement and maintain appropriate safeguards.\n\nE. The evaluation and adjustment of the information security program in light of the results of the testing and monitoring required by Paragraph C of this Section III, any material changes to operations or business arrangements, or any other circumstances that Defendant or the entity knows or has reason to know may have a material impact on the effectiveness of the IV. ASSESSMENT REQUIREMENTS", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Comprehensive Security Program" ], "case_id": "01.10_navone_gregory", "company_name": "Gregory Navone", "date_issued": "2010-01-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 628 of the Fair Credit Reporting Act, 15 U.S.C. § 1681w; and the Disposal Rule, 16 C.F.R. § 682.1 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/072-3067-navone-gregory", "docket_number": "2:08-cv-01842" }, { "provision_number": "IV", "title": "Assessment Requirements", "category": "assessment", "summary": "Defendant must obtain initial and annual third-party assessments of his information security program for 10 years, with each assessment certifying the sufficiency of safeguards, prepared by a qualified professional and submitted to or retained for the FTC.", "verbatim_text": "shall obtain initial and annual assessments and reports (,'Assessments\") from a qualified, objective, independent third-party professional who uses procedures and standards generally accepted in the profession, provided, hOlvever, that Defendant shall not be required to obtain such Assessmentsfi)r himse(fif the personal information that he collects, maintains, or stores from or about consumers is limited to a first and last name; a home or other physical address, including street name and name of city or town; a telephone number; and/or an email address or other online contact information, such as an instant messaging user identifier or a screen name, that reveals a consumer's email address (,'directory information\"). ]f Defendant, for himself, collects, maintains or stores personal information from or about a consumer other than directory information, Defendant is required to obtain Assessments as described in this Section IV with respect to that personal information and any directory information from or about the same consumer only. The reporting period for the Assessments shall cover: (1) the first one hundred and eighty (180) days after entry of the Order for the initial Assessment; and (2) each one-year period thereafter for ten (10) years after entry of the Order for the annual Assessments. Each Assessment shall:\n\nI. Set forth the specific administrative, technical, and physical safeguards implemented and maintained during the reporting period;\n\n2. Explain how such safeguards are appropriate to Defendant's or the entity's size and complexity, the nature and scope of the Defendant's or the entity's activities, and the sensitivity of the personal information collected from or about consumers;\n\n3. Explain how the safeguards that have been implemented meet or exceed the protections required by Section 628 of the FCRA, the Disposal Rule, and Section III of this Order; and\n\n4. Certify that the information security program is operating with sufficient effectiveness to provide reasonable assurance that the security, confidentiality, and integrity of personal information is protected and, for annual reports, has so operated throughout the reporting period.\n\nB. Each Assessment shall be prepared and completed within sixty (60) days after the end of the reporting period to which the Assessment applies by: a person qualified as a Certified Information System Security Professional (CISSP) or as a Certified Information Systems Auditor (CISA); a person holding Global Information Assurance Certification (GIAC) from the SysAdmin, Audit, Network, Security (SANS) Institute; or a similarly qualified person or organization approved by the Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission.\n\nC. Defendant shall provide the initial Assessment to the Associate Director for Enforcement, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Room NJ-2122, Washington, D.C. 20580, within ten (10) business days after the Assessment has been prepared. All subsequent annual Assessments shall be retained by the individual or the entity to which the Assessment pertains until three (3) years after completion of the final Assessment and provided to the Associate Director of Enforcement upon request within ten (10) business days of receipt of such request", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Third-Party Assessment" ], "case_id": "01.10_navone_gregory", "company_name": "Gregory Navone", "date_issued": "2010-01-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 628 of the Fair Credit Reporting Act, 15 U.S.C. § 1681w; and the Disposal Rule, 16 C.F.R. § 682.1 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/072-3067-navone-gregory", "docket_number": "2:08-cv-01842" }, { "provision_number": "V", "title": "Compliance Monitoring", "category": "monitoring", "summary": "Defendant must cooperate with FTC monitoring efforts, including submitting written reports, producing documents, appearing for deposition, and providing entry to business locations within 10 days of written notice; the Commission may also conduct undercover investigations and discovery.", "verbatim_text": "A. Within ten (10) days of receipt of written notice from a representative of the Commission, Defendant shall submit additional written reports, which are true and accurate and sworn to under penalty of perjury; produce documents for inspection and copying; appear for deposition; provide entry during normal business hours to any business location in Defendant's possession or direct or indirect control to inspect the business operation; and provide entry during normal business hours to any other location possessed or directly or indirectly controlled by Defendant where consumer personal information is maintained to inspect the location.\n\nB. In addition, the Commission is authorized to use all other lawful means, including, but not limited to: 1. Obtaining discovery from any person, without further leave of Court, using the procedures prescribed by Fed. R. Civ. P. 30, 31,33,34,36,45,69; and 2. Posing as consumers and suppliers to Defendant, his employees, or any other entity managed or controlled in whole or in part by Defendant, without the necessity of identification or prior notice.\n\nC Defendant shall permit representatives of the Commission to interview any employer, consultant, independent contractor, representative, agent, officer or employee who has agreed to such an interview, relating in any way to any conduct subject to this Order. The person interviewed may have counsel present.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "01.10_navone_gregory", "company_name": "Gregory Navone", "date_issued": "2010-01-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 628 of the Fair Credit Reporting Act, 15 U.S.C. § 1681w; and the Disposal Rule, 16 C.F.R. § 682.1 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/072-3067-navone-gregory", "docket_number": "2:08-cv-01842" }, { "provision_number": "VI", "title": "Compliance Reporting by Defendant", "category": "compliance_reporting", "summary": "For five years, Defendant must notify the FTC of changes in residence, employment, business structure, and name; file sworn compliance reports every 180 days and annually; and notify the FTC of any bankruptcy filing within 15 days.", "verbatim_text": "A. For a period of five (5) years from the date of entry of this Order, I. Defendant shall notify the Commission of the following: (a) Any changes in Defendant's residence, mailing addresses. and/or telephone numbers, within ten (l0) days of the date of such change:\n\n(b) Any changes in Defendant's employment status (including self- employment), and any changes in his ownership in any business entity, within ten (10) days of the date of such change. Such notice shall include: the name and address of each business that Defendant is affiliated with, employed by, creates or forms, incorporates, or performs services for; a detailed description of the nature of the business; and a detailed description of Defendant's duties and responsibilities in connection with the business or employment; and\n\n(c) Any changes in Defendant's name or use of any aliases or fictitious names, including \"doing business as\" names.\n\n2. Defendant shall notify the Commission of any changes in the structure of any business entity that Defendant directly or indirectly controls, or has an ownership interest in, that may affect compliance obligations arising under this Order, including but not limited to: incorporation or other organization; a dissolution, assignment, sale, merger, or other action; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices Page II of 17 Case 2:08-cv-01842-KJD-LRL Document 41 Filed 12/30/09 Page 12 of 17 that are subject to this Order; or a change in the business name or address, at least thirty (30) days prior to such change, provided that. with respect to any proposed change in the business entity about which the Defendant learns less than thirty (30) days prior to the date such action is to take place, Defendant shall notify the Commission as soon as is practicable after obtaining such knowledge.\n\nB. One hundred eighty (180) days after the date of entry of this Order and annually thereafter for a period of five (5) years, Defendant shall provide a written report to the Commission, which is true and accurate and sworn to under penalty of perjury, setting forth in detail the manner and form in which he has complied and is complying with this Order. This report shall include, but not be limited to: 1. Defendant's then-current residence address, mailing addresses, and telephone numbers; 2. Defendant's then-current employment status (including self-employment), including the name, addresses, and telephone numbers of each business that Defendant is affiliated with, employed by, or performs services for; a detailed description of the nature of the business: and a detailed description of Defendant's duties and responsibilities in connection with the business or employment; 3. A copy of each acknowledgment of receipt of this Order obtained pursuant to Section VIII of this Order; and 4. Any other changes required to be reported under Paragraph A of this Section VI.\n\nC. Defendant shall notify the Commission of the filing of a bankruptcy petition by Defendant within fifteen (15) days of filing.\n\nD. For the purposes of this Order, Defendant shall, unless otherwise directed by the Commission's authorized representatives, send by overnight courier all reports and notifications required by this Order to the Commission, to the following address: Associate Director for Enforcement Federal Trade Commission 600 Pennsylvania Avenue, N.W., Room NJ-2122 Washington, D.C. 20580 RE: FTC v. Gregory Navone Provided that. in lieu of overnight courier, Defendant may send such reports or notifications by first-class mail, but only if Defendant contemporaneously sends an electronic version of such report or notification to the Commission at: =-.:.~'-=~='-\"\"'-~", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "01.10_navone_gregory", "company_name": "Gregory Navone", "date_issued": "2010-01-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 628 of the Fair Credit Reporting Act, 15 U.S.C. § 1681w; and the Disposal Rule, 16 C.F.R. § 682.1 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/072-3067-navone-gregory", "docket_number": "2:08-cv-01842" }, { "provision_number": "VII", "title": "Record Keeping", "category": "recordkeeping", "summary": "Defendant must create and retain specified records for eight years, including documents contradicting compliance, consumer complaints, law enforcement communications, and all compliance records; assessment-related materials must be retained for three years after each assessment.", "verbatim_text": "A. F or a period of eight (8) years from the date of entry of this Order: I. All documents that contradict, qualify, or call into question compliance with this Order;\n\n2. All consumer complaints (whether received in written or electronic form, directly, indirectly or through any third party), and all responses to such complaints, whether in Page 13 of 17 Case 2:08-cv-01842-KJD-LRL Document 41 Filed 12/30/09 Page 14 of 17 written or electronic form, that relate to the aetivities as alleged in the Complaint and/or compliance with the provisions of this Order;\n\n3. Copies of all subpoenas and other communications with law enforcement entities or personnel, whether in written or electronic form, if such documents bear in any respect on the collection, maintenance, or storage of consumer reports or other personal information from or about consumers; and\n\n4. All records and documents necessary to demonstrate full compliance with each provision of this Order, including but not limited to, copies of acknowledgments of receipt of this Order required by Sections VIII and IX, and all reports submitted to the Commission pursuant to Section VI.\n\nB. F or a period of three (3) years after the date of preparation of each Assessment required under Section IV of this Order, all materials, whether prepared by or on behalf of Defendant, relied upon to prepare the Assessment, including but not limited to all plans, reports, studies, reviews, audits, audit trails, policies, training materials, work papers, and assessments, and any other materials relating to compliance with Section III of this Order for the compliance period covered by such Assessment.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Recordkeeping" ], "case_id": "01.10_navone_gregory", "company_name": "Gregory Navone", "date_issued": "2010-01-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 628 of the Fair Credit Reporting Act, 15 U.S.C. § 1681w; and the Disposal Rule, 16 C.F.R. § 682.1 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/072-3067-navone-gregory", "docket_number": "2:08-cv-01842" }, { "provision_number": "VIII", "title": "Distribution of Order by Defendant", "category": "acknowledgment", "summary": "For three years from entry, Defendant must deliver copies of this Order to principals, officers, managers, and supervisory employees of any business entity he controls that handles personal information, and to principals and managers of businesses where he oversees privacy policies, and must obtain signed receipts within 30 days.", "verbatim_text": "IT IS FURTHER ORDERED that for a period of three (3) years from the date of entry of this order, Defendant shall deliver copies of this Order as directed below: A. For any business entity that Defendant controls, directly or indirectly, which collects, maintains, or stores personal information from or about consumers, Defendant must deliver a copy of this Order to (1) all of its principals, officers, directors, and managers, (2) all employees, agents, and representatives of that business who have supervisory responsibilities Page 14 of 17 Case 2:08-cv-01842-KJD-LRL Document 41 Filed 12/30/09 Page 15 of 17 related to the business's compliance with the Order, and (3) any business entity resulting from any change in structure set forth in Section VI(A)(2) of this Order. For current personnel. delivery shall be within (5) days of entry of this Order. For new personnel, delivery shall occur prior to them assuming their responsibilities. For any business entity resulting from any change in structure set forth in Section VI(A)(2) of this Order, delivery shall be at least ten (10) days prior to the change in structure.\n\nB. For any business that collects, maintains, or stores personal information from or about consumers, where Defendant is not a controlling person of the business but he otherwise has responsibility, in whole or in part, for developing or overseeing the implementation of policies and procedures to protect the privacy, security, confidentiality, and integrity of personal information collected from or about consumers by the business, including in connection with its disposal, Defendant must deliver a copy of this Order to all principals and managers of such business before engaging in such conduct.\n\nC. Defendant must secure a signed and dated statement acknowledging receipt of the Order, within thirty (30) days of delivery, from all persons receiving a copy of the Order pursuant to this Section VIII.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Order Administration" ], "case_id": "01.10_navone_gregory", "company_name": "Gregory Navone", "date_issued": "2010-01-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 628 of the Fair Credit Reporting Act, 15 U.S.C. § 1681w; and the Disposal Rule, 16 C.F.R. § 682.1 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/072-3067-navone-gregory", "docket_number": "2:08-cv-01842" }, { "provision_number": "IX", "title": "Acknowledgment of Receipt of Order by Defendant", "category": "acknowledgment", "summary": "Defendant must personally submit a sworn statement to the Commission acknowledging receipt of this Order within five business days of receipt.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant, within five (5) business days of receipt of this Order as entered by the Court, must submit to the Commission a truthful sworn statement acknowledging receipt of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Order Administration" ], "case_id": "01.10_navone_gregory", "company_name": "Gregory Navone", "date_issued": "2010-01-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 628 of the Fair Credit Reporting Act, 15 U.S.C. § 1681w; and the Disposal Rule, 16 C.F.R. § 682.1 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/072-3067-navone-gregory", "docket_number": "2:08-cv-01842" }, { "provision_number": "X", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of the Order.", "verbatim_text": "IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Order Administration" ], "case_id": "01.10_navone_gregory", "company_name": "Gregory Navone", "date_issued": "2010-01-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 628 of the Fair Credit Reporting Act, 15 U.S.C. § 1681w; and the Disposal Rule, 16 C.F.R. § 682.1 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/072-3067-navone-gregory", "docket_number": "2:08-cv-01842" }, { "provision_number": "1", "title": "Granting of Joint Motion for Entry of Consent Decree", "category": "acknowledgment", "summary": "The Court grants the Joint Motion for Entry of Consent Decree (Dkt. 2) and will separately enter the Consent Decree.", "verbatim_text": "((11)) TThhee JJooiinntt MMoottiioonn ffoorr EEnnttrryy ooff CCoonnsseenntt DDeeccrreeee ((DDkktt.. 22)) iiss GGRRAANNTTEEDD.. TThhee CCoouurrtt wwiillll sseeppaarraatteellyy eenntteerr tthhee CCoonnsseenntt DDeeccrreeee..", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "01.12_asset_acceptance", "company_name": "Asset Acceptance, LLC", "date_issued": "2012-01-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. § 45(m)(1)(A); the Fair Credit Reporting Act (FCRA), 15 U.S.C. §§ 1681-1681x; and the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §§ 1692-1692p", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/052-3133-asset-acceptance-llc", "docket_number": "8:12-cv-00182-JDW-EAJ" }, { "provision_number": "2", "title": "Closure of Case", "category": "acknowledgment", "summary": "The Clerk is directed to close the case.", "verbatim_text": "((22)) TThhee CClleerrkk iiss ddiirreecctteedd ttoo CCLLOOSSEE tthhiiss ccaassee..", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "01.12_asset_acceptance", "company_name": "Asset Acceptance, LLC", "date_issued": "2012-01-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. § 45(m)(1)(A); the Fair Credit Reporting Act (FCRA), 15 U.S.C. §§ 1681-1681x; and the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §§ 1692-1692p", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/052-3133-asset-acceptance-llc", "docket_number": "8:12-cv-00182-JDW-EAJ" }, { "provision_number": "I", "title": "Civil Penalty", "category": "affirmative_obligation", "summary": "Defendants must pay a civil penalty of $3,500,000 to the United States within seven days of entry of this Order.", "verbatim_text": "Defendants are ordered to pay Plaintiff, by making payment to the Treasurer of the United States, three million five hundred thousand dollars ($3,500,000) within seven (7) days of entry of this Order by electronic fund transfer in accordance with instructions previously provided by a representative of Plaintiff.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "01.14_telecheck_services", "company_name": "TeleCheck Services, Inc.", "date_issued": "2014-01-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3183-telecheck-services-inc", "docket_number": "14cv00062" }, { "provision_number": "II", "title": "Additional Monetary Provisions", "category": "affirmative_obligation", "summary": "If Defendants default on payment obligations, the judgment amount becomes immediately due with interest. Defendants relinquish all rights to assets transferred under this Order.", "verbatim_text": "A. If Defendants are in default on any obligations under this Section, then the judgment amount, together with interest computed pursuant to 28 U.S.C. § 1961 from the date of default to the date of payment, minus any payments previously made pursuant to this Section, becomes immediately due.\n\nB. Defendants relinquish dominion and all legal and equitable right, title, and interest in all assets transferred pursuant to this Order and may not seek the return of any assets.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Consumer Redress" ], "case_id": "01.14_telecheck_services", "company_name": "TeleCheck Services, Inc.", "date_issued": "2014-01-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3183-telecheck-services-inc", "docket_number": "14cv00062" }, { "provision_number": "III", "title": "Prohibited Business Activities as to TeleCheck", "category": "prohibition", "summary": "TeleCheck is permanently restrained from violating FCRA sections 611 and 607(b) in connection with its activities as a consumer reporting agency.", "verbatim_text": "1. Requiring the consumer to contact a third party directly to resolve a dispute over the completeness or accuracy of any item of information contained in the consumer's file;\n\n2. Imposing limitations or conditions before conducting a reinvestigation unless such limitations or conditions are expressly allowed by the FCRA;\n\n3. Failing to complete reinvestigations of disputes within 30 days or, if TeleCheck receives information from the consumer during that 30-day period that is relevant to the reinvestigation, within 45 days, and failing to adequately track the handling and resolution of consumer disputes to ensure their timely resolution;\n\n4. Failing to provide, before the expiration of the 5-business-day period beginning on the date on which TeleCheck receives notice of a dispute from any consumer, notification of the dispute to any person who provided any item of information in dispute, at the address and in the manner established with the person, which includes all relevant information regarding the dispute that TeleCheck has received from the consumer;\n\n5. Failing to notify the consumer, within 5 business days, by mail or other means authorized by the consumer for that purpose, when it has terminated a reinvestigation of information disputed by a consumer, because it reasonably determined that the consumer's dispute was frivolous or irrelevant;\n\n6. After conducting a reinvestigation of any information disputed by a consumer and finding that an item of information is inaccurate, incomplete, or cannot be verified, failing to: i. promptly delete or modify an item of information from the consumer's file, as appropriate, based on the results of the reinvestigation; and ii. promptly notify the furnisher of that information that the information has been modified or deleted from the consumer's file;\n\n7. Failing to maintain reasonable procedures designed to prevent the reappearance in a consumer's file, and in consumer reports on the consumer, of information that is deleted pursuant to a reinvestigation;\n\n8. Failing to provide written notice to a consumer of the results of a reinvestigation not later than five (5) business days after the completion of the reinvestigation;\n\nB. Failing to comply with section 607(b) ofthe FCRA, 15 U.S.C. § 1681e(b), a copy of which is attached as Exhibit C, including by failing to promptly delete or modify an item of information from the consumer's file after conducting a reinvestigation and finding that an item of information was inaccurate or unverifiable.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "01.14_telecheck_services", "company_name": "TeleCheck Services, Inc.", "date_issued": "2014-01-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3183-telecheck-services-inc", "docket_number": "14cv00062" }, { "provision_number": "IV", "title": "Prohibited Business Activities as to TRS", "category": "prohibition", "summary": "TRS is permanently restrained from failing to comply with the Furnisher Rule, including by failing to consider the guidelines in 12 C.F.R. § 1022, subpart E, in TRS's written policies and procedures.", "verbatim_text": "A. Failing to comply with 12 C.P.R.§ 1022.42, a copy of which is attached as Exhibit D, including by failing to consider the guidelines in 12 C.P.R.§ 1022, subpart E, in TRS' s written policies and procedures.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "01.14_telecheck_services", "company_name": "TeleCheck Services, Inc.", "date_issued": "2014-01-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3183-telecheck-services-inc", "docket_number": "14cv00062" }, { "provision_number": "V", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendants must submit acknowledgments of receipt of this Order and deliver copies to personnel and business entities for five years.", "verbatim_text": "A. Each Defendant, within seven (7) days of entry of this Order, must submit to the Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.\n\nB. For five (5) years after entry of this Order, each Defendant for any business that such Defendant, individually or collectively with any other Defendant, is the majority owner or controls directly or indirectly, must deliver a copy of this Order to: (1) all principals, officers, directors, and LLC managers and members; (2) all employees, agents, and representatives who participate in conduct related to the subject matter of the Order; and (3) any business entity resulting from any change in structure as set forth in the Section titled Compliance Reporting. Delivery must occur within seven (7) days of entry of this Order for current personnel. For all others, delivery must occur before they assume their responsibilities.\n\nC. From each individual or entity to which a Defendant delivered a copy of this Order, that Defendant must obtain, within thirty (30) days, a signed and dated acknowledgment of receipt of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "01.14_telecheck_services", "company_name": "TeleCheck Services, Inc.", "date_issued": "2014-01-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3183-telecheck-services-inc", "docket_number": "14cv00062" }, { "provision_number": "VI", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendants must submit compliance reports and notices to the Commission at specified intervals and upon certain triggering events.", "verbatim_text": "A. One hundred eighty (180) days after entry of this Order, each Defendant must submit a compliance report, sworn under penalty of perjury. Each Defendant must: (I) identify the primary physical, postal, and email address and telephone number, as designated points of contact, which representatives of the Commission or Plaintiff may use to communicate with Defendant; (2) identify all of that Defendant's businesses by all of their names, primary telephone numbers, and physical, postal, email, and Internet addresses; (3) describe the activities of each business, including the products and services offered, the means of consumer reporting and debt collection, and, the involvement of any other Defendant; (4 ) describe in detail whether and how that Defendant is in compliance with each Section of this Order; and (5) provide a copy of each Order Acknowledgment obtained pursuant to this Order, unless previously submitted to the Commission.\n\nB. For ten (1 0) years after entry of this Order, each Defendant must submit a compliance notice, sworn under penalty of perjury, within fourteen (14) days of any change in the following: (1) any designated point of contact; or (2) the structure of Defendant or any entity that Defendant has any ownership interest in or directly or indirectly controls that may affect compliance obligations arising under this Order, including: creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages in any acts or practices of subject to this Order.\n\nC. Each Defendant must submit to the Commission notice of the filing of any bankruptcy petition, insolvency proceeding, or any similar proceeding by or against such Defendant within fourteen ( 14) days of its filing.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "01.14_telecheck_services", "company_name": "TeleCheck Services, Inc.", "date_issued": "2014-01-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3183-telecheck-services-inc", "docket_number": "14cv00062" }, { "provision_number": "VII", "title": "Recordkeeping Provisions", "category": "recordkeeping", "summary": "Defendants must create and retain records for specified periods, including accounting records, personnel records, consumer complaints, training materials, dispute files, and compliance records.", "verbatim_text": "IT IS FURTHER ORDERED that Defendants must create certain records for ten (10) years after entry of the Order, and retain each such record for five (5) years. Specifically, Defendants, in connection with providing consumer reports, must create and retain the following records: A. Accounting records showing the revenues from all goods or services sold, all costs incurred in generating those revenues, and the resulting net profit or loss; B. Personnel records showing, for each person providing services, whether as an employee or otherwise, that person's: name, addresses, and telephone numbers; job title or position; dates of service; and, (if applicable) the reason for termination; C. Consumer complaints, whether received directly or indirectly, such as through a third party, and any response; D. Copies of all training materials and written policies and procedures that relate to Defendants' activities in consumer reporting or debt-collection or Defendants' compliance with the provisions of this Order; 9 Case 1:14-cv-00062-CKK Document 3 Filed 01/17/14 Page 10 of 30 E. Consumer dispute files that include correspondence between consumers and Defendants, and correspondence between Defendants and furnishers of disputed information, sufficient to demonstrate compliance with section 611 of the FCRA, 15 U.S.C. § 1681, a copy of which is attached as Exhibit B; and F. All records and documents necessary to demonstrate full compliance with each provision of this Order, including all submissions to the Commission.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "01.14_telecheck_services", "company_name": "TeleCheck Services, Inc.", "date_issued": "2014-01-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3183-telecheck-services-inc", "docket_number": "14cv00062" }, { "provision_number": "VIII", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The Commission and Plaintiff are authorized to monitor Defendants' compliance through various means including requesting documents, depositions, interviews, and posing as consumers.", "verbatim_text": "A. Within fourteen ( 14) days of receipt of a written request from a representative of Commission or Plaintiff, each Defendant must: submit additional compliance reports or other requested information, which must be sworn under penalty of perjury; appear for depositions; and produce documents for inspection and copying. The Commission and Plaintiff are also authorized to obtain discovery, without further leave of court, using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69, provided that Defendant, after attempting to resolve a dispute without court action and for good cause shown, may file a motion with this Court seeking an order including one or more of the protections set forth in Rule 26( c).\n\ncommunicate directly with each Defendant. Defendants must permit representatives of the Commission and Plaintiff to interview any employee or other person affiliated with any Defendant who has agreed to such an interview. The person interviewed may have counsel present.\n\nC. The Commission and Plaintiff may use all other lawful means, including posing, through its representatives, as consumers, suppliers, or other individuals or entities, to Defendants or any individual or entity affiliated with Defendants, without the necessity of identification or prior notice. Nothing in this Order limits the Commission's lawful use of compulsory process, pursuant to sections 9 and 20 ofthe FTC Act, 15 U.S.C. §§ 49, 57b-1.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "01.14_telecheck_services", "company_name": "TeleCheck Services, Inc.", "date_issued": "2014-01-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3183-telecheck-services-inc", "docket_number": "14cv00062" }, { "provision_number": "IX", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "verbatim_text": "IT IS FURTHER ORDERED that this Court retains jurisdiction ofthis matter for purposes of construction, modification, and enforcement of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "01.14_telecheck_services", "company_name": "TeleCheck Services, Inc.", "date_issued": "2014-01-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3183-telecheck-services-inc", "docket_number": "14cv00062" }, { "provision_number": "I", "title": "Prohibition Against Misrepresenting Privacy Practices", "category": "prohibition", "summary": "Defendants are permanently restrained from misrepresenting, expressly or by implication, their privacy and data security practices, including how they collect, use, transfer, and/or disclose personal information about consumers.", "verbatim_text": "IT IS ORDERED that Defendants, Defendants’ officers, agents, employees, and 5 attorneys, and all other persons in active concert or participation with any of them, who receive 6 actual notice of this Order, whether acting directly or indirectly, in connection with promoting or 7 offering for sale any good or service, are permanently restrained and enjoined from 8 9 misrepresenting, expressly or by implication, Defendants’ privacy and data security practices, 10 including whether, how, and for what purposes Defendants collect, use, transfer, and/or disclose 11 personal information about consumers.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Privacy" ], "remedy_types": [ "Prohibition" ], "case_id": "01.20_mortgage_solutions_fcs", "company_name": "Mortgage Solutions FCS, Inc.", "date_issued": "2020-01-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Privacy of Consumer Financial Information (Regulation P), 12 C.F.R. Part 1016; Standards for Safeguarding Customer Information (Safeguards Rule), 16 C.F.R. Part 314", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3199-mortgage-solutions-fcs-inc", "docket_number": "4:20-cv-00110" }, { "provision_number": "II", "title": "Injunction Concerning Using or Obtaining Consumer Reports", "category": "prohibition", "summary": "Defendants are permanently restrained from using or obtaining a Consumer Report for any purpose other than a Permissible Purpose.", "verbatim_text": "IT IS FURTHER ORDERED that Defendants and Defendants’ officers, agents, 14 15 employees, and attorneys, and all other persons in active concert or participation with any of 16 them, who receive actual notice of this Order, whether acting directly or indirectly, in connection 17 with the sale of any good or service, are hereby permanently restrained and enjoined from using 18 or obtaining a Consumer Report for any purpose other than For a Permissible Purpose.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "01.20_mortgage_solutions_fcs", "company_name": "Mortgage Solutions FCS, Inc.", "date_issued": "2020-01-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Privacy of Consumer Financial Information (Regulation P), 12 C.F.R. Part 1016; Standards for Safeguarding Customer Information (Safeguards Rule), 16 C.F.R. Part 314", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3199-mortgage-solutions-fcs-inc", "docket_number": "4:20-cv-00110" }, { "provision_number": "VIII", "title": "Annual Certification", "category": "compliance_reporting", "summary": "Defendants must annually provide the Commission with a certification from a senior corporate manager or senior officer of each Covered Business attesting to compliance with the Order, the absence of uncorrected or undisclosed material noncompliance, and describing any Covered Incidents.", "verbatim_text": "27 A. One year after the issuance date of this Order, and each year thereafter, provide the 28 Commission with a certification from a senior corporate manager, or, if no such senior corporate STIPULATED ORDED FOR CIVIL PENALTIES, Case No. 4:20-cv-00110; 18 Case 4:20-cv-00110-DMR Document 12 Filed 01/10/20 Page 19 of 30 1 manager exists, a senior officer of each Covered Business responsible for each Covered 2 3 Business’s Information Security Program that: (1) each Covered Business has established, 4 implemented, and maintained the requirements of this Order; (2) each Covered Business is not 5 aware of any material noncompliance that has not been (a) corrected or (b) disclosed to the 6 Commission; and (3) includes a brief description of any Covered Incident. The certification 7 must be based on the personal knowledge of the senior corporate manager, senior officer, or 8 9 subject matter experts upon whom the senior corporate manager or senior officer reasonably 10 relies in making the certification.\n\nB. Unless otherwise directed by a Commission representative in writing, submit all annual 12 certifications to the Commission pursuant to this Order via email to DEbrief@ftc.gov or by 13 overnight courier (not the U.S. Postal Service) to Associate Director for Enforcement, Bureau of 14 15 Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, 16 DC 20580. The subject line must begin, “FTC v. Mortgage Solutions FCS, Inc., FTC File No. 17 1823199.”", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "01.20_mortgage_solutions_fcs", "company_name": "Mortgage Solutions FCS, Inc.", "date_issued": "2020-01-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Privacy of Consumer Financial Information (Regulation P), 12 C.F.R. Part 1016; Standards for Safeguarding Customer Information (Safeguards Rule), 16 C.F.R. Part 314", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3199-mortgage-solutions-fcs-inc", "docket_number": "4:20-cv-00110" }, { "provision_number": "IX", "title": "Covered Incident Reports", "category": "compliance_reporting", "summary": "Defendants must submit a report to the Commission for any Covered Business no later than ten (10) days after first notifying any government entity of a Covered Incident, including details about the incident, affected information, consumers affected, remediation steps, and copies of required notices.", "verbatim_text": "IT IS FURTHER ORDERED that Defendants, for any Covered Business, within a 20 21 reasonable time after the date of discovery of a Covered Incident, but in any event no later than 22 ten (10) days after the date the Covered Business first notifies any U.S. federal, state, or local 23 government entity of the Covered Incident, must submit a report to the Commission. The report 24 must include, to the extent possible:\n\nA. The date, estimated date, or estimated date range when the Covered Incident occurred; 26 27 B. A description of the facts relating to the Covered Incident, including the causes of the 28 Covered Incident, if known; STIPULATED ORDED FOR CIVIL PENALTIES, Case No. 4:20-cv-00110; 19 Case 4:20-cv-00110-DMR Document 12 Filed 01/10/20 Page 20 of 30 1 C. A description of each type of information that triggered the notification obligation to the 2 3 U.S. federal, state, or local government entity; 4 D. The number of consumers whose information triggered the notification obligation to the 5 U.S. federal, state, or local government entity; 6 E. The acts that the Covered Business has taken to date to remediate the Covered Incident 7 and protect Personal Information from further exposure or access, and protect affected 8 9 individuals from identity theft or other harm that may result from the Covered Incident; and 10 F. A representative copy of each materially different notice required by U.S. federal, state, 11 or local law or regulation and sent by the Covered Business or any of its clients to consumers or 12 to any U.S. federal, state, or local government entity.\n\nUnless otherwise directed by a Commission representative in writing, all Covered Incident 14 15 reports to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by 16 overnight courier (not the U.S. Postal Service) to Associate Director for Enforcement, Bureau of 17 Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, 18 DC 20580. The subject line must begin, “FTC v. Mortgage Solutions FCS, Inc., FTC File No. 19 1823199.”", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "01.20_mortgage_solutions_fcs", "company_name": "Mortgage Solutions FCS, Inc.", "date_issued": "2020-01-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Privacy of Consumer Financial Information (Regulation P), 12 C.F.R. Part 1016; Standards for Safeguarding Customer Information (Safeguards Rule), 16 C.F.R. Part 314", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3199-mortgage-solutions-fcs-inc", "docket_number": "4:20-cv-00110" }, { "provision_number": "X", "title": "Monetary Judgment for Civil Penalty", "category": "affirmative_obligation", "summary": "A civil penalty judgment of $120,000 is entered jointly and severally against Defendants, to be paid to the U.S. Treasury within 7 days of entry of this Order by electronic fund transfer.", "verbatim_text": "A. Judgment in the amount of one hundred and twenty thousand dollars ($120,000) is 24 entered in favor of Plaintiff against Individual Defendant and Corporate Defendant, jointly and 25 severally, as a civil penalty.\n\n27 B. Defendants are ordered to pay to Plaintiff, by making payment to the Treasurer of the 28 United States, one hundred and twenty thousand dollars ($120,000), which, as Defendants STIPULATED ORDED FOR CIVIL PENALTIES, Case No. 4:20-cv-00110; 20 Case 4:20-cv-00110-DMR Document 12 Filed 01/10/20 Page 21 of 30 1 stipulate, their undersigned counsel holds in escrow for no purpose other than payment to 2 3 Plaintiff. Such payment must be made within 7 days of entry of this Order by electronic fund 4 transfer in accordance with instructions previously provided by a representative of Plaintiff.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "01.20_mortgage_solutions_fcs", "company_name": "Mortgage Solutions FCS, Inc.", "date_issued": "2020-01-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Privacy of Consumer Financial Information (Regulation P), 12 C.F.R. Part 1016; Standards for Safeguarding Customer Information (Safeguards Rule), 16 C.F.R. Part 314", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3199-mortgage-solutions-fcs-inc", "docket_number": "4:20-cv-00110" }, { "provision_number": "XI", "title": "Additional Monetary Provisions", "category": "affirmative_obligation", "summary": "Defendants relinquish all rights to assets transferred under this Order; the Complaint's facts may be used as true in future proceedings; the penalty is not dischargeable in bankruptcy; and Defendants must submit their Taxpayer Identification Numbers to the Commission.", "verbatim_text": "A. Defendants relinquish dominion and all legal and equitable right, title, and interest in all 8 9 assets transferred pursuant to this Order and may not seek the return of any assets.\n\nB. The facts alleged in the Complaint will be taken as true, without further proof, in any 11 subsequent civil litigation by or on behalf of the Commission, including in a proceeding to 12 enforce its rights to any payment or monetary judgment pursuant to this Order.\n\nC. Defendants agree that the judgment represents a civil penalty owed to the government of 14 15 the United States, is not compensation for actual pecuniary loss, and, therefore, as to the 16 Individual Defendants, it is not subject to discharge under the Bankruptcy Code pursuant to 11 17 U.S.C. § 523(a)(7).\n\nD. Defendants acknowledge that their Taxpayer Identification Numbers (Social Security 19 Numbers or Employer Identification Numbers), which Defendants must submit to the 20 21 Commission, may be used for collecting and reporting on any delinquent amount arising out of 22 this Order, in accordance with 31 U.S.C. §7701.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Consumer Redress" ], "case_id": "01.20_mortgage_solutions_fcs", "company_name": "Mortgage Solutions FCS, Inc.", "date_issued": "2020-01-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Privacy of Consumer Financial Information (Regulation P), 12 C.F.R. Part 1016; Standards for Safeguarding Customer Information (Safeguards Rule), 16 C.F.R. Part 314", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3199-mortgage-solutions-fcs-inc", "docket_number": "4:20-cv-00110" }, { "provision_number": "XII", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendants must submit a sworn acknowledgment of receipt of this Order within 7 days, deliver copies to all relevant personnel and business entities within specified timeframes, and obtain signed acknowledgments within 30 days from each recipient.", "verbatim_text": "27 A. Each Defendant, within 7 days of entry of this Order, must submit to the Commission an 28 acknowledgment of receipt of this Order sworn under penalty of perjury.\n\nB. For 5 years after entry of this Order, each Individual Defendant for any business that 2 3 such Defendant, individually or collectively with any other Defendants, is the majority owner or 4 controls directly or indirectly, and each Corporate Defendant, must deliver a copy of this Order 5 to: (1) all principals, officers, directors, and LLC managers and members; (2) all employees 6 having managerial responsibilities for conduct related to the subject matter of the Order and all 7 agents and representatives who participate in conduct related to the subject matter of the Order; 8 9 and (3) any business entity resulting from any change in structure as set forth in the Section titled 10 Compliance Reporting. Delivery must occur within 7 days of entry of this Order for current 11 personnel. For all others, delivery must occur before they assume their responsibilities.\n\nC. From each individual or entity to which a Defendant delivered a copy of this Order, that 13 Defendant must obtain, within 30 days, a signed and dated acknowledgment of receipt of this 14 15 Order.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Privacy", "Data Security" ], "remedy_types": [ "Order Administration" ], "case_id": "01.20_mortgage_solutions_fcs", "company_name": "Mortgage Solutions FCS, Inc.", "date_issued": "2020-01-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Privacy of Consumer Financial Information (Regulation P), 12 C.F.R. Part 1016; Standards for Safeguarding Customer Information (Safeguards Rule), 16 C.F.R. Part 314", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3199-mortgage-solutions-fcs-inc", "docket_number": "4:20-cv-00110" }, { "provision_number": "XIII", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendants must submit an initial compliance report one year after entry of the Order and ongoing compliance notices within 14 days of any change in contact information or business structure for 15 years, and must notify the Commission of any bankruptcy filing within 14 days.", "verbatim_text": "A. One year after entry of this Order, each Defendant must submit a compliance report, 20 21 sworn under penalty of perjury: 22 Each Defendant must: (a) identify the primary physical, postal, and email address and 23 telephone number, as designated points of contact, which representatives of the Commission 24 and Plaintiff may use to communicate with Defendant; (b) identify all of that Defendant’s 25 businesses by all of their names, telephone numbers, and physical, postal, email, and 26 27 Internet addresses; (c) describe the activities of each business, including the goods and 28 services offered, and the involvement of any other Defendant (which Individual Defendants STIPULATED ORDED FOR CIVIL PENALTIES, Case No. 4:20-cv-00110; 22 Case 4:20-cv-00110-DMR Document 12 Filed 01/10/20 Page 23 of 30 1 must describe if they know or should know due to their own involvement); (d) describe in 2 3 detail whether and how that Defendant is in compliance with each Section of this Order; and 4 (e) provide a copy of each Order Acknowledgment obtained pursuant to this Order, unless 5 previously submitted to the Commission. 6 Additionally,each Individual Defendant must: (a) identify all telephone numbers and all 7 physical, postal, email and Internet addresses, including all residences; (b) identify all 8 9 business activities, including any business for which such Defendant performs services 10 whether as an employee or otherwise and any entity in which such Defendant has any 11 ownership interest; and (c) describe in detail such Defendant’s involvement in each such 12 business, including title, role, responsibilities, participation, authority, control, and any 13 ownership.\n\n15 B. For 15 years after entry of this Order, each Defendant must submit a compliance 16 notice, sworn under penalty of perjury, within 14 days of any change in the following: 17 Each Defendant must report any change in: (a) any designated point of contact; or (b) the 18 structure of any Corporate Defendant or any entity that Defendant has any ownership interest 19 in or controls directly or indirectly that may affect compliance obligations arising under this 20 21 Order, including: creation, merger, sale, or dissolution of the entity or any subsidiary, parent, 22 or affiliate that engages in any acts or practices subject to this Order. 23 Additionally,each Individual Defendant must report any change in: (a) name, including 24 aliases or fictitious name, or residence address; or (b) title or role in any business activity, 25 including any business for which such Defendant performs services whether as an employee 26 27 or otherwise and any entity in which such Defendant has any ownership interest, and identify 28 the name, physical address, and any Internet address of the business or entity.\n\nC. Each Defendant must submit to the Commission notice of the filing of any bankruptcy 2 3 petition, insolvency proceeding, or similar proceeding by or against such Defendant within 14 4 days of its filing.\n\nD. Any submission to the Commission required by this Order to be sworn under penalty of 6 perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by concluding: “I 7 declare under penalty of perjury under the laws of the United States of America that the 8 9 foregoing is true and correct. Executed on: _____” and supplying the date, signatory’s full 10 name, title (if applicable), and signature.\n\nE. Unless otherwise directed by a Commission representative in writing, all submissions to 12 the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by overnight 13 courier (not the U.S. Postal Service) to: Associate Director for Enforcement, Bureau of 14 15 Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, 16 DC 20580. The subject line must begin: FTC v. Mortgage Solutions FCS, Inc., FTC File No. 17 1823199.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Privacy", "Data Security" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "01.20_mortgage_solutions_fcs", "company_name": "Mortgage Solutions FCS, Inc.", "date_issued": "2020-01-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Privacy of Consumer Financial Information (Regulation P), 12 C.F.R. Part 1016; Standards for Safeguarding Customer Information (Safeguards Rule), 16 C.F.R. Part 314", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3199-mortgage-solutions-fcs-inc", "docket_number": "4:20-cv-00110" }, { "provision_number": "XIV", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Defendants must create certain records for fifteen (15) years after entry of the Order and retain each such record for five (5) years, including accounting records, personnel records, consumer complaints, Assessment materials, law enforcement communications, and all records showing compliance.", "verbatim_text": "IT IS FURTHER ORDERED that Defendants must create certain records for fifteen (15) 20 21 years after entry of the Order, and retain each such record for five (5) years. Specifically, 22 Corporate Defendant and each Individual Defendant for any business that such Defendant, 23 individually or collectively with any other Defendants, is a majority owner or controls directly or 24 indirectly, must create and retain the following records: 25 A. Accounting records showing the revenues from all goods or services sold; 26 27 B. Personnel records showing, for each person providing services, whether as an employee 28 or otherwise, that person’s: name; addresses; telephone numbers; job title or position; dates of STIPULATED ORDED FOR CIVIL PENALTIES, Case No. 4:20-cv-00110; 24 Case 4:20-cv-00110-DMR Document 12 Filed 01/10/20 Page 25 of 30 1 service; and (if applicable) the reason for termination; 2 3 C. Copies or records of all consumer complaints and refund requests related to the subject 4 matter of this Order, whether received directly or indirectly, such as through a third party, and 5 any response; 6 D. For five (5) years after the date of preparation of each Assessment required by this Order, 7 all materials and evidence that the Assessor considered, reviewed, relied upon or examined to 8 9 prepare the Assessment, whether prepared by or on behalf of Respondents, including all plans, 10 reports, studies, reviews, audits, audit trails, policies, training materials, and assessments, and 11 any other materials concerning Respondents’ compliance with related Provisions of this Order, 12 for the compliance period covered by such Assessment; 13 E. For five (5) years from the date received, copies of all subpoenas and other 14 15 communications with law enforcement, if such communications relate to Respondents’ 16 compliance with this Order; 17 F. For five (5) years from the date created or received, all records, whether prepared by or 18 on behalf of Respondents, that tend to show any lack of compliance by Respondents with this 19 Order; and 20 21 G. All records necessary to demonstrate full compliance with each provision of this Order, 22 including all submissions to the Commission.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Privacy", "Data Security" ], "remedy_types": [ "Recordkeeping" ], "case_id": "01.20_mortgage_solutions_fcs", "company_name": "Mortgage Solutions FCS, Inc.", "date_issued": "2020-01-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Privacy of Consumer Financial Information (Regulation P), 12 C.F.R. Part 1016; Standards for Safeguarding Customer Information (Safeguards Rule), 16 C.F.R. Part 314", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3199-mortgage-solutions-fcs-inc", "docket_number": "4:20-cv-00110" }, { "provision_number": "XV", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The Commission and Plaintiff are authorized to monitor Defendants' compliance through written requests for information, depositions, document production, direct communications with Defendants, employee interviews, undercover methods, compulsory process, and consumer reporting agency reports.", "verbatim_text": "27 A. Within 14 days of receipt of a written request from a representative of the Commission or 28 Plaintiff, each Defendant must: submit additional compliance reports or other requested STIPULATED ORDED FOR CIVIL PENALTIES, Case No. 4:20-cv-00110; 25 Case 4:20-cv-00110-DMR Document 12 Filed 01/10/20 Page 26 of 30 1 information, which must be sworn under penalty of perjury; appear for depositions; and produce 2 3 documents for inspection and copying. The Commission and Plaintiff are also authorized to 4 obtain discovery, without further leave of court, using any of the procedures prescribed by 5 Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, 6 and 69.\n\nB. For matters concerning this Order, the Commission and Plaintiff are authorized to 8 9 communicate directly with each Defendant. Defendant must permit representatives of the 10 Commission and Plaintiff to interview any employee or other person affiliated with any 11 Defendant who has agreed to such an interview. The person interviewed may have counsel 12 present.\n\nC. The Commission and Plaintiff may use all other lawful means, including posing, through 14 15 its representatives as consumers, suppliers, or other individuals or entities, to Defendants or any 16 individual or entity affiliated with Defendants, without the necessity of identification or prior 17 notice. Nothing in this Order limits the Commission’s lawful use of compulsory process, 18 pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1.\n\nD. Upon written request from a representative of the Commission or Plaintiff, any consumer 20 21 reporting agency must furnish consumer reports concerning Individual Defendants, pursuant to 22 Section 604(1) of the Fair Credit Reporting Act, 15 U.S.C. §1681b(a)(1).", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Privacy", "Data Security" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "01.20_mortgage_solutions_fcs", "company_name": "Mortgage Solutions FCS, Inc.", "date_issued": "2020-01-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Privacy of Consumer Financial Information (Regulation P), 12 C.F.R. Part 1016; Standards for Safeguarding Customer Information (Safeguards Rule), 16 C.F.R. Part 314", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3199-mortgage-solutions-fcs-inc", "docket_number": "4:20-cv-00110" }, { "provision_number": "XVI", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction over this matter for purposes of construction, modification, and enforcement of the Order.", "verbatim_text": "3 IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for 4 purposes of construction, modification, and enforcement of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Privacy", "Data Security" ], "remedy_types": [ "Order Administration" ], "case_id": "01.20_mortgage_solutions_fcs", "company_name": "Mortgage Solutions FCS, Inc.", "date_issued": "2020-01-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Privacy of Consumer Financial Information (Regulation P), 12 C.F.R. Part 1016; Standards for Safeguarding Customer Information (Safeguards Rule), 16 C.F.R. Part 314", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3199-mortgage-solutions-fcs-inc", "docket_number": "4:20-cv-00110" }, { "provision_number": "I", "title": "Prohibited Misrepresentations", "category": "prohibition", "summary": "Defendants are permanently prohibited from misrepresenting material facts to consumers, including how Personal Information will be shared, whether they assist in obtaining loans, credit requirements, and other material aspects of products or services.", "verbatim_text": "16 A. misrepresenting or assisting others in misrepresenting, expressly or by 17 implication, 18 1. the entities and types of entities with which Defendants will share 19 consumers’ Personal Information, and for what purpose;\n\n20 2. that Defendants will assist consumers in obtaining a loan;\n\n3. that a product or service is available without regard for a consumer’s 21 credit score or history; or 22\n\n4. any other fact material to consumers, such as the total costs; any 1 material restrictions, limitations, or conditions; or any material aspect 2 of the product or service’s performance, efficacy, nature, or central 3 characteristics; and\n\nB. making any representation, expressly or by implication, unless the 5 representation is non-misleading, and, at the time such representation is made, 6 Defendants possess and rely upon competent and reliable evidence that is sufficient 7 to substantiate that the representation is true.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Privacy" ], "remedy_types": [ "Prohibition" ], "case_id": "01.22_itmedia_solutions", "company_name": "ITMEDIA SOLUTIONS LLC", "date_issued": "2022-01-15", "year": 2022, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 604 and 607 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b and 1681e; Sections 13(b) and 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 56(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1523225-itmedia-solutions-llc", "docket_number": "2:22-cv-00073" }, { "provision_number": "II", "title": "Injunction Concerning Sale, Transfer, or Disclosure of Sensitive Personal Information", "category": "prohibition", "summary": "Defendants are permanently prohibited from selling, transferring, or disclosing a consumer's Sensitive Personal Information unless the consumer requested a Financial Product or Service, the disclosure is necessary for providing that service, Defendants have express informed consent, and screening requirements are met.", "verbatim_text": "assisting others in, selling, transferring, or otherwise disclosing a consumer’s 15 Sensitive Personal Information to any Person, unless the consumer has requested a 16 Financial Product or Service; and 17\n\nA. the sale, transfer, or disclosure is necessary for a third party to provide the 18 requested Financial Product or Service;\n\nB. Defendants have the consumer’s express, informed consent for the sale, 20 transfer, or disclosure; and\n\nC. Defendants have complied with Section III.A and Section III.B for that 22 Person.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Privacy" ], "remedy_types": [ "Prohibition" ], "case_id": "01.22_itmedia_solutions", "company_name": "ITMEDIA SOLUTIONS LLC", "date_issued": "2022-01-15", "year": 2022, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 604 and 607 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b and 1681e; Sections 13(b) and 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 56(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1523225-itmedia-solutions-llc", "docket_number": "2:22-cv-00073" }, { "provision_number": "III", "title": "Required Screening of Recipients of Sensitive Personal Information", "category": "affirmative_obligation", "summary": "Defendants must establish, implement, and maintain procedures to verify the legitimate need for and monitor the use of consumers' Sensitive Personal Information by any recipient, including obtaining certifications, conducting verification, ongoing monitoring, and immediately ceasing disclosure upon indications of misuse.", "verbatim_text": "IT IS FURTHER ORDERED that Defendants shall establish, implement, 8 and maintain procedures to verify the legitimate need for and monitor the use of 9 consumers’ Sensitive Personal Information by any Person to whom Defendants 10 sell, transfer, or disclose such information, including:\n\nA. Obtaining from each Person a signed and dated certification stating 12 13 1. the name and nature of the Person’s business(es), including the 14 purpose(s) for obtaining consumers’ Sensitive Personal Information; 15 the Person’s physical address(es) for conducting business; trade 16 names; online sites and profiles; and licenses or registrations; 17 2. a confirmation that the Person will not use, sell, transfer, or otherwise\n\n18 disclose the Sensitive Personal Information it receives from 19 Defendants for any purpose other than to provide the Financial 20 Product or Service requested by the consumer; 21 3. a description of any individuals or entities to which the Person will or\n\n22 may sell, transfer, or otherwise disclose consumers’ Sensitive 23 Personal Information that includes: (i) any and all purposes for which 24 those individuals or entities may use the such information; and Page 8 of 20 Case 2:22-cv-00073-DSF-E Document 12 Filed 01/10/22 Page 9 of 20 Page ID #:127 1 (ii) measures implemented by those individuals or entities for 2 safeguarding Sensitive Personal Information, including secure 3 transmission and storage. 4 Defendants must obtain from each Person a new certification annually and 5 upon any material change in the nature of the Person’s business or of the 6 purpose(s) for which the Person would use consumers’ Sensitive Personal\n\n7 Information. 8 B. Conducting reasonable procedures to verify the information provided in the 9 certification described in Subsection A, including reviewing and confirming the 10 Person’s physical addresses, online sites and profiles, and licenses and\n\n8 B. Conducting reasonable procedures to verify the information provided in the 9 certification described in Subsection A, including reviewing and confirming the 10 Person’s physical addresses, online sites and profiles, and licenses and 11 registrations; and that the Person’s identity, advertising, lines(s) of business, and 12 purpose(s) for obtaining consumers’ Sensitive Personal Information relate to 13 providing Financial Products or Services. 14 C. Conducting reasonable ongoing procedures to monitor that each Person to\n\n14 C. Conducting reasonable ongoing procedures to monitor that each Person to 15 whom Defendants sell, transfer, or disclose a consumer’s Sensitive Personal 16 Information is using it solely to provide the consumer with a Financial Product or 17 Service, including by conducting periodic audits that involve examining 18 information and documents from the Person and third parties to which the Person 19 will or may sell, transfer, or otherwise disclose consumers’ Sensitive Personal 20 Information to verify the ongoing accuracy of the certification described in 21 Subsection A, and investigating any legal actions, complaints, or reports of which 22 Defendants have notice and that indicate misuse of Sensitive Personal Information. 23\n\n1 D. Immediately desisting from disclosing any consumer’s Sensitive Personal 2 Information to the Person if Defendants receive information, pursuant to 3 procedures required by this Order, or otherwise, indicating that: 4 1. a certification provided by the Person was false, misleading, or 5 materially erroneous; 6 2. the Person has used Sensitive Personal Information for any purpose 7 other than to provide a consumer with a Financial Product or Service; 8 or 3. the Person will not use the Sensitive Personal Information solely to 9 provide the consumer with a Financial Product or Service.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Privacy" ], "remedy_types": [ "Prohibition" ], "case_id": "01.22_itmedia_solutions", "company_name": "ITMEDIA SOLUTIONS LLC", "date_issued": "2022-01-15", "year": 2022, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 604 and 607 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b and 1681e; Sections 13(b) and 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 56(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1523225-itmedia-solutions-llc", "docket_number": "2:22-cv-00073" }, { "provision_number": "IV", "title": "Prohibitions Concerning Consumer Reports", "category": "prohibition", "summary": "Defendants are permanently prohibited from using or obtaining Consumer Reports for purposes other than Permissible Purposes, and must establish procedures to ensure Consumer Reports are resold only for Permissible Purposes, including disclosing end-user identity and purposes to Consumer Reporting Agencies and verifying certifications.", "verbatim_text": "9 A. using or obtaining a Consumer Report for a purpose other than a Permissible 10 Purpose;\n\n11 B. for any Consumer Report that Defendants procure for purposes of reselling 12 the Consumer Report or any information in the Consumer Report, failing to 13 disclose to the Consumer Reporting Agency that originally furnishes the Consumer 14 Report: 15 1. the identity of the end-user of the Consumer Report (or information); 16 and 17 2. each Permissible Purpose for which the Consumer Report (or 18 information) is furnished to the end-user of the Consumer Report (or 19 information);\n\n20 C. failing to establish and comply with reasonable procedures designed to 21 ensure that a Consumer Report or any information in the Consumer Report is 22 resold only for a Permissible Purpose including by requiring that each person to 23 which the Consumer Report or any information in the Consumer Report is resold: 24 (i) identifies each end user of the resold Consumer Report (or information); Page 11 of 20 Case 2:22-cv-00073-DSF-E Document 12 Filed 01/10/22 Page 12 of 20 Page ID #:130 1 (ii) certifies each purpose for which the Consumer Report (or information) will be 2 used; (iii) certifies that the Consumer Report (or information) will be used for no 3 other purpose; and 4 D. before reselling any Consumer Report or any information in the Consumer\n\n5 Report, failing to make reasonable efforts to verify the identifications and 6 certifications described in Paragraph IV.C including, if the Consumer Report or 7 information is sold to a Person to provide a Financial Product or Service to the 8 Consumer, failing to conduct the procedures described in Section III.A and 9 Section III.B for that identified end user. 10 Provided, however, that this Section IV does not apply to a consumer’s self-", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "01.22_itmedia_solutions", "company_name": "ITMEDIA SOLUTIONS LLC", "date_issued": "2022-01-15", "year": 2022, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 604 and 607 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b and 1681e; Sections 13(b) and 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 56(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1523225-itmedia-solutions-llc", "docket_number": "2:22-cv-00073" }, { "provision_number": "V", "title": "Monetary Judgment for Civil Penalty", "category": "affirmative_obligation", "summary": "Judgment of $1,500,000 is entered against Defendants jointly and severally, to be paid within 7 days of entry of this Order by electronic fund transfer.", "verbatim_text": "18 Thousand Dollars ($1,500,000), which, as Defendants stipulate, their undersigned 19 counsel holds in escrow for no purpose other than payment to Plaintiff. Such 20 payment must be made within 7 days of entry of this Order by electronic fund 21 transfer in accordance with instructions previously provided by a representative of 22 Plaintiff. 23", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "01.22_itmedia_solutions", "company_name": "ITMEDIA SOLUTIONS LLC", "date_issued": "2022-01-15", "year": 2022, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 604 and 607 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b and 1681e; Sections 13(b) and 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 56(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1523225-itmedia-solutions-llc", "docket_number": "2:22-cv-00073" }, { "provision_number": "VI", "title": "Additional Monetary Provisions", "category": "acknowledgment", "summary": "Defendants relinquish all rights to assets transferred pursuant to this Order, and acknowledge that the judgment represents a civil penalty not subject to discharge under the Bankruptcy Code.", "verbatim_text": "3 A. Defendants relinquish dominion and all legal and equitable right, title, and 4 interest in all assets transferred pursuant to this Order and may not seek the return 5 of any assets.\n\n18 E. Defendants acknowledge that their Taxpayer Identification Numbers (Social 19 Security Numbers or Employer Identification Numbers), which Defendants must 20 submit to the Commission, may be used for collecting and reporting on any 21 delinquent amount arising out of this Order, in accordance with 31 U.S.C. § 7701. 22 VII. CUSTOMER INFORMATION", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "01.22_itmedia_solutions", "company_name": "ITMEDIA SOLUTIONS LLC", "date_issued": "2022-01-15", "year": 2022, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 604 and 607 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b and 1681e; Sections 13(b) and 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 56(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1523225-itmedia-solutions-llc", "docket_number": "2:22-cv-00073" }, { "provision_number": "VII", "title": "Customer Information", "category": "affirmative_obligation", "summary": "Defendants are permanently prohibited from disclosing, using, or benefitting from Personal Information obtained prior to entry of this Order in connection with lead generation activities, and must destroy such information within 30 days and instruct entities that received it to do the same.", "verbatim_text": "3 A. disclosing, using, or benefitting from Personal Information of any Person 4 that any Defendant obtained prior to entry of this Order in connection with lead 5 generation activities; and 6 B. failing to destroy such Personal Information in all forms in their possession,\n\n7 custody, or control within 30 days after entry of this Order. The information shall 8 be destroyed by a means that protects against the unauthorized access to the 9 information, such as by burning, pulverizing, or shredding any papers, and by 10 erasing or destroying any electronic media, to ensure that the information cannot 11 practicably be read or reconstructed; 12 C. failing, within 30 days after entry of this Order, to instruct each entity that\n\n13 received Personal Information that Defendants distributed in connection with lead 14 generation activities prior to entry of this Order to (i) destroy any such Personal 15 Information in the entity’s possession, custody, or control by a means that protects 16 against the unauthorized access to the information; and (ii) notify Defendants 17 within 30 days after receiving such instruction that such Personal Information was 18 destroyed or explain why the entity did not destroy the Personal Information. 19 Provided, however, that customer information need not be disposed of, and may be", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Privacy" ], "remedy_types": [ "Data Deletion" ], "case_id": "01.22_itmedia_solutions", "company_name": "ITMEDIA SOLUTIONS LLC", "date_issued": "2022-01-15", "year": 2022, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 604 and 607 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b and 1681e; Sections 13(b) and 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 56(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1523225-itmedia-solutions-llc", "docket_number": "2:22-cv-00073" }, { "provision_number": "VIII", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendants must submit acknowledgments of receipt of this Order within 7 days, deliver copies to principals, officers, employees, and agents, and obtain signed acknowledgments from those who receive it.", "verbatim_text": "1 A. Each Defendant, within 7 days of entry of this Order, must submit to the 2 Commission an acknowledgment of receipt of this Order sworn under penalty of 3 perjury. 4 B. For 10 years after entry of this Order, each Individual Defendant for any\n\n4 B. For 10 years after entry of this Order, each Individual Defendant for any 5 business that such Defendant, individually or collectively with any other 6 Defendants, is the majority owner or controls directly or indirectly, and each 7 Corporate Defendant, must deliver a copy of this Order to: (1) all principals, 8 officers, directors, and LLC managers and members; (2) all employees having 9 managerial responsibilities for conduct related to the subject matter of the Order 10 and all agents and representatives who participate in conduct related to the subject 11 matter of the Order; and (3) any business entity resulting from any change in 12 structure as set forth in the Section titled Compliance Reporting. Delivery must 13 occur within 7 days of entry of this Order for current personnel. For all others,\n\n15 C. From each individual or entity to which a Defendant delivered a copy of this 16 Order, that Defendant must obtain, within 30 days, a signed and dated 17 acknowledgment of receipt of this Order. 18 IX. COMPLIANCE REPORTING", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Privacy", "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "01.22_itmedia_solutions", "company_name": "ITMEDIA SOLUTIONS LLC", "date_issued": "2022-01-15", "year": 2022, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 604 and 607 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b and 1681e; Sections 13(b) and 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 56(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1523225-itmedia-solutions-llc", "docket_number": "2:22-cv-00073" }, { "provision_number": "IX", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendants must submit timely compliance reports to the Commission, including a 90-day report on Customer Information compliance, a one-year comprehensive compliance report, ongoing notices of changes for 10 years, and bankruptcy notices.", "verbatim_text": "21 A. Ninety days after entry of this Order, Defendants must submit a compliance 22 report, sworn under penalty of perjury, describing in detail their compliance with 23 the Section titled Customer Information. The report shall include the identity of 24 each entity that Defendants instructed to delete Personal Information in accordance Page 15 of 20 Case 2:22-cv-00073-DSF-E Document 12 Filed 01/10/22 Page 16 of 20 Page ID #:134 1 with Section VIII.C, and a statement setting forth in detail such entity’s response to 2 Defendants, if any, including, but not limited to, whether such entity deleted the 3 Personal Information and, if not, any explanation provided for why the entity did 4 not delete the Personal Information it obtained from Defendants. 5 B. One year after entry of this Order, each Defendant must submit a compliance\n\n5 B. One year after entry of this Order, each Defendant must submit a compliance 6 report, sworn under penalty of perjury: 7 1. Each Defendant must: (a) identify the primary physical, postal, and email 8 address and telephone number, as designated points of contact, which 9 representatives of the Commission may use to communicate with Defendant; (b) 10 identify all of that Defendant’s businesses by all of their names, telephone 11 numbers, and physical, postal, email, and Internet addresses; (c) describe the 12 activities of each business, including the goods and services offered, the means of 13 advertising, marketing, and sales, and the involvement of any other Defendant 14 (which Individual Defendants must describe if they know or should know due to 15 their own involvement); (d) describe in detail whether and how that Defendant is in 16 compliance with each Section of this Order; and (e) provide a copy of each Order 17 Acknowledgment obtained pursuant to this Order, unless previously submitted to 18 the Commission. 19 2. Additionally, each Individual Defendant must: (a) identify all telephone 20 numbers and all physical, postal, email, and Internet addresses, including all 21 residences; (b) identify all business activities, including any business for which 22 such Defendant performs services whether as an employee or otherwise and any 23 entity in which such Defendant has any ownership interest; and (c) describe in 24 Page 16 of 20\n\n19 2. Additionally, each Individual Defendant must: (a) identify all telephone 20 numbers and all physical, postal, email, and Internet addresses, including all 21 residences; (b) identify all business activities, including any business for which 22 such Defendant performs services whether as an employee or otherwise and any 23 entity in which such Defendant has any ownership interest; and (c) describe in 24 Page 16 of 20 Case 2:22-cv-00073-DSF-E Document 12 Filed 01/10/22 Page 17 of 20 Page ID #:135 1 detail such Defendant’s involvement in each such business, including title, role, 2 responsibilities, participation, authority, control, and any ownership. 3 C. For 10 years after entry of this Order, each Defendant must submit a\n\n4 compliance notice, sworn under penalty of perjury, within 14 days of any change 5 in the following: 6 1. Each Defendant must report any change in: (a) any designated point of 7 contact; or (b) the structure of any Corporate Defendant or any entity that 8 Defendant has any ownership interest in or controls directly or indirectly that may 9 affect compliance obligations arising under this Order, including: creation, merger, 10 sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages 11 in any acts or practices subject to this Order. 12 2. Additionally, each Individual Defendant must report any change in:\n\n13 (a) name, including aliases or fictitious name, or residence address; or (b) title or 14 role in any business activity, including any business for which such Defendant 15 performs services whether as an employee or otherwise and any entity in which 16 such Defendant has any ownership interest, and identify the name, physical 17 address, and any Internet address of the business or entity. 18 D. Each Defendant must submit to the Commission notice of the filing of any\n\n19 bankruptcy petition, insolvency proceeding, or similar proceeding by or against 20 such Defendant within 14 days of its filing. 21 E. Any submission to the Commission required by this Order to be sworn under", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Privacy", "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "01.22_itmedia_solutions", "company_name": "ITMEDIA SOLUTIONS LLC", "date_issued": "2022-01-15", "year": 2022, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 604 and 607 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b and 1681e; Sections 13(b) and 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 56(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1523225-itmedia-solutions-llc", "docket_number": "2:22-cv-00073" }, { "provision_number": "X", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Defendants must create and retain specific records for 10 years after entry of the Order, retaining each record for 5 years, including proof of consumer consent, accounting records, personnel records, complaints, compliance documentation, and marketing materials.", "verbatim_text": "10 IT IS FURTHER ORDERED that Defendants must create certain records for 11 10 years after entry of the Order, and retain each such record for 5 years. 12 Specifically, Corporate Defendants, in connection with the collection or sale of\n\n17 A. proof of each consumer’s express, informed consent to the sale, transfer, or 18 disclosure of that consumer’s Sensitive Personal Information, which shows the 19 consumer’s name and contact information; and the time, place, and method of 20 consent; 21 B. accounting records showing the revenues from all goods or services sold, all 22 costs incurred in generating those revenues, and the resulting net profit or loss; 23 C. personnel records showing, for each Person providing services, whether as\n\n21 B. accounting records showing the revenues from all goods or services sold, all 22 costs incurred in generating those revenues, and the resulting net profit or loss; 23 C. personnel records showing, for each Person providing services, whether as\n\n23 C. personnel records showing, for each Person providing services, whether as 24 an employee or otherwise, that Person’s: name; addresses; telephone numbers; Page 18 of 20 Case 2:22-cv-00073-DSF-E Document 12 Filed 01/10/22 Page 19 of 20 Page ID #:137 1 job title or position; dates of service; and (if applicable) the reason for termination; 2 D. complaints and refund requests relating to advertising, marketing,\n\n2 D. complaints and refund requests relating to advertising, marketing, 3 promotion, offering for sale, or selling of a Financial Product or Service, whether 4 received directly or indirectly, such as through a third party, and any response; 5 E. all records necessary to demonstrate full compliance with each provision of\n\n6 this Order, including all certifications and other documentation related to 7 Section III, and all submissions to the Commission; and 8 F. a copy of each unique advertisement or other marketing material relating to\n\n8 F. a copy of each unique advertisement or other marketing material relating to 9 advertising, marketing, promotion, offering for sale, or selling of a Financial 10 Product or Service. 11 XI. COMPLIANCE MONITORING", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Privacy", "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "01.22_itmedia_solutions", "company_name": "ITMEDIA SOLUTIONS LLC", "date_issued": "2022-01-15", "year": 2022, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 604 and 607 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b and 1681e; Sections 13(b) and 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 56(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1523225-itmedia-solutions-llc", "docket_number": "2:22-cv-00073" }, { "provision_number": "XI", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The Commission is authorized to monitor Defendants' compliance with this Order through various means, including requesting additional reports, conducting depositions, obtaining discovery, interviewing personnel, and posing as consumers or other entities.", "verbatim_text": "15 A. Within 14 days of receipt of a written request from a representative of the 16 Commission each Defendant must: submit additional compliance reports or other 17 requested information, which must be sworn under penalty of perjury; appear for 18 depositions; and produce documents for inspection and copying. The Commission 19 is also authorized to obtain discovery, without further leave of court, using any of 20 the procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including 21 telephonic depositions), 31, 33, 34, 36, 45, and 69. 22 B. For matters concerning this Order, the Commission is authorized to\n\n23 communicate directly with each Defendant. Defendant must permit 24 representatives of the Commission to interview any employee or other person Page 19 of 20\n\nCase 2:22-cv-00073-DSF-E Document 12 Filed 01/10/22 Page 20 of 20 Page ID #:138 1 affiliated with any Defendant who has agreed to such an interview. The person 2 interviewed may have counsel present. 3 C. The Commission may use all other lawful means, including posing, through 4 its representatives as consumers, suppliers, or other individuals or entities, to 5 Defendants or any individual or entity affiliated with Defendants, without the 6 necessity of identification or prior notice. Nothing in this Order limits the\n\n9 D. Upon written request from a representative of the Commission, any 10 Consumer Reporting Agency must furnish Consumer Reports concerning 11 Individual Defendants, pursuant to Section 604(1) of the Fair Credit Reporting Act, 12 15 U.S.C. §1681b(a)(1). 13 XII. RETENTION OF JURISDICTION", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Privacy", "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "01.22_itmedia_solutions", "company_name": "ITMEDIA SOLUTIONS LLC", "date_issued": "2022-01-15", "year": 2022, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 604 and 607 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b and 1681e; Sections 13(b) and 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 56(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1523225-itmedia-solutions-llc", "docket_number": "2:22-cv-00073" }, { "provision_number": "XII", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "verbatim_text": "14 IT IS FURTHER ORDERED that this Court retains jurisdiction of this 15 matter for purposes of construction, modification, and enforcement of this Order. 16", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Privacy", "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "01.22_itmedia_solutions", "company_name": "ITMEDIA SOLUTIONS LLC", "date_issued": "2022-01-15", "year": 2022, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Sections 604 and 607 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b and 1681e; Sections 13(b) and 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 56(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1523225-itmedia-solutions-llc", "docket_number": "2:22-cv-00073" }, { "provision_number": "I", "title": "Notice to Users of Consumer Reports", "category": "affirmative_obligation", "summary": "Respondent must provide a Notice to Users to any user or prospective user when disseminating a MedPoint medical profile or other consumer report, as required by FCRA Section 607(d).", "verbatim_text": "IT IS ORDERED that respondent, directly or through any corporation, subsidiary, division, or other device, in connection with the dissemination of any medical profile generated by MedPoint that constitutes a consumer report, or any other consumer report to any user or prospective user of such consumer report, shall as provided by Section 607(d) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(d), provide to such users or prospective users a Notice to Users.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "02.08_ingenix", "company_name": "Ingenix, Inc.", "date_issued": "2008-02-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., and Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3190-ingenix-inc-matter", "docket_number": "C-4214" }, { "provision_number": "II", "title": "FCRA Compliance Obligations for Consumer Reports", "category": "affirmative_obligation", "summary": "Respondent must maintain reasonable procedures for limiting report furnishing to permissible purposes, ensuring accuracy, handling disputed accuracy, and complying with consumer report disposal rules in connection with MedPoint or any other consumer report.", "verbatim_text": "A. Maintain or continue to maintain reasonable procedures to limit the furnishing of such consumer report to those only with a permissible purpose, as required by Section 607(a) of the Fair Credit Reporting Act, 15 U.S.C. §1681e(a);\n\nB. Follow or continue to follow reasonable procedures to assure maximum possible accuracy of the information concerning the individuals about whom the reports relates, as required by Section 607(b) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(b);\n\nC. Maintain or continue to maintain reasonable procedures to ensure compliance with Section 611 of the Fair Credit Reporting Act, 15 U.S.C. § 1681i, “Procedures in case of disputed accuracy;”\n\nD. Conduct or continue to conduct a reasonable reinvestigation in cases of disputed accuracy, as required by Section 611 of the Fair Credit Reporting Act, 15 U.S.C. § 1681i; and\n\nE. Comply or continue to comply with the Disposal of Consumer Report Information and Records Rule, 16 C.F.R. Part 682.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "02.08_ingenix", "company_name": "Ingenix, Inc.", "date_issued": "2008-02-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., and Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3190-ingenix-inc-matter", "docket_number": "C-4214" }, { "provision_number": "III", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Respondent must maintain and make available to the FTC for five years documents demonstrating compliance with Parts I and II of the order.", "verbatim_text": "IT IS FURTHER ORDERED that respondent shall, for five (5) years, maintain and upon request make available to the Federal Trade Commission for inspection and copying documents demonstrating compliance with the requirements of Parts I and II of this order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "02.08_ingenix", "company_name": "Ingenix, Inc.", "date_issued": "2008-02-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., and Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3190-ingenix-inc-matter", "docket_number": "C-4214" }, { "provision_number": "IV", "title": "Order Acknowledgment and Delivery", "category": "acknowledgment", "summary": "Respondent must deliver a copy of this order to current and future principals, officers, directors, managers, employees, agents, and representatives with decision-making responsibilities regarding MedPoint or other consumer reports, and obtain a signed acknowledgment from each.", "verbatim_text": "IT IS FURTHER ORDERED that respondent shall deliver a copy of this order to all current and future principals, officers, and directors, and to all current and future managers, employees, agents, and representatives having decision-making responsibilities with respect to MedPoint or any other consumer report, and shall secure from each such person a signed and dated statement acknowledging receipt of the order.\n\nRespondent shall deliver this order to such current personnel within thirty (30) days after the date of service of this order, and to such future personnel within thirty (30) days after\n\nthe date of service of this order, and to such future personnel within thirty (30) days after the person assumes such position or responsibilities.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "02.08_ingenix", "company_name": "Ingenix, Inc.", "date_issued": "2008-02-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., and Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3190-ingenix-inc-matter", "docket_number": "C-4214" }, { "provision_number": "V", "title": "Notification of Corporate Changes", "category": "compliance_reporting", "summary": "Respondent must notify the FTC at least 30 days prior to any corporate change that may affect compliance obligations under the order, including dissolution, merger, sale, bankruptcy filing, or name/address changes.", "verbatim_text": "IT IS FURTHER ORDERED that respondent and its successors and assigns shall notify the Commission at least thirty (30) days prior to any change in the corporation that may affect compliance obligations arising under this order, including but not limited to a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor corporation; the creation or dissolution of a subsidiary, parent, or affiliate Page 3 of 5 that engages in any acts or practices subject to this order; the proposed filing of a bankruptcy petition; or a change in the corporate name or address. Provided, however, that, with respect to any proposed change in the corporation about which respondent learns less than thirty (30) days prior to the date such action is to take place, respondent shall notify the Commission as soon as it is practicable after obtaining such knowledge.\n\nthat, with respect to any proposed change in the corporation about which respondent learns less than thirty (30) days prior to the date such action is to take place, respondent shall notify the Commission as soon as it is practicable after obtaining such knowledge.\n\nAll notices required by this Part shall be sent by certified mail to the Associate Director, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "02.08_ingenix", "company_name": "Ingenix, Inc.", "date_issued": "2008-02-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., and Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3190-ingenix-inc-matter", "docket_number": "C-4214" }, { "provision_number": "VI", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Respondent must file a written compliance report with the FTC within 60 days of service of the order, and at such other times as the FTC may require.", "verbatim_text": "IT IS FURTHER ORDERED that respondent shall within sixty (60) days after the date of service of this order, and at such other times as the Federal Trade Commission may require, file with the Commission a report, in writing, setting forth in detail the manner and form in which it has complied with this order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "02.08_ingenix", "company_name": "Ingenix, Inc.", "date_issued": "2008-02-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., and Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3190-ingenix-inc-matter", "docket_number": "C-4214" }, { "provision_number": "VII", "title": "Order Duration", "category": "duration", "summary": "This order terminates on February 6, 2028, or twenty years from the most recent date a federal court complaint alleging a violation is filed, whichever is later, subject to specified exceptions.", "verbatim_text": "This order will terminate on February 6, 2028, or twenty (20) years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of: A. Any Part in this order that terminates in less than twenty (20) years; B. This order’s application to any respondent that is not named as a defendant in such complaint; and C. This order if such complaint is filed after the order has terminated pursuant to this Part. Provided, further, that if such complaint is dismissed or a federal court rules that the respondent did not violate any provision of the order, and the dismissal or ruling is either not appealed or upheld on appeal, then the order will terminate according to this Part as Page 4 of 5 though the complaint had never been filed, except that the order will not terminate between the date such complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "02.08_ingenix", "company_name": "Ingenix, Inc.", "date_issued": "2008-02-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., and Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3190-ingenix-inc-matter", "docket_number": "C-4214" }, { "provision_number": "I", "title": "Provide Notice To Users of Consumer Reports", "category": "affirmative_obligation", "summary": "Respondent must provide the required Notice To Users to all users or prospective users of any IntelliScript medical profile or other consumer report, as required by Section 607(d) of the FCRA.", "verbatim_text": "IT IS ORDERED that respondent, directly or through any corporation, subsidiary, division, or other device, in connection with the sale or dissemination of any medical profile generated by IntelliScript, or any other consumer report to any user or prospective user of such consumer report, shall, as required by Section 607(d) of the Fair Credit Reporting Act, 15 U.S.C. §1681e(d), provide to such users or prospective users a Notice To Users.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "02.08_milliman", "company_name": "Milliman, Inc.", "date_issued": "2008-02-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)(1); Section 607(d) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(d)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3189-milliman-inc-matter", "docket_number": "C-4213" }, { "provision_number": "II", "title": "Reasonable Procedures for Consumer Report Compliance", "category": "affirmative_obligation", "summary": "Respondent must maintain reasonable procedures limiting reports to permissible purposes, ensure maximum accuracy, maintain dispute procedures, conduct reinvestigations of disputed accuracy, and comply with the Disposal of Consumer Report Information and Records Rule.", "verbatim_text": "A. Maintain or continue to maintain reasonable procedures to limit the furnishing of such consumer report to those with a permissible purpose, as required by Section 607(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(a);\n\nB. Follow or continue to follow reasonable procedures to assure maximum possible accuracy of the information concerning the individuals about whom the report relates, as required by Section 607(b) of the Fair Credit Reporting Act, 15 U.S.C. §1681e(b);\n\nC. Maintain or continue to maintain reasonable procedures to ensure compliance with Section 611 of the Fair Credit Reporting Act, 15 U.S.C. § 1681i, “Procedures in case of disputed accuracy;”\n\nD. Conduct or continue to conduct a reasonable reinvestigation in cases of disputed accuracy, as required by Section 611 of the Fair Credit Reporting Act, 15 U.S.C. § 1681i; and\n\nE. Comply or continue to comply with the Disposal of Consumer Report Information and Records Rule, 16 C.F.R. Part 682.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "02.08_milliman", "company_name": "Milliman, Inc.", "date_issued": "2008-02-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)(1); Section 607(d) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(d)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3189-milliman-inc-matter", "docket_number": "C-4213" }, { "provision_number": "III", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Respondent must maintain documents demonstrating compliance with Parts I and II of the order and make them available to the FTC for inspection upon request for five years.", "verbatim_text": "IT IS FURTHER ORDERED that respondent shall, for five (5) years, maintain and upon request make available to the Federal Trade Commission for inspection and copying documents demonstrating compliance with the requirements of Parts I and II of this order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "02.08_milliman", "company_name": "Milliman, Inc.", "date_issued": "2008-02-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)(1); Section 607(d) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(d)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3189-milliman-inc-matter", "docket_number": "C-4213" }, { "provision_number": "IV", "title": "Order Acknowledgment and Delivery", "category": "acknowledgment", "summary": "Respondent must deliver a copy of the order to all current and future officers, directors, managers, employees, agents, and representatives with decision-making responsibilities related to IntelliScript or other consumer reports, and obtain signed acknowledgments of receipt.", "verbatim_text": "IT IS FURTHER ORDERED that respondent shall deliver a copy of this order to all current and future officers and directors, and to all current and future managers, employees, agents, and representatives having decision-making responsibilities with respect to IntelliScript or any other consumer report, and shall secure from each such person a signed and dated statement acknowledging receipt of the order. Respondent shall deliver this order to such current personnel within thirty (30) days after the date of service of this order, and to such future personnel within thirty (30) days after the person assumes such position or responsibilities.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "02.08_milliman", "company_name": "Milliman, Inc.", "date_issued": "2008-02-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)(1); Section 607(d) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(d)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3189-milliman-inc-matter", "docket_number": "C-4213" }, { "provision_number": "V", "title": "Notification of Corporate Changes", "category": "compliance_reporting", "summary": "Respondent must notify the FTC at least 30 days prior to any corporate change that may affect compliance obligations, including dissolution, merger, sale, name change, or bankruptcy filing.", "verbatim_text": "IT IS FURTHER ORDERED that respondent and its successors and assigns shall notify the Commission at least thirty (30) days prior to any change in the corporation that may affect compliance obligations arising under this order, including but not limited to a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor corporation; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this order; the proposed filing of a bankruptcy petition; or a change in the corporate name or address. Provided, however, that, with respect to any proposed change in the corporation about which respondent learns less than thirty (30) days prior to the date such action is to take place, respondent shall notify the Commission as soon as it is practicable after obtaining such knowledge. All notices required by this Part shall be sent by certified mail to the Associate Director, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "02.08_milliman", "company_name": "Milliman, Inc.", "date_issued": "2008-02-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)(1); Section 607(d) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(d)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3189-milliman-inc-matter", "docket_number": "C-4213" }, { "provision_number": "VI", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Respondent must file a written compliance report with the FTC within 60 days of service of the order, and at such other times as the FTC may require.", "verbatim_text": "IT IS FURTHER ORDERED that respondent shall within sixty (60) days after the date of service of this order, and at such other times as the Federal Trade Commission may require, file with the Commission a report, in writing, setting forth in detail the manner and form in which it has complied with this order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "02.08_milliman", "company_name": "Milliman, Inc.", "date_issued": "2008-02-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)(1); Section 607(d) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(d)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3189-milliman-inc-matter", "docket_number": "C-4213" }, { "provision_number": "VII", "title": "Order Duration and Termination", "category": "duration", "summary": "The order terminates on February 6, 2028, or twenty years from the most recent date the FTC files a complaint in federal court alleging a violation of the order, whichever is later.", "verbatim_text": "This order will terminate on February 6, 2028, or twenty (20) years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of: A. Any Part in this order that terminates in less than twenty (20) years; B. This order’s application to any respondent that is not named as a defendant in such complaint; and C. This order if such complaint is filed after the order has terminated pursuant to this Part. Provided, further, that if such complaint is dismissed or a federal court rules that the respondent did not violate any provision of the order, and the dismissal or ruling is either not appealed or upheld on appeal, then the order will terminate according to this Part as Page 4 of 5 though the complaint had never been filed, except that the order will not terminate between the date such complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "02.08_milliman", "company_name": "Milliman, Inc.", "date_issued": "2008-02-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)(1); Section 607(d) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(d)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3189-milliman-inc-matter", "docket_number": "C-4213" }, { "provision_number": "I", "title": "Prohibition Against Misrepresentations", "category": "prohibition", "summary": "Defendant is permanently restrained from misrepresenting or assisting others in misrepresenting, expressly or by implication, any material terms of Credit Agreements, including interest rates, payment amounts, interest accrual, repayment periods, and total costs.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant, Defendant’s officers, agents, employees, and attorneys and all others in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly, in connection with promoting, offering, originating, servicing, collecting, or reporting on Credit Agreements, are hereby permanently restrained and enjoined from misrepresenting or assisting others, in misrepresenting, expressly or by implication: A. that interest rate stays the same for the term of the Credit Agreement;\n\nB. that the minimum monthly payment stays the same for the term of the Credit Agreement;\n\nC. that accrual of interest on the Credit Agreement is deferred;\n\nD. that the Credit Agreement will be repaid in a certain period of time if the consumer only makes the required minimum monthly payments;\n\nE. that the Credit Agreement is interest free;\n\nF. that interest on the Credit Agreement is included in the sales price;\n\nG. that any payments, rebates, or products will be provided as part of the Credit Agreement;\n\nH. the material terms of any Credit Agreement, including: 1. the interest rate(s); 7 Case: 3:24-cv-00288 Document #: 1-1 Filed: 05/01/24 Page 8 of 54 2. annual percentage rate(s); 3. finance charge(s); 4. the minimum monthly payment amount(s); 5. the amount financed; 6. the payment schedule; 7. whether any material term is subject to change; and 8. the total costs.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "02.25_aqua_finance", "company_name": "Aqua Finance, Inc.", "date_issued": "2025-02-15", "year": 2025, "administration": "Trump (2nd)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Truth in Lending Act (TILA), 15 U.S.C. §§ 1601–1666j; section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a); and the Duties of Furnishers of Information to Consumer Reporting Agencies Rule, 12 C.F.R. § 1022, subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/aqua-finance", "docket_number": "3:24-cv-00288" }, { "provision_number": "II", "title": "Monitoring of Dealers and Dealer Complaints", "category": "affirmative_obligation", "summary": "Defendant must obtain written agreements from all Dealers, provide Dealers with accurate financing information, implement a Dealer Complaint handling program, and terminate business relationships with Dealers engaged in patterns of misrepresentation.", "verbatim_text": "A. No later than the Compliance Date, for Dealers with whom the Defendant does not have, at the time of entry of this Order, an existing business relationship, before Defendant conducts any business with any such Dealer, obtain from each an express written agreement, which the Dealer must separately acknowledge apart from any other documentation Defendant may require the Dealer to sign, that it will not misrepresent any material aspect of the financing terms and conditions, will comply with all applicable laws in connection with the promotion or offering of financing, and disclose the financing terms outlined in Subsection C, unless inapplicable;\n\nB. for Dealers with whom the Defendant does have, at the time of entry of this Order, an existing business relationship, at or before entering into a renewal of an agreement to 8 Case: 3:24-cv-00288 Document #: 1-1 Filed: 05/01/24 Page 9 of 54 continue the business relationship, or no later than the Compliance Date, obtain from each such Dealer an express written agreement, which the Dealer must separately acknowledge apart from any other documentation Defendant may require the Dealer to sign, that it will not misrepresent any material aspect of the financing terms and conditions, will comply with all applicable laws in connection with the promotion or offering of financing, and disclose the financing terms outlined in Subsection C, unless inapplicable;\n\nC. no later than the Compliance Date, provide each Dealer with accurate information related to the financing of water treatment goods and services on the following topics to enable them to be able to explain to consumers: 1. the annual percentage rate and any scheduled changes to that rate; 2. the payment schedule; 3. how interest accrues; 4. the details of any available promotions; 5. to the extent known by Defendant prior to the consummation of the Credit Agreement: a. the initial amount financed; b. the total of payments for the initial amount financed or advanced; and c. how long it will take to repay the amount initially advanced if only the minimum monthly payments are made and no repeat or add on purchases are applied to the account;\n\n1. Dealer Complaint handling process a. document verbal and written Dealer Complaints about Dealers, whether received in English of Spanish, along with all additional details provided by consumers making such Dealer Complaints, and maintain all documents reflecting the foregoing consistent with the Section XI of this Order;\n\nb. for each new Dealer Complaint received about Dealers with whom the Defendant has, at the time of the Dealer Complaint, an existing business relationship, if Defendant is not able to, within five business days of its receipt of a Dealer Complaint, determine based on the information available to Defendant that the Dealer Complaint is without merit, provide the Dealer with a copy of any written Dealer Complaint or a detailed summary of any verbal Dealer Complaint regarding such Dealer, within two business days of Defendant making that determination and request a response from the Dealer within 10 business days of the date of Defendant’s transmission of the Dealer Complaint to the Dealer;\n\nc. for each new Dealer Complaint, conduct a reasonable investigation and document the details and findings of each such investigation, including any response from the Dealer received in response to a request pursuant to Subsection D.1.b, within 10 business days of the Dealer response due date;\n\nd. for any Dealer that Defendant, after conducting such investigation, reasonably believes has misrepresented any fact identified in Section I of this Order, or failed to disclose the information identified in Section II.C of this Order unless inapplicable, (1) provide detailed notice of Defendant’s findings to that Dealer within five business days of concluding the investigation, and (2) require that the Dealer, within 10 business days after Defendant’s provision of such notice, provide evidence either (i) that there were no misrepresentations of any fact outlined in Section I of this Order, or failure to disclose the information outlined in Section II.C of this Order, or (ii) that any such practices have ceased and that such Dealer has taken appropriate remedial action to cure any identified harm caused to the consumer and to prevent future misrepresentations or failures to disclose;\n\n2. if following Defendant’s investigations of complaints against a Dealer, Defendant determines that Dealer engaged in a pattern of (i) misrepresentations of any fact outlined in Section I of this Order, or (ii) failures to disclose the information outlined in Section II.C of this Order unless inapplicable, Defendant must permanently terminate, within 30 days, its business relationship with that Dealer; a. for any Dealer that Defendant terminates, Defendant must also terminate its business relationship with any owners and operators of that Dealer within 30 days, to the extent any such owner or operator is 11 Case: 3:24-cv-00288 Document #: 1-1 Filed: 05/01/24 Page 12 of 54 known by Defendant to have engaged in the activities prohibited by this Order; and", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "02.25_aqua_finance", "company_name": "Aqua Finance, Inc.", "date_issued": "2025-02-15", "year": 2025, "administration": "Trump (2nd)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Truth in Lending Act (TILA), 15 U.S.C. §§ 1601–1666j; section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a); and the Duties of Furnishers of Information to Consumer Reporting Agencies Rule, 12 C.F.R. § 1022, subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/aqua-finance", "docket_number": "3:24-cv-00288" }, { "provision_number": "III", "title": "Required Disclosures", "category": "affirmative_obligation", "summary": "Defendant must provide clear, conspicuous, written pre-signing disclosures for Credit Agreements covering identity of creditor, APR, amount financed, finance charges, payment schedule, total payments, security interest information, and potential impact of UCC filings; Defendant must also comply with TILA and Regulation Z.", "verbatim_text": "A. beginning no later than the Compliance Date, prior to entering an agreement for closed-end Credit Agreements, and before the first transaction is made under open- end Credit Agreements, failing to disclose in writing (electronic or hardcopy), Clearly and Conspicuously, and in a form that the consumer may keep, before the consumer signs the Credit Agreement, the following information in a manner reflecting the terms of the legal obligation between the parties: 1. the identity of the creditor; 2. the annual percentage rate; 12 Case: 3:24-cv-00288 Document #: 1-1 Filed: 05/01/24 Page 13 of 54 3. for closed-end Credit Agreements a. the amount financed; b. the finance charge; c. the payment schedule for the amount financed; and d. the total number of payments; 4. for open-end Credit Agreements a. the amount financed for the first transaction; b. the finance charge on the first transaction; c. the payment schedule for the amount financed for the first transaction; and d. the total number of payments on the first transaction if the minimum monthly payment is paid each month; 5. that the creditor, or any party that subsequently assumes the Credit Agreement, can record a purchase money security interest under the Uniform Commercial Code (“UCC”) in the product being financed, when such is true; and 6. that the consumer’s ability to sell or refinance their property where the water treatment system is installed may be affected by such a UCC filing.\n\nB. violating any provision of the Truth in Lending Act, 15 U.S.C. §§1601-1666j, or Regulation Z, 12 C.F.R. Part 1026.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Consumer Notification" ], "case_id": "02.25_aqua_finance", "company_name": "Aqua Finance, Inc.", "date_issued": "2025-02-15", "year": 2025, "administration": "Trump (2nd)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Truth in Lending Act (TILA), 15 U.S.C. §§ 1601–1666j; section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a); and the Duties of Furnishers of Information to Consumer Reporting Agencies Rule, 12 C.F.R. § 1022, subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/aqua-finance", "docket_number": "3:24-cv-00288" }, { "provision_number": "IV", "title": "Prohibited Credit Reporting Activities", "category": "prohibition", "summary": "Defendant is permanently restrained from failing to comply with FCRA requirements for accuracy and integrity of furnished information, reasonable investigation of direct disputes, and duties as a furnisher of information, including ceasing to furnish known inaccurate information, flagging disputed accounts, and blocking information upon receipt of an Identity Theft Report.", "verbatim_text": "A. failing to comply with 12 C.F.R. § 1022.42, a copy of which is attached as Attachment A, including by failing to: 1. establish and implement reasonable written policies and procedures regarding the accuracy and integrity of the information relating to consumers that it furnishes to CRAs that are appropriate to the nature, size, complexity, and scope of Defendant’s activities;\n\n2. consider the guidelines set forth in Appendix E to 12 C.F.R. Part 1022, a copy of which is attached as Attachment B, in developing the policies and procedures, and incorporate those guidelines that are appropriate; and\n\n3. periodically review the written policies and procedures and update them as necessary to ensure their continued effectiveness;\n\n1. establish and implement reasonable written policies and procedures regarding reasonable investigations of FCRA Qualified Direct Disputes, regardless of the language;\n\n2. in developing the policies and procedures concerning FCRA Qualified Direct Disputes, regardless of language, incorporate reasonable provisions related to: (a)training employees whose duties include processing, responding to, or investigating Direct Disputes, including training on the requirements of the FCRA and related regulations; (b) retaining documents related to FCRA Qualified Direct Disputes for a reasonable period of time to allow for effective training and auditing; (c) requiring employees to document actions taken in processing, responding to, or investigating FCRA Qualified Direct Disputes, to allow for effective training and auditing; and (d) establishing an auditing program and schedule that is reasonably designed to promote compliance with the requirements of the FCRA and related regulations; and\n\n3. periodically review the written policies and procedures regarding the conduct of reasonable investigations of FCRA Qualified Direct Disputes and update them as necessary to ensure their continued effectiveness;\n\nC. failing to comply with 12 C.F.R. § 1022.43, a copy of which is attached as Attachment C, including by, upon receiving an FCRA Qualified Direct Dispute, failing to: 1. conduct a reasonable investigation with respect to the disputed information; 2. review all relevant information provided by the consumer with the dispute notice; and 3. complete its investigation of the dispute and report the results of the investigation to the consumer before the expiration of the period prescribed by 15 Case: 3:24-cv-00288 Document #: 1-1 Filed: 05/01/24 Page 16 of 54 Section 611(a)(1) of the FCRA, 15 U.S.C 1681i(a)(1), a copy of which is attached as Attachment D;\n\nD. failing to comply with Section 623 of the FCRA, 15 U.S.C. § 1681s-2, a copy of which is attached as Attachment E, including by failing to: 1. cease furnishing information it knows or has reasonable cause to believe is inaccurate, as required by Section 623 (a)(1)(A) of the FCRA, 15 U.S.C. § 1681s-2(a)(1)(A), notwithstanding any alternative compliance methods that may be generally available under Section 623(a)(1)(C) of the FCRA, 15 U.S.C. §1681s-2(a)(1)(C);\n\n2. report information as “disputed” to CRAs when consumers dispute, including verbally, the completeness or accuracy of any information Defendant furnished to a CRA, as required by Section 623(a)(3) of the FCRA, 15 U.S.C. § 1681s-2(a)(3); and\n\n3. cease furnishing information that purports to relate to a consumer to any CRA upon receipt by Defendant of an Identity Theft Report at the address specified by Defendant for receiving such reports, unless and until Defendant subsequently knows or is informed by the consumer that the information being furnished is correct, as required by Section 623(a)(6)(B) of the FCRA, 15 U.S.C. § 1681s-2(a)(6)(B).", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "02.25_aqua_finance", "company_name": "Aqua Finance, Inc.", "date_issued": "2025-02-15", "year": 2025, "administration": "Trump (2nd)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Truth in Lending Act (TILA), 15 U.S.C. §§ 1601–1666j; section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a); and the Duties of Furnishers of Information to Consumer Reporting Agencies Rule, 12 C.F.R. § 1022, subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/aqua-finance", "docket_number": "3:24-cv-00288" }, { "provision_number": "V", "title": "Monetary Judgment", "category": "affirmative_obligation", "summary": "Judgment of $43,605,980 is entered against Defendant, consisting of a $20,000,000 cash payment to the Commission and cessation of collection on at least $23,605,980 in Covered Consumer Debt, with associated credit reporting deletion, UCC fixture filing terminations, refund of received payments, and a compliance declaration.", "verbatim_text": "1. Payment of Twenty Million Dollars ($20,000,000) to the Commission. a. Defendant is ordered to pay to the Commission Twenty Million Dollars ($20,000,000), which, as Defendant stipulates, its undersigned counsel holds in escrow for no purpose other than payment to the Commission. Such payment must be made within 7 days of entry of this Order by electronic fund transfer in accordance with instructions previously provided by a representative of the Commission.\n\na. Defendant, Defendant’s officers, agents, employees, and attorneys, and all other Persons in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly, are permanently enjoined from attempting to collect, collecting, or assigning any right to collect any Covered Consumer Debt. b. Within 10 business days after entry of this Order, Defendant shall cease collecting on all Covered Consumer Debt and notify any collection agency or other third party collecting Covered Consumer Debt to cease such collection efforts. Within 60 business days after entry of this Order, Defendant shall recall, purchase, or otherwise obtain any Covered Consumer Debt that Defendant has referred, sold, assigned, or otherwise transferred to any collection agency or other third party.\n\nc. For any Covered Consumer Debt that has been reported to a CRA, Defendant shall, within 30 business days of entry of this Order, request that each CRA delete the Covered Consumer Debt from the consumer’s credit reporting file.\n\nd. For any consumer with Covered Consumer Debt for which Defendant has recorded, or caused to be recorded, a Uniform Commercial Code fixture filing for associated water treatment equipment goods or services, Defendant shall cause to be filed, within 30 business days of entry of this order, a termination statement with the recorder’s office where each fixture filing for water treatment equipment is recorded. To the extent that Defendant is informed that any additional action is necessary to effectuate the termination of all such fixture filings, including but not limited to additional information requested by the agency with which the termination statement has been filed, Defendant will take such additional action as necessary and as soon as practicable but within 14 business days of learning that additional action is necessary. Within 10 business days of filing these termination statements, Defendant shall provide the Commission with a list of all consumers whose fixture filing it has terminated.\n\ne. To the extent Defendant receives any payments for Covered Consumer Debt after the effective date of this Order, Defendant shall, within 30 days of receipt, refund any such payments.\n\nf. Defendant shall, within 90 business days after entry of this Order, provide a signed declaration to the Commission attesting that it has ceased collecting on all Covered Consumer Debt as required by Section V.A.2.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "02.25_aqua_finance", "company_name": "Aqua Finance, Inc.", "date_issued": "2025-02-15", "year": 2025, "administration": "Trump (2nd)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Truth in Lending Act (TILA), 15 U.S.C. §§ 1601–1666j; section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a); and the Duties of Furnishers of Information to Consumer Reporting Agencies Rule, 12 C.F.R. § 1022, subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/aqua-finance", "docket_number": "3:24-cv-00288" }, { "provision_number": "VI", "title": "Additional Monetary Provisions", "category": "affirmative_obligation", "summary": "Defendant relinquishes all rights to transferred assets, agrees that Complaint facts may be used in future litigation, acknowledges bankruptcy collateral estoppel effect, consents to use of its taxpayer ID for collecting delinquent amounts, and agrees that received funds may be used for consumer redress or related relief.", "verbatim_text": "A. Defendant relinquishes dominion and all legal and equitable right, title, and interest in any assets transferred pursuant to this Order and may not seek the return of any assets.\n\nB. The facts alleged in the Complaint will be taken as true, without further proof, in any subsequent civil litigation by or on behalf of the Commission, including in a proceeding to enforce their rights to any payment or monetary judgment pursuant to this Order, such as a nondischargeability complaint in any bankruptcy case.\n\nC. The facts alleged in the Complaint establish all elements necessary to sustain an action by the Commission pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A) and this Order will have collateral estoppel effect for such purposes.\n\nD. Defendant acknowledges that its Taxpayer Identification Numbers (Social Security Numbers or Employer Identification Numbers), which Defendant must submit to the Commission, may be used for collecting and reporting on any delinquent amount arising out of this Order, in accordance with 31 U.S.C. §7701.\n\nE. All money received by the Commission pursuant to this Order may be deposited into a fund administered by the Commission or its designee to be used for consumer relief, such as redress and any attendant expenses for the administration of any redress fund. If a representative of the Commission decides that direct redress to consumers is wholly or partially impracticable or money remains after such redress is completed, the Commission may apply any remaining money for such related relief as it determines to be reasonably related to Defendants’ practices alleged in the Complaint. Any money not used for relief is to be deposited to the U.S. Treasury. Defendants have no right to challenge any actions the Commission or its 19 Case: 3:24-cv-00288 Document #: 1-1 Filed: 05/01/24 Page 20 of 54 representatives may take pursuant to this Subsection.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Consumer Redress" ], "case_id": "02.25_aqua_finance", "company_name": "Aqua Finance, Inc.", "date_issued": "2025-02-15", "year": 2025, "administration": "Trump (2nd)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Truth in Lending Act (TILA), 15 U.S.C. §§ 1601–1666j; section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a); and the Duties of Furnishers of Information to Consumer Reporting Agencies Rule, 12 C.F.R. § 1022, subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/aqua-finance", "docket_number": "3:24-cv-00288" }, { "provision_number": "VII", "title": "Consumer Notification", "category": "affirmative_obligation", "summary": "Defendant must notify each consumer with Covered Consumer Debt in both English and Spanish by email and written notice, and then provide the Commission with a signed declaration identifying each notified consumer and notification details.", "verbatim_text": "A. Within 15 business days of entry of this Order, provide notification to each consumer with Covered Consumer Debt, using the notification, in both English and Spanish, provided as Attachment F to this Order. Notification shall be given: 1. By electronic mail to the most recent electronic mail address of the consumer known to the Defendant, if any; and 2. By written notice sent to the most recent address of the consumer known to the Defendant.\n\nB. Provide the Commission, within 10 business days after providing consumer notice pursuant to Subsection A., with a signed declaration identifying the name of each consumer required to be notified, including, to the extent known: (i) mailing address; (ii) email address; (iii)telephone number; (iv) the method or methods of notification; and (v) whether any electronic mail or written notice was returned undelivered.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Consumer Notification" ], "case_id": "02.25_aqua_finance", "company_name": "Aqua Finance, Inc.", "date_issued": "2025-02-15", "year": 2025, "administration": "Trump (2nd)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Truth in Lending Act (TILA), 15 U.S.C. §§ 1601–1666j; section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a); and the Duties of Furnishers of Information to Consumer Reporting Agencies Rule, 12 C.F.R. § 1022, subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/aqua-finance", "docket_number": "3:24-cv-00288" }, { "provision_number": "VIII", "title": "Customer Information", "category": "prohibition", "summary": "Defendant must provide sufficient customer information to enable the Commission to administer consumer redress and is permanently prohibited from disclosing, using, or benefitting from customer information obtained prior to the Order in connection with the extension of consumer credit.", "verbatim_text": "A. Failing to provide sufficient customer information to enable the Commission to efficiently administer consumer redress. Defendant represents that it has provided this redress information to the Commission. If a representative of the Commission requests in writing any information related to redress, Defendant must provide it, in the form prescribed by the Commission, within 14 days.\n\nB. Disclosing, using, or benefitting from customer information, including the name, address, telephone number, email address, social security number, other identifying information, or any data that enables access to a customer’s account (including a credit card, bank account, or other financial account), that Defendant obtained prior to entry of this Order in connection with the extension of consumer credit. Provided, however, that customer information need not be disposed of, and may be disclosed, to the extent requested by a government agency or required by law, regulation, or court order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "02.25_aqua_finance", "company_name": "Aqua Finance, Inc.", "date_issued": "2025-02-15", "year": 2025, "administration": "Trump (2nd)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Truth in Lending Act (TILA), 15 U.S.C. §§ 1601–1666j; section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a); and the Duties of Furnishers of Information to Consumer Reporting Agencies Rule, 12 C.F.R. § 1022, subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/aqua-finance", "docket_number": "3:24-cv-00288" }, { "provision_number": "IX", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendant must submit a sworn acknowledgment of receipt of the Order to the Commission, deliver copies of the Order to all relevant personnel and Dealers, and obtain signed acknowledgments of receipt from each.", "verbatim_text": "A. Defendant, within 7 days of entry of this Order, must submit to the Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.\n\nB. For 5 years after entry of this Order, Defendant must deliver a copy of this Order to: (1) all principals, officers, directors, and LLC managers and members; (2) all employees having managerial responsibilities for conduct related to the subject matter of the Order and all agents, representatives and Dealers who participate in conduct related to the subject matter of the Order; and (3) any business entity resulting from any change in structure as set forth in the Section titled Compliance Reporting. Delivery must occur within 7 days of entry of this Order for current personnel, agents, representatives, and Dealers. For all others, delivery must occur before they assume their responsibilities.\n\nC. From each individual or entity to which a Defendant delivered a copy of this Order, that Defendant must obtain, within 30 days, a signed and dated acknowledgment of 21 Case: 3:24-cv-00288 Document #: 1-1 Filed: 05/01/24 Page 22 of 54 receipt of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "02.25_aqua_finance", "company_name": "Aqua Finance, Inc.", "date_issued": "2025-02-15", "year": 2025, "administration": "Trump (2nd)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Truth in Lending Act (TILA), 15 U.S.C. §§ 1601–1666j; section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a); and the Duties of Furnishers of Information to Consumer Reporting Agencies Rule, 12 C.F.R. § 1022, subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/aqua-finance", "docket_number": "3:24-cv-00288" }, { "provision_number": "X", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendant must submit an initial annual compliance report, ongoing notices of material changes for 10 years, notices of any bankruptcy filings, and all submissions must be sworn under penalty of perjury and submitted to the specified FTC address.", "verbatim_text": "A. One year after entry of this Order, Defendant must submit a compliance report, sworn under penalty of perjury, Defendant must: (1) identify the primary physical, postal, and email address and telephone number, as designated points of contact, which representatives of the Commission may use to communicate with Defendant; (2) identify all of the Defendant’s businesses by all of their names, telephone numbers, and physical, postal, email, and Internet addresses; (3) describe the activities of each business, including the goods, services, or credit or loan products offered, the means of advertising, marketing, and sales; (4) describe in detail whether and how that Defendant is in compliance with each Section of this Order; and (5) provide a copy of each Order Acknowledgment obtained pursuant to this Order, unless previously submitted to the Commission.\n\nB. For 10 years after entry of this Order, Defendant must submit a compliance notice, sworn under penalty of perjury, within 14 days of any change in the following, Defendant must report any change in: (1) any designated point of contact; or (2) the structure of Defendant or any entity that Defendant has any ownership interest in or controls directly or indirectly that may affect compliance obligations arising under this Order, including: creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order.\n\nC. Defendant must submit to the Commission notice of the filing of any bankruptcy petition, insolvency proceeding, or similar proceeding by or against such Defendant within 14 22 Case: 3:24-cv-00288 Document #: 1-1 Filed: 05/01/24 Page 23 of 54 days of its filing.\n\nD. Any submission to the Commission required by this Order to be sworn under penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed on: _____” and supplying the date, signatory’s full name, title (if applicable), and signature.\n\nE. Unless otherwise directed by a Commission representative in writing, all submissions to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The subject line must begin: Federal Trade Commission v. Aqua Finance, Inc., X_______.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "02.25_aqua_finance", "company_name": "Aqua Finance, Inc.", "date_issued": "2025-02-15", "year": 2025, "administration": "Trump (2nd)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Truth in Lending Act (TILA), 15 U.S.C. §§ 1601–1666j; section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a); and the Duties of Furnishers of Information to Consumer Reporting Agencies Rule, 12 C.F.R. § 1022, subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/aqua-finance", "docket_number": "3:24-cv-00288" }, { "provision_number": "XI", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Defendant must create certain records for 10 years after entry of the Order and retain each such record for 5 years, including accounting records, personnel records, consumer complaint records, Dealer Complaint records, compliance records, and copies of all unique marketing materials.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant must create certain records for 10 years after entry of the Order and retain each such record for 5 years. Specifically, Defendant must create and retain the following records: A. accounting records showing the revenues from all Credit Agreements;\n\nB. personnel records showing, for each person providing services, whether as an employee or otherwise, that person’s: name; addresses; telephone numbers; job title or position; dates of service; and (if applicable) the reason for termination;\n\nC. records of all consumer complaints concerning the subject matter of this Order;\n\nD. all records relating to the Section titled Monitoring of Dealer Complaints;\n\nE. all records necessary to demonstrate full compliance with each provision of this 23 Case: 3:24-cv-00288 Document #: 1-1 Filed: 05/01/24 Page 24 of 54 Order, including all submissions to the Commission; and\n\nF. a copy of each unique advertisement or other marketing material.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "02.25_aqua_finance", "company_name": "Aqua Finance, Inc.", "date_issued": "2025-02-15", "year": 2025, "administration": "Trump (2nd)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Truth in Lending Act (TILA), 15 U.S.C. §§ 1601–1666j; section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a); and the Duties of Furnishers of Information to Consumer Reporting Agencies Rule, 12 C.F.R. § 1022, subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/aqua-finance", "docket_number": "3:24-cv-00288" }, { "provision_number": "XII", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The Commission is authorized to monitor Defendant's compliance through written requests for reports and documents, depositions, direct communication with Defendant's employees, and covert means such as posing as consumers or suppliers.", "verbatim_text": "A. Within 14 days of receipt of a written request from a representative of the Commission, Defendant must: submit additional compliance reports or other requested information, which must be sworn under penalty of perjury; appear for depositions; and produce documents for inspection and copying. The Commission is also authorized to obtain discovery, without further leave of court, using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69.\n\nB. For matters concerning this Order, the Commission is authorized to communicate directly with Defendant. Defendant must permit representatives of the Commission to interview any employee or other person affiliated with Defendant who has agreed to such an interview. The person interviewed may have counsel present.\n\nC. The Commission may use all other lawful means, including posing, through their representatives as consumers, suppliers, or other individuals or entities, to Defendant or any individual or entity affiliated with Defendant, without the necessity of identification or prior notice. Nothing in this Order limits the Commission’s lawful use of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "02.25_aqua_finance", "company_name": "Aqua Finance, Inc.", "date_issued": "2025-02-15", "year": 2025, "administration": "Trump (2nd)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Truth in Lending Act (TILA), 15 U.S.C. §§ 1601–1666j; section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a); and the Duties of Furnishers of Information to Consumer Reporting Agencies Rule, 12 C.F.R. § 1022, subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/aqua-finance", "docket_number": "3:24-cv-00288" }, { "provision_number": "XIII", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "verbatim_text": "IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "02.25_aqua_finance", "company_name": "Aqua Finance, Inc.", "date_issued": "2025-02-15", "year": 2025, "administration": "Trump (2nd)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Truth in Lending Act (TILA), 15 U.S.C. §§ 1601–1666j; section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a); and the Duties of Furnishers of Information to Consumer Reporting Agencies Rule, 12 C.F.R. § 1022, subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/aqua-finance", "docket_number": "3:24-cv-00288" }, { "provision_number": "1", "title": "Motion to Approve Stipulated Final Judgment", "category": "affirmative_obligation", "summary": "The United States moves the Court to approve and enter the parties' Stipulated Final Judgment and Order for Civil Penalties, Permanent Injunction, and Other Equitable Relief.", "verbatim_text": "Plaintiff, the United States of America, respectfully moves the Court to approve 18 and enter the parties’ (proposed) Stipulated Final Judgment and Order for Civil Penalties, 19 Permanent Injunction, and Other Equitable Relief, attached hereto. 20 Undersigned counsel for the United States (Crane-Hirsch) has conferred with 21 counsel for defendants (L. Jean Noonan), and is authorized to state that this motion is 22 unopposed. 23 WHEREFORE, Plaintiff the United States respectfully moves that the Court 24 grant this Unopposed Motion to Approve Stipulated Final Judgment and Order for Civil 25 Penalties, Permanent Injunction, and Other Equitable Relief.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "03.10_direct_marketing_associates_corp._et_al._usa", "company_name": "Direct Marketing Associates, Corp.", "date_issued": "2010-03-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 53(b) and 56(a); and the Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/072-3002-direct-marketing-associates-corp-et-al-usa", "docket_number": "CV 10-0696-PHX-LOA" }, { "provision_number": "I", "title": "Prohibition on Improper Prescreened List Practices", "category": "prohibition", "summary": "Respondent is prohibited from furnishing prescreened lists without proper verification of permissible purposes, and from furnishing such lists for debt relief or mortgage assistance relief products involving advance fees.", "verbatim_text": "A. Furnishing a prescreened list to any person which respondent does not have reason to believe has a permissible purpose under section 604(c) of the FCRA, 15 U.S.C. § 1681b(c).\n\nB. Failing to maintain reasonable procedures designed to limit the furnishing of prescreened lists to the purposes listed under section 604(c) of the FCRA,15 U.S.C. § 1681b(c), as set forth in section 607(a) of the FCRA, 15 U.S.C. § 1681e(a), including: 1. Failing to require that prospective users of the information identify themselves, certify the purposes for which the information is sought, and certify that the information will be used for no other purpose;\n\n2. Failing to make a reasonable effort to verify the identity of a new prospective user and the uses certified by such prospective user prior to furnishing such user a prescreened list; and\n\n3. Furnishing a prescreened list to any person respondent has reasonable grounds for believing will use it for a purpose not listed in section 604(c) of the FCRA, 15 U.S.C. § 1681b(c).\n\nC. Furnishing consumer reports pursuant to section 604(c) of the FCRA, 15 U.S.C. 1681b(c), in connection with solicitations for debt relief products or services, or mortgage assistance relief products or services, offered by entities that respondent has reasonable grounds for believing charge advance fees for such services, i.e., fees collected prior to the provision of such services. This prohibition shall not apply to solicitations for refinancing of a dwelling loan, or services offered by attorneys.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "03.13_equifax_information_services_ll", "company_name": "Equifax Information Services LLC", "date_issued": "2013-03-15", "year": 2013, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Fair Credit Reporting Act, 15 U.S.C. §§ 1681 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/172-3203-equifax-inc", "docket_number": "C-4387" }, { "provision_number": "II", "title": "Monetary Payment", "category": "affirmative_obligation", "summary": "Respondent must pay $392,803 to the Federal Trade Commission as disgorgement, to be deposited in the United States Treasury.", "verbatim_text": "A. Within seven (7) days of service of this order, respondent shall transfer the sum to the Commission by electronic funds transfer in accordance with instructions previously provided by a representative of the Commission. These funds will be deposited in the United States Treasury as disgorgement.\n\nB. In the event of any default on any obligation to make payment under this order, which default continues for ten (10) days beyond the due date of the payment, interest shall accrue, computed pursuant to 28 U.S.C. § 1961, from the date of default to the date of payment.\n\nC. Respondent relinquishes all dominion, control, and title to the funds paid to the fullest extent permitted by law. Respondent shall make no claim to or demand return of the funds, directly or indirectly, through counsel or otherwise.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "03.13_equifax_information_services_ll", "company_name": "Equifax Information Services LLC", "date_issued": "2013-03-15", "year": 2013, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Fair Credit Reporting Act, 15 U.S.C. §§ 1681 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/172-3203-equifax-inc", "docket_number": "C-4387" }, { "provision_number": "III", "title": "Recordkeeping Requirements", "category": "recordkeeping", "summary": "Respondent must maintain business records demonstrating compliance with this order for five years and make them available to the FTC upon request.", "verbatim_text": "A. Files containing the names, addresses, telephone numbers, and all certifications made by persons seeking to obtain prescreened lists from respondent in order to finance the product or service provided by a third party, and all materials considered by respondent in connection with its verification of the identity of those persons and verification of the certifications made by those persons;\n\nB. Copies of all training materials and marketing materials that relate to respondent’s prescreening activities as alleged in the complaint and respondent’s compliance with the provisions of this order; and\n\nC. All records necessary to demonstrate full compliance with each provision of this order, including all submissions to the Commission.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "03.13_equifax_information_services_ll", "company_name": "Equifax Information Services LLC", "date_issued": "2013-03-15", "year": 2013, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Fair Credit Reporting Act, 15 U.S.C. §§ 1681 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/172-3203-equifax-inc", "docket_number": "C-4387" }, { "provision_number": "IV", "title": "Order Acknowledgment and Distribution", "category": "acknowledgment", "summary": "Respondent must deliver a copy of this order to all current and future personnel with relevant responsibilities and obtain signed acknowledgments of receipt.", "verbatim_text": "order, respondent, and its successors and assigns, shall deliver a copy of this order to: (1) all current and future principals, officers, and directors; and (2) all current and future managers, employees, agents and representatives who have responsibilities with respect to the subject matter of this order, and shall secure from each such person a signed and dated statement acknowledging receipt of the order, with any electronic signatures complying with the\n\ncurrent personnel within thirty (30) days after the date of service of the order, and to future\n\ncurrent personnel within thirty (30) days after the date of service of the order, and to future personnel within thirty (30) days after the person assumes such position or responsibilities.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "03.13_equifax_information_services_ll", "company_name": "Equifax Information Services LLC", "date_issued": "2013-03-15", "year": 2013, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Fair Credit Reporting Act, 15 U.S.C. §§ 1681 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/172-3203-equifax-inc", "docket_number": "C-4387" }, { "provision_number": "V", "title": "Notice of Changes Affecting Compliance", "category": "compliance_reporting", "summary": "Respondent must notify the Commission at least thirty days prior to any change that may affect compliance obligations, including dissolution, merger, sale, bankruptcy, or name/address changes.", "verbatim_text": "notify the Commission at least thirty (30) days prior to any change in respondent that may affect compliance obligations arising under this order, including but not limited to, a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor company; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this order; the proposed filing of a bankruptcy petition; or a change in respondent’s name or address. Provided, however, that with respect to any proposed change\n\nrespondent’s name or address. Provided, however, that with respect to any proposed change about which respondent learns less than thirty (30) days prior to the date such action is to take place, respondent shall notify the Commission as soon as is practicable after obtaining such knowledge. Unless otherwise directed by a representative of the Commission in writing, all", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "03.13_equifax_information_services_ll", "company_name": "Equifax Information Services LLC", "date_issued": "2013-03-15", "year": 2013, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Fair Credit Reporting Act, 15 U.S.C. §§ 1681 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/172-3203-equifax-inc", "docket_number": "C-4387" }, { "provision_number": "VI", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Respondent must file a compliance report with the Commission within sixty days after service of this order, and submit additional reports upon request.", "verbatim_text": "within sixty (60) days after the date of service of this order, file with the Commission a true and accurate report, in writing, setting forth in detail the manner and form in which respondent has complied with this order. Within ten (10) days of receipt of written notice from a representative\n\ncomplied with this order. Within ten (10) days of receipt of written notice from a representative of the Commission, respondent shall submit additional true and accurate written reports.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "03.13_equifax_information_services_ll", "company_name": "Equifax Information Services LLC", "date_issued": "2013-03-15", "year": 2013, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Fair Credit Reporting Act, 15 U.S.C. §§ 1681 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/172-3203-equifax-inc", "docket_number": "C-4387" }, { "provision_number": "VII", "title": "Order Duration and Termination", "category": "duration", "summary": "This order will terminate on March 5, 2033, or twenty years from the most recent date the United States or the Commission files a complaint in federal court alleging any violation of the order, whichever comeslater.", "verbatim_text": "This order will terminate on March 5, 2033, or twenty (20) years from the most recent date that the United States or the Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of:", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "03.13_equifax_information_services_ll", "company_name": "Equifax Information Services LLC", "date_issued": "2013-03-15", "year": 2013, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Fair Credit Reporting Act, 15 U.S.C. §§ 1681 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/172-3203-equifax-inc", "docket_number": "C-4387" }, { "provision_number": "I", "title": "Civil Penalty", "category": "affirmative_obligation", "summary": "Defendant must pay a $150,000 civil penalty to the United States within seven business days of service of the Order, with default interest provisions and relinquishment of all rights to the funds.", "verbatim_text": "IITT IISS OORRDDEERREEDD tthhaatt DDeeffeennddaanntt sshhaallll ppaayy ttoo PPllaaiinnttiiffff,, ppuurrssuuaanntt ttoo sseeccttiioonn 662211 ((aa)) ooff tthhee FFCCRRAA,, 1155 UU..SS..CC.. §§ 11668811ss((aa)),, aa cciivviill ppeennaallttyy iinn tthhee aammoouunntt ooff $$115500,,000000..\n\nAA.. DDeeffeennddaanntt sshhaallll mmaakkee tthhiiss ppaayymmeenntt wwiitthhiinn sseevveenn ((77)) bbuussiinneessss ddaayyss ooff tthhee ddaattee ooff sseerrvviiccee ooff tthhiiss OOrrddeerr bbyy eelleeccttrroonniicc ffuunndd ttrraannssffeerr iinn aaccccoorrddaannccee wwiitthh iinnssttrruuccttiioonnss pprroovviiddeedd bbyy tthhee OOffffiiccee ooff CCoonnssuummeerr LLiittiiggaattiioonn,, CCiivviill DDiivviissiioonn,, UU..SS.. DDeeppaarrttmmeenntt ooff JJuussttiiccee,, WWaasshhiinnggttoonn,, DD..CC.. 2200553300,, ffoorr aapppprroopprriiaattee ddiissppoossiittiioonn..\n\nBB.. IInn tthhee eevveenntt ooff aannyy ddeeffaauulltt iinn ppaayymmeenntt,, wwhhiicchh ddeeffaauulltt ccoonnttiinnuueess ffoorr tteenn ((1100)) ddaayyss bbeeyyoonndd tthhee dduuee ddaattee ooff ppaayymmeenntt,, tthhee eennttiirree uunnppaaiidd ppeennaallttyy,, ttooggeetthheerr wwiitthh iinntteerreesstt,, aass ccoommppuutteedd ppuurrssuuaanntt ttoo 2288 UU.. SS.. CC.. §§ 11996611 ffrroomm tthhee ddaattee ooff ddeeffaauulltt ttoo tthhee ddaattee ooff ppaayymmeenntt,, sshhaallll iimmmmeeddiiaatteellyy bbeeccoommee dduuee aanndd ppaayyaabbllee..\n\nCC.. TThhiiss jjuuddggmmeenntt rreepprreesseennttss aa cciivviill ppeennaallttyy oowweedd ttoo tthhee UUnniitteedd SSttaatteess GGoovveemmmmeenntt,, aanndd iiss nnoott ccoommppeennssaattiioonn ffoorr aaccttuuaall ppeeccuunniiaarryy lloossss,, aanndd,, tthheerreeffoorree,, iiss nnoott ssuubbjjeecctt ttoo ddiisscchhaarrggee uunnddeerr tthhee BBaannkkrruuppttccyy CCooddee ppuurrssuuaanntt ttoo 1111 UU..SS..CC.. §§ 552233((aa))((77)).. DDeeffeennddaanntt aaggrreeeess tthhaatt tthhee ffaaccttss aass PPaaggee 33 ooff 1133 CCaassee 22::1100--ccvv--0000556655--RRLLHH--PPAALL DDooccuummeenntt 24 FFiilleedd 0044//2200//1100 PPaaggee 44 ooff 1144 aalllleeggeedd iinn tthhee CCoommppllaaiinntt ffiilleedd iinn tthhiiss aaccttiioonn sshhaallll bbee ttaakkeenn aass ttrruuee,, wwiitthhoouutt ffuurrtthheerr pprrooooff,, iinn aannyy ssuubbsseeqquueenntt cciivviill lliittiiggaattiioonn ffiilleedd bbyy oorr oonn bbeehhaallff ooff tthhee CCoommmmiissssiioonn ttoo eennffoorrccee iittss rriigghhttss ttoo aannyy ppaayymmeenntt oorr mmoonneeyy jjuuddggmmeenntt ppuurrssuuaanntt ttoo tthhiiss OOrrddeerr..\n\nDD.. PPrroocceeeeddiinnggss iinniittiiaatteedd uunnddeerr tthhiiss ppaarrtt aarree iinn aaddddiittiioonn ttoo,, aanndd nnoott iinn lliieeuu ooff,, aannyy ootthheerr cciivviill oorr ccrriimmiinnaall ppeennaallttiieess tthhaatt mmaayy bbee pprroovviiddeedd bbyy llaaww,, iinncclluuddiinngg aannyy ootthheerr pprroocceeeeddiinnggss PPllaaiinnttiiffff mmaayy iinniittiiaattee ttoo eennffoorrccee tthhiiss OOrrddeerr..\n\nEE.. DDeeffeennddaanntt rreelliinnqquuiisshheess aallll ddoommiinniioonn,, ccoonnttrrooll,, aanndd ttiittllee ttoo tthhee ffuunnddss ppaaiidd ttoo tthhee ffuulllleesstt eexxtteenntt ppeerrmmiitttteedd bbyy llaaww.. DDeeffeennddaanntt sshhaallll mmaakkee nnoo ccllaaiimm ttoo oorr ddeemmaanndd ffoorr rreettuurrnn ooff tthhee ffuunnddss,, ddiirreeccttllyy oorr iinnddiirreeccttllyy,, tthhrroouugghh ccoouunnsseelloorr ootthheerrwwiissee..", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "04.10_united_states_of_america_v._central_credit", "company_name": "Central Credit, LLC", "date_issued": "2010-04-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) and 16(a) of the FTC Act, 15 U.S.C. §§ 53(b) and 56(a); and Sections 607(d), 609(c), 612(a)(1)(C) and (a)(2), and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681e, 1681g, and 1681s", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3106-united-states-america-v-central-credit-llc", "docket_number": "2:10-cv-00565" }, { "provision_number": "II", "title": "Prohibited Business Activities", "category": "prohibition", "summary": "Defendant and all persons acting in concert with it are permanently enjoined from failing to provide required FCRA notices to users, furnishers, and consumers, and from failing to maintain a streamlined process for free annual file disclosures.", "verbatim_text": "AA.. FFaaiilliinngg ttoo pprroovviiddee tthhee \"\"UUsseerr NNoottiiccee\"\" rreeqquuiirreedd bbyy sseeccttiioonn 660077((dd)) ooff tthhee FFCCRRAA,, 1155 UU..SS..CC.. §§ 11668811ee((dd)),, ttoo aallll uusseerrss ooff DDeeffeennddaanntt''ssccoonnssuummeerr rreeppoorrttss..\n\nBB.. FFaaiilliinngg ttoo pprroovviiddee tthhee \"\"FFuurrnniisshheerr NNoottiiccee\"\" rreeqquuiirreedd bbyy sseeccttiioonn 660077((dd)) ooff tthhee FFCCRRAA,, 1155 UU..SS..CC.. §§ 11668811ee((dd)),, ttoo aallll ffuurrnniisshheerrss ooff ccoonnssuummeerr rreeppoorrtt iinnffoorrmmaattiioonn ttoo DDeeffeennddaanntt..\n\nCC.. FFaaiilliinngg ttoo pprroovviiddee tthhee \"\"SSuummmmaarryy ooff RRiigghhttss\"\" nnoottiiccee rreeqquuiirreedd bbyy sseeccttiioonn 660099(( cc)) ((22)) ooff tthhee FFCCRRAA,, 1155 UU..SS..CC.. §§ 11668811gg((cc))((22)),, ttoo aallll ccoonnssuummeerrss wwhhoo oobbttaaiinn ffiillee ddiisscclloossuurreess ffrroomm DDeeffeennddaanntt..\n\nDD.. WWhheenn ooppeerraattiinngg aass aa nnaattiioonnwwiiddee ssppeecciiaallttyy ccoonnssuummeerr rreeppoorrttiinngg aaggeennccyy,, ffaaiilliinngg ttoo eessttaabblliisshh aanndd mmaaiinnttaaiinn aa ssttrreeaammlliinneedd pprroocceessss ttoo eennaabbllee ccoonnssuummeerrss ttoo oobbttaaiinn tthheeiirr ffrreeee aannnnuuaall ffiillee ddiisscclloossuurreess bbyy aa ttoollll--ffrreeee tteelleepphhoonnee nnuummbbeerr,, aass rreeqquuiirreedd bbyy sseeccttiioonnss 661122((aa))((II))((CC)) aanndd 66ll22((aa))((22)) ooff tthhee FFCCRRAA,, 1155 UU..SS..CC.. §§§§ ll6688IIjj((aa))((ll))((CC)) aanndd ll6688IIjj((aa))((22)),, aanndd sseeccttiioonn 661100..33 ooff tthhee SSttrreeaammlliinneedd PPrroocceessss RRuullee,, 1166 CC..FF..RR.. §§ 661100..33", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "04.10_united_states_of_america_v._central_credit", "company_name": "Central Credit, LLC", "date_issued": "2010-04-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) and 16(a) of the FTC Act, 15 U.S.C. §§ 53(b) and 56(a); and Sections 607(d), 609(c), 612(a)(1)(C) and (a)(2), and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681e, 1681g, and 1681s", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3106-united-states-america-v-central-credit-llc", "docket_number": "2:10-cv-00565" }, { "provision_number": "III", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The Commission is authorized to monitor Defendant's compliance through written reports, document production, depositions, facility access, discovery, and undercover posing as consumers or suppliers.", "verbatim_text": "AA.. WWiitthhiinn tteenn ((1100)) ddaayyss ooff rreecceeiipptt ooff wwrriitttteenn nnoottiiccee ffrroomm aa rreepprreesseennttaattiivvee oofftthhee CCoommmmiissssiioonn,, DDeeffeennddaanntt sshhaallll ssuubbmmiitt aaddddiittiioonnaall wwrriitttteenn rreeppoorrttss,, wwhhiicchh aarree ttrruuee aanndd aaccccuurraattee aanndd .. sswwoorrnn ttoo uunnddeerr ppeennaallttyy ooff ppeerrjjuurryy;; pprroodduuccee ddooccuummeennttss ffoorr iinnssppeeccttiioonn aanndd ccooppyyiinngg;; aappppeeaarr ffoorr ddeeppoossiittiioonn;; aanndd pprroovviiddee eennttrryy dduurriinngg nnoorrmmaall bbuussiinneessss hhoouurrss ttoo aannyy bbuussiinneessss llooccaattiioonn iinn DDeeffeennddaanntt''ss ppoosssseessssiioonn oorr ddiirreecctt oorr iinnddiirreecctt ccoonnttrrooll,, ttoo iinnssppeecctt tthhee bbuussiinneessss ooppeerraattiioonn..\n\nII.. oobbttaaiinniinngg ddiissccoovveerryy ffrroomm aannyy ppeerrssoonn,, wwiitthhoouutt ffuurrtthheerr lleeaavvee ooff ccoouurrtt,, uussiinngg tthhee pprroocceedduurreess pprreessccrriibbeedd bbyy FFeedd.. RR.. CCiivv.. PP.. 3300,, 3311,, 3333,,3344,,3366,,4455,, aanndd 6699;;\n\n22.. hhaavviinngg iittss rreepprreesseennttaattiivveess ppoossee aass ccoonnssuummeerrss aanndd ssuupppplliieerrss ttoo DDeeffeennddaanntt,, iittss eemmppllooyyeeeess,, oorr aannyy ootthheerr eennttiittyy mmaannaaggeedd oorr ccoonnttrroolllleedd iinn wwhhoollee oorr iinn ppaarrtt bbyy DDeeffeennddaanntt,, wwiitthhoouutt tthhee nneecceessssiittyy ooff iiddeennttiiffiiccaattiioonn oorr pprriioorr nnoottiiccee;; aanndd\n\nCC.. DDeeffeennddaanntt sshhaallll ppeennnniitt rreepprreesseennttaattiivveess ooff tthhee CCoommmmiissssiioonn ttoo iinntteerrvviieeww aannyy eemmppllooyyeerr,, ccoonnssuullttaanntt,, iinnddeeppeennddeenntt ccoonnttrraaccttoorr,, rreepprreesseennttaattiivvee,, aaggeenntt,, oorr eemmppllooyyeeee wwhhoo hhaass aaggrreeeedd ttoo ssuucchh aann iinntteerrvviieeww,, rreellaattiinngg iinn aannyy wwaayy ttoo aannyy ccoonndduucctt ssuubbjjeecctt ttoo tthhiiss OOrrddeerr.. TThhee ppeerrssoonn iinntteerrvviieewweedd mmaayy hhaavvee ccoouunnsseell pprreesseenntt..", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "04.10_united_states_of_america_v._central_credit", "company_name": "Central Credit, LLC", "date_issued": "2010-04-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) and 16(a) of the FTC Act, 15 U.S.C. §§ 53(b) and 56(a); and Sections 607(d), 609(c), 612(a)(1)(C) and (a)(2), and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681e, 1681g, and 1681s", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3106-united-states-america-v-central-credit-llc", "docket_number": "2:10-cv-00565" }, { "provision_number": "IV", "title": "Compliance Reporting by Defendant", "category": "compliance_reporting", "summary": "Defendant must notify the Commission of structural changes and submit sworn written compliance reports for three years, notify of bankruptcy filings, and send all reports by overnight courier or first-class mail with electronic copy.", "verbatim_text": "AA.. FFoorr aa ppeerriioodd ooff tthhrreeee ((33)) yyeeaarrss ffrroomm tthhee ddaattee ooff eennttrryy ooff tthhiiss OOrrddeerr,, DDeeffeennddaanntt sshhaallll nnoottiiffYY tthhee CCoommmmiissssiioonn ooff aannyy cchhaannggeess iinn ssttrruuccttuurree ooff DDeeffeennddaanntt oorr aannyy ootthheerr bbuussiinneessss eennttiittyy tthhaatt DDeeffeennddaanntt ddiirreeccttllyy oorr iinnddiirreeccttllyy ccoonnttrroollss,, oorr hhaass aann oowwnneerrsshhiipp iinntteerreesstt iinn,, tthhaatt mmaayy aaffffeecctt ccoommpplliiaannccee oobblliiggaattiioonnss aarriissiinngg uunnddeerr tthhiiss OOrrddeerr,, iinncclluuddiinngg bbuutt nnoott lliimmiitteedd ttoo iinnccoorrppoorraattiioonn oorr ootthheerr oorrggaanniizzaattiioonn;; aa ddiissssoolluuttiioonn,, aassssiiggnnmmeenntt,, ssaallee,, mmeerrggeerr,, oorr ootthheerr aaccttiioonn;; tthhee ccrreeaattiioonn oorr ddiissssoolluuttiioonn ooff aa ssuubbssiiddiiaarryy,, ppaarreenntt,, oorr aaffffiilliiaattee tthhaatt eennggaaggeess iinn aannyy aaccttss oorr pprraaccttiicceess ssuubbjjeecctt ttoo tthhiiss OOrrddeerr;; oorr aa cchhaannggee iinn tthhee bbuussiinneessss nnaammee oorr aaddddrreessss,, aatt lleeaasstt tthhiirrttyy ((3300)) ddaayyss pprriioorr ttoo ssuucchh cchhaannggee,, pprroovviiddeedd tthhaatt,, wwiitthh rreessppeecctt ttoo aannyy ssuucchh cchhaannggee iinn tthhee bbuussiinneessss eennttiittyy aabboouutt wwhhiicchh DDeeffeennddaanntt lleeaarrnnss lleessss tthhaann tthhiirrttyy ((3300)) ddaayyss pprriioorr ttoo tthhee ddaattee ssuucchh aaccttiioonn iiss ttoo ttaakkee ppllaaccee,, DDeeffeennddaanntt sshhaallll nnoottiiffYY tthhee CCoommmmiissssiioonn aass ssoooonn aass iiss pprraaccttiiccaabbllee aafftteerr oobbttaaiinniinngg ssuucchh kknnoowwlleeddggee..\n\nBB.. OOnnee hhuunnddrreedd eeiigghhttyy ddaayyss aafftteerr tthhee ddaattee ooff eennttrryy ooff tthhiiss OOrrddeerr aanndd aannnnuuaallllyy tthheerreeaafftteerr ffoorr aa ppeerriioodd ooff tthhrreeee ((33)) yyeeaarrss,, DDeeffeennddaanntt sshhaallll pprroovviiddee aa wwrriitttteenn rreeppoorrtt ttoo tthhee CCoommmmiissssiioonn,, wwhhiicchh iiss ttrruuee aanndd aaccccuurraattee aanndd sswwoorrnn ttoo uunnddeerr ppeennaallttyy ooffppeerrjjuurryy,, sseettttiinngg ffoorrtthh iinn ddeettaaiill tthhee mmaannnneerr aanndd ffoorrmm iinn wwhhiicchh tthheeyy hhaavvee ccoommpplliieedd aanndd aarree ccoommppllyyiinngg wwiitthh tthhiiss OOrrddeerr.. TThhiiss rreeppoorrtt sshhaallll iinncclluuddee,, bbuutt nnoott bbee lliimmiitteedd ttoo:: 11.. AA ccooppyy ooff eeaacchh aacckknnoowwlleeddggmmeenntt ooff rreecceeiipptt oofftthhiiss OOrrddeerr,, oobbttaaiinneedd ppuurrssuuaanntt ttoo tthhee SSeeccttiioonn ttiittlleedd \"\"DDiissttrriibbuuttiioonn ooff OOrrddeerr\"\";; aanndd 22.. AAnnyy ootthheerr cchhaannggeess rreeqquuiirreedd ttoo bbee rreeppoorrtteedd uunnddeerr SSuubbsseeccttiioonn AA ooff tthhiiss SSeeccttiioonn..\n\nCC.. DDeeffeennddaanntt sshhaallll nnoottiiffyy tthhee CCoommmmiissssiioonn ooff tthhee ffiilliinngg ooff aa bbaannkkrruuppttccyy ppeettiittiioonn wwiitthhiinn ffiifftteeeenn ((1155)) ddaayyss ooff ffiilliinngg..\n\nDD.. FFoorr ppuurrppoosseess ooff tthhiiss OOrrddeerr,, DDeeffeennddaanntt sshhaallll,, uunnlleessss ootthheerrwwiissee ddiirreecctteedd bbyy tthhee CCoommmmiissssiioonn''ss aauutthhoorriizzeedd rreepprreesseennttaattiivveess,, sseenndd bbyy oovveerrnniigghhtt ccoouurriieerr aallll rreeppoorrttss aanndd nnoottiiffiiccaattiioonnss rreeqquuiirreedd bbyy tthhiiss OOrrddeerr ttoo tthhee CCoommmmiissssiioonn,, ttoo tthhee ffoolllloowwiinngg aaddddrreessss:: AAssssoocciiaattee DDiirreeccttoorr,, DDiivviissiioonn ooff EEnnffoorrcceemmeenntt BBuurreeaauu ooff CCoonnssuummeerr PPrrootteeccttiioonn FFeeddeerraall TTrraaddee CCoommmmiissssiioonn 660000 PPeennnnssyyllvvaanniiaa AAvveennuuee,, NN..WW..,, RRoooomm NNJJ--22ll2222 WWaasshhiinnggttoonn,, DD..CC.. 2200558800 RREE:: UUnniitteedd SSttaatteess vv.. CCeennttrraall CCrreeddiitt,, LLLLCC PPrroovviiddeedd tthhaatt,, iinn lliieeuu ooff oovveerrnniigghhtt ccoouurriieerr,, DDeeffeennddaanntt mmaayy sseenndd ssuucchh rreeppoorrttss oorr nnoottiiffiiccaattiioonnss bbyy ffiirrsstt--ccllaassss mmaaiill,, bbuutt oonnllyy iiff DDeeffeennddaanntt ccoonntteemmppoorraanneeoouussllyy sseennddss aann eelleeccttrroonniicc vveerrssiioonn ooff ssuucchh rreeppoorrttss oorr nnoottiiffiiccaattiioonnss ttoo tthhee CCoommmmiissssiioonn aatt:: DDEEBBrriieeff@@ffttcc..ggoovv..", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "04.10_united_states_of_america_v._central_credit", "company_name": "Central Credit, LLC", "date_issued": "2010-04-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) and 16(a) of the FTC Act, 15 U.S.C. §§ 53(b) and 56(a); and Sections 607(d), 609(c), 612(a)(1)(C) and (a)(2), and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681e, 1681g, and 1681s", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3106-united-states-america-v-central-credit-llc", "docket_number": "2:10-cv-00565" }, { "provision_number": "V", "title": "Record Keeping Provisions", "category": "recordkeeping", "summary": "For six years from entry of the Order, Defendant must create and retain specified records including user/furnisher files, training materials, compliance documents, and any records that contradict compliance.", "verbatim_text": "IITT IISS FFUURRTTHHEERR OORRDDEERREEDD tthhaatt,, ffoorr aa ppeerriioodd ooff ssiixx ((66)) yyeeaarrss ffrroomm tthhee ddaattee ooff eennttrryy ooff tthhiiss OOrrddeerr,, DDeeffeennddaanntt iiss hheerreebbyy rreessttrraaiinneedd aanndd eennjjooiinneedd ffrroomm ffaaiilliinngg ttoo ccrreeaattee aanndd rreettaaiinn tthhee ffoolllloowwiinngg rreeccoorrddss:: AA.. FFiilleess ccoonnttaaiinniinngg tthhee nnaammeess,, aaddddrreesssseess,, aanndd tteelleepphhoonnee nnuummbbeerrss ooff aallll uusseerrss aanndd ffuurrnniisshheerrss ooff ccoonnssuummeerr rreeppoorrtt iinnffoorrmmaattiioonn tthhaatt rreecceeiivveedd tthhee sseeccttiioonn 660077((dd)) UUsseerr NNoottiiccee aanndd FFuurrnniisshheerr NNoottiiccee,, aanndd aallll mmaatteerriiaallss ccoonnssiiddeerreedd bbyy DDeeffeennddaanntt ttoo ddeemmoonnssttrraattee ccoommpplliiaannccee wwiitthh sseeccttiioonn 660077((dd)) ooff tthhee FFCCRRAA..\n\nBB.. CCooppiieess ooff aallll ttrraaiinniinngg mmaatteerriiaallss aanndd wwrriitttteenn ppoolliicciieess aanndd pprroocceedduurreess tthhaatt rreellaattee ttoo DDeeffeennddaanntt''ss aaccttiivviittiieess aass aalllleeggeedd iinn tthhee CCoommppllaaiinntt oorr DDeeffeennddaanntt''ss ccoommpplliiaannccee wwiitthh tthhee pprroovviissiioonnss ooff tthhiiss OOrrddeerr..\n\nCC.. AAllll rreeccoorrddss aanndd ddooccuummeennttss nneecceessssaarryy ttoo ddeemmoonnssttrraattee ffuullll ccoommpplliiaannccee wwiitthh eeaacchh pprroovviissiioonn ooff tthhiiss OOrrddeerr,, iinncclluuddiinngg bbuutt nnoott lliimmiitteedd ttoo,, ccooppiieess ooff aacckknnoowwlleeddggmmeennttss ooff rreecceeiipptt ooff tthhiiss OOrrddeerr,, rreeqquuiirreedd bbyy SSeeccttiioonnss ttiittlleedd \"\"DDiissttrriibbuuttiioonn ooff OOrrddeerr\"\" aanndd \"\"AAcckknnoowwlleeddggmmeenntt ooff RReecceeiipptt ooff OOrrddeerr\"\" aanndd aallll rreeppoorrttss ssuubbmmiitttteedd ttoo tthhee FFTTCC ppuurrssuuaanntt ttoo tthhee SSeeccttiioonn ttiittlleedd \"\"CCoommpplliiaannccee RReeppoorrttiinngg.. \"\"\n\nDD.. AAllll rreeccoorrddss aanndd ddooccuummeennttss tthhaatt ccoonnttrraaddiicctt,, qquuaalliiffyy,, oorr ccaallll iinnttoo qquueessttiioonn DDeeffeennddaanntt''ss ccoommpplliiaannccee wwiitthh tthhiiss OOrrddeerr..", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "04.10_united_states_of_america_v._central_credit", "company_name": "Central Credit, LLC", "date_issued": "2010-04-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) and 16(a) of the FTC Act, 15 U.S.C. §§ 53(b) and 56(a); and Sections 607(d), 609(c), 612(a)(1)(C) and (a)(2), and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681e, 1681g, and 1681s", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3106-united-states-america-v-central-credit-llc", "docket_number": "2:10-cv-00565" }, { "provision_number": "VI", "title": "Distribution of Order by Defendant", "category": "acknowledgment", "summary": "For three years, Defendant must deliver copies of the Order to all principals, officers, directors, managers, relevant employees, and successor entities, and obtain signed acknowledgments within thirty days of delivery.", "verbatim_text": "AA.. DDeeffeennddaanntt mmuusstt ddeelliivveerr aa ccooppyy ooff tthhiiss oorrddeerr ttoo ((11)) aallll ooff iittss pprriinncciippaallss,, ooffffiicceerrss,, ddiirreeccttoorrss,, aanndd mmaannaaggeerrss;; ((22)) aallll ooff iittss eemmppllooyyeeeess,, aaggeennttss,, aanndd rreepprreesseennttaattiivveess wwhhoo eennggaaggee iinn ccoonndduucctt rreellaatteedd ttoo tthhee ssuubbjjeecctt mmaatttteerr ooff tthhiiss OOrrddeerr;; aanndd ((33)) aannyy bbuussiinneess''ss eennttiittyy rreessuullttiinngg ffrroomm aannyy cchhaannggee iinn ssttrruuccttuurree sseett ffoorrtthh iinn SSuubbsseeccttiioonn AA ooff tthhee SSeeccttiioonn ttiittlleedd \"\"CCoommpplliiaannccee RReeppoorrttiinngg..\"\" FFoorr ccuurrrreenntt ppeerrssoonnnneell,, ddeelliivveerryy sshhaallll bbee wwiitthhiinn ffiivvee ((55)) ddaayyss ooff sseerrvviiccee ooff tthhiiss OOrrddeerr uuppoonn DDeeffeennddaanntt.. FFoorr nneeww ppeerrssoonnnneell,, ddeelliivveerryy sshhaallll ooccccuurr pprriioorr ttoo tthheemm aassssuummiinngg tthheeiirr rreessppoonnssiibbiilliittiieess.. FFoorr aannyy bbuussiinneessss eennttiittyy rreessuullttiinngg ffrroomm aannyy cchhaannggee iinn ssttrruuccttuurree sseett ffoorrtthh iinn SSuubbsseeccttiioonn AA ooff tthhee SSeeccttiioonn ttiittlleedd \"\"CCoommpplliiaannccee RReeppoorrttiinngg,,\"\" ddeelliivveerryy sshhaallll bbee aatt lleeaasstt tteenn ((1100)) ddaayyss pprriioorr ttoo tthhee cchhaannggee iinn ssttrruuccttuurree..\n\nBB.. DDeeffeennddaanntt sshhaallll sseeccuurree aa ssiiggnneedd aanndd ddaatteedd ssttaatteemmeenntt aacckknnoowwlleeddggiinngg rreecceeiipptt ooff tthhiiss OOrrddeerr,, wwiitthhiinn tthhiirrttyy ((3300)) ddaayyss ooff ddeelliivveerryy,, ffrroomm aallll ppeerrssoonnss rreecceeiivviinngg aa ccooppyy ooff tthhee OOrrddeerr ppuurrssuuaanntt ttoo tthhiiss SSeeccttiioonn..", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "04.10_united_states_of_america_v._central_credit", "company_name": "Central Credit, LLC", "date_issued": "2010-04-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) and 16(a) of the FTC Act, 15 U.S.C. §§ 53(b) and 56(a); and Sections 607(d), 609(c), 612(a)(1)(C) and (a)(2), and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681e, 1681g, and 1681s", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3106-united-states-america-v-central-credit-llc", "docket_number": "2:10-cv-00565" }, { "provision_number": "VII", "title": "Acknowledgment of Receipt of Order", "category": "acknowledgment", "summary": "Defendant must submit a truthful sworn statement to the Commission acknowledging receipt of this Order within five business days of receipt.", "verbatim_text": "IITT IISS FFUURRTTHHEERR OORRDDEERREEDD tthhaatt DDeeffeennddaanntt,, wwiitthhiinn ffiivvee ((55)) bbuussiinneessss ddaayyss ooff rreecceeiipptt ooff tthhiiss OOrrddeerr aass eenntteerreedd bbyy tthhee CCoouurrtt,, mmuusstt ssuubbmmiitt ttoo tthhee CCoommmmiissssiioonn aa ttrruutthhffuull sswwoorrnn ssttaatteemmeenntt aacckknnoowwlleeddggiinngg rreecceeiipptt ooff tthhiiss OOrrddeerr..", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "04.10_united_states_of_america_v._central_credit", "company_name": "Central Credit, LLC", "date_issued": "2010-04-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) and 16(a) of the FTC Act, 15 U.S.C. §§ 53(b) and 56(a); and Sections 607(d), 609(c), 612(a)(1)(C) and (a)(2), and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681e, 1681g, and 1681s", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3106-united-states-america-v-central-credit-llc", "docket_number": "2:10-cv-00565" }, { "provision_number": "VIII", "title": "Retention of Jurisdiction", "category": "duration", "summary": "This Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of the Order.", "verbatim_text": "IITT IISS FFUUTTHHEERR OORRDDEERREEDD tthhaatt tthhiiss CCoouurrtt sshhaallll rreettaaiinn jjuurriissddiiccttiioonn ooff tthhiiss mmaatttteerr ffoorr ppuurrppoosseess ooff ccoonnssttrruuccttiioonn,, mmooddiiffiiccaattiioonn,, aanndd eennffoorrcceemmeenntt ooff tthhiiss OOrrddeerr..", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "04.10_united_states_of_america_v._central_credit", "company_name": "Central Credit, LLC", "date_issued": "2010-04-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) and 16(a) of the FTC Act, 15 U.S.C. §§ 53(b) and 56(a); and Sections 607(d), 609(c), 612(a)(1)(C) and (a)(2), and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681e, 1681g, and 1681s", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3106-united-states-america-v-central-credit-llc", "docket_number": "2:10-cv-00565" }, { "provision_number": "IX", "title": "Costs and Attorneys' Fees", "category": "affirmative_obligation", "summary": "Each party shall bear its own costs and attorneys' fees incurred in connection with this action.", "verbatim_text": "IITT IISS FFUURRTTHHEERR OORRDDEERREEDD tthhaatt eeaacchh ppaarrttyy sshhaallll bbeeaarr iittss oowwnn ccoossttss aanndd aattttoorrnneeyyss'' ffeeeess iinnccuurrrreedd iinn ccoonnnneeccttiioonn wwiitthh tthhiiss aaccttiioonn..", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "04.10_united_states_of_america_v._central_credit", "company_name": "Central Credit, LLC", "date_issued": "2010-04-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) and 16(a) of the FTC Act, 15 U.S.C. §§ 53(b) and 56(a); and Sections 607(d), 609(c), 612(a)(1)(C) and (a)(2), and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681e, 1681g, and 1681s", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3106-united-states-america-v-central-credit-llc", "docket_number": "2:10-cv-00565" }, { "provision_number": "I", "title": "Prohibited Business Activities", "category": "prohibition", "summary": "Defendants are permanently restrained from failing to maintain reasonable procedures for accuracy, failing to provide required notices to data furnishers and users, and failing to comply with public record reporting requirements.", "verbatim_text": "A. failing to maintain reasonable procedures to assure the maximum possible accuracy of the information concerning the individual about whom a Consumer Report relates;\n\nB. failing to provide a notice identical or substantially similar to the one attached as Attachment A to this Order, to any person who regularly and in the ordinary course of business furnishes information to the agency with respect to any consumer;\n\nC. failing to provide a notice identical or substantially similar to the one attached as Attachment B to this Order, to any person to whom a Consumer Report is provided by Defendants, provided that Defendants may provide an electronic copy of the notice to a user if: (a) in the ordinary course of business, the user obtains Consumer Report information from Defendants in electronic form, and (b) the notice is Clear and Prominent;\n\nD. to the extent Defendants furnish Consumer Reports for employment purposes and for that purpose compile and report items of information on consumers which are matters of public record and are likely to have an adverse effect upon a consumer's ability to obtain employment, failing to: 1. at the time such public record information is reported to the user of such consumer report, notify the consumer of the fact that public record information is being reported by Defendants, together with the name and address of the person to whom such information is being reported; or, in the alternative, 2. maintain strict procedures designed to insure that whenever public record information which is likely to have an adverse effect on a consumer's ability to obtain employment is reported it is complete and up to date. For purposes of this paragraph, items of public record relating to arrests, indictments, convictions, suits, tax liens, and outstanding judgments shall be considered up to date if the current public record status of the item at the time of the report is reported.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "04.14_infotrack_information_services", "company_name": "InfoTrack Information Services, Inc.", "date_issued": "2014-04-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Fair Credit Reporting Act sections 607(b), 609(a), 611(a)(1)(A), 611(a)(6), and 613(a)(1), 15 U.S.C. §§ 1681e, 1681g, 1681i, and 1681k", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3092-infotrack-information-services-inc-et-al", "docket_number": "14-cv-2054" }, { "provision_number": "II", "title": "Monetary Judgment for Civil Penalty", "category": "affirmative_obligation", "summary": "Judgment of $1,000,000 is entered against Defendants, with $60,000 to be paid immediately and the remainder suspended subject to truthfulness of financial representations.", "verbatim_text": "B. Defendants are ordered to pay to the Plaintiffby making payment to the Treasurer of the United States Sixty Thousand Dollars ($60,000). Such payment must be made within seven (7) days of the date of service of this Order by electronic fund transfer in accordance with instructions provided by the Office of Consumer Litigation, Civil Division, U.S. Department of Justice, Washington, D.C. 20530, for appropriate disposition.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "04.14_infotrack_information_services", "company_name": "InfoTrack Information Services, Inc.", "date_issued": "2014-04-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Fair Credit Reporting Act sections 607(b), 609(a), 611(a)(1)(A), 611(a)(6), and 613(a)(1), 15 U.S.C. §§ 1681e, 1681g, 1681i, and 1681k", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3092-infotrack-information-services-inc-et-al", "docket_number": "14-cv-2054" }, { "provision_number": "III", "title": "Additional Monetary Provisions", "category": "affirmative_obligation", "summary": "Defendants relinquish all rights to transferred assets, facts alleged will be taken as true in future litigation, and judgment is non-dischargeable in bankruptcy.", "verbatim_text": "A. Defendants relinquish dominion and all legal and equitable right, title and interest in all assets transferred pursuant to this Order and may not seek the return of any assets.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "04.14_infotrack_information_services", "company_name": "InfoTrack Information Services, Inc.", "date_issued": "2014-04-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Fair Credit Reporting Act sections 607(b), 609(a), 611(a)(1)(A), 611(a)(6), and 613(a)(1), 15 U.S.C. §§ 1681e, 1681g, 1681i, and 1681k", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3092-infotrack-information-services-inc-et-al", "docket_number": "14-cv-2054" }, { "provision_number": "IV", "title": "Notice to Consumers", "category": "affirmative_obligation", "summary": "Defendants must notify each consumer who received a Consumer Report that incorrectly included National Sex Offender Registry records of more than one individual, using hand-stamped first-class mail, and take reasonable steps to resend to corrected addresses.", "verbatim_text": "IT IS FURTHER ORDERED that within sixty (60) days of the entry of this Order, for each Consumer Report that Defendants furnished to any third party that included the National Sex Offender Registry records of more than one individual, Defendants shall notify each consumer who was the subject of such Consumer Report. Such notice shall be mailed by Defendants to consumers in an envelope upon which a first-class stamp has been applied by hand. Defendants shall provide the notice to each such consumer in the form contained in 7 Case: 1:14-cv-02054 Document #: 3 Filed: 03/25/14 Page 8 of 34 PageID #:20 Attachment C of this Order, and send the notice in the envelope form identified in Attachment D of this Order. For each mailing returned by the U.S. Postal Service as undeliverable, Defendants\n\nof this Order. For each mailing returned by the U.S. Postal Service as undeliverable, Defendants shall take reasonable steps to obtain a correct address. For each correct address found, Defendants shall, within fifteen (15) business days after receiving the corrected address, resend the notice to the corrected address. Defendants shall thereafter maintain appropriate staff to\n\nthe notice to the corrected address. Defendants shall thereafter maintain appropriate staff to answer inquiries resulting from the notice, and any requests for reports, disputes, and investigations of claims of inaccuracies in reports Defendants provided to employers or other third parties.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Consumer Notification" ], "case_id": "04.14_infotrack_information_services", "company_name": "InfoTrack Information Services, Inc.", "date_issued": "2014-04-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Fair Credit Reporting Act sections 607(b), 609(a), 611(a)(1)(A), 611(a)(6), and 613(a)(1), 15 U.S.C. §§ 1681e, 1681g, 1681i, and 1681k", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3092-infotrack-information-services-inc-et-al", "docket_number": "14-cv-2054" }, { "provision_number": "V", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendants must submit acknowledgments of receipt of the Order, deliver copies to all relevant personnel and business entities, and obtain signed acknowledgments from recipients.", "verbatim_text": "A. Each Defendant, within seven (7) days of entry of this Order, niust submit to the Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.\n\nB. For five (5) years after entry of this Order, Individual Defendant, for any business that he individually or collectively with any other Defendants, is the majority owner or controls directly or indirectly, and Corporate Defendant, must deliver a copy of this Order to: (1) all principals, officers, directors, and LLC managers and members; (2) all employees, agents, and representatives who participate in conduct related to the subject matter of the Order; and (3) any business entity resulting from any change in structure as set forth in the Section titled Compliance Reporting. Delivery must occur within seven (7) days of entry of this Order for current personnel. For all others, delivery must occur before they assume their responsibilities.\n\nC. From each individual or entity to which a Defendant delivered a copy of this 8 Case: 1:14-cv-02054 Document #: 3 Filed: 03/25/14 Page 9 of 34 PageID #:21 Order, that Defendant must obtain, within thirty (30) days, a signed and dated acknowledgment of receipt ofthis Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "04.14_infotrack_information_services", "company_name": "InfoTrack Information Services, Inc.", "date_issued": "2014-04-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Fair Credit Reporting Act sections 607(b), 609(a), 611(a)(1)(A), 611(a)(6), and 613(a)(1), 15 U.S.C. §§ 1681e, 1681g, 1681i, and 1681k", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3092-infotrack-information-services-inc-et-al", "docket_number": "14-cv-2054" }, { "provision_number": "VI", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendants must submit annual compliance reports and notify the Commission within 14 days of changes in contact information, business structure, or bankruptcy filings.", "verbatim_text": "A. One year after entry of this Order, each Defendant must submit a compliance repott, sworn under penalty of perjury. Each Defendant must: (a) identify the primary physical, postal, and email address and telephone number, as designated points of contact, which representatives of the Commission may use to communicate with Defendant; (b) identify all ofDefendant's businesses by all of their names, telephone numbers, and physical, postal, email, and Internet addresses; (c) describe the activities of each business, including the products and services offered, the means of advertising, marketing, and sales, and the involvement of any other Defendant (which Individual Defendant must describe if he knows or should know due to his own involvement); (d) describe in detail whether and how Defendant is in compliance with each Section of this Order; and (e) provide a copy of each Order Acknowledgment obtained pursuant to this Order, unless previously submitted to the Commission.\n\nB. For 20 years following entry of this Order, each Defendant must submit a compliance notice, sworn under penalty of perjury, within 14 days of any change in the following: (a) any designated point of contact; or (b) the structure of Corporate Defendant or any entity that any Defendant has any ownership interest in or directly or indirectly controls that may affect compliance obligations arising under this Order, including creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order.\n\nC. Each Defendant must submit to the Commission notice of the filing of any bankruptcy petition, insolvency proceeding, or any similar proceeding by or against such Defendant within 14 days of its filing.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "04.14_infotrack_information_services", "company_name": "InfoTrack Information Services, Inc.", "date_issued": "2014-04-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Fair Credit Reporting Act sections 607(b), 609(a), 611(a)(1)(A), 611(a)(6), and 613(a)(1), 15 U.S.C. §§ 1681e, 1681g, 1681i, and 1681k", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3092-infotrack-information-services-inc-et-al", "docket_number": "14-cv-2054" }, { "provision_number": "VII", "title": "Recordkeeping Provisions", "category": "recordkeeping", "summary": "Defendants must create and retain for five years various business and compliance records for 20 years after entry of the Order, including accounting records, personnel records, customer files, complaints, training materials, and documents demonstrating compliance.", "verbatim_text": "A. Accounting records showing the revenues from all goods or services sold, all costs incurred in generating those revenues, and the resulting net profit or loss;\n\nB. Personnel records showing, for each employee: name, addresses, and telephone numbers; job title or position; dates of service; and, if applicable, the reason for termination;\n\nC. Customer files showing the names, addresses, telephone numbers, dollar amounts paid, and the quantity and description of goods or services purchased;\n\nD. Complaints and refund requests, whether received directly or indirectly, such as through a third party, and any response;\n\nE. All employee training materials;\n\nF. All documents necessary to demonstrate full compliance with each provision of this Order, including but not limited to, 1. all acknowledgments of receipt ofthis Order, required by the Section titled \"Order Acknowledgments;\" 2. all reports submitted to the FTC pursuant to the Section titled \"Compliance Reporting;\" 3. documents sufficientto demonstrate Defendants' compliance with Section I(B) and I(C ) of this Order, including but not limited to: i. a copy of each notice provided by Defendant to those who regularly furnish information to Defendant with respect to any consumer; ii. a copy of each notice provided by Defendant to those to whom a Consumer Report is provided by Defendant; and iii. the name, address, and telephone number of each person to whom Defendant provided a notice described in Subsection F(3)(i) and F(3)(ii).", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "04.14_infotrack_information_services", "company_name": "InfoTrack Information Services, Inc.", "date_issued": "2014-04-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Fair Credit Reporting Act sections 607(b), 609(a), 611(a)(1)(A), 611(a)(6), and 613(a)(1), 15 U.S.C. §§ 1681e, 1681g, 1681i, and 1681k", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3092-infotrack-information-services-inc-et-al", "docket_number": "14-cv-2054" }, { "provision_number": "VIII", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The Commission and Plaintiff are authorized to monitor compliance through document requests, depositions, interviews, and other investigative methods including posing as consumers without prior notice.", "verbatim_text": "A. Within 14 days of receipt of a written request from a representative of the Commission or Plaintiff, each Defendant must: submit additional compliance reports or other requested information, which must be sworn under penalty of perjury; appear for depositions; and produce documents, for inspection and copying. The Commission and Plaintiff are also authorized to obtafn discovery, without further leave of court, using any of the procedures prescribed by Federal Rules of Civil Procedure 29,30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69.\n\nB. For matters concerning this Order, the Commission and Plaintiff are authorized to communicate directly with each Defendant. Defendants must permit representatives of the Commission and Plaintiff to interview any employee or other person affiliated with any Defendant who has agreed to such an interview. The person interviewed may have counsel present.\n\nC. The Commission may use all other lawful means, including posing, through its representatives, as consumers, suppliers, or other individuals or entities, to Defendants or any individual or entity affiliated with Defendants, without the necessity of identification or prior notice. Nothing in this Order limits the Commission's lawful use of compulsory process, pursuant to sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "04.14_infotrack_information_services", "company_name": "InfoTrack Information Services, Inc.", "date_issued": "2014-04-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Fair Credit Reporting Act sections 607(b), 609(a), 611(a)(1)(A), 611(a)(6), and 613(a)(1), 15 U.S.C. §§ 1681e, 1681g, 1681i, and 1681k", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3092-infotrack-information-services-inc-et-al", "docket_number": "14-cv-2054" }, { "provision_number": "IX", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "verbatim_text": "IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "04.14_infotrack_information_services", "company_name": "InfoTrack Information Services, Inc.", "date_issued": "2014-04-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Fair Credit Reporting Act sections 607(b), 609(a), 611(a)(1)(A), 611(a)(6), and 613(a)(1), 15 U.S.C. §§ 1681e, 1681g, 1681i, and 1681k", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3092-infotrack-information-services-inc-et-al", "docket_number": "14-cv-2054" }, { "provision_number": "X", "title": "Costs and Attorneys' Fees", "category": "acknowledgment", "summary": "Each party shall bear its own costs and attorneys' fees incurred in connection with this action.", "verbatim_text": "IT IS FURTHER ORDERED that each party shall bear its own costs and attorneys' fees incurred in connection with this action.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "04.14_infotrack_information_services", "company_name": "InfoTrack Information Services, Inc.", "date_issued": "2014-04-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Fair Credit Reporting Act sections 607(b), 609(a), 611(a)(1)(A), 611(a)(6), and 613(a)(1), 15 U.S.C. §§ 1681e, 1681g, 1681i, and 1681k", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3092-infotrack-information-services-inc-et-al", "docket_number": "14-cv-2054" }, { "provision_number": "I", "title": "Prohibited Business Activities", "category": "prohibition", "summary": "Defendant is permanently restrained from furnishing consumer reports without permissible purposes, failing to maintain reasonable procedures to verify users and limit furnishing to permissible purposes, failing to maintain accuracy procedures, and failing to provide required notices to consumer report users.", "verbatim_text": "14 A. furnishing a Consumer Report to any Person who Defendant does not have 15 reason to believe has a Permissible Purpose to receive the Consumer Report;\n\n16 B. failing to maintain reasonable procedures designed to limit the furnishing of 17 Consumer Reports to Persons that have Permissible Purposes to receive them. Such 18 reasonable procedures shall require that: prospective users of the information identify 19 themselves, certify the purposes for which the information is sought, and certify that the 20 information will be used for no other purpose; and that Defendant make a reasonable 21 effort to verify the identity of a new prospective user and the uses certified by such 22 prospective user prior to furnishing such user a Consumer Report;\n\n23 C. failing to maintain reasonable procedures to assure the maximum possible 24 accuracy of the information concerning the individual about whom a Consumer Report 25 relates; and\n\n26 D. failing to provide a notice identical or substantially similar to the one 27 attached as Attachment B to this Order, to any person to whom a Consumer Report is 28 provided by Defendant, provided that Defendant may provide an electronic copy of the 4 14cv0675-H(JMA) Case 3:14-cv-00675-H-JMA Document 5 Filed 04/01/14 Page 5 of 10 1 notice to a user if: (a) in the ordinary course of business, the user obtains Consumer 2 Report information from Defendant in electronic form, and (b) the notice is Clear and 3 Prominent.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "04.14_instant_checkmate", "company_name": "Instant Checkmate, Inc.", "date_issued": "2014-04-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "14CV0675H JMA" }, { "provision_number": "II", "title": "Monetary Judgment for Civil Penalty", "category": "affirmative_obligation", "summary": "Defendant must pay a civil penalty of $525,000 to the United States for violations of the FCRA.", "verbatim_text": "9 B. Defendant is ordered to pay Plaintiff, by making payment to the Treasurer of 10 the United States, Five Hundred Twenty-Five Thousand Dollars ($525,000), which, as 11 Defendant stipulates, its undersigned counsel holds for no purpose other than payment to 12 Plaintiff. Such payment must be made within seven (7) days of entry of this Order by 13 electronic fund transfer in accordance with instructions previously provided by a 14 representative of Plaintiff.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "04.14_instant_checkmate", "company_name": "Instant Checkmate, Inc.", "date_issued": "2014-04-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "14CV0675H JMA" }, { "provision_number": "III", "title": "Additional Monetary Provisions", "category": "affirmative_obligation", "summary": "Defendant relinquishes all rights to assets transferred and acknowledges facts alleged in Complaint will be taken as true in future enforcement proceedings.", "verbatim_text": "17 A. Defendant relinquishes dominion and all legal and equitable right, title, and 18 interest in all assets transferred pursuant to this Order and may not seek the return of any 19 assets.\n\n23 C. Defendant acknowledges that its Taxpayer Identification Numbers (Social 24 Security Numbers or Employer Identification Numbers), which Defendant previously 25 submitted to the Commission, may be used for collecting and reporting on any delinquent 26 amount arising out of this Order, in accordance with 31 U.S.C. §7701.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "04.14_instant_checkmate", "company_name": "Instant Checkmate, Inc.", "date_issued": "2014-04-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "14CV0675H JMA" }, { "provision_number": "IV", "title": "Order Acknowledgements", "category": "acknowledgment", "summary": "Defendant must submit acknowledgment of receipt of Order and deliver copies to all relevant personnel and entities for three years, obtaining signed acknowledgments from recipients.", "verbatim_text": "4 A. Defendant, within seven (7) days of entry of this Order, must submit to the 5 Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.\n\n6 B. For three (3) years after entry of this Order, Defendant must deliver a copy of 7 this Order to: (1) all principals, officers, directors, and LLC managers and members; (2) 8 all employees, agents, and representatives who participate in conduct related to the subject 9 matter of the Order; and (3) any business entity resulting from any change in structure as 10 set forth in the Section titled “Compliance Reporting.” Delivery must occur within seven 11 (7) days of entry of this Order for current personnel. To all others, delivery must occur 12 before they assume their responsibilities. This deadline may be modified on motion to the 13 Court for good cause shown.\n\n14 C. From each individual or entity to which Defendant delivered a copy of this 15 Order, Defendant must obtain, within 30 days, a signed and dated acknowledgement of 16 receipt of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "04.14_instant_checkmate", "company_name": "Instant Checkmate, Inc.", "date_issued": "2014-04-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "14CV0675H JMA" }, { "provision_number": "V", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendant must submit compliance reports to the Commission one year after entry of Order and provide compliance notices within 14 days of certain changes for three years.", "verbatim_text": "20 A. One year after entry of this Order, Defendant must submit a compliance 21 report, sworn under penalty of perjury: 22 1. Defendant must: (a) identify the primary physical, postal, and email 23 address and telephone number, as designated points of contact, which representatives of 24 the Commission and Plaintiff may use to communicate with Defendant; (b) identify all of 25 Defendant’s businesses by all of their names, telephone numbers, and physical, postal, 26 email, and internet addresses; (c) describe the activities of each business, including the 27 goods and services offered, and the means of advertising, marketing and sales; (d) 28 describe in detail whether and how Defendant is in compliance with each Section of this 6 14cv0675-H(JMA) Case 3:14-cv-00675-H-JMA Document 5 Filed 04/01/14 Page 7 of 10 1 Order; and (e) provide a copy of each Order Acknowledgement obtained pursuant to this 2 Order, unless previously submitted to the Commission.\n\n3 2. For three (3) years following entry of this Order, Defendant must 4 submit a compliance notice, sworn under penalty of perjury, within 14 days of any change 5 in the following: (a) any designated point of contact; or (b) the structure of Defendant or 6 any entity that Defendant has any ownership interest in or controls directly or indirectly 7 that may affect compliance obligations arising under this Order, including: creation, 8 merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages 9 in any acts or practices subject to this Order. This deadline may be modified on motion to 10 the Court for good cause shown.\n\n11 3. Defendant must submit to the Commission notice of the filing of any 12 bankruptcy petition, insolvency proceeding, or similar proceeding by or against Defendant 13 within 14 days of its filing.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "04.14_instant_checkmate", "company_name": "Instant Checkmate, Inc.", "date_issued": "2014-04-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "14CV0675H JMA" }, { "provision_number": "VI", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Defendant must create and maintain records for three years including accounting records, personnel records, training materials, compliance documents, complaints, advertisements, and FCRA-specific records.", "verbatim_text": "6 costs incurred in generating those revenues, and the resulting net profit or loss; 7 B. Personnel records showing each employee’s: name, addresses, and telephone\n\n8 numbers; job title or position; dates of service; and, if applicable, the reason for 9 termination; 10 C. All employee training materials;\n\n11 D. Documents sufficient to demonstrate compliance with each provision of this\n\n12 Order, including, but not limited to, copies of acknowledgments of receipt of this Order, 13 required by the Section titled “Compliance Reporting”; 14 E. Complaints and refund requests, whether received directly or indirectly, and\n\n15 any responses; 16 F. A copy of each unique advertisement or other marketing material;\n\n17 G. Documents sufficient to demonstrate Defendant’s compliance with\n\n18 Section 604 of the FCRA; 19 H. Documents sufficient to demonstrate Defendant’s compliance with Section\n\n20 607(a) of the FCRA, including but not limited to: 21 1. the name, address, and telephone number of each Consumer Report 22 user; 23 2. each user’s certification of the purposes for which the Consumer 24 Report information is sought; and 25 3. documents sufficient to demonstrate Defendant’s efforts to verify the 26 identity of each user and the uses certified by such user; and 27 //\n\n1 I. Documents sufficient to demonstrate Defendant’s compliance with Section 2 607(d) of the FCRA, including but not limited to: 3 1. a copy of each notice provided by Defendant to those who regularly 4 furnish information to Defendant with respect to any consumer; 5 2. a copy of each notice provided by Defendant to those to whom a 6 Consumer Report is provided by Defendant; and 7 3. the name, address, and telephone number of each person to whom 8 Defendant provided a notice described in Subsection I(1) and I(2). 9 J. This deadline may be modified on motion to the Court for good cause shown.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "04.14_instant_checkmate", "company_name": "Instant Checkmate, Inc.", "date_issued": "2014-04-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "14CV0675H JMA" }, { "provision_number": "VII", "title": "Compliance Monitoring", "category": "monitoring", "summary": "Commission and Plaintiff have authority to monitor Defendant's compliance including requiring additional reports, depositions, document production, employee interviews, and use of all lawful investigative means.", "verbatim_text": "14 A. Within 14 days of receipt of a written request from a representative of the 15 Commission or Plaintiff, Defendant must: submit additional compliance reports or other 16 requested information, which must be sworn under penalty of perjury; appear for 17 depositions; and produce documents for inspection and copying. The Commission and 18 Plaintiff are also authorized to obtain discovery, without further leave of court, using any 19 of the procedures prescribed by Fed. R. Civ. P. 29, 30 (including telephonic depositions), 20 31, 33, 34, 36, 45, and 69. 21 B. For matters concerning this Order, the Commission and Plaintiff are\n\n22 authorized to communicate directly with Defendant. Defendant must permit 23 representatives of the Commission and Plaintiff to interview any employee or other person 24 affiliated with Defendant who has agreed to such an interview. The person interviewed 25 may have counsel present. 26 C. The Commission and Plaintiff may use all other lawful means, including\n\n27 posing, through its representatives, as consumers, suppliers, or other individuals or 28 entities, to Defendant or any individual or entity affiliated with Defendant, without the 9 14cv0675-H(JMA) Case 3:14-cv-00675-H-JMA Document 5 Filed 04/01/14 Page 10 of 10 1 necessity of identification or prior notice. Nothing in this Order limits the Commission’s 2 lawful use of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 3 15 U.S.C. §§ 49, 57b-1.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "04.14_instant_checkmate", "company_name": "Instant Checkmate, Inc.", "date_issued": "2014-04-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "14CV0675H JMA" }, { "provision_number": "VIII", "title": "Retention of Jurisdiction", "category": "duration", "summary": "Court retains jurisdiction for construction, modification, and enforcement of the Order, with case closed but may be re-opened upon motion within three years.", "verbatim_text": "5 IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for 6 purposes of construction, modification, and enforcement of this Order. The Court directs 7 the Clerk to close this case. The Court will re-open the case upon motion of a party for 8 good cause within three years of this order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "04.14_instant_checkmate", "company_name": "Instant Checkmate, Inc.", "date_issued": "2014-04-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "14CV0675H JMA" }, { "provision_number": "IX", "title": "Costs and Attorneys' Fees", "category": "affirmative_obligation", "summary": "Each party bears its own costs and attorneys' fees incurred in connection with this action.", "verbatim_text": "10 IT IS FURTHER ORDERED that each party shall bear its own costs and 11 attorneys’ fees incurred in connection with this action.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "04.14_instant_checkmate", "company_name": "Instant Checkmate, Inc.", "date_issued": "2014-04-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "14CV0675H JMA" }, { "provision_number": "X", "title": "Deadlines", "category": "affirmative_obligation", "summary": "Deadlines set in the Order may only be modified on motion to the Court for good cause shown.", "verbatim_text": "13 The deadlines set in this Order will only be modified on motion to the Court for 14 good cause shown.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "04.14_instant_checkmate", "company_name": "Instant Checkmate, Inc.", "date_issued": "2014-04-15", "year": 2014, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "14CV0675H JMA" }, { "provision_number": "1", "title": "Permanent Injunction — Negative Option Marketing", "category": "prohibition", "summary": "Brown and Credit Bureau Center were permanently enjoined from using negative-option marketing features that automatically enroll consumers in paid subscriptions without clear and conspicuous disclosure of all material terms before obtaining billing information, in violation of ROSCA.", "verbatim_text": "The district court entered a permanent injunction and or- dered Brown to pay more than $5 million in restitution. We", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Deceptive Design / Dark Patterns" ], "remedy_types": [ "Prohibition" ], "case_id": "04.22_credit_bureau_center", "company_name": "Credit Bureau Center, LLC", "date_issued": "2022-04-15", "year": 2022, "administration": "Biden", "legal_authority": "Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 5 of the Restore Online Shoppers' Confidence Act (ROSCA), 15 U.S.C. § 8404; Section 621(a)(1) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/162-3120-x170014-credit-bureau-center-llc-formerly-known-myscore-llc", "docket_number": "17-cv-00194" }, { "provision_number": "2", "title": "Monetary Award — Consumer Restitution Under ROSCA and Section 19", "category": "affirmative_obligation", "summary": "Brown was ordered to pay $5,260,671.36 in restitution to consumers under ROSCA § 5 and FTCA § 19, representing revenue from fraudulent website traffic minus refunds, chargebacks, and prior settlements.", "verbatim_text": "the restitution award. The judge reinstated the original award—a total of $5,260,671.36, which equals the revenue Brown obtained through traffic that Pierce directed to the websites minus refunds already paid, chargebacks custom- ers obtained, and a settlement paid by Pierce and Lloyd.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "04.22_credit_bureau_center", "company_name": "Credit Bureau Center, LLC", "date_issued": "2022-04-15", "year": 2022, "administration": "Biden", "legal_authority": "Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 5 of the Restore Online Shoppers' Confidence Act (ROSCA), 15 U.S.C. § 8404; Section 621(a)(1) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/162-3120-x170014-credit-bureau-center-llc-formerly-known-myscore-llc", "docket_number": "17-cv-00194" }, { "provision_number": "3", "title": "Modification — Removal of U.S. Treasury Disgorgement Direction", "category": "prohibition", "summary": "The Seventh Circuit modified part IX.D of the amended judgment to remove the direction that excess funds be deposited to the U.S. Treasury as disgorgement, as that exceeds the remedial scope of FTCA § 19.", "verbatim_text": "statute. We therefore modify part IX.D of the amended judgment to remove this sentence: “Any money not used for such equitable relief is to be deposited to the U.S. Treasury as disgorgement.” As modified, the judgment is", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "04.22_credit_bureau_center", "company_name": "Credit Bureau Center, LLC", "date_issued": "2022-04-15", "year": 2022, "administration": "Biden", "legal_authority": "Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 5 of the Restore Online Shoppers' Confidence Act (ROSCA), 15 U.S.C. § 8404; Section 621(a)(1) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/162-3120-x170014-credit-bureau-center-llc-formerly-known-myscore-llc", "docket_number": "17-cv-00194" }, { "provision_number": "I", "title": "FCRA Compliance Prohibitions", "category": "prohibition", "summary": "Respondents are prohibited from violating specific FCRA requirements related to furnishing consumer reports, maintaining reasonable procedures, ensuring accuracy, and providing required notices.", "verbatim_text": "A. Furnishing a consumer report to any person which respondents do not have reason to believe has a permissible purpose under Section 604(a) of the FCRA, 15 U.S.C. § 1681b(a);\n\nB. Failing to maintain reasonable procedures designed to limit the furnishing of consumer reports to the purposes listed under Section 604(c) of the FCRA,15 U.S.C. § 1681b(a), as set forth in Section 607(a) of the FCRA, 15 U.S.C. § 1681e(a);\n\nC. Failing to maintain reasonable procedures to assure the maximum possible accuracy of the information concerning the individual about whom a consumer report relates, as required by Section 607(b) of the FCRA, 15 U.S.C. § 1681e(b);\n\nD. Failing to provide the “Notice to Users of Consumer Reports: Obligations of Users Under the FCRA” (“User Notice”) required by Section 607(d) of the FCRA, 15 U.S.C. § 1681e(d), to all users of respondents’ consumer reports. Provided, however, that respondents may provide an electronic copy of the User Notice to a user if: (a) in the ordinary course of business, the user obtains consumer report information from respondents in electronic form, and (b) the notice is clear and prominent; and\n\nE. Failing to provide the Notice to Furnishers of Information: Obligations of Furnishers Under the FCRA (“Furnisher Notice”) required by Section 607(d) of the FCRA, 15 U.S.C. § 1681e(d), to all furnishers of consumer report information to respondents. Provided, however, that respondents may provide an electronic copy of this notice to a furnisher if: (a) in the ordinary course of business, the furnisher provides consumer report information to respondents in electronic form, and (b) the notice is clear and prominent.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "05.13_filiquarian_publishing_choice_level_and_joshua_linsk", "company_name": "Filiquarian Publishing, LLC", "date_issued": "2013-05-15", "year": 2013, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45(a), and the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3195-filiquarian-publishing-llc-choice-level-llc-joshua-linsk-matter", "docket_number": "C-4401" }, { "provision_number": "II", "title": "Recordkeeping Requirements", "category": "recordkeeping", "summary": "Respondents must maintain business records demonstrating compliance with the order for five years, including files on persons seeking consumer reports, training and marketing materials, and all compliance records.", "verbatim_text": "A. Files containing the names, addresses, telephone numbers, and all certifications made by persons seeking to obtain consumer reports, including but not limited to reports containing criminal record information, from respondents, and all materials considered by respondents in connection with their verification of the identity of those persons and verification of the certifications made by those persons;\n\nB. Copies of all training materials and marketing materials that relate to respondents’ provision of consumer reports as alleged in the complaint and respondents’ compliance with the provisions of this order; and\n\nC. All records necessary to demonstrate full compliance with each provision of this order, including all submissions to the Commission.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "05.13_filiquarian_publishing_choice_level_and_joshua_linsk", "company_name": "Filiquarian Publishing, LLC", "date_issued": "2013-05-15", "year": 2013, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45(a), and the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3195-filiquarian-publishing-llc-choice-level-llc-joshua-linsk-matter", "docket_number": "C-4401" }, { "provision_number": "III", "title": "Order Acknowledgment and Dissemination", "category": "acknowledgment", "summary": "Respondents must deliver a copy of this order to all current and future principals, officers, directors, managers, employees, agents and representatives with relevant responsibilities, and obtain signed acknowledgments of receipt.", "verbatim_text": "order, respondents, and their successors and assigns, shall deliver a copy of this order to: (1) all current and future principals, officers, and directors; and (2) all current and future managers, employees, agents and representatives who have responsibilities with respect to the subject matter of this order, and shall secure from each such person a signed and dated statement acknowledging receipt of the order, with any electronic signatures complying with the requirements of the E-Sign Act, 15 U.S.C. § 7001 et seq. Respondents shall deliver this order to\n\ncurrent personnel within thirty (30) days after the date of service of the order, and to future personnel within thirty (30) days after the person assumes such position or responsibilities.\n\ncurrent personnel within thirty (30) days after the date of service of the order, and to future personnel within thirty (30) days after the person assumes such position or responsibilities.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "05.13_filiquarian_publishing_choice_level_and_joshua_linsk", "company_name": "Filiquarian Publishing, LLC", "date_issued": "2013-05-15", "year": 2013, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45(a), and the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3195-filiquarian-publishing-llc-choice-level-llc-joshua-linsk-matter", "docket_number": "C-4401" }, { "provision_number": "IV", "title": "Notice of Changes Affecting Compliance", "category": "compliance_reporting", "summary": "Respondents must notify the Commission at least thirty days prior to any change that may affect compliance obligations, including dissolution, merger, bankruptcy, or change in name or address.", "verbatim_text": "notify the Commission at least thirty (30) days prior to any change in a respondent that may affect compliance obligations arising under this order, including but not limited to, a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor company; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this order; the proposed filing of a bankruptcy petition; or a change in a respondent’s name or address. Provided, however, that with respect to any proposed change\n\nrespondent’s name or address. Provided, however, that with respect to any proposed change about which a respondent learns less than thirty (30) days prior to the date such action is to take place, the respondent shall notify the Commission as soon as is practicable after obtaining such knowledge. Unless otherwise directed by a representative of the Commission in writing, all", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "05.13_filiquarian_publishing_choice_level_and_joshua_linsk", "company_name": "Filiquarian Publishing, LLC", "date_issued": "2013-05-15", "year": 2013, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45(a), and the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3195-filiquarian-publishing-llc-choice-level-llc-joshua-linsk-matter", "docket_number": "C-4401" }, { "provision_number": "V", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Respondents must file a compliance report with the Commission within sixty days after service of the order, and submit additional reports within ten days upon request.", "verbatim_text": "within sixty (60) days after the date of service of this order, file with the Commission a true and accurate report, in writing, setting forth in detail the manner and form in which respondents have complied with this order. Within ten (10) days of receipt of written notice from a representative\n\ncomplied with this order. Within ten (10) days of receipt of written notice from a representative of the Commission, respondents shall submit additional true and accurate written reports.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "05.13_filiquarian_publishing_choice_level_and_joshua_linsk", "company_name": "Filiquarian Publishing, LLC", "date_issued": "2013-05-15", "year": 2013, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45(a), and the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3195-filiquarian-publishing-llc-choice-level-llc-joshua-linsk-matter", "docket_number": "C-4401" }, { "provision_number": "VI", "title": "Order Duration and Termination", "category": "duration", "summary": "The order will terminate on April 30, 2033, or twenty years from the most recent date the United States or the Commission files a complaint alleging any violation of the order, whichever comes later.", "verbatim_text": "This order will terminate on April 30, 2033, or twenty (20) years from the most recent date that the United States or the Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of:", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "05.13_filiquarian_publishing_choice_level_and_joshua_linsk", "company_name": "Filiquarian Publishing, LLC", "date_issued": "2013-05-15", "year": 2013, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45(a), and the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3195-filiquarian-publishing-llc-choice-level-llc-joshua-linsk-matter", "docket_number": "C-4401" }, { "provision_number": "I", "title": "Prohibited Business Activities", "category": "prohibition", "summary": "Defendant is permanently restrained and enjoined from failing to comply with FCRA furnisher accuracy and direct dispute investigation requirements, including failing to establish written policies and procedures, investigate disputes, and report results to consumers.", "verbatim_text": "A. Failing to comply with 12 C.F.R. § 1022.42, a copy of which is attached as Attachment A, including by failing to: 1. Establish and implement reasonable written policies and procedures regarding the accuracy and integrity of the information relating to consumers that it furnishes to CRAs that are appropriate to the nature, size, complexity, and scope of Defendant’s activities; 2. Consider the guidelines set forth in Appendix E to 12 C.F.R. Part 1022, a copy of which is attached as Attachment B, in developing the policies and procedures, and incorporate those guidelines that are appropriate; and 3. Periodically review the written policies and procedures and update them as necessary to ensure their continued effectiveness;\n\nB. Failing to: 1. Establish and implement reasonable written policies and procedures regarding reasonable investigations of FCRA Qualified Direct Disputes; 2. In developing the policies and procedures concerning FCRA Qualified Direct Disputes, incorporate reasonable provisions related to: (a) training employees whose duties include processing, responding to, or investigating Direct Disputes, including training on the requirements of the FCRA and related regulations; (b) retaining documents related to FCRA Qualified Direct Disputes for a reasonable period of time to allow for effective training and auditing; (c) requiring employees to document 4 Case 3:16-cv-01255-D Document 4-1 Filed 05/09/16 Page 5 of 15 PageID 24 actions taken in processing, responding to, or investigating FCRA Qualified Direct Disputes, to allow for effective training and auditing; and (d) establishing an auditing program and schedule that is reasonably designed to promote compliance with the requirements of the FCRA and related regulations; and 3. Periodically review the written policies and procedures regarding the conduct of reasonable investigations of FCRA Qualified Direct Disputes and update them as necessary to ensure their continued effectiveness;\n\nC. Failing to comply with 12 C.F.R. § 1022.43, a copy of which is attached as Attachment C, including by, upon receiving an FCRA Qualified Direct Dispute, failing to: 1. Conduct a reasonable investigation with respect to the disputed information; 2. Review all relevant information provided by the consumer with the dispute notice; and 3. Complete its investigation of the dispute and report the results of the investigation to the consumer before the expiration of the period prescribed by Section 611(a)(1) of the Fair Credit Reporting Act, 15 U.S.C 1681i(a)(1), a copy of which is attached as Attachment D.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "05.16_credit_protection_association", "company_name": "Credit Protection Association, LP", "date_issued": "2016-05-15", "year": 2016, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); and the Duties of Furnishers of Information to Consumer Reporting Agencies (Furnisher Rule), 16 C.F.R. § 660 / 12 C.F.R. § 1022, Subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3142-credit-protection-association", "docket_number": "3:16-cv-01255-D" }, { "provision_number": "II", "title": "Monetary Judgment for Civil Penalty", "category": "affirmative_obligation", "summary": "A civil penalty judgment of $72,000 is entered against Defendant, payable to the U.S. Treasury in four equal installments of $18,000 over nine months.", "verbatim_text": "A. Judgment in the amount of Seventy-Two Thousand Dollars ($72,000) is entered in favor of the Plaintiff against Defendant as a civil penalty pursuant to Section 621(a) of the FCRA, 15 U.S.C. § 1681s(a).\n\n1. Eighteen Thousand Dollars ($18,000) which, as Defendant stipulates, its undersigned counsel holds in escrow for no purpose other than payment to Plaintiff. Such payment must be made within fourteen (14) days of the entry of this Order by electronic fund transfer in accordance with instructions previously provided by a representative of Plaintiff.\n\n2. Eighteen Thousand Dollars ($18,000) within three (3) months of entry of this Order;\n\n3. Eighteen Thousand Dollars ($18,000) within six (6) months of entry of this Order; and\n\n4. Eighteen Thousand Dollars ($18,000) within nine (9) months of entry of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "05.16_credit_protection_association", "company_name": "Credit Protection Association, LP", "date_issued": "2016-05-15", "year": 2016, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); and the Duties of Furnishers of Information to Consumer Reporting Agencies (Furnisher Rule), 16 C.F.R. § 660 / 12 C.F.R. § 1022, Subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3142-credit-protection-association", "docket_number": "3:16-cv-01255-D" }, { "provision_number": "III", "title": "Additional Monetary Provisions", "category": "affirmative_obligation", "summary": "Defendant relinquishes all rights to assets transferred under this Order, the Complaint's facts may be taken as true in future litigation, and Defendant must submit its Taxpayer Identification Number to the Commission.", "verbatim_text": "A. Defendant relinquishes dominion and all legal and equitable right, title, and interest in all assets transferred pursuant to this Order and may not seek the return of any assets.\n\nB. The facts alleged in the Complaint will be taken as true, without further proof, in any subsequent civil litigation by or on behalf of the Commission, including in a proceeding to enforce its rights to any payment or monetary judgment pursuant to this Order.\n\nC. Defendant acknowledges that its Taxpayer Identification Number (Employer Identification Number), which Defendant must submit to the Commission, may be used for 6 Case 3:16-cv-01255-D Document 4-1 Filed 05/09/16 Page 7 of 15 PageID 26 collecting and reporting on any delinquent amount arising out of this Order, in accordance with 31 U.S.C. § 7701.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "05.16_credit_protection_association", "company_name": "Credit Protection Association, LP", "date_issued": "2016-05-15", "year": 2016, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); and the Duties of Furnishers of Information to Consumer Reporting Agencies (Furnisher Rule), 16 C.F.R. § 660 / 12 C.F.R. § 1022, Subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3142-credit-protection-association", "docket_number": "3:16-cv-01255-D" }, { "provision_number": "IV", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendant must acknowledge receipt of the Order under penalty of perjury, deliver copies to relevant personnel, and obtain signed acknowledgments within specified timeframes.", "verbatim_text": "A. Defendant, within seven (7) days of entry of this Order, must submit to the Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.\n\nB. For five (5) years after entry of this Order, Defendant must deliver a copy of this Order to: (1) all principals, officers, directors, and LLC managers and members; (2) all employees, agents, and representatives who participate in conduct related to the subject matter of the Order; and (3) any business entity resulting from any change in structure as set forth in the Section titled Compliance Reporting. Delivery must occur within seven (7) days of entry of this Order for current personnel. For all others, delivery must occur before they assume their responsibilities.\n\nC. From each individual or entity to which Defendant delivered a copy of this Order, Defendant must obtain, within thirty (30) days, a signed and dated acknowledgment of receipt of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "05.16_credit_protection_association", "company_name": "Credit Protection Association, LP", "date_issued": "2016-05-15", "year": 2016, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); and the Duties of Furnishers of Information to Consumer Reporting Agencies (Furnisher Rule), 16 C.F.R. § 660 / 12 C.F.R. § 1022, Subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3142-credit-protection-association", "docket_number": "3:16-cv-01255-D" }, { "provision_number": "V", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendant must submit an initial compliance report 180 days after entry, file sworn notices of material changes within 14 days, notify the Commission of bankruptcy filings, and comply with submission format requirements.", "verbatim_text": "A. One-hundred eighty (180) days after entry of this Order, Defendant must submit a compliance report, sworn under penalty of perjury. Defendant must: (1) identify the primary physical, postal, and email address and telephone number, as designated points of contact, which 7 Case 3:16-cv-01255-D Document 4-1 Filed 05/09/16 Page 8 of 15 PageID 27 representatives of the Commission and Plaintiff may use to communicate with Defendant; (2) identify all of Defendant’s businesses by all of their names, telephone numbers, and physical, postal, email, and Internet addresses; (3) describe the activities of each business, including whether the business engages in debt collection or furnishes consumer information to CRAs; (4) describe in detail whether and how Defendant is in compliance with each Section of this Order; and (5) provide a copy of each Order acknowledgment obtained pursuant to this Order, unless previously submitted to the Commission.\n\nB. For twenty (20) years following entry of this Order, Defendant must submit a compliance notice, sworn under penalty of perjury, within fourteen (14) days of any change in (1) any designated point of contact; or (2) the structure of Defendant or any entity that the Defendant has any ownership interest in or controls directly or indirectly that may affect compliance obligations arising under this Order, including: creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order.\n\nC. Defendant must submit to the Commission notice of the filing of any bankruptcy petition, insolvency proceeding, or similar proceeding by or against Defendant within fourteen (14) days of its filing.\n\nD. Any submission to the Commission required by this Order to be sworn under penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed on: ______” and supplying the date, signatory’s full name, title (if applicable), and signature.\n\nE. Unless otherwise directed by a Commission representative in writing, all submissions to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The subject line must begin: United States v. Credit Protection Association, LP.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "05.16_credit_protection_association", "company_name": "Credit Protection Association, LP", "date_issued": "2016-05-15", "year": 2016, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); and the Duties of Furnishers of Information to Consumer Reporting Agencies (Furnisher Rule), 16 C.F.R. § 660 / 12 C.F.R. § 1022, Subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3142-credit-protection-association", "docket_number": "3:16-cv-01255-D" }, { "provision_number": "VI", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Defendant must create specified records for twenty (20) years and retain each for five (5) years, covering accounting, personnel, training materials, auditing reports, form letters, and all documents demonstrating Order compliance.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant must create certain records for twenty (20) years after entry of this Order, and retain each such record for five (5) years. Specifically, in connection with furnishing information to any CRA, and receiving and investigating direct disputes related to Consumer Reports, Defendant must create and retain the following records: A. Accounting records showing the revenues from all goods or services sold;\n\nB. Personnel records showing, for each person providing services, whether as an employee or otherwise, that person’s: name; addresses; telephone numbers; job title or position; dates of service; and (if applicable) the reason for termination;\n\nC. All employee training materials for employees whose duties involve furnishing consumer information to CRAs, processing or investigating disputes of furnished consumer information, or training or supervising other employees who perform these duties;\n\nD. All auditing reports related to auditing employees whose duties involve furnishing consumer information to CRAs, processing or investigating disputes of furnished consumer information, or training or supervising other employees who perform these duties;\n\nE. All form letters or notices related to Defendant’s FCRA compliance practices and procedures; and\n\nF. All records necessary to demonstrate full compliance with each provision of this Order, including, but not limited to: 1. all acknowledgments of receipt of this Order required by the section titled “Order Acknowledgments”; and 2. all reports submitted to the FTC pursuant to the Section titled “Compliance Reporting.”", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "05.16_credit_protection_association", "company_name": "Credit Protection Association, LP", "date_issued": "2016-05-15", "year": 2016, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); and the Duties of Furnishers of Information to Consumer Reporting Agencies (Furnisher Rule), 16 C.F.R. § 660 / 12 C.F.R. § 1022, Subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3142-credit-protection-association", "docket_number": "3:16-cv-01255-D" }, { "provision_number": "VII", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The Commission and Plaintiff are authorized to monitor Defendant's compliance through requests for reports and documents, depositions, direct communications, employee interviews, and other lawful investigative means.", "verbatim_text": "A. Within fourteen (14) days of receipt of a written request from a representative of the Commission or Plaintiff, Defendant must: submit additional compliance reports or other requested information, which must be sworn under penalty of perjury; appear for depositions; and produce documents for inspection and copying. The Commission and Plaintiff are also authorized to obtain discovery, without further leave of court, using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69, provided that Defendant, after attempting to resolve a dispute without court action and for good cause shown, may file a motion with this Court seeking an order for one or more of the protections set forth in Rule 26(c).\n\nB. For matters concerning this Order, the Commission and Plaintiff are authorized to communicate directly with the Defendant. Defendant must permit representatives of the Commission and Plaintiff to interview any employee or other person affiliated with Defendant who has agreed to such an interview. The person interviewed may have counsel present.\n\nC. The Commission and Plaintiff may use all other lawful means, including posing, through their representatives as consumers, suppliers, or other individuals or entities, to Defendant or any individual or entity affiliated with Defendant, without the necessity of identification or prior notice. Nothing in this Order limits the Commission’s lawful use of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "05.16_credit_protection_association", "company_name": "Credit Protection Association, LP", "date_issued": "2016-05-15", "year": 2016, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); and the Duties of Furnishers of Information to Consumer Reporting Agencies (Furnisher Rule), 16 C.F.R. § 660 / 12 C.F.R. § 1022, Subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3142-credit-protection-association", "docket_number": "3:16-cv-01255-D" }, { "provision_number": "III (Retention of Jurisdiction)", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction over this matter for purposes of construction, modification, and enforcement of this Order.", "verbatim_text": "IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "05.16_credit_protection_association", "company_name": "Credit Protection Association, LP", "date_issued": "2016-05-15", "year": 2016, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); and the Duties of Furnishers of Information to Consumer Reporting Agencies (Furnisher Rule), 16 C.F.R. § 660 / 12 C.F.R. § 1022, Subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3142-credit-protection-association", "docket_number": "3:16-cv-01255-D" }, { "provision_number": "II", "title": "Prohibition on Violating the Fair Credit Reporting Act", "category": "prohibition", "summary": "Defendant and those acting in concert with him are permanently enjoined from using or obtaining consumer reports without a valid permissible purpose and from violating any provision of the FCRA.", "verbatim_text": "A. Using or obtaining any Consumer Report from any Consumer Reporting Agency or from any other person without a valid permissible purpose, as set forth in 15 U.S.C. § 1681b, a copy of which is attached as Appendix A to this Order; and\n\nB. Violating any provision of the Fair Credit Reporting Act, 15 U.S.C. §§1681- 1681x.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "05.20_jasjit_gotra", "company_name": "Alliance Security Inc.", "date_issued": "2020-05-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a); Section 6 of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105; and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/x140022-jasjit-gotra-alliance-security", "docket_number": "1:18-cv-10548" }, { "provision_number": "IV", "title": "Monetary Judgment for Civil Penalty and Suspension", "category": "affirmative_obligation", "summary": "A civil penalty judgment of $9,845,021 is entered against Defendant, with $88,000 payable in two installments and personal jewelry liquidated; the remainder of the judgment is suspended conditioned on the truthfulness of Defendant's sworn financial representations.", "verbatim_text": "A. Judgment in the amount of Nine Million, Eight Hundred Forty-Five Thousand, and Twenty-One dollars ($9,845,021) is entered in favor of the Commission against Defendant as a civil penalty.\n\n1. Within seven (7) days of the entry of this Order, Defendant must pay to the Commission, by electronic fund transfer in accordance with 5 Case 1:19-cv-00410-MSM-LDA Document 94 Filed 05/14/20 Page 6 of 30 PageID #: 3112 instructions previously provided by a representative of the Commission, the sum of twenty-eight thousand dollars ($28,000).\n\n2. Within one hundred twenty (120) days of entry of this Order, Defendant must make a second payment to the Commission, by electronic fund transfer in accordance with instructions previously provided by a representative of the Commission, of sixty thousand dollars ($60,000).\n\nC.(cid:3) Within seven (7) days of the entry of this Order, Defendant must cause the liquidation of all of his personal jewelry (as listed on his Itemization of Personal Jewelry dated January 23, 2020) by delivering it to Skinner Inc., an auction house located in Boston, MA. Defendant’s liquidation of jewelry is pursuant to the terms of a contract between Defendant and Skinner Inc., a copy of which is attached as Appendix B to this Order. Defendant is further Ordered to sign any documents and to take any other steps necessary to facilitate the liquidation.\n\nD.(cid:3) Upon completion of the payments required under Section IV.B, and turning over(cid:3) of jewelry required under Section IV.C, the remainder of the judgment is suspended, subject to the Subsections below.\n\nE.(cid:3) The Commission’s agreement to the suspension of part of the judgment is(cid:3) expressly premised upon the truthfulness, accuracy, and completeness of Defendant’s sworn financial statements and related documents (collectively, “financial representations”) at the time submitted to the Commission, namely: 1. The Itemization of Personal Jewelry of Defendant Jasjit Gotra signed on January 23, 2020; 2. The Financial Statement of Defendant Jasjit Gotra signed on November 3, 2019, including the attachments; 3. The Financial Statement of Defendant Jasjit Gotra signed on January 31, 2019, including the attachments; and 6 Case 1:19-cv-00410-MSM-LDA Document 94 Filed 05/14/20 Page 7 of 30 PageID #: 3113 4. The Financial Statement of Defendant Jasjit Gotra signed on July 25, 2017, including the attachments.\n\nF. The suspension of the judgment will be lifted if, upon motion by the Commission, the Court finds that Defendant failed to disclose any material asset, materially misstated the value of any asset, or made any other material misstatement or omission in the financial representations identified above.\n\nG. If the suspension of the judgment is lifted, the judgment becomes immediately due in the amount specified in Subsection A above (which the parties stipulate only for purposes of this Section represents the amount of the civil penalty for the violations alleged in the Complaint), less any payment previously made pursuant to this Section, plus interest computed from the date of entry of this Order.", "violation_type": "both", "statutory_topics": [ "TSR", "FCRA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "05.20_jasjit_gotra", "company_name": "Alliance Security Inc.", "date_issued": "2020-05-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a); Section 6 of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105; and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/x140022-jasjit-gotra-alliance-security", "docket_number": "1:18-cv-10548" }, { "provision_number": "V", "title": "Additional Monetary Provisions", "category": "affirmative_obligation", "summary": "Defendant relinquishes all interest in transferred assets, consents to facts in the Complaint being taken as true in future proceedings, and acknowledges the civil penalty is not dischargeable in bankruptcy.", "verbatim_text": "A. Defendant relinquishes dominion and all legal and equitable right, title, and interest in all assets transferred pursuant to this Order and may not seek the return of any assets.\n\nB. The facts alleged in the Complaint will be taken as true, without further proof, in any subsequent civil litigation by or on behalf of the Commission, including in a proceeding to enforce its rights to any payment or monetary judgment pursuant to this Order.\n\nC. Defendant agrees that the judgment against it represents a civil penalty owed to the government of the United States, is not compensation for actual pecuniary loss, and, therefore, as to Defendant, is not subject to discharge under the Bankruptcy Code pursuant to 11 U.S.C. § 1141(d)(3) or 11 U.S.C. § 727(a).\n\nD. Defendant agrees that the judgment represents a civil penalty owed to the government of the United States, is not compensation for actual pecuniary loss, and is therefore not subject to discharge under the Bankruptcy Code pursuant to 11 U.S.C. § 523(a)(7).\n\nE. Defendant acknowledges that his Social Security Number, which Defendant previously provided, may be used for collecting and reporting on any delinquent amount arising out of this Order, in accordance with 31 U.S.C. § 7701.", "violation_type": "both", "statutory_topics": [ "TSR", "FCRA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "05.20_jasjit_gotra", "company_name": "Alliance Security Inc.", "date_issued": "2020-05-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a); Section 6 of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105; and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/x140022-jasjit-gotra-alliance-security", "docket_number": "1:18-cv-10548" }, { "provision_number": "VI", "title": "Cooperation", "category": "affirmative_obligation", "summary": "Defendant must fully cooperate with the FTC in this case and related investigations, provide truthful testimony and documents on five days' written notice, and consent to disclosure of electronic communications records for compliance monitoring purposes.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant must fully cooperate with representatives of the Commission in this case and in any investigation related to or associated with the transactions or the occurrences that are the subject of the Complaint. Defendant must provide truthful and complete information, evidence, and testimony. Defendant must also appear for interviews, discovery, hearings, trials, and any other proceedings that a Commission representative may reasonably request upon five days written notice, at such places and times that a Commission representative may designate, without requiring the service of a subpoena.\n\nFurther, to assist the Commission with any investigation and with monitoring Defendant’s compliance with this order, Defendant consents, for purposes of Sections 2701-2712 of the Electronic Communications Privacy Act (“ECPA”), to the disclosure of the contents and records of his auto-dialed, Telemarketing communications or other information pertaining to his auto- dialed, Telemarketing communications by electronic communications service providers and remote computing service providers. This ECPA provision also applies to any company under Defendant’s control and any company for which Defendant is the majority owner. Defendant\n\nfurther agrees to execute, within fourteen (14) days of a request from the Commission, any forms or other documents evidencing its consent that may be required by such electronic communications service providers or remote computing service providers.", "violation_type": "both", "statutory_topics": [ "TSR", "FCRA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Consumer Notification" ], "case_id": "05.20_jasjit_gotra", "company_name": "Alliance Security Inc.", "date_issued": "2020-05-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a); Section 6 of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105; and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/x140022-jasjit-gotra-alliance-security", "docket_number": "1:18-cv-10548" }, { "provision_number": "VII", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendant must submit a sworn acknowledgment of receipt of the Order within seven days, deliver copies to all relevant business personnel and contractors within seven days (or before they assume responsibilities), and obtain signed acknowledgments from each recipient within thirty days.", "verbatim_text": "A. Defendant, within seven (7) days of entry of this Order, must submit to the Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.\n\nB. For five (5) years after entry of this Order, for any business that Defendant, individually or collectively with any other defendant, is the majority owner or controls directly or indirectly, Defendant must deliver a copy of this Order, including Appendix A, to: (1) all principals, officers, directors, and LLC managers and members; (2) all employees, agents, and other representatives who participate in conduct related to the subject matter of the Order; (3) any authorized dealer, vendor, contractor, lead generator, or other person soliciting sales on behalf of such company; and (4) any person placing telephone calls on behalf of such company. Delivery must occur within seven (7) days of entry of this Order for current personnel. For all others, delivery must occur before they assume their responsibilities.\n\nC. From each individual or entity to which Defendant delivered a copy of this Order, Defendant must obtain, within thirty (30) days, a signed and dated acknowledgment of receipt of this Order.", "violation_type": "both", "statutory_topics": [ "TSR", "FCRA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Order Administration" ], "case_id": "05.20_jasjit_gotra", "company_name": "Alliance Security Inc.", "date_issued": "2020-05-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a); Section 6 of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105; and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/x140022-jasjit-gotra-alliance-security", "docket_number": "1:18-cv-10548" }, { "provision_number": "VIII", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendant must file a sworn annual compliance report one year after entry of the Order detailing contact information, business activities, and compliance status, and must file sworn notices within fourteen days of any changes to name, contact information, or business structure for twenty years, as well as notice of any bankruptcy filing.", "verbatim_text": "A. One year after entry of this Order, Defendant must submit a compliance report, sworn under penalty of perjury, in which Defendant must: 1. Identify all telephone numbers and all physical, postal, email and Internet addresses, including all residences; 2. Identify all business activities, including any business for which Defendant performs services whether as an employee or otherwise and any entity in which such Defendant has any ownership interest; 3. Describe in detail Defendant’s involvement in each such business, including title, role, responsibilities, participation, authority, control, and any ownership; 4. Describe in detail whether and how Defendant is in compliance with each Section of this Order; and 9 Case 1:19-cv-00410-MSM-LDA Document 94 Filed 05/14/20 Page 10 of 30 PageID #: 3116 5. Provide a copy of each Order Acknowledgment obtained pursuant to this Order, unless previously submitted to the Commission.\n\nB. For twenty (20) years after entry of this Order, Defendant must submit a compliance notice, sworn under penalty of perjury, within fourteen (14) days of any change in the following, in which Defendant must report any change in: 1. His name or any of his contact information; 2. The structure of any entity that Defendant has any ownership interest in or controls directly or indirectly that may affect compliance obligations arising under this Order, including: (a) creation, (b) merger, (c) sale, or (d) dissolution of the entity or any subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order; 3. Title or role in any business activity, including any business for which Defendant performs services whether as an employee or otherwise and any entity in which Defendant has any ownership interest, and identify the name, physical address, and any Internet address of the business or entity.\n\nC. Defendant must submit to the Commission notice of the filing of any bankruptcy petition, insolvency proceeding, or similar proceeding by or against such Defendant within fourteen days of its filing.\n\nD. Any submission to the Commission required by this Order to be sworn under penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed on: _____” and supplying the date, signatory’s full name, title (if applicable), and signature.\n\nE. Unless otherwise directed by a Commission representative in writing, all submissions to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, 10 Case 1:19-cv-00410-MSM-LDA Document 94 Filed 05/14/20 Page 11 of 30 PageID #: 3117 Washington, DC 20580. The subject line must begin: FTC v. Alliance Security Inc., et al., Matter Number X140022.", "violation_type": "both", "statutory_topics": [ "TSR", "FCRA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "05.20_jasjit_gotra", "company_name": "Alliance Security Inc.", "date_issued": "2020-05-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a); Section 6 of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105; and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/x140022-jasjit-gotra-alliance-security", "docket_number": "1:18-cv-10548" }, { "provision_number": "IX", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Defendant must create specified business records for twenty years and retain each record for five years, covering accounting, personnel, consumer complaints, established business relationships, express written agreements, and all compliance documentation.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant must create certain records for twenty (20) years after entry of the Order, and retain each such record for five years. Specifically, Defendant, for any business that Defendant, individually or collectively with any other defendant, is a majority owner or control directly or indirectly, must create and retain the following records: A. Accounting records showing the revenues from all goods or services sold;\n\nB. Personnel records showing, for each person providing services, whether as an employee or otherwise, that person’s: name; addresses; telephone numbers; job title or position; dates of service; and (if applicable) the reason for termination;\n\nC. Records of all consumer complaints whether received directly or indirectly, such as through a third party, and any response;\n\nD. All records of an Established Business Relationship with any person for a period of five (5) years from the start of that relationship and for a period of five (5) years after any Manually Dialed Outbound Telephone Call placed to that person based on the Established Business Relationship.\n\nE. All records of an Express Written Agreement from any person for a period of five (5) years from the date of such written agreement, and for a period of five (5) years after any Manually Dialed Outbound Telephone Call placed to that person based on the Express Written Agreement.\n\nF. All records necessary to demonstrate full compliance with each provision of this Order, including all submissions to the Commission.", "violation_type": "both", "statutory_topics": [ "TSR", "FCRA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Recordkeeping" ], "case_id": "05.20_jasjit_gotra", "company_name": "Alliance Security Inc.", "date_issued": "2020-05-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a); Section 6 of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105; and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/x140022-jasjit-gotra-alliance-security", "docket_number": "1:18-cv-10548" }, { "provision_number": "X", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The FTC has broad rights to monitor Defendant's compliance, including requesting additional reports and depositions within fourteen days, communicating directly with Defendant, interviewing affiliated employees, and using undercover methods, as well as employing all lawful compulsory process.", "verbatim_text": "A. Within fourteen days of receipt of a written request from a representative of the Commission, Defendant must: (1) submit additional compliance reports or other requested information, which must be sworn under penalty of perjury; (2) appear for depositions; and (3) produce documents for inspection and copying. The Commission is also authorized to obtain discovery, without further leave of court, using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69.\n\nB. For matters concerning this Order, the Commission is authorized to communicate directly with Defendant. Defendant must permit representatives of the Commission to interview any employee or other person affiliated with Defendant who has agreed to such an interview. The person interviewed may have counsel present.\n\nC. The Commission may use all other lawful means, including posing through its representatives as consumers, suppliers, or other individuals or entities, to Defendant or any individual or entity affiliated with either Defendant, without the necessity of identification or prior notice. Nothing in this Order limits the Commission’s lawful use of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1.", "violation_type": "both", "statutory_topics": [ "TSR", "FCRA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "05.20_jasjit_gotra", "company_name": "Alliance Security Inc.", "date_issued": "2020-05-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a); Section 6 of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105; and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/x140022-jasjit-gotra-alliance-security", "docket_number": "1:18-cv-10548" }, { "provision_number": "XI", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "verbatim_text": "IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "violation_type": "both", "statutory_topics": [ "TSR", "FCRA" ], "practice_areas": [ "Telemarketing" ], "remedy_types": [ "Order Administration" ], "case_id": "05.20_jasjit_gotra", "company_name": "Alliance Security Inc.", "date_issued": "2020-05-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 56(a); Section 6 of the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105; and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/x140022-jasjit-gotra-alliance-security", "docket_number": "1:18-cv-10548" }, { "provision_number": "I", "title": "Civil Penalty", "category": "affirmative_obligation", "summary": "Defendant must pay a civil penalty of $1.8 million to the United States Treasury, with specific payment procedures and default consequences.", "verbatim_text": "A. Defendant shall make this payment within seven (7) business days of the date of service of this Order to the Treasurer of the United States by electronic fund transfer in accordance with instructions provided by the Office of Consumer Litigation, Civil Division, U.S. Department of Justice, Washington, D.C. 20530, for appropriate disposition.\n\nB. In the event of any default in payment, which default continues for ten (10) days beyond the due date of payment, the entire unpaid penalty, together with interest, as computed pursuant to 28 U.S.C. § 1961 from the date of default to the date of payment, shall immediately become due and payable.\n\nC. Defendant relinquishes all dominion, control, and title to the funds paid to the fullest extend permitted by law. Defendant shall make no claim to or demand for return of the funds, directly or indirectly, through counselor otherwise.\n\nD. Prior to or concurrently with Defendant's execution of this Order, Defendant shall turn over the full amount of the civil penalty, $1.8 million ($1,800,000), to its attorneys, who shall hold the entire sum for no purpose other than payment to the Treasurer of the United States after entry of this Order by the Court. Within five (5) days of service of this Order, Defendant's attorneys shall transfer such civil penalty payment in the form of a wire transfer to the Treasurer of the United States .. Written confirmation of the wire transfer shall be delivered Page 4 of 30 in accordance with the procedures specified by the Office of Consumer Litigation, Civil Division, U.S. Department of Justice, Washington, D.C. 20530.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "06.11_teletrack", "company_name": "TELETRACK, INC.", "date_issued": "2011-06-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Sections 13(b) and 16(a) of the FTC Act, 15 U.S.C. §§ 53(b) and 56(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-3075-teletrack-inc", "docket_number": "1 11-CV-2060" }, { "provision_number": "II", "title": "Prohibited Business Activities", "category": "prohibition", "summary": "Defendant is permanently enjoined from furnishing consumer reports except to persons it has reason to believe have a permissible purpose or as otherwise permitted by the FCRA.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant, and all other persons or entities within the scope of Fed. R. Civ. P. 65, whether acting directly or through any sole proprietorship, partnership, limited liability company, corporation, subsidiary, branch, division, device, or other business entity who receive actual notice of this Order by personal service or otherwise, shall furnish a consumer report only to those persons which it has reason to believe have a permissible purpose, or as otherwise permitted by the Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "06.11_teletrack", "company_name": "TELETRACK, INC.", "date_issued": "2011-06-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Sections 13(b) and 16(a) of the FTC Act, 15 U.S.C. §§ 53(b) and 56(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-3075-teletrack-inc", "docket_number": "1 11-CV-2060" }, { "provision_number": "III", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The FTC is authorized to monitor Defendant's compliance through written reports, document production, depositions, facility inspections, discovery, undercover posing, and employee interviews.", "verbatim_text": "A. Within ten (10) days of receipt of written notice from a representative of the Commission, Defendant shall submit written reports, which are true and accurate and sworn to under penalty of perjury; produce documents for inspection and copying; appear for deposition; and provide entry during normal business hours to any business location in Defendant's possession or direct or indirect Page 5 of 30 control to inspect the business operation; provided that, Defendant, after attempting to resolve a dispute without court action and for good cause shown may file a motion with this Court seeking an order including one or more of the protections set forth in Fed. R. Civ. P. 26(c).\n\nB. In addition, the Commission is authorized to use all other lawful means, including but not limited to: 1. Obtaining discovery from any person, without further leave of court, using the procedures prescribed by Fed. R. Civ .. P. 30, 31, 33, 34, 36, 45, and 69;\n\n2. Having its representative pose as consumers and suppliers to Defendant, its employees, or any other entity managed or controlled in whole or in part by Defendant, without the necessity of identification or prior notice; and\n\nC. Defendant shall permit representatives of the Commission to interview any employer, consultant, independent contractor, representative, agent, or employee who has agreed to such an interview, relating in any way to any conduct subject to this Order. The person interviewed may have counsel present.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "06.11_teletrack", "company_name": "TELETRACK, INC.", "date_issued": "2011-06-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Sections 13(b) and 16(a) of the FTC Act, 15 U.S.C. §§ 53(b) and 56(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-3075-teletrack-inc", "docket_number": "1 11-CV-2060" }, { "provision_number": "IV", "title": "Compliance Reporting by Defendant", "category": "compliance_reporting", "summary": "For three years, Defendant must notify the FTC of structural changes, file periodic sworn compliance reports, notify the FTC of any bankruptcy filing, and send all required communications by overnight courier or first-class mail with electronic copy.", "verbatim_text": "A. For a period of three (3) years from the date of entry of this Order, Defendant shall notify the Commission of any changes in structure of Defendant or any other business entity that Defendant directly or indirectly controls, or has an ownership interest in, that may affect compliance obligations arising under this Order, including but not limited to: incorporation or other organization; a dissolution, assignment, sale, merger, or other action; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order; or a change in the business name or address, at least thirty (30) days prior to such change, provided that, with respect to any proposed change in the business entity about which Defendant learns less than thirty (30) days prior to the date such action is to take place, Defendant shall notify the Commission as soon as is practicable after obtaining such knowledge.\n\nB. One hundred eighty (180) days after the date of entry of this Order and annually thereafter for a period of three (3) years, Defendant shall provide a written Page 7 of 30 report to the Commission, which is true and accurate and sworn to under penalty of perjury, setting forth in detail the manner and form in which it has complied and is complying with this Order. This report shall include, but not be limited to: 1. A copy of the acknowledgment of receipt of this Order, obtained pursuant to the Section titled \"Distribution of Order;\" and 2. Any other changes required to be reported under Subsection A of this Section.\n\nC. Defendant shall notifY the Commission of the filing of a bankruptcy petition within fifteen (15) days of filing.\n\nD. For purposes of this Order, Defendant shall, unless otherwise directed by the Commission's authorized representatives, send by overnight courier (not the U.S. Postal Service) all reports and notifications to the Commission that are required by this Order to: Associate Director, Division for Enforcement Bureau of Consumer Protection Federal Trade Commission 600 Pennsylvania Avenue, N.W. Washington, D.C. 20580 RE: U.S. v. Teletrack, Inc. Provided that, in lieu of overnight courier, Defendant may send such reports or notifications by first-class mail, but only if the Defendant contemporaneously sends Page 8 of 30 an electronic version of such reports or notifications to the Commission at: DEBrief@ftc.gov.\n\nE. For purposes of the compliance reporting and monitoring required by this Order, the Commission is authorized to communicate directly with the Defendant.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "06.11_teletrack", "company_name": "TELETRACK, INC.", "date_issued": "2011-06-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Sections 13(b) and 16(a) of the FTC Act, 15 U.S.C. §§ 53(b) and 56(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-3075-teletrack-inc", "docket_number": "1 11-CV-2060" }, { "provision_number": "V", "title": "Recordkeeping Provisions", "category": "recordkeeping", "summary": "For six years from entry of the Order, Defendant must create and retain records of consumer report recipients and their permissible purposes, training materials, and all documents necessary to demonstrate full compliance with the Order.", "verbatim_text": "IT IS FURTHER ORDERED that, for a period of six (6) years from the date of entry of this Order, Defendant is hereby restrained and enjoined from failing to create and retain the following records: A. Files containing the names, addresses, telephone numbers, and permissible purpose of all entities to whom Teletrack supplies consumer reports and all materials considered by Defendant to ensure compliance with section 604 of the FCRA.\n\nB. Copies of all training materials that relate to the collection and sale of consumer report information.\n\nC. All records and documents necessary to demonstrate full compliance with each provision of this Order, including but not limited to, copies of acknowledgments of receipt of this Order, required by the Sections titled \"Distribution of Order\" and \"Acknowledgment of Receipt of Order\" and all reports submitted to the FTC pursuant to the Section titled \"Compliance Reporting.\"", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "06.11_teletrack", "company_name": "TELETRACK, INC.", "date_issued": "2011-06-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Sections 13(b) and 16(a) of the FTC Act, 15 U.S.C. §§ 53(b) and 56(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-3075-teletrack-inc", "docket_number": "1 11-CV-2060" }, { "provision_number": "VI", "title": "Distribution of Order", "category": "acknowledgment", "summary": "For three years, Defendant must deliver copies of the Order to officers, directors, relevant employees, and any successor business entities, and must obtain signed dated acknowledgments of receipt within thirty days of delivery.", "verbatim_text": "A. Defendant must deliver a copy of this Order to (1) all of its officers, vice presidents, and other more senior personnel; (2) all of its directors, managers, employees, agents, and representatives who engage in conduct related to the subject matter of this Order; and (3) any business entity resulting from any change in structure set forth in Subsection A of the Section titled \"Compliance Reporting.\" For current personnel, delivery shall be within five (5) days of service of this order upon Defendant. For new personnel, delivery shall occur not later than ten (10) days after assuming their responsibilities. For any business entity resulting from any change in structure set forth in Subsection A of the Section titled \"Compliance Reporting,\" delivery shall occur not later than ten (10) days following the change in structure.\n\nB. Defendant must secure a signed and dated statement acknowledging receipt of the Order, within thirty (30) days of delivery, from all persons receiving a copy of the Order pursuant to this Section.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "06.11_teletrack", "company_name": "TELETRACK, INC.", "date_issued": "2011-06-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Sections 13(b) and 16(a) of the FTC Act, 15 U.S.C. §§ 53(b) and 56(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-3075-teletrack-inc", "docket_number": "1 11-CV-2060" }, { "provision_number": "VII", "title": "Acknowledgment of Receipt of Order", "category": "acknowledgment", "summary": "Defendant must submit a truthful sworn statement to the Commission acknowledging receipt of the Order within five business days of receipt.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant, within five (5) business days Page 10 of 30 of receipt of this Order as entered by the Court, must submit to the Commission a truthful sworn statement acknowledging receipt of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "06.11_teletrack", "company_name": "TELETRACK, INC.", "date_issued": "2011-06-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Sections 13(b) and 16(a) of the FTC Act, 15 U.S.C. §§ 53(b) and 56(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-3075-teletrack-inc", "docket_number": "1 11-CV-2060" }, { "provision_number": "VIII", "title": "Retention of Jurisdiction", "category": "monitoring", "summary": "The Court retains jurisdiction over this matter for purposes of construction, modification, and enforcement of the Order.", "verbatim_text": "VIII. RETENTION OF JURISDICTION IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "06.11_teletrack", "company_name": "TELETRACK, INC.", "date_issued": "2011-06-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Sections 13(b) and 16(a) of the FTC Act, 15 U.S.C. §§ 53(b) and 56(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-3075-teletrack-inc", "docket_number": "1 11-CV-2060" }, { "provision_number": "IX", "title": "Costs and Attorneys' Fees", "category": "affirmative_obligation", "summary": "Each party shall bear its own costs and attorneys' fees incurred in connection with this action.", "verbatim_text": "IX. COSTS AND ATTORNEYS' FEES IT IS FURTHER ORDERED that each party shall bear its own costs and attorneys' fees incurred in connection with this action.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "06.11_teletrack", "company_name": "TELETRACK, INC.", "date_issued": "2011-06-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Sections 13(b) and 16(a) of the FTC Act, 15 U.S.C. §§ 53(b) and 56(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-3075-teletrack-inc", "docket_number": "1 11-CV-2060" }, { "provision_number": "I", "title": "Civil Penalty", "category": "affirmative_obligation", "summary": "Defendant must pay a civil penalty of $800,000 for violations of the Fair Credit Reporting Act.", "verbatim_text": "24 1. Judgment in the amount of eight hundred thousand dollars ($800,000) is 25 hereby entered against Defendant, as a civil penalty for violations of the 26 FCRA pursuant to section 621(a) of the Fair Credit Reporting Act, 15 27 U.S.C. § 1681s(a). 28 2. Defendant shall make this payment within seven (7) business days of the Consent Decree Page 4 of 15 EXHIBIT \\ 1 1 date of service of this Order to the Treasurer of the United States by 2 electronic fund transfer in accordance with instructions provided by the 3 Consumer Protection Branch, Civil Division, U.S. Department of Justice, 4 Washington, D.C. 20530, for appropriate disposition.\n\n10 4. Defendant relinquishes all dominion; control; and title to the funds paid 11 to the fullest extent permitted by law. Defendant shall make no claim to 12 or demand for return of the funds, directly or indirectly, through counsel 13 or otherwise. 14 5. Prior to or concurrently with Defendant's execution of this Order, 15 Defendant shall turn over the full amount of the civil penalty, eight 16 hundred thousand dollars ($800,000), to their attorneys, who shall hold 17 the entire sum for no purpose other than payment to the Treasurer of the 18 United States after entry of this Order by the Court. Within five (5) days 19 of service of this Order, Defendant's attorneys shall transfer such civil 20 penalty payment in the form of a wire transfer to the Treasurer of the 21 United States. Written confirmation of the wire transfer shall be 22 delivered in accordance with the procedures specified by the Consumer 23 Protection Branch, Civil Division, U.S. Department of Justice, 24 Washington, D.C. 20530.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "06.12_spokeo", "company_name": "Spokeo, Inc.", "date_issued": "2012-06-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1023163-spokeo-inc", "docket_number": "C-12-cv-05001-MMM-SH (Case No. 2:12-cv-05001-MMM-SH)" }, { "provision_number": "II", "title": "Prohibited Business Activities - FCRA", "category": "prohibition", "summary": "Defendant is permanently restrained and enjoined from violating the Fair Credit Reporting Act, including prohibitions on furnishing consumer reports without permissible purpose and requirements to maintain reasonable procedures.", "verbatim_text": "9 1. Violating section 604 of the FCRA, 15 U.S.C. § 1681b, by furnishing a 10 consumer report to any person-who does not have a permissible purpose 11 to receive the consumer report;\n\n12 2. Failing to maintain reasonable procedures designed to limit the 13 furnishing of consumer reports to users that have a permissible purpose 14 to receive them under section 604 of the FCRA, 15 U.S.C. § 1681b, as 15 required by Section 607(a) of the FCRA, 15 U.S.C. § 1681e(a);\n\n16 3. Failing to maintain reasonable procedures to assure the maximum 17 possible accuracy of the information concerning the individual about 18 whom a consumer report relates, as required by section 607(b) of the 19 FCRA, 15 U.S.C. § 1681e(b); and\n\n20 4. Failing to provide the \"Notice to Users of Consumer Reports: 21 Obligations of Users Under the FCRA\" (\"User Notice\") required by 22 section 607(d) of the FCRA, 15 U.S.C. § 1681e(d), to all users of 23 Defendant's consumer reports. Provided,·however, that Defendant may 24 provide an electronic copy of the User Notice to a user if: ( a) in the 25 ordinary course of business, the user obtains consumer report 26 information from Defendant in electronic form, and (b) the notice is clear 27 and prominent.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "06.12_spokeo", "company_name": "Spokeo, Inc.", "date_issued": "2012-06-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1023163-spokeo-inc", "docket_number": "C-12-cv-05001-MMM-SH (Case No. 2:12-cv-05001-MMM-SH)" }, { "provision_number": "III", "title": "Prohibited Business Activities - Section 5 (Endorsements)", "category": "prohibition", "summary": "Defendant is permanently restrained from misrepresenting the status of users or endorsers and must disclose material connections between endorsers and the company.", "verbatim_text": "9 1. Misrepresenting, in any manner, expressly or by implication, the status 10 of any user or endorser of a product or service, including, but not limited 11 to, misrepresenting that the user or endorser is an independent user or 12 ordinary consumer of the product or service; and\n\n13 2. Making any representation, in any manner, expressly or by implication, 14 about any user or endorser of such product or service unless they 15 disclose, clearly and prominently, a material connection, when one 16 exists, between such user or endorser and the respondent or any other 17 individual or entity manufacturing, advertising, labeling, promoting, 18 offering for sale, selling, or distributing such product or service.\n\n19 Within seven (7) days of the date of service of this Order, Defendant shall take 20 all reasonable steps to remove any product review or endorsement, currently 21 viewable by the public, that does not comply with this Section.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "06.12_spokeo", "company_name": "Spokeo, Inc.", "date_issued": "2012-06-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1023163-spokeo-inc", "docket_number": "C-12-cv-05001-MMM-SH (Case No. 2:12-cv-05001-MMM-SH)" }, { "provision_number": "IV", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendant must submit acknowledgments of receipt of the Order and deliver copies to personnel and related entities for five years.", "verbatim_text": "25 1. Defendant, within seven (7) days of entry of this Order, must submit to 26 the Commission an acknowledgment of receipt of this Order sworn 27 under penalty of perjury.\n\n28 2. For five (5) years after entry of this Order, Defendant must deliver a Consent Decree Page 7 of 15 EXHIBIl - 1 copy of this Order to: (a) all principals, officers, directors, and managers; 2 (b) all employees, agents, and representatives who participate in' conduct 3 related to the subject matter of the Order; and (c) any business entity 4 resulting from any change in structure as set forth in the Section titled 5 Compliance Reporting. Delivery must occur within seven (7) daYB of 6 entry of this Order fOr current pe.rsonneL To all others, delivery must 1 occur before they assume their responsibilities.\n\n8 3. From each individual or entity to which Defendant delivered a copy of 9 this Order, Defendant must obtain, within 30 days, a signed and dated 10 acknowledgment of receipt of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "06.12_spokeo", "company_name": "Spokeo, Inc.", "date_issued": "2012-06-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1023163-spokeo-inc", "docket_number": "C-12-cv-05001-MMM-SH (Case No. 2:12-cv-05001-MMM-SH)" }, { "provision_number": "V", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendant must submit compliance reports to the Commission, including an initial report after one year and ongoing notices of changes for 20 years.", "verbatim_text": "14 1. One year after entry of this Order, Defendant must submit a compliance 15 report, sworn under penalty of perjury. Defendant must: (a) designate at 16 least one telephone number and an email, physical, and postal address as 17 points of contact, which representatives of the Commission and Plaintiff 18 may use to communicate with Defendant; (b) identify all of Defendant's 19 businesses by all of their names, telephone numbers, and physical, 20 postal, email, and Internet addresses; ( c) describe in detail whether and 21 how Defendant is in compliance with each Section of this Order; and (d) 22 provide a copy of each Order Acknowledgment obtained pursuant to this 23 Order, unless previously submitted to the Commission;\n\n24 2. For 20 years following entry of this Order, Defendant must submit a 25 compliance notice, sworn under penalty of perjury, within 14 days of any 26 change in the following: ( a) any designated point of contact; or (b) the 27 structure of any entity that Defendant has any ownership interest in or 28 directly or indirectly controls that may affect compliance obligations Consent Decree Page 8 of 15 EXHIBI 1 1 arising under this Order, including: creation, merger, sale, or dissolution 2 of the entity or any subsidiary, parent, or affiliate that engages in any acts 3 or practices subject to this Order.\n\n4 3. Defendant must submit to the Commission notice of the filing of any 5 bankruptcy petition, insolvency proceeding, or any similar proceeding by '6 or against Defendant within 14 days of its filing.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "06.12_spokeo", "company_name": "Spokeo, Inc.", "date_issued": "2012-06-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1023163-spokeo-inc", "docket_number": "C-12-cv-05001-MMM-SH (Case No. 2:12-cv-05001-MMM-SH)" }, { "provision_number": "VI", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Defendant must create and retain specified records for 20 years after entry of the Order, with each record retained for five years.", "verbatim_text": "24 1. Accounting records showing the revenues from all goods or services 25 sold, all costs incurred in generating those revenues, and the resulting net 26 profit or loss;\n\n27 2. Personnel records showing, for each person providing services, whether 28 as an employee or otherwise, that person's: name, addresses, and Consent Decree Page 9 of 15 EXHIBI 1 telephone numbers; job title or position; dates of service; and, if 2 applicable, the reason for termination;\n\n3 3. Copies of all training materials that relate to the collection and sale of 4 consumer report information;\n\n5 4. Copies of all training materials that relate to Defendant's activities as 6 alleged in the Complaint and Defendant's compliance with the 7 provisions Qfthis Order;\n\n8 5. All records and documents necessary to demonstrate full.compliance 9 with each provision of this Order, including but not limited to, copies of -10 acknowledgments. of receipt of this Order, required by the Sections titled· 11 \"Distribution of Order\" and \"Acknowledgment of Receipt of Order\" and 12 all reports submitted to the FTC pursuant to the Section titled 13 \"Compliance Reporting\";\n\n14 6. Complaints and refund requests, whether received directly or indirectly, 15 such as through a third party, and any response;\n\n16 7. A copy of each advertisement or other marketing material;\n\n17 8. . If operating as a consumer reporting agency, files containing the names, 18 addresses, telephone numbers, and permissible purpose of all entities to 19 whom Spokeo supplies consumer reports and all materials considered by 20 Defendant to ensure compliance with section 604 of the FCRA;\n\n21 9. If operating as a consumer reporting agency, files containing the names, 22 addresses and telephone numbers of all users of consumer report 23 information and the certifications made by the user pursuant to section 24 607(a) of the FCRA, and all materials considered by Defendant in 25 connection with its verification of the identity of the user and 26 verification of the certifications made under section 607(a), to 27 demonstrate Defendant's compliance with section 607(a) of the FCRA;\n\n1 10. If operating as a consumer reporting agency, files containing the names, 2 addresses, telephone numbers of all users of consumer report information 3 that received the section 607(d ) User Notice, and all materials considered 4 by Defendant to demonstrate compliance with section 607(d) of the 5 FCRA.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "06.12_spokeo", "company_name": "Spokeo, Inc.", "date_issued": "2012-06-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1023163-spokeo-inc", "docket_number": "C-12-cv-05001-MMM-SH (Case No. 2:12-cv-05001-MMM-SH)" }, { "provision_number": "VII", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The Commission and Plaintiff are authorized to monitor Defendant's compliance through various means including document requests, depositions, interviews, and posing as consumers.", "verbatim_text": "_ 10 1. Within 14 days of receipt of a written request from a representative of 11 the Commission or Plaintiff, Defendant must: submit additional 12 compliance reports or other requested information, which must be sworn 13 under penalty of perjury; appear for depositions; and produce documents, 14 for inspection and copying. The Commission and Plaintiff are also 15 authorized to obtain discovery, without further leave of court, using any 16 of the procedures prescribed by Federal Rules of Civil Procedure 29,30 17 (including telephonic depositions), 31, 33, 34, 36, 45, and 69, provided 18 that, Defendant, after attempting to resolve a dispute without court action 19 and for good cause shown, may file a motion with this Court seeking an 20 order including one or more of the protections set forth in Rule 26( c).\n\n22 authorized to communicate directly with Defendant. Defendant must \" 23 permit representatives of the Commission and Plaintiff to interview any 24 employee or other person affiliated with Defendant who has agreed to 25 such an interview. The person interviewed may have counsel present.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "06.12_spokeo", "company_name": "Spokeo, Inc.", "date_issued": "2012-06-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1023163-spokeo-inc", "docket_number": "C-12-cv-05001-MMM-SH (Case No. 2:12-cv-05001-MMM-SH)" }, { "provision_number": "VIII", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "verbatim_text": "6 IT IS FURTHER ORDERED that this Court retains jurisdiction of this 7 matter for. purposes of construction,_ modific~tion, and enforcement of this 8 Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "06.12_spokeo", "company_name": "Spokeo, Inc.", "date_issued": "2012-06-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1023163-spokeo-inc", "docket_number": "C-12-cv-05001-MMM-SH (Case No. 2:12-cv-05001-MMM-SH)" }, { "provision_number": "I", "title": "Prohibited Business Practices – FCRA Section 609(e) Record Disclosure", "category": "prohibition", "summary": "Defendant and its agents are permanently enjoined from failing to timely provide identity theft victims with copies of application and business transaction records within 30 days of a valid written request under FCRA Section 609(e), subject to identity verification requirements and enumerated exceptions.", "verbatim_text": "A. That Defendant and Defendant’s officers, agents, employees, and attorneys, and all other persons in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly, in connection with the sale of any good or service by Defendant, are hereby permanently restrained and enjoined from failing to, within 30 days of the date of receipt of a valid written request under FCRA Section 609(e), from a Victim mailed to the address or other channel specified by the Defendant, and subject to verification of the identity of the Victim and the claim of identity theft in accordance with paragraph I.B, provide, without charge to the Victim, a copy of application and business transaction records in Defendant’s control, whether maintained by Defendant or by another person on behalf of Defendant, evidencing any transaction alleged to be a result of identity theft as required by FCRA Section 609(e). Such records, which may include information that identifies the alleged identity thief, shall be provided to: 1. the Victim; 2. any Federal, State, or local government law enforcement agency or officer specified by the Victim in such a request; or 3. any law enforcement agency investigating the identity theft and authorized by the Victim to take receipt of records, when Defendant has provided credit to, provided for consideration products, goods, or services to, accepted payment from, or otherwise entered into a commercial transaction for consideration Page 3 of 14 Case 2:20-cv-00859-LA Filed 06/10/20 Page 3 of 14 Document 4 with, a person who has allegedly made unauthorized use of the means of identification of the Victim.\n\nB. Before Defendant provides any information under paragraph I.A, unless Defendant, at its discretion, otherwise has a high degree of confidence that it knows the identity of the Victim making a request under paragraph I.A, the Defendant may require the Victim to provide to Defendant: 1. as proof of positive identification of the Victim, at the election of the Defendant: a. the presentation of a government-issued identification card; b. personally identifying information of the same type as was provided to Defendant by the unauthorized person; or c. personally identifying information that Defendant typically requests from new applicants or for new transactions, at the time of the Victim’s request for information, including any documentation described in clauses I.B.1.a and I.B.1.b; and 2. as proof of a claim of identity theft, at the election of Defendant: a. a copy of a police report evidencing the claim of the Victim of identity theft; and b. a properly completed: i. copy of a standardized affidavit of identity theft developed and made available by the Consumer Financial Protection Bureau; or ii. affidavit of fact that is acceptable to Defendant for that purpose.\n\nC. Defendant may decline to provide information under paragraph I.A if, in the exercise of good faith, Defendant determines that: Page 4 of 14 Case 2:20-cv-00859-LA Filed 06/10/20 Page 4 of 14 Document 4 1. paragraph I.A does not require disclosure of the information; 2. after reviewing the information provided pursuant to paragraph I.B, Defendant does not have a high degree of confidence in knowing the true identity of the individual requesting the information; 3. the request for the information is based on a misrepresentation of fact by the individual requesting the information relevant to the request for information; or 4. the information requested is Internet navigational data or similar information about a person’s visit to a website or online service.\n\nD. Nothing in this Order shall be construed to waive or alter any defense under Section 609(e), including the affirmative defense to file an affidavit or answer stating that: (A) the business entity has made a reasonably diligent search of its available business records; and (B) the records requested under Section 609(e) do not exist or are not reasonably available.\n\nE. No provision of Title V, subtitle A, of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801- 6809 prohibiting the disclosure of financial information by a business entity to third parties, shall be used to deny disclosure of information to the Victim under paragraph I.A.\n\nF. Except as provided in paragraph I.D, nothing in this subsection permits or requires Defendant to disclose information, including information to law enforcement under paragraphs I.A.2 and I.A.3, that Defendant is otherwise prohibited from disclosing under any other applicable provision of Federal or State law.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "06.20_kohl_s_department_stores", "company_name": "Kohl's Department Stores, Inc.", "date_issued": "2020-06-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a), and Section 609(e) of the Fair Credit Reporting Act, 15 U.S.C. § 1681g(e)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3200-kohls-department-stores-inc", "docket_number": "Civil Action No. 2:20-cv-859" }, { "provision_number": "II", "title": "Monetary Judgment for Civil Penalty", "category": "affirmative_obligation", "summary": "A civil penalty judgment of $220,000 is entered against Defendant, payable to the U.S. Treasury within 7 days of entry of this Order by electronic fund transfer.", "verbatim_text": "A. Judgment in the amount of two hundred and twenty thousand ($220,000) is entered in favor of Plaintiff against Defendant as a civil penalty.\n\nB. Defendant is ordered to pay to Plaintiff, by making payment to the Treasurer of the United States, two hundred and twenty thousand ($220,000) which as Defendant stipulates, its undersigned counsel holds in escrow for no purpose other than payment to Plaintiff. Such payment must be made within 7 days of entry of this Order by electronic fund transfer in accordance with instructions previously provided by a representative of Plaintiff.\n\nC. Defendant relinquishes dominion and all legal and equitable right, title, and interest in all assets transferred pursuant to this Order and may not seek the return of any assets.\n\nD. The facts alleged in the Complaint will be taken as true, without further proof, in any subsequent civil litigation by or on behalf of the Commission, including in a proceeding to enforce its rights to any payment or monetary judgment pursuant to this Order.\n\nE. Defendant acknowledges that its Taxpayer Identification Numbers (Employer Identification Numbers), which Defendant previously submitted to the Commission, may be used for collecting and reporting on any delinquent amount arising out of this Order, in accordance with 31 U.S.C. § 7701.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "06.20_kohl_s_department_stores", "company_name": "Kohl's Department Stores, Inc.", "date_issued": "2020-06-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a), and Section 609(e) of the Fair Credit Reporting Act, 15 U.S.C. § 1681g(e)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3200-kohls-department-stores-inc", "docket_number": "Civil Action No. 2:20-cv-859" }, { "provision_number": "III", "title": "Notices to Eligible Victims and Other Victims", "category": "affirmative_obligation", "summary": "Defendant must post a website notice directing identity theft victims on how to request records, and must certify to the Commission that it has sent records and/or notices to Eligible Victims who previously submitted requests.", "verbatim_text": "A. On or before 30 days after entry of this Order, and for three years following, Defendant must provide a website notice on a page of Defendant’s website, www.kohls.com, in a place where consumers seeking information about fraud and identity theft would reasonably expect to find such information, information directing Victims how to ask Kohl’s to provide copies of application and business transaction records related to a fraudulent transaction or account. Such notice must provide an email address, postal address, and fax number, to any one of which the Victim can elect to send the request. Such notice must not require the Victim to provide anything other than what is required by law (15 U.S.C. § 1681g(e)), namely (1) the Victim’s driver’s Page 6 of 14 Case 2:20-cv-00859-LA Filed 06/10/20 Page 6 of 14 Document 4 license or other government-issued identification; (2) personally identifying information to verify the requestor’s identity; (3) sufficient information for Defendant to identify and locate the transaction alleged to be a result of identity theft; (4) the police report the Victim filed about the identity theft; and (5) an affidavit reporting the identity theft, like the Identity Theft Report the Victim can create at IdentityTheft.gov (the “Verification Documents”). Finally, the notice must affirm that Kohl’s will send copies of records required to be sent under Section 609(e) that relate to the identity theft Victim’s request within 30 days after receiving the request and the Verification Documents (if required by Kohl’s).\n\nB. Defendant shall, within 14 days after entry of this Order, provide the Commission with its certification, signed by Kohl’s Chief Marketing Officer on behalf of Kohl’s, that Kohl’s has sent all application and business transaction records in its control evidencing any transaction alleged to be a result of identity theft to any Eligible Victims who previously submitted a request to Kohl’s that included each of the Verification Documents.\n\nC. Defendant shall, within 14 days after entry of this Order, provide the Commission with its certification, signed by Kohl’s Chief Marketing Officer on behalf of Kohl’s, that Kohl’s has provided a notice to Eligible Victims who previously submitted a request for application and business transaction records (which request did not include each of the Verification Documents), informing the Eligible Victims that Kohl’s may have additional application and business transaction records that relate to the fraud or identity theft claim, and that the Eligible Victim may request those records by following the same process described in paragraph III.A above.\n\nD. Defendant shall, within 14 days after entry of this Order, provide the Commission with its certification, signed by Kohl’s Chief Marketing Officer on behalf of Kohl’s, that Kohl’s has delivered all application and business transaction records in its control evidencing any Page 7 of 14 Case 2:20-cv-00859-LA Filed 06/10/20 Page 7 of 14 Document 4 transaction alleged to be a result of identity theft to any Eligible Victims who received the notice described in paragraph III.C above and who sent Kohl’s each of the Verification Documents, regardless of whether the request specifies particular records sought.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "06.20_kohl_s_department_stores", "company_name": "Kohl's Department Stores, Inc.", "date_issued": "2020-06-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a), and Section 609(e) of the Fair Credit Reporting Act, 15 U.S.C. § 1681g(e)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3200-kohls-department-stores-inc", "docket_number": "Civil Action No. 2:20-cv-859" }, { "provision_number": "IV", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendant must submit a sworn acknowledgment of receipt of this Order to the Commission within 7 days, deliver copies of the Order to relevant employees and successors for 5 years, and collect signed acknowledgments from each recipient within 30 days.", "verbatim_text": "A. Defendant, within 7 days of entry of this Order, must submit to the Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.\n\nB. For 5 years after entry of this Order, Defendant must deliver a copy of this Order to: (1) all employees having managerial responsibilities for conduct related to Section I of the Order and all employees and representatives responsible for responding to requests under FCRA Section 609(e); and (2) any business entity resulting from any change in structure as set forth in the Section titled Compliance Reporting. Delivery must occur within 7 days of entry of this Order for current personnel. For all others, delivery must occur before they assume their responsibilities.\n\nC. From each individual or entity to which Defendant delivered a copy of this Order, Defendant must obtain, within 30 days, a signed and dated acknowledgment of receipt of this Order.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "06.20_kohl_s_department_stores", "company_name": "Kohl's Department Stores, Inc.", "date_issued": "2020-06-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a), and Section 609(e) of the Fair Credit Reporting Act, 15 U.S.C. § 1681g(e)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3200-kohls-department-stores-inc", "docket_number": "Civil Action No. 2:20-cv-859" }, { "provision_number": "V", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendant must submit a sworn compliance report one year after entry, notify the Commission of structural or contact changes within 14 days for 10 years, and report any bankruptcy filing within 14 days.", "verbatim_text": "A. One year after entry of this Order, Defendant must submit a compliance report, sworn under penalty of perjury. Defendant must: (1) identify the primary physical, postal, and email address and telephone number, as designated points of contact, which representatives of the Page 8 of 14 Case 2:20-cv-00859-LA Filed 06/10/20 Page 8 of 14 Document 4 Commission and Plaintiff may use to communicate with Defendant; (2) identify all of Defendant’s businesses by all of their names, telephone numbers, and physical, postal, email, and Internet addresses; (3) describe the activities relevant to the scope of the Order of each business with such activities; and (4) describe in detail whether and how Defendant is in compliance with each Section of this Order; and (5) provide a copy of each Order Acknowledgment obtained pursuant to this Order, unless previously submitted to the Commission.\n\nB. For 10 years after entry of this Order, Defendant must submit a compliance notice, sworn under penalty of perjury, within 14 days of any change in: (1) any designated point of contact; or (2)the structure of Defendant or any entity that Defendant has any ownership interest in or controls directly or indirectly that may affect compliance obligations arising under this Order, including: creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order.\n\nC. Defendant must submit to the Commission notice of the filing of any bankruptcy petition, insolvency proceeding, or similar proceeding by or against Defendant within 14 days of its filing.\n\nD. Any submission to the Commission required by this Order to be sworn under penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed on: _____” and supplying the date, signatory’s full name, title (if applicable), and signature.\n\nE. Unless otherwise directed by a Commission representative in writing, all submissions to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, Bureau of Page 9 of 14 Case 2:20-cv-00859-LA Filed 06/10/20 Page 9 of 14 Document 4 Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The subject line must begin: FTC v. Kohl’s Department Stores, Inc. (X ).", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "06.20_kohl_s_department_stores", "company_name": "Kohl's Department Stores, Inc.", "date_issued": "2020-06-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a), and Section 609(e) of the Fair Credit Reporting Act, 15 U.S.C. § 1681g(e)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3200-kohls-department-stores-inc", "docket_number": "Civil Action No. 2:20-cv-859" }, { "provision_number": "VI", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Defendant must create specified records for 10 years after entry of the Order and retain each such record for 5 years, covering revenues, personnel, consumer complaints, requests for records, and all materials demonstrating compliance.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant must create certain records for 10 years after entry of the Order, and retain each such record for 5 years. Specifically, Defendant must create and retain the following records to the extent they relate to this Order: A. accounting records showing the revenues from all goods or services sold;\n\nB. personnel records sufficient to show: (1) for each person having managerial responsibilities related to this Order, whether as an employee or otherwise, that person’s: name; address; telephone numbers; job title or position; dates of service; and (if applicable) the reason for termination; and (2) for each agent or employee designated by the Company to respond to requests for application and business transaction records, that person’s: name; address; telephone numbers; job title or position; dates of service; the number of requests for application and business transaction records that the individual responds to annually; information identifying the specific requests that the individual responds to; any disciplinary action against the individual related to the individual’s response to requests for application and business transaction records; and (if applicable) the reason for termination;\n\nC. records of all written consumer complaints relating to requests for application or business transaction records, pursuant to FCRA Section 609(e), whether received directly or indirectly, such as through a third party, and any response;\n\nD. records tracking each request for records covered by paragraph I.A of this Order that Defendant receives, including: 1. the date Defendant received each request; Page 10 of 14 Case 2:20-cv-00859-LA Filed 06/10/20 Page 10 of 14 Document 4 2. if applicable, the date Defendant provided the records in response to the request; and 3. for any request where Defendant declines to provide the records, the reasons for such denial; and\n\nE. all records necessary to demonstrate full compliance with each provision of this Order, including all submissions to the Commission.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "06.20_kohl_s_department_stores", "company_name": "Kohl's Department Stores, Inc.", "date_issued": "2020-06-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a), and Section 609(e) of the Fair Credit Reporting Act, 15 U.S.C. § 1681g(e)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3200-kohls-department-stores-inc", "docket_number": "Civil Action No. 2:20-cv-859" }, { "provision_number": "VII", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The Commission and Plaintiff are authorized to monitor Defendant's compliance through information requests, depositions, discovery, direct communications, employee interviews, and undercover means, with Defendant required to respond within 14 days of written requests.", "verbatim_text": "A. Within 14 days of receipt of a written request from a representative of the Commission or Plaintiff, Defendant must: submit additional compliance reports or other requested information, which must be sworn under penalty of perjury; appear for depositions; and produce documents for inspection and copying. The Commission and Plaintiff are also authorized to obtain discovery, without further leave of court, using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69.\n\nB. For matters concerning this Order, the Commission and Plaintiff are authorized to communicate directly with Defendant. Defendant must permit representatives of the Commission and Plaintiff to interview any employee or other person affiliated with Defendant who has agreed to such an interview. The person interviewed may have counsel present.\n\nC. The Commission and Plaintiff may use all other lawful means, including posing, through their representatives as consumers, suppliers, or other individuals or entities, to Defendant or any individual or entity affiliated with Defendant, without the necessity of identification or prior notice. Nothing in this Order limits the Commission’s lawful use of compulsory process, Page 11 of 14 Case 2:20-cv-00859-LA Filed 06/10/20 Page 11 of 14 Document 4 pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1. Defendant may assert any and all defenses, rights, or privileges available to it.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "06.20_kohl_s_department_stores", "company_name": "Kohl's Department Stores, Inc.", "date_issued": "2020-06-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a), and Section 609(e) of the Fair Credit Reporting Act, 15 U.S.C. § 1681g(e)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3200-kohls-department-stores-inc", "docket_number": "Civil Action No. 2:20-cv-859" }, { "provision_number": "VIII", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction over this matter for purposes of construction, modification, and enforcement of the Order.", "verbatim_text": "IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "06.20_kohl_s_department_stores", "company_name": "Kohl's Department Stores, Inc.", "date_issued": "2020-06-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a), and Section 609(e) of the Fair Credit Reporting Act, 15 U.S.C. § 1681g(e)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3200-kohls-department-stores-inc", "docket_number": "Civil Action No. 2:20-cv-859" }, { "provision_number": "I", "title": "Civil Penalty", "category": "affirmative_obligation", "summary": "Defendant must pay a civil penalty of $350,000 to the United States Treasury within seven business days of service of the Order.", "verbatim_text": "IT IS ORDERED that Defendant shall pay to Plaintiff, pursuant to section 621(a) of the FCRA, 15 U.S.C. § 1681s(a), a civil penalty in the amount of three hundred and fifty thousand dollars ($350,000). A. Defendant shall make this payment within seven (7) business days of the date of service of this Order to the Treasurer of the United States by electronic fund transfer in accordance with instructions provided by the Office of Consumer Litigation, Civil Division, U.S. Department ofJustice, Washington, D.C. 20530, for appropriate disposition.\n\nB. In the event of any defanlt in payment, which default continues for ten (10) days beyond the due date of payment, the entire unpaid penalty, together with interest, as computed pursuant to 28 U.S.C. § 1961 from the date of default to the date ofpayment, shall immediately become due and payable.\n\nC. This judgment represents a civil penalty owed to the United States Government and is not compensation for actual pecuniary loss, and, therefore, it is not subject to discharge under the Bankruptcy Code pursuant to II U.S.C. § 523(a)(7). Defendant agrees that the facts as alleged in the Complaint filed in this action shall be taken as true, without further proof, in any subsequent litigation filed by or on behalf of the Commission to collect any unpaid amount or otherwise enforce its rights pursuant to this Order.\n\nD. Proceedings initiated under this Part are in addition to, and not in lieu of, any other civil or criminal penalties that may be provided by law, including any other proceedings Plaintiff may initiate to enforce this Order.\n\nE. Defendant relinquishes all dominion, control, and title to the funds paid to the fullest extent permitted by law. Defendant shall make no claim to or demand return ofthe funds, directly or indirectly, through counselor otherwise.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "07.09_united_states_of_america_plaintiff_v._talx_corporation_defendant", "company_name": "TALX Corporation", "date_issued": "2009-07-15", "year": 2009, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 607(d) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(d); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/072-3173-united-states-america-federal-trade-commission-plaintiff-v-talx-corporation-defendant", "docket_number": "Civil Action No." }, { "provision_number": "II", "title": "Prohibited Business Activities", "category": "prohibition", "summary": "Defendant is permanently restrained from failing to provide required FCRA User Notices and Furnisher Notices to all users and furnishers of consumer report information.", "verbatim_text": "A. Failing to provide the \"User Notice\" required by section 607( d) of the FCRA, IS U.S.C. § 168Ie(d), to all users of Defendant's employment history and income history reports and any other consumer reports. Provided, however, that Defendant may provide an electronic copy of this notice to a user if (i) in the ordinary course of business, the user obtains consumer report information from Defendant in electronic form, and (ii) the notice is clear and prominent.\n\nB. Failing to provide the \"Fumisher Notice\" required by section 607(d) of the . FCRA, IS U.S.C. § l68Ie(d), to all furnishers of consumer report information to Defendant. Provided, however, that Defendant may provide an electronic copy of this notice to a furnisher if (i) in the ordinary cours\" of business, the furnisher provides consumer report information to Defendant in electronic form, and (ii) the notice is clear and prominent.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "07.09_united_states_of_america_plaintiff_v._talx_corporation_defendant", "company_name": "TALX Corporation", "date_issued": "2009-07-15", "year": 2009, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 607(d) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(d); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/072-3173-united-states-america-federal-trade-commission-plaintiff-v-talx-corporation-defendant", "docket_number": "Civil Action No." }, { "provision_number": "III", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The Commission is authorized to monitor and investigate Defendant's compliance with the Order, including demanding written reports, documents, depositions, and site access within ten business days of written notice.", "verbatim_text": "A. Within ten business (10) days of receipt of written notice from a representative of the Commission, Defendant shall submit additional written reports, which are true and accurate and sworn to under penalty of perjury; produce documents for inspection and copying; appear for deposition; and provide entry during normal business hours to any business location in Defendant's possession or direct or indirect control, to inspect the business operation; provided that, Defendant, after attempting to resolve a dispute without court action and for good cause shown may file a motion with this Court seeking an order including one or more of the protections set forth in Fed. R. Civ. P. 26(c).\n\nB. In addition, the Commission is authorized to use all other lawful means, including but not limited to: 1. obtaining discovery from any person, without further leave ofcourt, using the procedures prescribed by Fed. R. Civ. P. 30, 31, 33, 34, 36, 45, and 69; 2. posing as consumers and suppliers to Defendant, its employees, or any other entity managed or controlled in whole or in party by Defendant, without the necessity of identification or prior notice; and\n\nC. Defendant shall permit representatives of the Commission to interview any consultant, independent contractor, representative, agent, or employee who has agreed to such an interview, relating in any way to any conduct subject to this Order. The person interviewed may have counsel present.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "07.09_united_states_of_america_plaintiff_v._talx_corporation_defendant", "company_name": "TALX Corporation", "date_issued": "2009-07-15", "year": 2009, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 607(d) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(d); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/072-3173-united-states-america-federal-trade-commission-plaintiff-v-talx-corporation-defendant", "docket_number": "Civil Action No." }, { "provision_number": "IV", "title": "Compliance Reporting by Defendant", "category": "compliance_reporting", "summary": "Defendant must notify the Commission of structural changes for five years, submit sworn written compliance reports for three years, notify of any bankruptcy filing within fifteen days, and send all reports by overnight courier or first-class mail with electronic copy.", "verbatim_text": "A. For a period of five (5) years from the date of service ofthis Order, Defendant shall notify the Commission of any changes in structure of Defendant or any other business entity that Defendant directly or indirectly controls, or has an ownership interest in, that may affect Page 6 of 13 compliance obligations arising under this Order, including but not limited to incorporation or other organization; a dissolution, assignment, sale, merger, or other action; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order; or a change in the business name or address, at least thirty (30) days prior to such change, provided that, with respect to any proposed change in the business entity about which Defendant learns less than thirty (30) days prior to the date such action is to take place, Defendant shall notify the Commission as soon as is practicable after obtaining such knowledge.\n\nB. One hundred eighty (180) days after the date of service ofthis Order and annually thereafter for a period of three (3) years, Defendant shall provide a written report to the Commission, which is true and accurate and sworn to under penalty of perjury, setting forth in detail the manner and form in which it has complied and is complying with this Order.\n\nC. For a period of five (5) years from the date of service of this Order, Defendant shall notify the Commission of the filing of a bankruptcy petition within fifteen (15) days of filing.\n\nD. For purposes ofthis Order, Defendant shall, unless otherwise directed by the Commission's authorized representatives, send by overnight courier all reports and notifications required by this Order to the Commission, to the following address: Associate Director, Division of Enforcement Bureau of Consumer Protection Federal Trade Commission Washington, D.C. 20580 RE: FTC v. TALX, Inc. Provided that, in lieu of overnight courier, Defendant may send such reports or notifications by first-class mail, but only if the Defendant contemporaneously sends an electronic version of such reports or notifications to the Commission at: DEBrief@ftc.gov.\n\nE. For purposes of the compliance reporting and monitoring required by this Order.if the undersigned counsel no longer represents Defendant, the Commission is authorized to communicate directly with the General Counsel of TALX. Provided, however, nothing in this provision shall limit the Commission's authority to pose as a consumer or supplier pursuant to Subsection B.2 of the section titled \"Compliance Monitoring.\"", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "07.09_united_states_of_america_plaintiff_v._talx_corporation_defendant", "company_name": "TALX Corporation", "date_issued": "2009-07-15", "year": 2009, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 607(d) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(d); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/072-3173-united-states-america-federal-trade-commission-plaintiff-v-talx-corporation-defendant", "docket_number": "Civil Action No." }, { "provision_number": "V", "title": "Record Keeping Provisions", "category": "recordkeeping", "summary": "For six years from entry of the Order, Defendant must create and retain records relating to FCRA notice compliance, training materials, and all documents demonstrating full compliance with the Order.", "verbatim_text": "A. Files containing the names, addresses, telephone numbers, of all users and furnishers ofconsumer report information that received the section 607(d) User Notice and Furnisher Notice, and all materials considered by Defendant to demonstrate compliance with section 607(d) ofthe FCRA.\n\nB. Copies of all training materials that relate to Defendant's activities as alleged in the Complaint and Defendant's compliance with the provisions of this Order.\n\nC. All records and documents necessary to demonstrate full compliance with each provision ofthis Order, including but not limited to, copies of acknowledgments of receipt of this Order, required by the Sections titled \"Distribution of Order\" and \"Acknowledgment of Receipt of Order.\"", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "07.09_united_states_of_america_plaintiff_v._talx_corporation_defendant", "company_name": "TALX Corporation", "date_issued": "2009-07-15", "year": 2009, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 607(d) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(d); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/072-3173-united-states-america-federal-trade-commission-plaintiff-v-talx-corporation-defendant", "docket_number": "Civil Action No." }, { "provision_number": "VI", "title": "Distribution of Order by Defendant", "category": "acknowledgment", "summary": "For three years from service of the Order, Defendant must deliver copies of the Order to all principals, officers, directors, managers, relevant employees, and successor entities, and collect signed acknowledgments of receipt within thirty days.", "verbatim_text": "A. Defendant must deliver a copy of this Order to (l) all of its principals, officers, directors, and managers; (2) all of its employees, agents, and representatives who engage in conduct related to the subject matter of this Order; and (3) any business entity resulting from any change in structure set forth in Subsection A of the Section titled \"Compliance Reporting.\" For current personnel, delivery shall be within ten (l0) days of service of this order upon Defendant. For new personnel, delivery shall occur prior to them assuming their responsibilities. For any business entity resulting from any change in structure set forth in Subsection A of the Section titled \"Compliance Reporting,\" delivery shall be at least ten (10) days prior to the change in structure.\n\nB. Defendant shall secure a signed and dated statement acknowledging receipt of this Order, within thirty (30) days of delivery, from all persons receiving a copy ofthe Order pursuant to this Section.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "07.09_united_states_of_america_plaintiff_v._talx_corporation_defendant", "company_name": "TALX Corporation", "date_issued": "2009-07-15", "year": 2009, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 607(d) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(d); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/072-3173-united-states-america-federal-trade-commission-plaintiff-v-talx-corporation-defendant", "docket_number": "Civil Action No." }, { "provision_number": "VII", "title": "Acknowledgment of Receipt of Order", "category": "acknowledgment", "summary": "Defendant must submit a sworn statement to the Commission acknowledging receipt of the Order within five business days of its entry by the Court.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant, within five (5) business days of receipt of this Order as entered by the Court, must submit to the Commission a truthful sworn statement acknowledging receipt of this Order.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "07.09_united_states_of_america_plaintiff_v._talx_corporation_defendant", "company_name": "TALX Corporation", "date_issued": "2009-07-15", "year": 2009, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 607(d) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(d); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/072-3173-united-states-america-federal-trade-commission-plaintiff-v-talx-corporation-defendant", "docket_number": "Civil Action No." }, { "provision_number": "VIII", "title": "Retention of Jurisdiction", "category": "monitoring", "summary": "The Court retains jurisdiction over this matter for purposes of construction, modification, and enforcement of the Order.", "verbatim_text": "IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter for purposes of construction, modification, and enforcement ofthis Order.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "07.09_united_states_of_america_plaintiff_v._talx_corporation_defendant", "company_name": "TALX Corporation", "date_issued": "2009-07-15", "year": 2009, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 607(d) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(d); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/072-3173-united-states-america-federal-trade-commission-plaintiff-v-talx-corporation-defendant", "docket_number": "Civil Action No." }, { "provision_number": "IX", "title": "Costs and Attorneys' Fees", "category": "affirmative_obligation", "summary": "Each party shall bear its own costs and attorneys' fees incurred in connection with this action.", "verbatim_text": "IT IS FURTHER ORDERED that each party shall bear its own costs and attorneys' fees incurred in connection with this action.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "07.09_united_states_of_america_plaintiff_v._talx_corporation_defendant", "company_name": "TALX Corporation", "date_issued": "2009-07-15", "year": 2009, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 607(d) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(d); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/072-3173-united-states-america-federal-trade-commission-plaintiff-v-talx-corporation-defendant", "docket_number": "Civil Action No." }, { "provision_number": "I", "title": "Civil Penalty", "category": "affirmative_obligation", "summary": "Defendant must pay a $20,000 civil penalty to the United States within ten business days of entry of the Order, with default interest provisions and no discharge in bankruptcy.", "verbatim_text": "23 IT IS ORDERED that Defendant shall pay to Plaintiff, pursuant to section 24 621(a) of the FCRA, 15 U.S.C. § 168Is(a), a civil penalty in the amount of Twenty 25 Thousand Dollars ($20,000) as follows:\n\n1 A. Defendant shall make this payment within ten (10) business days of the date 2 of entry of this Order by electronic f-and transfer or cashier’s check in 3 accordance with instructions provided by the. Office of Consumer Litigation, 4 Civil Division, U.S. Department of Justice, Washington, D.C. 20530, for 5 appropriate disposition.\n\n6 B. In.the event of any default in payment, which default continues for ten (10) 7 days beyond the due date of payment, the entire unpaid penalty, together 8 with interest, as computed pursuant to 28 U.S.C. § 1961, from the date of 9 default to the date of payment, shall immediately become due and payable;\n\n10 C. This judgment represents a civil penalty owed to the United States 11 Govermnent and is not compensation for actual pecuniary loss, and, 12 therefore, it is not subject to discharge under the Bankruptcy Code pursuant 13 to 11 U.S.C. § 523(a)(7).\n\n14 D. Proceedings initiated under this Part to collect any unpaid civil penal .~ are. in 15 addition to, and not in lieu of, any other civil or criminal penalties that may 16 be provided by law, including any other proceedings Plaintiff may initiate to 17 enforce this Order.\n\n18 E. Defendant relinquishes all dominion, control, and rifle to the funds paid to 19 the fullest extent permitted by law. Defendant shall mal~e no claim to or 20 demand return of the funds, directly or indirectly, through counsel or 21 otherwise.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "08.09_metropolitan_home_mortgage_also_dba_wholesale_home_lenders", "company_name": "Metropolitan Home Mortgage, Inc.", "date_issued": "2009-08-15", "year": 2009, "administration": "Obama", "legal_authority": "Sections 5(a), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); sections 615 and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681m and 1681s; and the Prescreen Opt-Out Notice Rule, 16 C.F.R. Part 642", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/metropolitan-home-mortgage-inc-also-dba-wholesale-home-lenders", "docket_number": "Civil Action No. 8:09-cv-00936-DOC(RNB)" }, { "provision_number": "II", "title": "Prohibited Business Activities", "category": "prohibition", "summary": "Defendant and all persons acting in concert with it are permanently restrained from failing to comply with the Prescreen Opt-Out Notice Rule regarding required consumer opt-out notices in connection with firm offers of credit or insurance.", "verbatim_text": "23 IT IS FURTHER ORDERED that Defendant, and its officers, agents, 24 servants, employees, and all persons or entities in active concert or participation 25 with any of them, who receive actual notice of this Order by personal service or 26 otherwise, whether acting directly or through any business entity, corporation, 27 28 Stipulated Judgment - Metropolitan Page 4 of 12 Case 8:09-cv-00936-DOC-RNB Document 3 Filed 10/05/2009 Page 5 of 1 1 subsidiary, division, affiliate, or other device, in connection with the making of any 2 \"firm offer of credit or insurance\" as that term is defined in section 603(1) of the 3 FCRA, 15 U.S.C. § 1681a(1), are hereby permanently restrained and enjoined from 4 failing to comply with the Prescreen Opt-Out Notice Rule, 16 C.F.R. Part 642, 5 which establishes the format, type size, and manner of the notices to consumers 6 requJ.re.d pursuant to section 6!5(d) of the FCRA, 15 U.S.C~ § 168Ira(d), informing 7 consumers of their, right to opt out of having their consumer report information 8 used to send them unsolicited offers of credit or insurmace.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "08.09_metropolitan_home_mortgage_also_dba_wholesale_home_lenders", "company_name": "Metropolitan Home Mortgage, Inc.", "date_issued": "2009-08-15", "year": 2009, "administration": "Obama", "legal_authority": "Sections 5(a), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); sections 615 and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681m and 1681s; and the Prescreen Opt-Out Notice Rule, 16 C.F.R. Part 642", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/metropolitan-home-mortgage-inc-also-dba-wholesale-home-lenders", "docket_number": "Civil Action No. 8:09-cv-00936-DOC(RNB)" }, { "provision_number": "III", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The FTC is authorized to monitor and investigate Defendant's compliance with the Order, including requiring written reports, document production, depositions, and facility access; and interviewing Defendant's personnel.", "verbatim_text": "12 A. Within ten (10) days of receipt of wriRen notice from a representative of the 13 Commission, Defendant shall submit additional written reports, which are 14 true and accurate and sworn to under penalty of perjury; produce documents 15 for inspection and copying; appear for deposition; and/or provide entry 16 during normal business hours to any business location in Defendant’s 17 possession or direct or indirect control to inspect the business operation;\n\n18 B. In addition, the Commission is authorized to use all other lawful means, 19 including but not limited to, obtaining discovery from any person, without 20 further leave of court, using the procedures prescribed by Fed. R. Cir. P. 30, 21 31, 33, 34, 36, 45 and 69; and\n\n22 C. Defendant shall permit representatives of the Commission to interview any 23 employer, consultant, independent contractor, representative, agent, or 24 employee who has agreed to such an interview, relating in any way to any ¯ 25 conduct subject to this Order. The person interviewed may have counsel 26 present.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "08.09_metropolitan_home_mortgage_also_dba_wholesale_home_lenders", "company_name": "Metropolitan Home Mortgage, Inc.", "date_issued": "2009-08-15", "year": 2009, "administration": "Obama", "legal_authority": "Sections 5(a), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); sections 615 and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681m and 1681s; and the Prescreen Opt-Out Notice Rule, 16 C.F.R. Part 642", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/metropolitan-home-mortgage-inc-also-dba-wholesale-home-lenders", "docket_number": "Civil Action No. 8:09-cv-00936-DOC(RNB)" }, { "provision_number": "IV", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "For five years, Defendant must notify the FTC of structural business changes at least 30 days in advance, file an initial compliance report at 180 days and annually thereafter, notify the FTC of any bankruptcy filing within 15 days, and send all reports to the FTC by overnight courier or first-class mail with electronic copy.", "verbatim_text": "10 A. For a period of five (5) years from the date of entry of this Order, Defendant 1! shall notify the Commission of any change in structure or any business 12 entity that Defendant directly or indirectly controls, or has an ownership 13 interest in, that may affect compliance obligations arising under this Order, 14 including but not limited to: incorporation or other organization; a 15 dissolution, assignment, sale, merger, or other action; the creation or 16 dissolution of a subsidiary, parent~ or affiliate that engages in any acts or 17 practices subject to this Order; or a change in the business name or address, at least thirty (30) days prior to such change, provided that, with. respect to 19 any proposed change in the business entity about which Defendant learns 20 less than thirty (30) days prior to the date such action is to take place, such 21 Defendant shall notify the Commission as soon as practicable after obtaining 22 such lmowledge.\n\n23 B. One hundred eighty (180) days after thedate of entry of this Order and 24 annually thereafter for a period of five (5) years, Defendant shall provide a 25 written report to the FTC, which is true and accurate and sworn to under 26 penalty of perjury, setting forth in detail the manner and form in which they 27 28 Stipulated Judgment - Metropolitan Page 6 of 12 Case 8:09-cv-00936-DOC-RNB Document 3 Filed 10/05/2009 Page 7 of I 1 have complied and are complying with this Order. This ’report shall include, 2 but not be limited to: 3 1. A copy of each acknowledgment of receipt of this Order, obtained 4 pursuant to the Section titled \"Distribution of Order;\" and 5 2. Any other changes required to be reported under Subsection A of this 6 section.\n\n7 Defendant shall notify the Commission of the filing of a banh’uptcy 8 petition by such Defendant within fifteen (15) days of filing.\n\n9 For the purposes of this Order, Defendant sha~, unless otherwise directed 10 by the Commission’s authorized representatives, send by overnight courier 11 all reports and notifications required by this Order to the Commission, to 12 the following address: 13 Associate Director for Enforcement Federal Trade Commission 14 600 Pennsylvania Avenue, N.W., Room NJ-2122 Washinzt6n, DC 20580 . 15 RE: FTC v. Wholesale Home Mortgage 16 Provided, that, in lieu of ovemight courier, Defendant may send such reporfs 17 or notifications by f~st-class mail, but only if Defendant contemporaneously 18 sends an electronic version of such report or notification to the Commission 19 at: DEBrief@ftc.gov.\n\nE. For purposes of compliance reporting and monitoring required by this 21 Order, the Commission is authorized to communicate directly with 22 Defendant.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "08.09_metropolitan_home_mortgage_also_dba_wholesale_home_lenders", "company_name": "Metropolitan Home Mortgage, Inc.", "date_issued": "2009-08-15", "year": 2009, "administration": "Obama", "legal_authority": "Sections 5(a), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); sections 615 and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681m and 1681s; and the Prescreen Opt-Out Notice Rule, 16 C.F.R. Part 642", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/metropolitan-home-mortgage-inc-also-dba-wholesale-home-lenders", "docket_number": "Civil Action No. 8:09-cv-00936-DOC(RNB)" }, { "provision_number": "V", "title": "Record Keeping Provisions", "category": "recordkeeping", "summary": "For eight years from entry of the Order, Defendant must create and retain copies of prescreened solicitations, written opt-out procedures, and all documents necessary to demonstrate full compliance with the Order.", "verbatim_text": "IT IS FURTI~R ORDERED that, for a period of eight (8) years from the 25 date of entry of this Order, Defendant and its agents, employees, officers, 26 corporations, and those persons in active concert or participation with them who 2\"/ 28 Stipulated Judgment - Metropolitan Page 7 of 12 Case 8:09-cv-00936-DOC-RNB Document 3 Filed 10/05/2009 Page 8 of 1: 1 receive actual notice of this Order by personal service or otherwise, are hereby 2 restrained and enjoined from failing to create and retain the following records: 3 A. A copy of each separate and materially distinct written prescreened 4 solicitation sent to consumers and any related promotional materials sent to 5 consumers,\n\n6 B. Written Wocedure.s to ensure that consumers who have opted out of 7 receiving prescreened solicitations will not receive prescreened solicitations,\n\n(2. All records and documents necessary to demonstrate full compliance with 10 each provision of this Order, including but not limited to, copies of 11 acknowledgments of receipt of this Order required by the Sections titled 12 \"Distribution of Order\" and \"Acknowledgement of Receipt of Order\" and all 13 reports submitted to the FTC pursuant to the Section rifled \"Compliance 14 Reporting.\"", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "08.09_metropolitan_home_mortgage_also_dba_wholesale_home_lenders", "company_name": "Metropolitan Home Mortgage, Inc.", "date_issued": "2009-08-15", "year": 2009, "administration": "Obama", "legal_authority": "Sections 5(a), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); sections 615 and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681m and 1681s; and the Prescreen Opt-Out Notice Rule, 16 C.F.R. Part 642", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/metropolitan-home-mortgage-inc-also-dba-wholesale-home-lenders", "docket_number": "Civil Action No. 8:09-cv-00936-DOC(RNB)" }, { "provision_number": "VI", "title": "Distribution of Order", "category": "acknowledgment", "summary": "For five years from service of the Order, Defendant must deliver copies of the Order to all principals, officers, managers, and relevant employees and obtain signed acknowledgments of receipt within 30 days of delivery.", "verbatim_text": "IT IS FURTHER ORDERED that, for a period Of five (5) years from the 17 date of selMce of this Order, Defendant shall deliver copies of this Order as 18 directed below: 19 A. Defendant must deliver a copy of this Order to (1) all of its principals, 20 officers, directors, and managers; (2) all of its employees, agents, and 21 representatives who engage in conduct related to the subject matter of this 22 Order; and (3) any business entity resulting from any change in structure set 23 forth in Subsection A of the Section tiffed \"Compliance Reporting.\" For 24 current personnel, delivery shall be within five (5) days of service of this 25 Order upon Defendant. For new personnel, delivery shall occur prior to 26 them assuming their responsibilities. For any business entity resulting from 27 28 Stipulated Judgment - Metropolitan Page 8 of 12 Case 8:09-cv-.00936-DOC-RNB Document 3 Filed 10/05/2009 Page 9 of 1 3 1 any change in structure set forth in Subsection A oft.he Section titled .2 \"Compliance Reporting,\" delivery shall be at least ten (10) days prior to the 3­ change in structure.\n\n4 B. Defendant must secure a signed and dated statement acknowledging receipt 5 of the Order, within thirty (30) days of delivery, fi:om al! persons receiving a 6 copy of the Order pursuant to this Section.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "08.09_metropolitan_home_mortgage_also_dba_wholesale_home_lenders", "company_name": "Metropolitan Home Mortgage, Inc.", "date_issued": "2009-08-15", "year": 2009, "administration": "Obama", "legal_authority": "Sections 5(a), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); sections 615 and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681m and 1681s; and the Prescreen Opt-Out Notice Rule, 16 C.F.R. Part 642", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/metropolitan-home-mortgage-inc-also-dba-wholesale-home-lenders", "docket_number": "Civil Action No. 8:09-cv-00936-DOC(RNB)" }, { "provision_number": "VII", "title": "Acknowledgment of Receipt of Order", "category": "acknowledgment", "summary": "Within five business days of receipt of the Order as entered by the Court, Defendant must submit a truthful sworn statement to the Commission acknowledging receipt.", "verbatim_text": "8 IT IS FURTHER ORDERED that Defendant, within five (5) business days 9 of receipt of this Order as entered by the Court, must submit to the Commission a IO truthful sworn statement acknowledging receipt of this Order.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "08.09_metropolitan_home_mortgage_also_dba_wholesale_home_lenders", "company_name": "Metropolitan Home Mortgage, Inc.", "date_issued": "2009-08-15", "year": 2009, "administration": "Obama", "legal_authority": "Sections 5(a), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); sections 615 and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681m and 1681s; and the Prescreen Opt-Out Notice Rule, 16 C.F.R. Part 642", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/metropolitan-home-mortgage-inc-also-dba-wholesale-home-lenders", "docket_number": "Civil Action No. 8:09-cv-00936-DOC(RNB)" }, { "provision_number": "VIII", "title": "Retention of Jurisdiction", "category": "monitoring", "summary": "The Court retains jurisdiction over this matter for purposes of construction, modification, and enforcement of the Order.", "verbatim_text": "12 IT IS FURTHER ORDERED that this Court shall retain jurisdiction 13 of this matter for purposes of construction, modification, .and enforcement of ttiis 14 Order.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "08.09_metropolitan_home_mortgage_also_dba_wholesale_home_lenders", "company_name": "Metropolitan Home Mortgage, Inc.", "date_issued": "2009-08-15", "year": 2009, "administration": "Obama", "legal_authority": "Sections 5(a), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); sections 615 and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681m and 1681s; and the Prescreen Opt-Out Notice Rule, 16 C.F.R. Part 642", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/metropolitan-home-mortgage-inc-also-dba-wholesale-home-lenders", "docket_number": "Civil Action No. 8:09-cv-00936-DOC(RNB)" }, { "provision_number": "IX", "title": "Costs and Attorneys' Fees", "category": "affirmative_obligation", "summary": "Each party shall bear its own costs and attorneys' fees incurred in connection with this action.", "verbatim_text": "16 IT IS FURTHER ORDERED that each party shall bear its own costs 17 and attorneys’ fees incurred ha connection with this action.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "08.09_metropolitan_home_mortgage_also_dba_wholesale_home_lenders", "company_name": "Metropolitan Home Mortgage, Inc.", "date_issued": "2009-08-15", "year": 2009, "administration": "Obama", "legal_authority": "Sections 5(a), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); sections 615 and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681m and 1681s; and the Prescreen Opt-Out Notice Rule, 16 C.F.R. Part 642", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/metropolitan-home-mortgage-inc-also-dba-wholesale-home-lenders", "docket_number": "Civil Action No. 8:09-cv-00936-DOC(RNB)" }, { "provision_number": "I", "title": "Civil Penalty", "category": "affirmative_obligation", "summary": "Defendant must pay a civil penalty of $53,000 to the United States within ten business days of entry of the Order, with provisions for default interest and non-dischargeability in bankruptcy.", "verbatim_text": "A. Defendant shall make the payment required by Paragraph I within ten (10) business days of the date of entry of this Order by electronic fund transfer or cashier’s check in accordance with the instructions provided by the Office of Consumer Litigation, Civil Division, U.S. Department of Justice, Washington, D.C. 20530, for appropriate disposition;\n\nB. In the event of any default in payment, which default continues for ten (10) business days beyond the due date of payment, the entire unpaid penalty, together with interest, as computed pursuant to 28 U.S.C. § 1961, from the date of default to the date of payment, shall immediately become due and payable;\n\nC. This judgment represents a civil penalty owed to the United States Government and is not compensation for actual pecuniary loss, and, therefore, it is not subject to discharge under the Bankruptcy Code pursuant to 11 U.S.C. § 523(a)(7). Defendant agrees that the facts as alleged in the complaint filed in this action shall Page 3 of 14 be taken as true, without further proof, in any subsequent litigation filed by or on behalf of the Commission to collect any unpaid amount or otherwise enforce its rights pursuant to this Order.\n\nD. Proceedings initiated under this Part are in addition to, and not in lieu of, any other civil or criminal penalties that may be provided by law, including any other proceedings Plaintiff may initiate to enforce this Order.\n\nE. Defendant relinquishes all dominion, control, and title to the funds paid to the fullest extent permitted by law. Defendant shall make no claim to or demand return of the funds, directly or indirectly, through counsel or otherwise.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "08.09_united_states_of_america_plaintiff_v._quality_terminal_services_a_limited_liability_company_defendants", "company_name": "Quality Terminal Services, LLC", "date_issued": "2009-08-15", "year": 2009, "administration": "Obama", "legal_authority": "Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3022-united-states-america-federal-trade-commission-plaintiff-v-quality-terminal-services-llc-limited", "docket_number": "09-cv-01853-CMA-BNB" }, { "provision_number": "II", "title": "Prohibited Business Activities", "category": "prohibition", "summary": "Defendant is permanently restrained from failing to provide required FCRA pre-adverse action and post-adverse action notices to consumers, and from otherwise failing to comply with FCRA Sections 604 and 615.", "verbatim_text": "A. When using a consumer report for employment purposes, failing to provide a consumer to whom the consumer report relates, before taking adverse action against the consumer based in whole or in part on information contained in the consumer report, (1) a copy of the consumer report, and (2) a description in writing of the consumer’s rights under the FCRA, as required by Section 604(b)(3) of the FCRA, 15 U.S.C. § 1681b(b)(3);\n\nB. After taking adverse action against a consumer based in whole or in part on information contained in a consumer report, failing to provide to the consumer: (1) notice of the adverse action taken; (2) the name, address, and telephone number of the consumer reporting agency (including a toll-free telephone number established by the agency if the agency compiles and maintains files on consumers on a nationwide basis) from which the consumer report was obtained; (3) a statement that the consumer reporting agency did not make the decision to take the adverse action and is unable to provide the consumer the specific reasons why the adverse action was taken; and (4) notice of the consumer’s right (A) to obtain, under Section 612 of the FCRA, 15 U.S.C. § 1681j, within 60 days after receiving notice of the adverse action, a free copy of the consumer report from the consumer reporting agency from which the report was obtained, and (B) to dispute, under Section 611 of the FCRA, 15 U.S.C. § 1681i, with a consumer reporting agency the accuracy or completeness of any information in a consumer report furnished by the agency, as required by Section 615(a) of the FCRA, 15 U.S.C. § 1681m(a);\n\nC. Failing otherwise to comply with Sections 604 and 615 of the FCRA, 15 U.S.C. §§ 1681b and 1681m, as they may be amended from time to time.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "08.09_united_states_of_america_plaintiff_v._quality_terminal_services_a_limited_liability_company_defendants", "company_name": "Quality Terminal Services, LLC", "date_issued": "2009-08-15", "year": 2009, "administration": "Obama", "legal_authority": "Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3022-united-states-america-federal-trade-commission-plaintiff-v-quality-terminal-services-llc-limited", "docket_number": "09-cv-01853-CMA-BNB" }, { "provision_number": "III", "title": "Compliance Monitoring", "category": "monitoring", "summary": "Defendant must cooperate with FTC monitoring, including submitting reports, producing documents, appearing for deposition, and providing access to business locations upon written notice; the Commission may also use lawful investigative means including undercover posing as a consumer.", "verbatim_text": "A. Within ten (10) days of receipt of written notice from a representative of the Commission, Defendant shall submit additional written reports, which are true and accurate and sworn to under penalty of perjury; produce documents for inspection and copying; appear for deposition; and/or provide entry during normal business hours to any business location in Defendant’s possession or direct or indirect control to inspect the business operation;\n\nB. In addition, the Commission is authorized to use all other lawful means, including but not limited to: 1. obtaining discovery from any person, without further leave of court, using the procedures prescribed by Fed. R. Civ. P. 30, 31, 33, 34, 36, 45, and 69; 2. posing as consumer to Defendant, its employees, or another other entity managed or controlled in whole or in part by Defendant, without the necessity of identification or prior notice; and\n\nC. Defendant shall permit representatives of the Commission to interview any employer, consultant, independent contractor, representative, agent, or employee who has agreed to such an interview, relating in any way to any conduct subject to this Order. The person interviewed may have counsel present.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "08.09_united_states_of_america_plaintiff_v._quality_terminal_services_a_limited_liability_company_defendants", "company_name": "Quality Terminal Services, LLC", "date_issued": "2009-08-15", "year": 2009, "administration": "Obama", "legal_authority": "Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3022-united-states-america-federal-trade-commission-plaintiff-v-quality-terminal-services-llc-limited", "docket_number": "09-cv-01853-CMA-BNB" }, { "provision_number": "IV", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "For five years, Defendant must notify the FTC of structural changes at least 30 days in advance, file annual written compliance reports (beginning 180 days after entry), notify the FTC of any bankruptcy filing within 15 days, and submit all reports by overnight courier or first-class mail with electronic copy.", "verbatim_text": "A. For a period of five (5) years from the date of entry of this Order, Defendant shall notify the Commission of any changes in structure of Defendant or any business entity that Defendant directly or indirectly controls, or has an ownership interest in, that may affect compliance obligations arising under this Order, including but not limited to: incorporation or other organization; a dissolution, assignment, sale, merger, or other action; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order; or a change in the business name or address, at least thirty (30) days prior to such change, provided that, with respect to any proposed change in the business entity about which Defendant learns less than thirty (30) days prior to the date such action is to take place, Defendant shall notify the Commission as soon as is practicable after obtaining such knowledge.\n\nB. One hundred eighty (180) days after the date of entry of this Order and annually thereafter for a period of five (5) years, Defendant shall provide a written report to the FTC, which is true and accurate and sworn to under penalty of perjury, setting forth in detail the manner and form in which it has complied and is complying with this Order. This report shall include, but not be limited to: 1. A copy of each acknowledgment of receipt of this Order, obtained pursuant to the Section titled “Distribution of Order;” and Page 7 of 14 2. Any other changes required to be reported under Subsection A of this Section.\n\nC. Defendant shall notify the Commission of the filing of a bankruptcy petition by Defendant within fifteen (15) days of filing.\n\nD. For the purposes of this Order, Defendant shall, unless otherwise directed by the Commission’s authorized representatives, send by overnight courier all reports and notifications required by this Order to the Commission, to the following address: Associate Director for Enforcement Federal Trade Commission 600 Pennsylvania Avenue, N.W., Room NJ-2122 Washington, DC 20580 RE: FTC v. Quality Terminal Services LLC Provided, that, in lieu of overnight courier, Defendant may send such reports or notifications by first-class mail, but only if Defendant contemporaneously sends an electronic version of such report or notification to the Commission at: DEBrief@ftc.gov.\n\nE. For purposes of the compliance reporting and monitoring required by this Order, the Commission is authorized to communicate directly with Defendant. Provided, however, nothing in this provision shall limit the Commission’s authority to pose as a consumer or supplier pursuant to Subsection B.2 of the Section titled “Compliance Monitoring.”", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "08.09_united_states_of_america_plaintiff_v._quality_terminal_services_a_limited_liability_company_defendants", "company_name": "Quality Terminal Services, LLC", "date_issued": "2009-08-15", "year": 2009, "administration": "Obama", "legal_authority": "Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3022-united-states-america-federal-trade-commission-plaintiff-v-quality-terminal-services-llc-limited", "docket_number": "09-cv-01853-CMA-BNB" }, { "provision_number": "V", "title": "Record Keeping Provisions", "category": "recordkeeping", "summary": "For eight years from entry of the Order, Defendant must create and retain specified records relating to FCRA disclosures, consumer complaints, training materials, law enforcement communications, and all documents demonstrating full compliance with the Order.", "verbatim_text": "A. For a period of eight (8) years from the date of entry of this Order, Defendant and its agents, employees, officers, corporations, and those persons in active concert or participation with it who receive actual notice of this Order by personal service or otherwise, are hereby restrained and enjoined from failing to create and/or retain the following records: 1. Files containing the names, addresses, telephone numbers, all disclosures and authorizations made pursuant to Section 604(b)(2) of the FCRA, and all materials provided to consumers by Defendant in connection with its compliance with Sections 604(b)(3) and 615(a) of the FCRA.\n\n2. Consumer complaints (whether received in written or electronic form, directly, indirectly, or through any third party), and any responses to those complaints, whether in written or electronic form, that relate to Defendant’s activities as alleged in the Complaint and Defendant’s compliance with the provisions of this Order.\n\n3. Copies of all training materials that relate to Defendant’s activities as alleged in the Complaint and Defendant’s compliance with the provisions of this Order.\n\n4. Copies of all subpoenas and other communications with law enforcement entities or personnel, whether in written or electronic form, if such documents bear in any respect on Defendant’s use of consumer reports for employment purposes.\n\n5. All records and documents necessary to demonstrate full compliance with each provision of this Order, including but not limited to, copies of acknowledgments of receipt of this Order, required by the Sections titled “Distribution of Order” and “Acknowledgement of Receipt of Order” and all reports sumitted to the FTC pursuant to the Section titled “Compliance Reporting.”", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "08.09_united_states_of_america_plaintiff_v._quality_terminal_services_a_limited_liability_company_defendants", "company_name": "Quality Terminal Services, LLC", "date_issued": "2009-08-15", "year": 2009, "administration": "Obama", "legal_authority": "Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3022-united-states-america-federal-trade-commission-plaintiff-v-quality-terminal-services-llc-limited", "docket_number": "09-cv-01853-CMA-BNB" }, { "provision_number": "VI", "title": "Distribution of Order", "category": "acknowledgment", "summary": "For five years from service of the Order, Defendant must deliver copies of the Order to all principals, officers, managers, relevant employees, and any successor business entities, and obtain signed, dated acknowledgments of receipt within 30 days of delivery.", "verbatim_text": "A. Defendant must deliver a copy of this Order to (1) all of its principals, officers, directors, and managers; (2) all of its employees, agents, and representatives who engage in conduct related to the subject matter of the Order; and (3) any business entity resulting from any change in structure set forth in Subsection A of the Section titled “Compliance Reporting.” For current personnel, delivery shall be within five (5) days of service of this Order upon Defendant. For new personnel, delivery shall occur prior to them assuming their responsibilities. For any business entity resulting from any change in structure set forth in Subsection A of the Section titled “Compliance Reporting,” delivery shall be at least ten (10) days prior to the change in structure.\n\nB. Defendant must secure a signed and dated statement acknowledging receipt of the Order, within thirty (30) days of delivery, from all persons receiving a copy of the Order pursuant to this Section.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "08.09_united_states_of_america_plaintiff_v._quality_terminal_services_a_limited_liability_company_defendants", "company_name": "Quality Terminal Services, LLC", "date_issued": "2009-08-15", "year": 2009, "administration": "Obama", "legal_authority": "Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3022-united-states-america-federal-trade-commission-plaintiff-v-quality-terminal-services-llc-limited", "docket_number": "09-cv-01853-CMA-BNB" }, { "provision_number": "VII", "title": "Acknowledgment of Receipt of Order", "category": "acknowledgment", "summary": "Defendant must submit a truthful sworn statement to the Commission acknowledging receipt of the Order within five business days of receipt.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant, within five (5) business days of receipt of this Order as entered by the Court, must submit to the Commission a truthful sworn statement acknowledging receipt of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "08.09_united_states_of_america_plaintiff_v._quality_terminal_services_a_limited_liability_company_defendants", "company_name": "Quality Terminal Services, LLC", "date_issued": "2009-08-15", "year": 2009, "administration": "Obama", "legal_authority": "Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3022-united-states-america-federal-trade-commission-plaintiff-v-quality-terminal-services-llc-limited", "docket_number": "09-cv-01853-CMA-BNB" }, { "provision_number": "VIII", "title": "Retention of Jurisdiction", "category": "monitoring", "summary": "The Court retains jurisdiction over this matter for purposes of construction, modification, and enforcement of the Order.", "verbatim_text": "IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "08.09_united_states_of_america_plaintiff_v._quality_terminal_services_a_limited_liability_company_defendants", "company_name": "Quality Terminal Services, LLC", "date_issued": "2009-08-15", "year": 2009, "administration": "Obama", "legal_authority": "Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3022-united-states-america-federal-trade-commission-plaintiff-v-quality-terminal-services-llc-limited", "docket_number": "09-cv-01853-CMA-BNB" }, { "provision_number": "IX", "title": "Costs and Attorneys' Fees", "category": "affirmative_obligation", "summary": "Each party shall bear its own costs and attorneys' fees incurred in connection with this action.", "verbatim_text": "IT IS FURTHER ORDERED that each party shall bear its own costs and attorneys’ fees incurred in connection with this action.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "08.09_united_states_of_america_plaintiff_v._quality_terminal_services_a_limited_liability_company_defendants", "company_name": "Quality Terminal Services, LLC", "date_issued": "2009-08-15", "year": 2009, "administration": "Obama", "legal_authority": "Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3022-united-states-america-federal-trade-commission-plaintiff-v-quality-terminal-services-llc-limited", "docket_number": "09-cv-01853-CMA-BNB" }, { "provision_number": "I", "title": "Comprehensive Information Security Program", "category": "affirmative_obligation", "summary": "Respondent must establish, implement, and maintain a comprehensive written information security program with administrative, technical, and physical safeguards appropriate to its size and the sensitivity of personal information it handles.", "verbatim_text": "IT IS ORDERED that respondent shall, no later than the date of service of this order, establish and implement, and thereafter maintain, a comprehensive information security program 2 that is reasonably designed to protect the security, confidentiality, and integrity of personal information collected from or about consumers, including the security, confidentiality, and integrity of personal information accessible to end users. Such program, the content and implementation of which must be fully documented in writing, shall contain administrative, technical, and physical safeguards appropriate to respondent’s size and complexity, the nature and scope of respondent’s activities, and the sensitivity of the personal information collected from or about consumers. The information security program must include:\n\nA. the designation of an employee or employees to coordinate and be accountable for the information security program;\n\nB. the identification of material internal and external risks to the security, confidentiality, and integrity of personal information that could result in the unauthorized disclosure, misuse, loss, alteration, destruction, or other compromise of such information, and assessment of the sufficiency of any safeguards in place to control these risks. At a minimum, this risk assessment should include consideration of risks in each area of relevant operation, including, but not limited to: (1) employee training and management; (2) information systems, including network and software design, access, information processing, storage, transmission, and disposal; and (3) prevention, detection, and response to attacks, intrusions, or other systems failures;\n\nC. the design and implementation of reasonable safeguards to control the risks identified through risk assessment and regular testing or monitoring of the effectiveness of the safeguards’ key controls, systems, and procedures;\n\nD. the development and use of reasonable steps to select and retain service providers capable of appropriately safeguarding personal information they receive from the respondent, and requiring service providers by contract to implement and maintain appropriate safeguards; and\n\nE. the evaluation and adjustment of respondent’s information security program in light of the results of the testing and monitoring required by sub-Part C, any material changes to respondent’s operations or business arrangements, or any other circumstances that respondent knows or has reason to know may have a material impact on the effectiveness of its information security program.", "violation_type": "unfair", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Comprehensive Security Program" ], "case_id": "08.11_acranet", "company_name": "ACRAnet, Inc.", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act (15 U.S.C. § 45(a)); Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.); and the Standards for Safeguarding Customer Information Rule (16 C.F.R. Part 314), issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act (15 U.S.C. §§ 6801-6809)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/092-3088-acranet-inc-matter", "docket_number": "C-4331" }, { "provision_number": "III", "title": "Fair Credit Reporting Act Compliance", "category": "affirmative_obligation", "summary": "Respondent must furnish consumer reports only to persons with a permissible purpose and maintain reasonable procedures to limit furnishing to such persons.", "verbatim_text": "A. Furnish such consumer report only to those persons which it has reason to believe have a permissible purpose as described in Section 604(a)(3) of the Fair Credit Reporting Act, 15 U.S.C. § 1681b(a)(3), or in such other circumstances as set forth in Section 604 of the Fair Credit Reporting Act, 15 U.S.C. § 1681b; and\n\nB. Maintain reasonable procedures to limit the furnishing of such consumer report to those with a permissible purpose and ensure that no consumer report is furnished to any person when there are reasonable grounds to believe that the consumer report will not be used for a permissible purpose, as required by Section 607(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(a).", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "08.11_acranet", "company_name": "ACRAnet, Inc.", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act (15 U.S.C. § 45(a)); Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.); and the Standards for Safeguarding Customer Information Rule (16 C.F.R. Part 314), issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act (15 U.S.C. §§ 6801-6809)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/092-3088-acranet-inc-matter", "docket_number": "C-4331" }, { "provision_number": "IV", "title": "Third-Party Security Assessments", "category": "assessment", "summary": "Respondent must obtain initial and biennial independent third-party security assessments by a qualified professional (CISSP, CISA, or GIAC-certified), covering the first 180 days and each subsequent two-year period for twenty years.", "verbatim_text": "with Part I of this order, obtain initial and biennial assessments and reports (“Assessments”) from a qualified, objective, independent third-party professional, who uses procedures and standards generally accepted in the profession. Each Assessment shall be prepared and completed within sixty (60) days after the end of the reporting period to which the Assessment applies by a person qualified as a Certified Information System Security Professional (CISSP) or as a Certified Information Systems Auditor (CISA); a person holding Global Information Assurance Certification (GIAC) from the SysAdmin, Audit, Network, Security (SANS) Institute; or a similarly qualified person or organization approved by the Associate Director for Enforcement, Bureau of Consumer Protection, 600 Pennsylvania Avenue NW, Federal Trade Commission, Washington, D.C. 20580. The reporting period for the Assessments shall cover: (1) the first one hundred and eighty (180) days after service of the order for the initial Assessment, and (2) each two (2) year period thereafter for twenty (20) years after service of the order for the biennial Assessments. Each Assessment shall:\n\nA. set forth the specific administrative, technical, and physical safeguards that respondent has implemented and maintained during the reporting period;\n\nB. explain how such safeguards are appropriate to respondent’s size and complexity, the nature and scope of respondent’s activities, and the sensitivity of the personal information collected from or about consumers;\n\nC. explain how the safeguards that have been implemented meet or exceed the protections required by the Safeguards Rule; and\n\nD. certify that respondent’s security program is operating with sufficient effectiveness to provide reasonable assurance that the security, confidentiality, and integrity of personal information is protected and has so operated throughout the reporting period.\n\nRespondent shall provide the initial Assessment to the Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, D.C. 20580, within ten (10) days after the Assessment has been prepared. All subsequent biennial Assessments shall be retained by respondent until the order is terminated and provided to the Associate Director of Enforcement within ten (10) days after respondent receives such request.", "violation_type": "unfair", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Third-Party Assessment" ], "case_id": "08.11_acranet", "company_name": "ACRAnet, Inc.", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act (15 U.S.C. § 45(a)); Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.); and the Standards for Safeguarding Customer Information Rule (16 C.F.R. Part 314), issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act (15 U.S.C. §§ 6801-6809)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/092-3088-acranet-inc-matter", "docket_number": "C-4331" }, { "provision_number": "V", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Respondent must maintain and make available to the FTC upon request various records for specified periods, including compliance documents, law enforcement communications, and assessment materials.", "verbatim_text": "A. for a period of five (5) years, a print or electronic copy of each document relating to compliance, including but not limited to documents, prepared by or on behalf of respondent, that contradict, qualify, or call into question respondent’s compliance with this order;\n\nB. for a period of five (5) years, copies of all subpoenas and other communications with law enforcement entities or personnel, whether in written or electronic form, if such documents bear in any respect on respondent’s collection, maintenance, or furnishing of consumer reports or other personal information of consumers; and\n\nC. for a period of three (3) years after the date of preparation of each Assessment required under Part IV of this order, all materials relied upon to prepare the Assessment, whether prepared by or on behalf of the respondent, including but not limited to all plans, reports, studies, reviews, audits, audit trails, policies, training materials, and assessments, and any other materials relating to the respondent’s compliance with Parts I and II of this order, for the compliance period covered by such Assessment.", "violation_type": "unfair", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Recordkeeping" ], "case_id": "08.11_acranet", "company_name": "ACRAnet, Inc.", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act (15 U.S.C. § 45(a)); Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.); and the Standards for Safeguarding Customer Information Rule (16 C.F.R. Part 314), issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act (15 U.S.C. §§ 6801-6809)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/092-3088-acranet-inc-matter", "docket_number": "C-4331" }, { "provision_number": "VI", "title": "Order Delivery and Acknowledgment", "category": "acknowledgment", "summary": "For five years from entry of the order, respondent must deliver copies of the order to principals, officers, directors, managers, relevant employees, and successor entities, and obtain signed acknowledgments of receipt within 30 days.", "verbatim_text": "A. Respondent must deliver a copy of this Order to (1) all current and future principals, officers, directors, and managers, (2) all employees, agents and representatives who engage in conduct related to the subject matter of the Order, and (3) any business entity resulting from any change in structure set forth in Part VII. For current personnel, delivery shall be within five (5) days of service of this 5 Order. For new personnel, delivery shall occur prior to them assuming their responsibilities. For any business entity resulting from any change in structure set forth in Part VII, delivery shall be at least ten (10) days prior to the change in structure.\n\nB. Respondent must secure a signed and dated statement acknowledging receipt of this Order, within thirty (30) days of delivery, from all persons receiving a copy of the Order pursuant to this section.", "violation_type": "unfair", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Order Administration" ], "case_id": "08.11_acranet", "company_name": "ACRAnet, Inc.", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act (15 U.S.C. § 45(a)); Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.); and the Standards for Safeguarding Customer Information Rule (16 C.F.R. Part 314), issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act (15 U.S.C. §§ 6801-6809)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/092-3088-acranet-inc-matter", "docket_number": "C-4331" }, { "provision_number": "VII", "title": "Corporate Change Notification", "category": "compliance_reporting", "summary": "Respondent must notify the FTC at least 30 days prior to any corporate change that may affect compliance obligations, such as dissolution, merger, sale, bankruptcy filing, or name/address change.", "verbatim_text": "IT IS FURTHER ORDERED that respondent shall notify the Commission at least thirty (30) days prior to any change in the corporation that may affect compliance obligations arising under this order, including, but not limited to, a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor corporation; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order; the proposed filing of a bankruptcy petition; or a change in the corporate name or address. Provided, however, that with respect to any proposed change in the corporation about which respondent learns less than thirty (30) days prior to the date such action is to take place, respondent shall notify the Commission as soon as is practicable after obtaining such knowledge. Unless otherwise directed by a representative of the Commission, all notices required by this Part shall be sent by overnight courier (not the U.S. Postal Service) to the Associate Director of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, D.C. 20580, with the subject line FTC v. ACRAnet, Inc. Provided, however, that, in lieu of overnight courier, notices may be sent by first-class mail, but only if an electronic version of such notices is contemporaneously sent to the Commission at DEbrief@ftc.gov.", "violation_type": "unfair", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "08.11_acranet", "company_name": "ACRAnet, Inc.", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act (15 U.S.C. § 45(a)); Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.); and the Standards for Safeguarding Customer Information Rule (16 C.F.R. Part 314), issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act (15 U.S.C. §§ 6801-6809)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/092-3088-acranet-inc-matter", "docket_number": "C-4331" }, { "provision_number": "VIII", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Respondent must file an initial written compliance report with the FTC within 60 days of service of the order, and submit additional written reports within 10 days of FTC request.", "verbatim_text": "IT IS FURTHER ORDERED that respondent, and its successors and assigns, within sixty (60) days after the date of service of this order, shall file with the Commission a true and accurate report, in writing, setting forth in detail the manner and form of their own compliance with this order. Within ten (10) days of receipt of written notice from a representative of the\n\nwith this order. Within ten (10) days of receipt of written notice from a representative of the Commission, they shall submit additional true and accurate written reports.", "violation_type": "unfair", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "08.11_acranet", "company_name": "ACRAnet, Inc.", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act (15 U.S.C. § 45(a)); Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.); and the Standards for Safeguarding Customer Information Rule (16 C.F.R. Part 314), issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act (15 U.S.C. §§ 6801-6809)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/092-3088-acranet-inc-matter", "docket_number": "C-4331" }, { "provision_number": "IX", "title": "Order Duration", "category": "duration", "summary": "The order terminates on August 17, 2031, or twenty years from the most recent date the FTC files a complaint alleging a violation of the order, whichever is later, with specific exceptions.", "verbatim_text": "This order will terminate on August 17, 2031, or twenty (20) years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an 6 accompanying consent decree) in federal court alleging any violation of the order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of: A. any Part in this order that terminates in less than twenty (20) years; B. this order’s application to any respondent that is not named as a defendant in such complaint; and C. this order if such complaint is filed after the order has terminated pursuant to this Part. Provided, further, that if such complaint is dismissed or a federal court rules that respondent did not violate any provision of the order, and the dismissal or ruling is either not appealed or upheld on appeal, then the order will terminate according to this Part as though the complaint had never been filed, except that the order will not terminate between the date such complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal.", "violation_type": "unfair", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Order Administration" ], "case_id": "08.11_acranet", "company_name": "ACRAnet, Inc.", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act (15 U.S.C. § 45(a)); Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.); and the Standards for Safeguarding Customer Information Rule (16 C.F.R. Part 314), issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act (15 U.S.C. §§ 6801-6809)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/092-3088-acranet-inc-matter", "docket_number": "C-4331" }, { "provision_number": "I", "title": "Comprehensive Information Security Program", "category": "affirmative_obligation", "summary": "Corporate respondent and any business entity controlled by Individual respondent that collects, maintains, or stores personal information must establish, implement, and maintain a comprehensive information security program, documented in writing, with administrative, technical, and physical safeguards.", "verbatim_text": "IT IS ORDERED that Corporate respondent and any business entity that Individual respondent, Robert Fajilan, controls, directly or indirectly, which collects, maintains, or stores personal information from or about consumers, shall, no later than the date of service of this order, establish and implement, and thereafter maintain, a comprehensive information security program that is reasonably designed to protect the security, confidentiality, and integrity of personal information collected from or about consumers, including the security, confidentiality, and integrity of personal information accessible to end users. Such program, the content and implementation of which must be fully documented in writing, shall contain administrative, technical, and physical safeguards appropriate to Corporate respondent’s or the entity’s size and complexity, the nature and scope of Corporate respondent’s or the entity’s activities, and the sensitivity of the personal information collected from or about consumers. The information security program must include:\n\nA. the designation of an employee or employees to coordinate and be accountable for the information security program;\n\nB. the identification of material internal and external risks to the security, confidentiality, and integrity of personal information that could result in the unauthorized disclosure, misuse, loss, alteration, destruction, or other compromise of such information, and assessment of the sufficiency of any safeguards in place to control these risks. At a minimum, this risk assessment should include consideration of risks in each area of relevant operation, including, but not limited to: (1) employee training and management; (2) information systems, including network and software design, access, information processing, storage, transmission, and disposal; and (3) prevention, detection, and response to attacks, intrusions, or other systems failures;\n\nC. the design and implementation of reasonable safeguards to control the risks identified through risk assessment and regular testing or monitoring 3 of the effectiveness of the safeguards’ key controls, systems, and procedures;\n\nD. the development and use of reasonable steps to select and retain service providers capable of appropriately safeguarding personal information they receive from the Corporate respondent or the entity, and requiring service providers by contract to implement and maintain appropriate safeguards; and\n\nE. the evaluation and adjustment of respondent’s or the entity’s information security program in light of the results of the testing and monitoring required by sub-Part C, any material changes to Corporate respondent’s or the entity’s operations or business arrangements, or any other circumstances that Corporate respondent or the entity know or have reason to know may have a material impact on the effectiveness of their information security program.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Comprehensive Security Program" ], "case_id": "08.11_fajilan_and_associates_also_dba_statewide_credit_services", "company_name": "Fajilan and Associates, Inc.", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.; and the Standards for Safeguarding Customer Information Rule, 16 C.F.R. Part 314, issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801-6809", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/092-3089-fajilan-associates-inc-also-dba-statewide-credit-services-matter", "docket_number": "C-4332" }, { "provision_number": "III", "title": "FCRA Compliance — Permissible Purpose for Consumer Reports", "category": "prohibition", "summary": "Corporate respondent and any business entity controlled by Individual respondent must furnish consumer reports only to those with a permissible purpose and must maintain reasonable procedures to ensure this, as required by the FCRA.", "verbatim_text": "A. furnish such consumer report only to those with a permissible purpose as described in Section 604 of the Fair Credit Reporting Act, 15 U.S.C. § 1681b;\n\nB. maintain reasonable procedures to limit the furnishing of such consumer report to those with a permissible purpose and ensure that no consumer report is furnished to any person when there are reasonable grounds to believe that the consumer report will not be used for a permissible purpose, as required by Section 607(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(a).", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "08.11_fajilan_and_associates_also_dba_statewide_credit_services", "company_name": "Fajilan and Associates, Inc.", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.; and the Standards for Safeguarding Customer Information Rule, 16 C.F.R. Part 314, issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801-6809", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/092-3089-fajilan-associates-inc-also-dba-statewide-credit-services-matter", "docket_number": "C-4332" }, { "provision_number": "IV", "title": "Third-Party Security Assessments", "category": "assessment", "summary": "Respondents must obtain initial and biennial third-party security assessments from a qualified, independent professional (CISSP, CISA, or GIAC-certified), covering the first 180 days after service and then every two years for 20 years.", "verbatim_text": "compliance with Part I of this order, obtain initial and biennial assessments and reports (“Assessments”) from a qualified, objective, independent third-party professional, who uses procedures and standards generally accepted in the profession. Each Assessment shall be prepared and completed within sixty (60) days after the end of the reporting period to which the Assessment applies by a person qualified as a Certified Information System Security Professional (CISSP) or as a Certified Information Systems Auditor (CISA); a person holding Global Information Assurance Certification (GIAC) from the SysAdmin, Audit, Network, Security (SANS) Institute; or a similarly qualified person or organization approved by the Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, D.C. 20580. The reporting period for the Assessments shall cover: (1) the first one hundred and eighty (180) days after service of the order for the initial Assessment, and (2) each two (2) year period thereafter for twenty (20) years after service of the order for the biennial Assessments. Each Assessment shall:\n\nA. set forth the specific administrative, technical, and physical safeguards that Corporate respondent or the entity have implemented and maintained during the reporting period;\n\nB. explain how such safeguards are appropriate to Corporate respondent’s or the entity’s size and complexity, the nature and scope of Corporate respondent’s or the entity’s activities, and the sensitivity of the personal information collected from or about consumers;\n\nC. explain how the safeguards that have been implemented meet or exceed the protections required by the Safeguards Rule; and\n\nD. certify that Corporate respondent’s or the entity’s security program is operating with sufficient effectiveness to provide reasonable assurance that the security, confidentiality, and integrity of personal information is protected and has so operated throughout the reporting period.\n\nRespondents shall provide the initial Assessment to the Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C. 20580, within ten (10) days after the Assessment has been prepared. All subsequent biennial Assessments shall be retained by respondents until the order is terminated and provided to the Associate Director of Enforcement within ten (10) days after respondents receive such request.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Third-Party Assessment" ], "case_id": "08.11_fajilan_and_associates_also_dba_statewide_credit_services", "company_name": "Fajilan and Associates, Inc.", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.; and the Standards for Safeguarding Customer Information Rule, 16 C.F.R. Part 314, issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801-6809", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/092-3089-fajilan-associates-inc-also-dba-statewide-credit-services-matter", "docket_number": "C-4332" }, { "provision_number": "V", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Respondents must maintain and make available to the FTC specified records for defined periods: compliance documents for 5 years, law enforcement communications for 5 years, and assessment-related materials for 3 years after each Assessment.", "verbatim_text": "A. for a period of five (5) years, a print or electronic copy of each document relating to compliance, including but not limited to documents, prepared by or on behalf of Corporate respondent or the entity, that contradict, qualify, or call into question Corporate respondent’s or the entity’s compliance with this order;\n\nB. for a period of five (5) years, copies of all subpoenas and other communications with law enforcement entities or personnel, whether in written or electronic form, if such documents bear in any respect on Corporate respondent’s or the entity’s collection, maintenance, or furnishing of consumer reports or other personal information of consumers; and\n\nC. for a period of three (3) years after the date of preparation of each Assessment required under Part IV of this order, all materials relied upon to prepare the Assessment, whether prepared by or on behalf of the Corporate respondent or the entity, including but not limited to all plans, reports, studies, reviews, audits, audit trails, policies, training materials, and assessments, and any other materials relating to the Corporate respondent’s or the entity’s compliance with Parts I and II of this order, for the compliance period covered by such Assessment.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Recordkeeping" ], "case_id": "08.11_fajilan_and_associates_also_dba_statewide_credit_services", "company_name": "Fajilan and Associates, Inc.", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.; and the Standards for Safeguarding Customer Information Rule, 16 C.F.R. Part 314, issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801-6809", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/092-3089-fajilan-associates-inc-also-dba-statewide-credit-services-matter", "docket_number": "C-4332" }, { "provision_number": "VI", "title": "Order Delivery and Acknowledgment", "category": "acknowledgment", "summary": "For 5 years from entry of the order, respondents must deliver copies of the order to current and future principals, officers, managers, employees, and agents, and must obtain signed, dated acknowledgments of receipt within 30 days of delivery.", "verbatim_text": "A. Corporate respondent must deliver a copy of this Order to (1) all current and future principals, officers, directors, and managers, (2) all employees, agents and representatives who engage in conduct related to the subject matter of the Order, and (3) any business entity resulting from any change in structure set forth in Part VIII. For current personnel, delivery shall be within five (5) days of service of this Order. For new personnel, delivery shall occur prior to them assuming their responsibilities. For any business entity resulting from any change in structure set forth in Part VIII, delivery shall be at least ten (10) days prior to the change in structure.\n\nB. For any business that Individual respondent, Robert Fajilan, controls, directly or indirectly, which collects, maintains, or stores personal information from or about consumers, Individual respondent must deliver a copy of this Order to (1) all principals, officers, directors, and managers of that business, (2) all employees, agents, and representatives of that business who engage in conduct related to the subject matter of the Order, and (3) any business entity resulting from any change in structure set forth in Part VII. For current personnel, delivery shall be within five (5) days of service of this Order. For new personnel, delivery shall occur prior to them assuming their responsibilities. For any business entity resulting from any change in structure set forth in Part VII, delivery shall be at least ten (10) days prior to the change in structure.\n\nC. For any business that collects, maintains, or stores personal information from or about consumers, where Individual respondent, Robert Fajilan, is not a controlling person of the business, but he otherwise has responsibility, in whole or in part, for developing or overseeing the implementation of policies and procedures to protect the privacy, security, confidentiality, or integrity of personal information collected from or about consumers by the business, Individual respondent must deliver a copy of this Order to all principals and managers of such business before engaging in such conduct.\n\nD. Respondents must secure a signed and dated statement acknowledging receipt of this Order, within thirty (30) days of delivery, from all persons receiving a copy of the Order pursuant to this section.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Order Administration" ], "case_id": "08.11_fajilan_and_associates_also_dba_statewide_credit_services", "company_name": "Fajilan and Associates, Inc.", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.; and the Standards for Safeguarding Customer Information Rule, 16 C.F.R. Part 314, issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801-6809", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/092-3089-fajilan-associates-inc-also-dba-statewide-credit-services-matter", "docket_number": "C-4332" }, { "provision_number": "VII", "title": "Individual Respondent Notification Requirements", "category": "compliance_reporting", "summary": "For 10 years from entry of the order, Individual respondent Robert Fajilan must notify the Commission of changes to his residence/contact information, business or employment status and ownership interests, and name or aliases.", "verbatim_text": "A. Any changes in Individual respondent’s residence, mailing address, and or telephone numbers, within ten (10) days of such a change;\n\nB. Any changes in Individual respondent’s business or employment status (including self-employment), and any changes in his ownership in any business entity, within ten (10) days of such a change. Such notice shall include the name and address of each business that respondent is affiliated with, employed by, created or forms, or performs services for; a detailed description of the nature of the business or employment; and a detailed description of the respondent’s duties and responsibilities in connection with such business or employment; and\n\nC. Any changes in Individual respondent’s name or use of any aliases or fictitious names, including “doing business as” names.\n\nUnless otherwise directed by a representative of the Commission, all notices required by this Part shall be sent by overnight courier (not the U.S. Postal Service) to the Associate Director of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, D.C. 20580, with the subject line FTC v. Fajilan and Associates, Inc. also d/b/a Statewide Credit Services, and Robert Fajilan. Provided, however, that, in lieu of overnight courier, notices may be sent by first-class mail, but only if an electronic version of such notices is contemporaneously sent to the Commission at DEbrief@ftc.gov.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "08.11_fajilan_and_associates_also_dba_statewide_credit_services", "company_name": "Fajilan and Associates, Inc.", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.; and the Standards for Safeguarding Customer Information Rule, 16 C.F.R. Part 314, issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801-6809", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/092-3089-fajilan-associates-inc-also-dba-statewide-credit-services-matter", "docket_number": "C-4332" }, { "provision_number": "VIII", "title": "Corporate Respondent Change Notification", "category": "compliance_reporting", "summary": "Corporate respondent must notify the Commission at least 30 days prior to any corporate change that may affect compliance obligations, such as dissolution, sale, merger, bankruptcy filing, or change of name or address.", "verbatim_text": "IT IS FURTHER ORDERED that Corporate respondent shall notify the Commission at least thirty (30) days prior to any change in the corporation that may affect compliance obligations arising under this order, including, but not limited to, a dissolution, assignment, sale, 7 merger, or other action that would result in the emergence of a successor corporation; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order; the proposed filing of a bankruptcy petition; or a change in the corporate name or address. Provided, however, that with respect to any proposed change in the corporation about which Corporate respondent learns less than thirty (30) days prior to the date such action is to take place, Corporate respondent shall notify the Commission as soon as is practicable after obtaining such knowledge. Unless otherwise directed by a representative of the Commission, all notices required by this Part shall be sent by overnight courier (not the U.S. Postal Service) to the Associate Director of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, D.C. 20580, with the subject line FTC v. Fajilan and Associates Inc., d/b/a Statewide Credit Services, and Robert Fajilan. Provided, however, that, in lieu of overnight courier, notices may be sent by first-class mail, but only if an electronic version of such notices is contemporaneously sent to the Commission at DEbrief@ftc.gov.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "08.11_fajilan_and_associates_also_dba_statewide_credit_services", "company_name": "Fajilan and Associates, Inc.", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.; and the Standards for Safeguarding Customer Information Rule, 16 C.F.R. Part 314, issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801-6809", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/092-3089-fajilan-associates-inc-also-dba-statewide-credit-services-matter", "docket_number": "C-4332" }, { "provision_number": "IX", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Respondents must file an initial written compliance report with the FTC within 60 days of service of the order, and submit additional written reports within 10 days of written notice from the Commission.", "verbatim_text": "and Individual respondent Robert Fajilan, within sixty (60) days after the date of service of this order, shall file with the Commission a true and accurate report, in writing, setting forth in detail the manner and form of their own compliance with this order. Within ten (10) days of receipt of\n\nthe manner and form of their own compliance with this order. Within ten (10) days of receipt of written notice from a representative of the Commission, they shall submit additional true and accurate written reports.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "08.11_fajilan_and_associates_also_dba_statewide_credit_services", "company_name": "Fajilan and Associates, Inc.", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.; and the Standards for Safeguarding Customer Information Rule, 16 C.F.R. Part 314, issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801-6809", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/092-3089-fajilan-associates-inc-also-dba-statewide-credit-services-matter", "docket_number": "C-4332" }, { "provision_number": "X", "title": "Order Duration and Termination", "category": "duration", "summary": "The order terminates on August 17, 2031, or 20 years from the most recent date the FTC files a federal court complaint alleging a violation of the order, whichever is later, subject to specified exceptions.", "verbatim_text": "This order will terminate on August 17, 2031, or twenty (20) years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of: A. any Part in this order that terminates in less than twenty (20) years; B. this order’s application to any respondent that is not named as a defendant in such complaint; and C. this order if such complaint is filed after the order has terminated pursuant to this Part. Provided, further, that if such complaint is dismissed or a federal court rules that respondents did not violate any provision of the order, and the dismissal or ruling is either not appealed or upheld on appeal, then the order will terminate according to this Part as though the complaint had never been filed, except that the order will not terminate between the date such complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Order Administration" ], "case_id": "08.11_fajilan_and_associates_also_dba_statewide_credit_services", "company_name": "Fajilan and Associates, Inc.", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.; and the Standards for Safeguarding Customer Information Rule, 16 C.F.R. Part 314, issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801-6809", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/092-3089-fajilan-associates-inc-also-dba-statewide-credit-services-matter", "docket_number": "C-4332" }, { "provision_number": "I", "title": "Comprehensive Information Security Program", "category": "affirmative_obligation", "summary": "Respondents must establish, implement, and maintain a comprehensive written information security program with specific safeguards appropriate to their size, complexity, and the sensitivity of personal information they collect.", "verbatim_text": "IT IS ORDERED that respondents shall, no later than the date of service of this order, establish and implement, and thereafter maintain, a comprehensive information security program that is reasonably designed to protect the security, confidentiality, and integrity of personal information collected from or about consumers, including the security, confidentiality, and integrity of personal information accessible to end users. Such program, the content and implementation of which must be fully documented in writing, shall contain administrative, technical, and physical safeguards appropriate to the respondents’ size and complexity, the nature and scope of the respondents’ activities, and the sensitivity of the personal information collected from or about consumers. The information security program must include:\n\nA. the designation of an employee or employees to coordinate and be accountable for the information security program;\n\nB. the identification of material internal and external risks to the security, confidentiality, and integrity of personal information that could result in the unauthorized disclosure, misuse, loss, alteration, destruction, or other compromise of such information, and assessment of the sufficiency of any safeguards in place to control these risks. At a minimum, this risk assessment should include consideration of risks in each area of relevant operation, including, but not limited to: (1) employee training and management; (2) information systems, including network and software design, access, information processing, storage, transmission, and disposal; and (3) prevention, detection, and response to attacks, intrusions, or other systems failures;\n\nC. the design and implementation of reasonable safeguards to control the risks identified through risk assessment and regular testing or monitoring of the effectiveness of the safeguards’ key controls, systems, and procedures;\n\nD. the development and use of reasonable steps to select and retain service providers capable of appropriately safeguarding personal information they 3 receive from the respondents, and requiring service providers by contract to implement and maintain appropriate safeguards; and\n\nE. the evaluation and adjustment of the respondents’ information security program in light of the results of the testing and monitoring required by sub-Part C, any material changes to respondents’ operations or business arrangements, or any other circumstances that respondents know or have reason to know may have a material impact on the effectiveness of their information security program.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Comprehensive Security Program" ], "case_id": "08.11_settlementone_credit_corporation", "company_name": "SettlementOne Credit Corporation", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.; and the Standards for Safeguarding Customer Information Rule, 16 C.F.R. Part 314, issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801-6809", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3208-settlementone-credit-corporation", "docket_number": "C-4330" }, { "provision_number": "III", "title": "Fair Credit Reporting Act Compliance", "category": "affirmative_obligation", "summary": "Respondents must furnish consumer reports only to persons with a permissible purpose and must maintain reasonable procedures to ensure compliance with the FCRA's furnishing requirements.", "verbatim_text": "A. Furnish such consumer report only to those persons which it has reason to believe have a permissible purpose as described in Section 604(a)(3) of the Fair Credit Reporting Act, 15 U.S.C. § 1681b(a)(3), or under such other circumstances as set forth in Section 604 of the Fair Credit Reporting Act, 15 U.S.C. § 1681b;\n\nB. Maintain reasonable procedures to limit the furnishing of such consumer report to those with a permissible purpose and ensure that no consumer report is furnished to any person when there are reasonable grounds to believe that the consumer report will not be used for a permissible purpose, as required by Section 607(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(a).", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "08.11_settlementone_credit_corporation", "company_name": "SettlementOne Credit Corporation", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.; and the Standards for Safeguarding Customer Information Rule, 16 C.F.R. Part 314, issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801-6809", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3208-settlementone-credit-corporation", "docket_number": "C-4330" }, { "provision_number": "IV", "title": "Initial and Biennial Third-Party Security Assessments", "category": "assessment", "summary": "Respondents must obtain initial and biennial independent third-party assessments of their information security program from a qualified professional (CISSP, CISA, or GIAC), with the initial assessment covering the first 180 days and biennial assessments covering each subsequent 2-year period for 20 years.", "verbatim_text": "compliance with Part I of this order, obtain initial and biennial assessments and reports (“Assessments”) from a qualified, objective, independent third-party professional, who uses procedures and standards generally accepted in the profession, provided however, that except for SettlementOne Credit Corporation for which such Assessments are always required, Sackett National Holdings, Inc. shall not be required to obtain such Assessments for any subsidiary, division, affiliate, successor or assign if the personal information such entities collect, maintain, or store from or about consumers is limited to a first and last name; a home or other physical address, including street name and name of city or town; an email address; a telephone number; or publicly available information regarding property ownership and appraised home value. Each\n\nAssessment shall be prepared and completed within sixty (60) days after the end of the reporting period to which the Assessment applies by a person qualified as a Certified Information System Security Professional (CISSP) or as a Certified Information Systems Auditor (CISA); a person holding Global Information Assurance Certification (GIAC) from the SysAdmin, Audit, Network, Security (SANS) Institute; or a similarly qualified person or organization approved by the Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, D.C. 20580. The reporting period for the Assessments shall cover: (1) the first one hundred and eighty (180) days after service of the order for the initial Assessment, and (2) each two (2) year period thereafter for twenty (20) years after service of the order for the biennial Assessments. Each Assessment shall:\n\nA. set forth the specific administrative, technical, and physical safeguards that respondents have implemented and maintained during the reporting period;\n\nB. explain how such safeguards are appropriate to respondents’ size and complexity, the nature and scope of respondents’ activities, and the sensitivity of the personal information collected from or about consumers;\n\nC. explain how the safeguards that have been implemented meet or exceed the protections required by the Safeguards Rule; and\n\nD. certify that respondents’ security program is operating with sufficient effectiveness to provide reasonable assurance that the security, confidentiality, and integrity of personal information is protected and has so operated throughout the reporting period.\n\nRespondents shall provide the initial Assessment to the Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, D.C. 20580, within ten (10) days after the Assessment has been prepared. All subsequent biennial Assessments shall be retained by respondents until the order is terminated and provided to the Associate Director of Enforcement within ten (10) days after respondents receive such request.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Third-Party Assessment" ], "case_id": "08.11_settlementone_credit_corporation", "company_name": "SettlementOne Credit Corporation", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.; and the Standards for Safeguarding Customer Information Rule, 16 C.F.R. Part 314, issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801-6809", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3208-settlementone-credit-corporation", "docket_number": "C-4330" }, { "provision_number": "V", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Respondents must maintain and make available to the FTC compliance-related documents for five years, law enforcement communications for five years, and all materials used to prepare each Assessment for three years after preparation.", "verbatim_text": "A. for a period of five (5) years, a print or electronic copy of each document relating to compliance, including but not limited to documents, prepared by or on behalf of respondents, that contradict, qualify, or call into question respondents’ compliance with this order;\n\nB. for a period of five (5) years, copies of all subpoenas and other communications with law enforcement entities or personnel, whether in written or electronic form, 5 if such documents bear in any respect on respondents’ collection, maintenance, or furnishing of consumer reports or other personal information of consumers; and\n\nC. for a period of three (3) years after the date of preparation of each Assessment required under Part IV of this order, all materials relied upon to prepare the Assessment, whether prepared by or on behalf of the respondents, including but not limited to all plans, reports, studies, reviews, audits, audit trails, policies, training materials, and assessments, and any other materials relating to respondents’ compliance with Parts I and II of this order, for the compliance period covered by such Assessment.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Recordkeeping" ], "case_id": "08.11_settlementone_credit_corporation", "company_name": "SettlementOne Credit Corporation", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.; and the Standards for Safeguarding Customer Information Rule, 16 C.F.R. Part 314, issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801-6809", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3208-settlementone-credit-corporation", "docket_number": "C-4330" }, { "provision_number": "VI", "title": "Order Distribution and Acknowledgment", "category": "acknowledgment", "summary": "For five years, respondents must deliver copies of the order to current and future principals, officers, directors, managers, relevant employees, and successor business entities, and must obtain signed acknowledgments of receipt within 30 days of delivery.", "verbatim_text": "IT IS FURTHER ORDERED, that for a period of five (5) years from the date of entry of this Order, respondents shall deliver copies of the Order as directed below: A. Respondents must deliver a copy of this order to (1) all current and future principals, officers, directors and managers, (2) all employees, agents and representatives who engage in conduct related to the subject matter of the order, and (3) any business entity resulting from any change in structure set forth in Part VII. For current personnel, delivery shall be within five (5) days of service of this Order. For new personnel, delivery shall occur prior to them assuming their responsibilities. For any business entity resulting from any change in structure set forth in Part VII, delivery shall be at least ten (10) days prior to the change in structure.\n\nB. Respondents must secure a signed and dated statement acknowledging receipt of this Order, within thirty (30) days of delivery, from all persons receiving a copy of the Order pursuant to this section.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Order Administration" ], "case_id": "08.11_settlementone_credit_corporation", "company_name": "SettlementOne Credit Corporation", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.; and the Standards for Safeguarding Customer Information Rule, 16 C.F.R. Part 314, issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801-6809", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3208-settlementone-credit-corporation", "docket_number": "C-4330" }, { "provision_number": "VII", "title": "Notification of Corporate Changes", "category": "compliance_reporting", "summary": "Respondents must notify the FTC at least 30 days prior to any corporate change that may affect compliance obligations, such as dissolution, merger, sale, bankruptcy filing, or name/address change, with expedited notice if less than 30 days' advance knowledge.", "verbatim_text": "IT IS FURTHER ORDERED that respondents shall notify the Commission at least thirty (30) days prior to any change in the corporations that may affect compliance obligations arising under this order, including, but not limited to, a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor corporation; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this order; the proposed filing of a bankruptcy petition; or a change in the corporate name or address. Provided, however, that with respect to any proposed change in the corporations about which respondents learn less than thirty (30) days prior to the date such action is to take place, respondents shall notify the Commission as soon as is practicable after obtaining such knowledge.\n\nUnless otherwise directed by a representative of the Commission, all notices required by this Part shall be sent by overnight courier (not the U.S. Postal Service) to the Associate Director of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania 6 Avenue NW, Washington, D.C. 20580, with the subject line FTC v. SettlementOne Credit Corporation, and Sackett National Holdings, Inc. Provided, however, that, in lieu of overnight courier, notices may be sent by first-class mail, but only if an electronic version of such notices is contemporaneously sent to the Commission at DEbrief@ftc.gov.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "08.11_settlementone_credit_corporation", "company_name": "SettlementOne Credit Corporation", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.; and the Standards for Safeguarding Customer Information Rule, 16 C.F.R. Part 314, issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801-6809", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3208-settlementone-credit-corporation", "docket_number": "C-4330" }, { "provision_number": "VIII", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Respondents must file an initial written compliance report with the FTC within 60 days of service of the order and submit additional written reports within 10 days of written notice from the Commission.", "verbatim_text": "IT IS FURTHER ORDERED that respondents and their successors and assigns, within sixty (60) days after the date of service of this order, shall file with the Commission a true and accurate report, in writing, setting forth in detail the manner and form of their own compliance\n\nwith this order. Within ten (10) day of receipt of written notice from a representative of the Commission, they shall submit additional true and accurate written reports.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "08.11_settlementone_credit_corporation", "company_name": "SettlementOne Credit Corporation", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.; and the Standards for Safeguarding Customer Information Rule, 16 C.F.R. Part 314, issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801-6809", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3208-settlementone-credit-corporation", "docket_number": "C-4330" }, { "provision_number": "IX", "title": "Order Duration and Termination", "category": "duration", "summary": "The order terminates on August 17, 2031, or 20 years from the most recent date a complaint is filed in federal court alleging a violation of the order, whichever is later, with specific carve-outs for sub-provisions with shorter durations and for dismissed complaints.", "verbatim_text": "This order will terminate on August 17, 2031, or twenty (20) years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of: A. any Part in this order that terminates in less than twenty (20) years; B. this order’s application to any respondent that is not named as a defendant in such complaint; and C. this order if such complaint is filed after the order has terminated pursuant to this Part.\n\nProvided, further, that if such complaint is dismissed or a federal court rules that respondents did not violate any provision of the order, and the dismissal or ruling is either not appealed or upheld on appeal, then the order will terminate according to this Part as though the complaint had never been filed, except that the order will not terminate between the date such complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Order Administration" ], "case_id": "08.11_settlementone_credit_corporation", "company_name": "SettlementOne Credit Corporation", "date_issued": "2011-08-15", "year": 2011, "administration": "Obama", "legal_authority": "Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45(a); the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.; and the Standards for Safeguarding Customer Information Rule, 16 C.F.R. Part 314, issued pursuant to Title V, Subtitle A of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801-6809", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/082-3208-settlementone-credit-corporation", "docket_number": "C-4330" }, { "provision_number": "I", "title": "Civil Penalty", "category": "acknowledgment", "summary": "Judgment of $2.6 million is entered against Defendant as a civil penalty for FCRA violations, payable within 7 business days by electronic fund transfer.", "verbatim_text": "BB.. DDeeffeennddaanntt sshhaallll mmaakkee tthhiiss ppaayymmeenntt wwiitthhiinn sseevveenn ((77)) bbuussiinneessss ddaayyss oofftthhee ddaattee ooff sseerrvviiccee ooff tthhiiss OOrrddeerr ttoo tthhee TTrreeaassuurreerr ooff tthhee UUnniitteedd SSttaatteess bbyy eelleeccttrroonniicc ffuunndd ttrraannssffeerr iinn aaccccoorrddaannccee wwiitthh iinnssttrruuccttiioonnss pprroovviiddeedd bbyy tthhee CCoonnssuummeerr PPrrootteeccttiioonn BBrraanncchh,, CCiivviill DDiivviissiioonn,, UU..SS.. DDeeppaarrttmmeenntt ooff JJuussttiiccee,, WWaasshhiinnggttoonn,, DD..CC.. 2200553300,, ffoorr aapppprroopprriiaattee ddiissppoossiittiioonn..\n\nCC.. IInn tthhee eevveenntt ooff aannyy ddeeffaauulltt iinn ppaayymmeenntt,, wwhhiicchh ddeeffaauulltt ccoonnttiinnuueess ffoorr tteenn ((1100)) ddaayyss bbeeyyoonndd tthhee dduuee ddaattee ooff ppaayymmeenntt,, tthhee eennttiirree uunnppaaiidd ppeennaallttyy,, ttooggeetthheerr wwiitthh iinntteerreesstt,, aass ccoommppuutteedd ppuurrssuuaanntt ttoo 2288 UU..SS..CC.. §§ 11996611,, ffrroomm tthhee ddaattee ooff ddeeffaauulltt ttoo tthhee ddaattee ooff ppaayymmeenntt,, sshhaallll iimmmmeeddiiaatteellyy bbeeccoommee dduuee aanndd ppaayyaabbllee..\n\nDD.. DDeeffeennddaanntt rreelliinnqquuiisshheess aallll ddoommiinniioonn,, ccoonnttrrooll,, aanndd ttiittllee ttoo tthhee ffuunnddss ppaaiidd ttoo tthhee ffuulllleesstt eexxtteenntt ppeerrmmiitttteedd bbyy llaaww.. DDeeffeennddaanntt sshhaallll mmaakkee nnoo ccllaaiimm ttoo oorr ddeemmaanndd rreettuurrnn ooff tthhee ffuunnddss,, PPaaggee 33 ooff 1133 Case 1:12-cv-01313 Document 2-1 Filed 08/08/12 Page 4 of 13 ddiirreeccttllyy oorr iinnddiirreeccttllyy,, tthhrroouugghh ccoouunnsseelloorr ootthheerrwwiissee..", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "08.12_hireright_solutions", "company_name": "HireRight Solutions, Inc.", "date_issued": "2012-08-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-313-hireright-solutions-inc", "docket_number": "12-1313" }, { "provision_number": "II", "title": "Prohibited Business Activities", "category": "prohibition", "summary": "Defendant is permanently restrained and enjoined from failing to maintain reasonable procedures to assure maximum possible accuracy of consumer reports and from various other FCRA violations.", "verbatim_text": "AA.. FFaaiilliinngg ttoo mmaaiinnttaaiinn rreeaassoonnaabbllee pprroocceedduurreess ttoo aassssuurree tthhee mmaaxxiimmuumm ppoossssiibbllee aaccccuurraaccyy ooff tthhee iinnffoorrmmaattiioonn ccoonncceerrnniinngg tthhee iinnddiivviidduuaall aabboouutt wwhhoomm aa ccoonnssuummeerr rreeppoorrtt rreellaatteess,, aass rreeqquuiirreedd bbyy sseeccttiioonn 660077((bb)) ooff tthhee FFCCRRAA,, 1155 UU..SS..CC.. §§ 11668811ee((bb)),, iinncclluuddiinngg bbuutt nnoott lliimmiitteedd ttoo::\n\n11.. ffaaiilliinngg ttoo ffoollllooww rreeaassoonnaabbllee pprroocceedduurreess ttoo aassssuurree tthhaatt tthhee iinnffoorrmmaattiioonn ccoonnttaaiinneedd iinn ccoonnssuummeerr rreeppoorrttss iitt ffuurrnniisshheess rreefflleeccttss tthhee ccuurrrreenntt ppuubblliicc rreeccoorrdd ssttaattuuss ooff ccoonnssuummeerrss'' iinnffoorrmmaattiioonn,, ssuucchh aass eexxppuunnggeemmeenntt ooff aa ccrriimmiinnaall rreeccoorrdd;;\n\n22.. ffaaiilliinngg ttoo ffoollllooww rreeaassoonnaabbllee pprroocceedduurreess ttoo pprreevveenntt tthhee iinncclluussiioonn ooff mmuullttiippllee eennttrriieess ffoorr tthhee ssaammee ccrriimmiinnaall ooffffeennssee iinn aa ssiinnggllee rreeppoorrtt iinn aa mmaannnneerr tthhaatt wwoouulldd rreennddeerr tthhee rreeppoorrtt iinnaaccccuurraattee iinn vviioollaattiioonn ooff sseeccttiioonn 660077 ((bb)) ooff tthhee FFCCRRAA,, 1155 UU..SS..CC.. §§ 11668811ee((bb));; aanndd\n\n33.. ffaaiilliinngg ttoo ffoollllooww rreeaassoonnaabbllee pprroocceedduurreess ttoo pprreevveenntt tthhee pprroovviissiioonn ooff oobbvviioouussllyy eerrrroonneeoouuss ccoonnssuummeerr rreeppoorrtt iinnffoorrmmaattiioonn ttoo eemmppllooyyeerrss,, ssuucchh aass ppuurrppoorrtteedd iinnffoorrmmaattiioonn oonn aa ssiinnggllee ccoonnssuummeerr tthhaatt iinncclluuddeess rreeccoorrddss ooff ootthheerr ccoonnssuummeerrss wwiitthh ddiiffffeerreenntt nnaammeess,, ddaatteess ooff bbiirrtthh,, oorr ootthheerr iiddeennttiiffiieerrss tthhaatt aarree aavvaaiillaabbllee iinn tthhee ppuubblliicc rreeccoorrdd..\n\nBB.. FFaaiilliinngg ttoo,, uuppoonn rreeqquueesstt,, cclleeaarrllyy aanndd aaccccuurraatteellyy ddiisscclloossee ttoo aa ccoonnssuummeerr aallll iinnffoorrmmaattiioonn iinn tthhee ccoonnssuummeerr''ss ffiillee aatt tthhee ttiimmee oofftthhee rreeqquueesstt,, aass rreeqquuiirreedd bbyy sseeccttiioonn 660099((aa))((II)) ooff tthhee FFCCRRAA,, 1155 UU..SS..CC.. §§ 11668811gg((aa))((11))..\n\nCC.. RReeqquuiirriinngg tthhaatt aa ccoonnssuummeerr wwhhoo ddiissppuutteess tthhee ccoommpplleetteenneessss oorr aaccccuurraaccyy ooff iinnffoorrmmaattiioonn iinn hhiiss oorr hheerr ffiillee oobbttaaiinn aa ccooppyy ooff hhiiss oorr hheerr ccoonnssuummeerr rreeppoorrtt bbeeffoorree DDeeffeennddaanntt wwiillll ccoonndduucctt aa rreeaassoonnaabbllee rreeiinnvveessttiiggaattiioonn ttoo ddeetteerrmmiinnee wwhheetthheerr tthhee ddiissppuutteedd iinnffoorrmmaattiioonn iiss iinnaaccccuurraattee aanndd rreeccoorrdd tthhee ccuurrrreenntt ssttaattuuss ooff tthhee ddiissppuutteedd iinnffoorrmmaattiioonn,, oorr ddeelleettee tthhee iinnffoorrmmaattiioonn ffrroomm tthhee ffiillee bbeeffoorree tthhee eenndd ooff tthhee 3300--ddaayy ppeerriioodd bbeeggiinnnniinngg oonn tthhee ddaattee oonn wwhhiicchh DDeeffeennddaanntt rreecceeiivveess tthhee nnoottiiccee ooff ddiissppuuttee ffrroomm tthhee ccoonnssuummeerr,, iinn vviioollaattiioonn ooff sseeccttiioonn 661111((aa))((11))((AA)) ooff tthhee FFCCRRAA,, 1155 UU..SS..cc.. §§ 116688llii((aa))((11 ))((AA))..\n\nDD.. FFaaiilliinngg ttoo pprroovviiddee wwrriitttteenn nnoottiiccee ttoo tthhee ccoonnssuummeerr ooff tthhee rreessuullttss ooff aa rreeiinnvveessttiiggaattiioonn nnoott llaatteerr tthhaann ffiivvee bbuussiinneessss ddaayyss aafftteerr iittss ccoommpplleettiioonn,, aass rreeqquuiirreedd bbyy sseeccttiioonn 661111((aa))((66)) ooff tthhee FFCCRRAA,, 1155 UU..SS..CC.. §§ 116688llii((aa))((66))..\n\nEE.. FFaaiilliinngg ttoo nnoottiiffyy tthhee ccoonnssuummeerr,, aatt tthhee ttiimmee ssuucchh iinnffoorrmmaattiioonn iiss rreeppoorrtteedd ttoo tthhee uusseerr ooff tthhee iinnffoorrmmaattiioonn,, ooff tthhee ffaacctt tthhaatt ppuubblliicc rreeccoorrdd iinnffoorrmmaattiioonn iiss bbeeiinngg rreeppoorrtteedd bbyy tthhee ccoonnssuummeerr rreeppoorrttiinngg aaggeennccyy,, ttooggeetthheerr wwiitthh tthhee nnaammee aanndd aaddddrreessss ooff tthhee ppeerrssoonn ttoo wwhhoomm ssuucchh iinnffoorrmmaattiioonn iiss rreeppoorrtteedd;; oorr,, iinn tthhee aalltteerrnnaattiivvee,, ffaaiilliinngg ttoo mmaaiinnttaaiinn ssttrriicctt pprroocceedduurreess ttoo iinnssuurree tthhaatt wwhheenneevveerr ppuubblliicc PPaaggee 55 ooff 1133 Case 1:12-cv-01313 Document 2-1 Filed 08/08/12 Page 6 of 13 rreeccoorrdd iinnffoorrmmaattiioonn wwhhiicchh iiss lliikkeellyy ttoo hhaavvee aann aaddvveerrssee eeffffeecctt oonn aa ccoonnssuummeerr''ss aabbiilliittyy ttoo oobbttaaiinn eemmppllooyymmeenntt iiss rreeppoorrtteedd iitt iiss ccoommpplleettee aanndd uupp ttoo ddaattee,, aass rreeqquuiirreedd bbyy sseeccttiioonn 661133((aa))((11))--((22)) ooff tthhee FFCCRRAA,, 1155 UU..SS..CC.. §§ 11668811kk((aa))((11))--((22))..", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "08.12_hireright_solutions", "company_name": "HireRight Solutions, Inc.", "date_issued": "2012-08-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-313-hireright-solutions-inc", "docket_number": "12-1313" }, { "provision_number": "III", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendant must submit acknowledgment of receipt of Order and deliver copies to officers, employees, and related entities, obtaining signed acknowledgments from recipients.", "verbatim_text": "AA.. DDeeffeennddaanntt,, wwiitthhiinn 77 ddaayyss ooff eennttrryy ooff tthhiiss OOrrddeerr,, mmuusstt ssuubbmmiitt ttoo tthhee CCoommmmiissssiioonn aann aacckknnoowwlleeddggmmeenntt ooff rreecceeiipptt ooff tthhiiss OOrrddeerr sswwoorrnn uunnddeerr ppeennaallttyy ooff ppeerrjjuurryy..\n\nBB.. FFoorr 33 yyeeaarrss aafftteerr eennttrryy ooff tthhiiss OOrrddeerr,, DDeeffeennddaanntt mmuusstt ddeelliivveerr aa ccooppyy ooff tthhiiss OOrrddeerr ttoo:: ((11)) aallll ooff iittss ooffffiicceerrss,, vviiccee pprreessiiddeennttss,, ddiirreeccttoorrss,, aanndd mmaannaaggeerrss;; ((22)) aallll ooff iittss eemmppllooyyeeeess,, aaggeennttss,,\n\nttoo:: ((11)) aallll ooff iittss ooffffiicceerrss,, vviiccee pprreessiiddeennttss,, ddiirreeccttoorrss,, aanndd mmaannaaggeerrss;; ((22)) aallll ooff iittss eemmppllooyyeeeess,, aaggeennttss,, aanndd rreepprreesseennttaattiivveess wwhhoo ppaarrttiicciippaattee iinn ccoonndduucctt rreellaatteedd ttoo tthhee ssuubbjjeecctt mmaatttteerr ooff tthhee OOrrddeerr;; aanndd ((33))\n\nBB.. FFoorr 33 yyeeaarrss aafftteerr eennttrryy ooff tthhiiss OOrrddeerr,, DDeeffeennddaanntt mmuusstt ddeelliivveerr aa ccooppyy ooff tthhiiss OOrrddeerr ttoo:: ((11)) aallll ooff iittss ooffffiicceerrss,, vviiccee pprreessiiddeennttss,, ddiirreeccttoorrss,, aanndd mmaannaaggeerrss;; ((22)) aallll ooff iittss eemmppllooyyeeeess,, aaggeennttss,, aanndd rreepprreesseennttaattiivveess wwhhoo ppaarrttiicciippaattee iinn ccoonndduucctt rreellaatteedd ttoo tthhee ssuubbjjeecctt mmaatttteerr ooff tthhee OOrrddeerr;; aanndd ((33)) aannyy bbuussiinneessss eennttiittyy rreessuullttiinngg ffrroomm aannyy cchhaannggee iinn ssttrruuccttuurree aass sseett ffoorrtthh iinn tthhee SSeeccttiioonn ttiittlleedd CCoommpplliiaannccee RReeppoorrttiinngg.. DDeelliivveerryy mmuusstt ooccccuurr wwiitthhiinn 77 ddaayyss ooff eennttrryy ooff tthhiiss OOrrddeerr ffoorr ccuurrrreenntt ppeerrssoonnnneell.. TToo aallll ootthheerrss,, ddeelliivveerryy mmuusstt ooccccuurr bbeeffoorree tthheeyy aassssuummee tthheeiirr rreessppoonnssiibbiilliittiieess..\n\nppeerrssoonnnneell.. TToo aallll ootthheerrss,, ddeelliivveerryy mmuusstt ooccccuurr bbeeffoorree tthheeyy aassssuummee tthheeiirr rreessppoonnssiibbiilliittiieess..\n\nCC.. FFrroomm eeaacchh iinnddiivviidduuaall oorr eennttiittyy ttoo wwhhiicchh DDeeffeennddaanntt ddeelliivveerreedd aa ccooppyy ooff tthhiiss OOrrddeerr,, DDeeffeennddaanntt mmuusstt oobbttaaiinn,, wwiitthhiinn 3300 ddaayyss,, aa ssiiggnneedd aanndd ddaatteedd aacckknnoowwlleeddggmmeenntt ooff rreecceeiipptt ooff tthhiiss OOrrddeerr..", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "08.12_hireright_solutions", "company_name": "HireRight Solutions, Inc.", "date_issued": "2012-08-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-313-hireright-solutions-inc", "docket_number": "12-1313" }, { "provision_number": "IV", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendant must submit initial compliance report 180 days after entry of Order and ongoing compliance notices for 5 years regarding changes in contact information, structure, or bankruptcy filings.", "verbatim_text": "AA.. OOnnee hhuunnddrreedd eeiigghhttyy ddaayyss aafftteerr eennttrryy oofftthhiiss OOrrddeerr,, DDeeffeennddaanntt mmuusstt ssuubbmmiitt aa ccoommpplliiaannccee rreeppoorrtt,, sswwoorrnn uunnddeerr ppeennaallttyy ooff ppeerrjjuurryy.. PPaaggee 66 ooff 1133 Case 1:12-cv-01313 Document 2-1 Filed 08/08/12 Page 7 of 13 11.. DDeeffeennddaanntt mmuusstt:: ((aa)) ddeessiiggnnaattee aatt lleeaasstt oonnee tteelleepphhoonnee nnuummbbeerr aanndd aann eemmaaiill,, pphhyyssiiccaall,, aanndd ppoossttaall aaddddrreessss aass ppooiinnttss ooff ccoonnttaacctt,, wwhhiicchh rreepprreesseennttaattiivveess ooff tthhee CCoommmmiissssiioonn aanndd PPllaaiinnttiiffff mmaayy uussee ttoo ccoommmmuunniiccaattee wwiitthh DDeeffeennddaanntt;; ((bb)) iiddeennttiiffyy aallll ooff DDeeffeennddaanntt''ss bbuussiinneesssseess bbyy aallll ooff tthheeiirr nnaammeess,, tteelleepphhoonnee nnuummbbeerrss,, aanndd pphhyyssiiccaall,, ppoossttaall,, eemmaaiill,, aanndd IInntteerrnneett aaddddrreesssseess;; ((cc )) ddeessccrriibbee tthhee aaccttiivviittiieess ooff eeaacchh bbuussiinneessss,, iinncclluuddiinngg tthhee pprroodduuccttss aanndd sseerrvviicceess ooffffeerreedd,, aanndd tthhee mmeeaannss ooff aaddvveerrttiissiinngg,, mmaarrkkeettiinngg,, aanndd ssaalleess;;·· ((dd)) ddeessccrriibbee iinn ddeettaaiill wwhheetthheerr aanndd hhooww DDeeffeennddaanntt iiss iinn ccoommpplliiaannccee wwiitthh eeaacchh SSeeccttiioonn ooff tthhiiss OOrrddeerr;; aanndd ((ee )) pprroovviiddee aa ccooppyy ooff eeaacchh OOrrddeerr AAcckknnoowwlleeddggmmeenntt oobbttaaiinneedd ppuurrssuuaanntt ttoo tthhiiss OOrrddeerr,, uunnlleessss pprreevviioouussllyy ssuubbmmiitttteedd ttoo tthhee CCoommmmiissssiioonn..\n\nBB.. FFoorr 55 yyeeaarrss ffoolllloowwiinngg eennttrryy ooff tthhiiss OOrrddeerr,, DDeeffeennddaanntt mmuusstt ssuubbmmiitt aa ccoommpplliiaannccee nnoottiiccee,, sswwoorrnn uunnddeerr ppeennaallttyy ooff ppeerrjjuurryy,, wwiitthhiinn 1144 ddaayyss ooff aannyy cchhaannggee iinn tthhee ffoolllloowwiinngg:: 11.. DDeeffeennddaanntt mmuusstt rreeppoorrtt aannyy cchhaannggee iinn:: ((aa)) aannyy ddeessiiggnnaatteedd ppooiinntt ooff ccoonnttaacctt;; oorr ((bb)) tthhee ssttrruuccttuurree ooff DDeeffeennddaanntt oorr aannyy eennttiittyy tthhaatt DDeeffeennddaanntt hhaass aannyy oowwnneerrsshhiipp iinntteerreesstt iinn oorr ddiirreeccttllyy oorr iinnddiirreeccttllyy ccoonnttrroollss tthhaatt mmaayy aaffffeecctt ccoommpplliiaannccee oobblliiggaattiioonnss aarriissiinngg uunnddeerr tthhiiss OOrrddeerr,, iinncclluuddiinngg ccrreeaattiioonn,, mmeerrggeerr,, ssaallee,, oorr ddiissssoolluuttiioonn ooff tthhee eennttiittyy oorr aannyy ssuubbssiiddiiaarryy,, ppaarreenntt,, oorr aaffffiilliiaattee tthhaatt eennggaaggeess iinn aannyy aaccttss oorr pprraaccttiicceess ssuubbjjeecctt ttoo tthhiiss OOrrddeerr..\n\nCC.. DDeeffeennddaanntt mmuusstt ssuubbmmiitt ttoo tthhee CCoommmmiissssiioonn nnoottiiccee ooff tthhee ffiilliinngg ooff aannyy bbaannkkrruuppttccyy ppeettiittiioonn,, iinnssoollvveennccyy pprroocceeeeddiinngg,, oorr aannyy ssiimmiillaarr pprroocceeeeddiinngg bbyy oorr aaggaaiinnsstt DDeeffeennddaanntt wwiitthhiinn 1144 ddaayyss ooff iittss ffiilliinngg..\n\nDD.. AAnnyy ssuubbmmiissssiioonn ttoo tthhee CCoommmmiissssiioonn rreeqquuiirreedd bbyy tthhiiss OOrrddeerr ttoo bbee sswwoorrnn uunnddeerr ppeennaallttyy ooff ppeerrjjuurryy mmuusstt bbee ttrruuee aanndd aaccccuurraattee aanndd ccoommppllyy wwiitthh 2288 UU..SS..CC.. §§ 11774466,, ssuucchh aass bbyy ccoonncclluuddiinngg:: \"\"II ddeeccllaarree uunnddeerr ppeennaallttyy ooff ppeerrjjuurryy uunnddeerr tthhee llaawwss ooff tthhee UUnniitteedd SSttaatteess ooff AAmmeerriiccaa tthhaatt tthhee ffoorreeggooiinngg iiss ttrruuee aanndd ccoorrrreecctt.. EExxeeccuutteedd oonn:: ____\"\" aanndd ssuuppppllyyiinngg tthhee ddaattee,, ssiiggnnaattoorryy''ss ffuullll nnaammee,, ttiittllee ((iiff aapppplliiccaabbllee)),, aanndd ssiiggnnaattuurree..\n\nEE.. UUnnlleessss ootthheerrwwiissee ddiirreecctteedd bbyy aa CCoommmmiissssiioonn rreepprreesseennttaattiivvee iinn wwrriittiinngg,, aallll ssuubbmmiissssiioonnss ttoo tthhee CCoommmmiissssiioonn ppuurrssuuaanntt ttoo tthhiiss OOrrddeerr mmuusstt bbee eemmaaiilleedd ttoo DDEEbbrriieeff@@ffttcc..ggoovv oorr sseenntt bbyy oovveerrnniigghhtt ccoouurriieerr ((nnoott tthhee UU..SS.. PPoossttaall SSeerrvviiccee)) ttoo:: AAssssoocciiaattee DDiirreeccttoorr ffoorr EEnnffoorrcceemmeenntt,, BBuurreeaauu ooff CCoonnssuummeerr PPrrootteeccttiioonn,, FFeeddeerraall TTrraaddee CCoommmmiissssiioonn,, 660000 PPeennnnssyyllvvaanniiaa AAvveennuuee NNWW,, WWaasshhiinnggttoonn,, DDCC 2200558800.. TThhee ssuubbjjeecctt lliinnee mmuusstt bbeeggiinn:: FFTTCC vv.. HHiirreeRRiigghhtt SSoolluuttiioonnss,, IInncc..", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "08.12_hireright_solutions", "company_name": "HireRight Solutions, Inc.", "date_issued": "2012-08-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-313-hireright-solutions-inc", "docket_number": "12-1313" }, { "provision_number": "V", "title": "Recordkeeping Provisions", "category": "recordkeeping", "summary": "Defendant must create and retain specific records for 5 years after entry of Order, including accounting records, personnel records, customer files, complaints, training materials, and compliance documents.", "verbatim_text": "AA.. AAccccoouunnttiinngg rreeccoorrddss sshhoowwiinngg tthhee rreevveennuueess ffrroomm aallll ggooooddss oorr sseerrvviicceess ssoolldd,, aallll ccoossttss iinnccuurrrreedd iinn ggeenneerraattiinngg tthhoossee rreevveennuueess,, aanndd tthhee rreessuullttiinngg nneett pprrooffiitt oorr lloossss;;\n\nBB.. PPeerrssoonnnneell rreeccoorrddss sshhoowwiinngg,, ffoorr eeaacchh ppeerrssoonn pprroovviiddiinngg sseerrvviicceess,, wwhheetthheerr aass aann eemmppllooyyeeee oorr ootthheerrwwiissee,, tthhaatt ppeerrssoonn''ss:: nnaammee,, aaddddrreesssseess,, aanndd tteelleepphhoonnee nnuummbbeerrss;; jjoobb ttiittllee oorr ppoossiittiioonn;; ddaatteess ooff sseerrvviiccee;; aanndd,, iiff aapppplliiccaabbllee,, tthhee rreeaassoonn ffoorr tteerrmmiinnaattiioonn;;\n\nCC.. CCuussttoommeerr ffiilleess sshhoowwiinngg tthhee nnaammeess,, aaddddrreesssseess,, tteelleepphhoonnee nnuummbbeerrss,, ddoollllaarr aammoouunnttss ppaaiidd,, aanndd tthhee qquuaannttiittyy aanndd ddeessccrriippttiioonn ooff ggooooddss oorr sseerrvviicceess ppuurrcchhaasseedd,, ttoo tthhee eexxtteenntt ssuucchh iinnffoorrmmaattiioonn iiss oobbttaaiinneedd iinn tthhee oorrddiinnaarryy ccoouurrssee ooff bbuussiinneessss;;\n\nDD.. CCoommppllaaiinnttss aanndd rreeffuunndd rreeqquueessttss,, wwhheetthheerr rreecceeiivveedd ddiirreeccttllyy oorr iinnddiirreeccttllyy,, ssuucchh aass tthhrroouugghh aa tthhiirrdd ppaarrttyy,, aanndd aannyy rreessppoonnssee;;\n\nEE.. CCooppiieess ooff aallll ttrraaiinniinngg mmaatteerriiaallss aanndd wwrriitttteenn ppoolliicciieess aanndd pprroocceedduurreess tthhaatt rreellaattee ttoo DDeeffeennddaanntt''ss aaccttiivviittiieess aass aalllleeggeedd iinn tthhee CCoommppllaaiinntt oorr DDeeffeennddaanntt''ss ccoommpplliiaannccee wwiitthh tthhee pprroovviissiioonnss ooff tthhiiss OOrrddeerr;; aanndd\n\nFF.. AAllll rreeccoorrddss aanndd ddooccuummeennttss nneecceessssaarryy ttoo ddeemmoonnssttrraattee ffuullll ccoommpplliiaannccee wwiitthh eeaacchh pprroovviissiioonn ooff tthhiiss OOrrddeerr,, iinncclluuddiinngg aallll ssuubbmmiissssiioonnss ttoo tthhee CCoommmmiissssiioonn..", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "08.12_hireright_solutions", "company_name": "HireRight Solutions, Inc.", "date_issued": "2012-08-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-313-hireright-solutions-inc", "docket_number": "12-1313" }, { "provision_number": "VI", "title": "Compliance Monitoring", "category": "monitoring", "summary": "Commission and Plaintiff are authorized to monitor Defendant's compliance through document requests, depositions, interviews, discovery, and other lawful means including posing as consumers.", "verbatim_text": "AA.. WWiitthhiinn 1144 ddaayyss ooff rreecceeiipptt ooff aa wwrriitttteenn rreeqquueesstt ffrroomm aa rreepprreesseennttaattiivvee ooff tthhee CCoommmmiissssiioonn oorr PPllaaiinnttiiffff,, DDeeffeennddaanntt mmuusstt:: ssuubbmmiitt aaddddiittiioonnaall ccoommpplliiaannccee rreeppoorrttss oorr ootthheerr rreeqquueesstteedd iinnffoorrmmaattiioonn,, wwhhiicchh mmuusstt bbee sswwoorrnn uunnddeerr ppeennaallttyy ooff ppeerrjjuurryy;; aappppeeaarr ffoorr ddeeppoossiittiioonnss;; aanndd pprroodduuccee ddooccuummeennttss,, ffoorr iinnssppeeccttiioonn aanndd ccooppyyiinngg.. TThhee CCoommmmiissssiioonn aanndd PPllaaiinnttiiffff aarree aallssoo aauutthhoorriizzeedd ttoo oobbttaaiinn ddiissccoovveerryy,, wwiitthhoouutt ffuurrtthheerr lleeaavvee ooff ccoouurrtt,, uussiinngg aannyy ooff tthhee pprroocceedduurreess pprreessccrriibbeedd bbyy FFeeddeerraall RRuulleess ooff CCiivviill PPrroocceedduurree 2299,,3300 ((iinncclluuddiinngg tteelleepphhoonniicc ddeeppoossiittiioonnss)),, 3311,, 3333,, 3344,,3366,,4455,, aanndd 6699,, pprroovviiddeedd tthhaatt,, DDeeffeennddaanntt,, aafftteerr aatttteemmppttiinngg ttoo rreessoollvvee aa ddiissppuuttee wwiitthhoouutt ccoouurrtt aaccttiioonn aanndd ffoorr ggoooodd ccaauussee sshhoowwnn,, mmaayy ffiillee aa mmoottiioonn wwiitthh tthhiiss CCoouurrtt sseeeekkiinngg aann oorrddeerr iinncclluuddiinngg oonnee oorr mmoorree ooff tthhee pprrootteeccttiioonnss sseett ffoorrtthh iinn RRuullee 2266 ((cc))..\n\nccoommmmuunniiccaattee ddiirreeccttllyy wwiitthh DDeeffeennddaanntt.. DDeeffeennddaanntt mmuusstt ppeerrmmiitt rreepprreesseennttaattiivveess ooff tthhee CCoommmmiissssiioonn aanndd PPllaaiinnttiiffff ttoo iinntteerrvviieeww aannyy eemmppllooyyeeee oorr ootthheerr ppeerrssoonn aaffffiilliiaatteedd wwiitthh DDeeffeennddaanntt PPaaggee 99 ooff 1133 Case 1:12-cv-01313 Document 2-1 Filed 08/08/12 Page 10 of 13 wwhhoo hhaass aaggrreeeedd ttoo ssuucchh aann iinntteerrvviieeww.. TThhee ppeerrssoonn iinntteerrvviieewweedd mmaayy hhaavvee ccoouunnsseell pprreesseenntt..\n\nCC.. TThhee CCoommmmiissssiioonn aanndd PPllaaiinnttiiffff mmaayy uussee aallll ootthheerr llaawwffuull mmeeaannss,, iinncclluuddiinngg ppoossiinngg,, tthhrroouugghh iittss rreepprreesseennttaattiivveess,, aass ccoonnssuummeerrss,, ssuupppplliieerrss,, oorr ootthheerr iinnddiivviidduuaallss oorr eennttiittiieess,, ttoo DDeeffeennddaanntt oorr aannyy iinnddiivviidduuaall oorr eennttiittyy aaffffiilliiaatteedd wwiitthh DDeeffeennddaanntt,, wwiitthhoouutt tthhee nneecceessssiittyy ooff iiddeennttiiffiiccaattiioonn oorr pprriioorr nnoottiiccee.. NNootthhiinngg iinn tthhiiss OOrrddeerr lliimmiittss tthhee CCoommmmiissssiioonn''ss llaawwffuull uussee ooff ccoommppuullssoorryy pprroocceessss,, ppuurrssuuaanntt ttoo sseeccttiioonnss 99 aanndd 2200 ooff tthhee FFTTCC AAcctt,, 1155 UU..SS..CC.. §§§§ 4499,, 5577bb--11..", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "08.12_hireright_solutions", "company_name": "HireRight Solutions, Inc.", "date_issued": "2012-08-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-313-hireright-solutions-inc", "docket_number": "12-1313" }, { "provision_number": "VII", "title": "Retention of Jurisdiction", "category": "duration", "summary": "Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of the Order.", "verbatim_text": "IITT IISS FFUURRTTHHEERR OORRDDEERREEDD tthhaatt tthhiiss CCoouurrtt rreettaaiinnss jjuurriissddiiccttiioonn ooff tthhiiss mmaatttteerr ffoorr ppuurrppoosseess ooff ccoonnssttrruuccttiioonn,, mmooddiiffiiccaattiioonn,, aanndd eennffoorrcceemmeenntt ooff tthhiiss OOrrddeerr..", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "08.12_hireright_solutions", "company_name": "HireRight Solutions, Inc.", "date_issued": "2012-08-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-313-hireright-solutions-inc", "docket_number": "12-1313" }, { "provision_number": "VIII", "title": "Costs and Attorneys' Fees", "category": "acknowledgment", "summary": "Each party shall bear its own costs and attorneys' fees incurred in connection with this action.", "verbatim_text": "IITT IISS FFUURRTTHHEERR OORRDDEERREEDD tthhaatt eeaacchh ppaarrttyy sshhaallll bbeeaarr iittss oowwnn ccoossttss aanndd aattttoorrnneeyyss'' ffeeeess iinnccuurrrreedd iinn ccoonnnneeccttiioonn wwiitthh tthhiiss aaccttiioonn..", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "08.12_hireright_solutions", "company_name": "HireRight Solutions, Inc.", "date_issued": "2012-08-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-313-hireright-solutions-inc", "docket_number": "12-1313" }, { "provision_number": "I", "title": "Civil Penalty", "category": "affirmative_obligation", "summary": "Defendant must pay a civil penalty of $3,500,000 to the United States within seven days of entry of this Order.", "verbatim_text": "Defendant is ordered to pay Plaintiff by making payment to the Treasurer ofthe United States of three million five hundred thousand dollars ($3,500,000) within seven (7) days of entry of this Order by electronic fund transfer in accordance with instructions previously provided by a representative of Plaintiff.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "08.13_certegy_check_services", "company_name": "Certegy Check Services, Inc.", "date_issued": "2013-08-15", "year": 2013, "administration": "Obama", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), 16(a)(1), and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), 56(a)(1), and 57b; and section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3184-certegy-check-services-inc", "docket_number": "C-4701" }, { "provision_number": "II", "title": "Additional Monetary Provisions", "category": "affirmative_obligation", "summary": "Establishes default provisions for payment, relinquishment of funds, and use of allegations in subsequent enforcement actions.", "verbatim_text": "A. If Defendant is in default of payment under Section I, which default continues for ten (1 0) days beyond the due date of payment, then the judgment amount, together with interest computed pursuant to 28 U.S.C. § 1961 from the date of default to the date of payment, minus any payments previously made, becomes immediately due.\n\nB. Defendant relinquishes dominion and all legal and equitable right, title, and interest in all funds transferred pursuant to this Order and may not seek the return of any funds.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Consumer Redress" ], "case_id": "08.13_certegy_check_services", "company_name": "Certegy Check Services, Inc.", "date_issued": "2013-08-15", "year": 2013, "administration": "Obama", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), 16(a)(1), and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), 56(a)(1), and 57b; and section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3184-certegy-check-services-inc", "docket_number": "C-4701" }, { "provision_number": "III", "title": "Prohibited Business Activities", "category": "prohibition", "summary": "Defendant is permanently restrained and enjoined from violating FCRA sections 607(b), 611, 612(a)(2), and 12 C.F.R. § 1022.42 in connection with its activities as a consumer reporting agency.", "verbatim_text": "A. Failing to comply with section 607(b) ofthe FCRA, 15 U.S.C. § 1681e(b), a copy of which is attached as Exhibit 2, including by failing to adequately track the handling and resolution of consumer disputes;\n\n1. Requiring the consumer to contact a third party in order to resolve a dispute if Certegy can obtain sufficient information itself;\n\n2. Failing to complete reinvestigations within thirty days or, if Certegy receives information from the consumer during that thirty-day period that is relevant to the reinvestigation, within forty-five days;\n\n3. Failing to provide, before the expiration of the five-business-day period beginning on the date on which Certegy receives notice of a dispute from any consumer, notification ofthe dispute to any person who provided any item of information in dispute, at the address and in the manner established with the person. The notice shall include all relevant information regarding the dispute that Certegy has received from the consumer;\n\n4. After conducting a reinvestigation of any information disputed by a consumer and finding that an item of information is inaccurate, incomplete, or cannot be verified, failing to: i. promptly delete or modify an item of information from the consumer's file, as appropriate, and n. promptly notify the furnisher of that information when the information has been modified or deleted from the consumer's file.\n\n5. Failing to provide written notice to a consumer, within five business days of making such a determination, when Certegy terminates a reinvestigation as frivolous or irrelevant based on the consumer's failure to provide sufficient information to investigate the disputed information;\n\n6. Failing to maintain reasonable procedures designed to prevent the reappearance in a consumer's file, and in consumer reports on the consumer, of information that is deleted pursuant to a reinvestigation; and\n\n7. Failing to provide written notice to a consumer of the results of a reinvestigation not later than five business days after the completion ofthe reinvestigation;\n\n1. Failing to collect only as much personal information as is reasonably necessary to properly identify the consumer; and\n\n2. Failing to provide consumers with copies of their consumer reports within 15 days after receipt of a request; and\n\nD. Failing to comply with 12 C.P.R. § 1022.42, a copy of which is attached as Exhibit 6, including by failing to establish and implement written policies and procedures regarding the accuracy and integrity of information relating to consumers that is furnished to CRAs.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "08.13_certegy_check_services", "company_name": "Certegy Check Services, Inc.", "date_issued": "2013-08-15", "year": 2013, "administration": "Obama", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), 16(a)(1), and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), 56(a)(1), and 57b; and section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3184-certegy-check-services-inc", "docket_number": "C-4701" }, { "provision_number": "IV", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendant must submit acknowledgment of receipt of this Order and deliver copies to personnel with decision-making authority for three years.", "verbatim_text": "A. Defendant, within seven (7) days of entry of this Order, must submit to the Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.\n\nB. For three (3) years after entry of this Order, for any business that Defendant is the majority owner or controls directly or indirectly, must deliver a copy of this Order to: (I) all principals, officers, directors, and LLC managers and members; (2) all employees, agents, and representatives who have decision-making authority with respect to the conduct related to the subject matter of the Order; and (3) any business entity resulting from any change in structure as set forth in the Section titled Compliance Reporting. Delivery must occur within seven (7) days -7-\n\nC. From each individual or entity to which Defendant delivered a copy of this Order, Defendant must obtain, within thirty (30) days, a signed and dated acknowledgment of receipt of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "08.13_certegy_check_services", "company_name": "Certegy Check Services, Inc.", "date_issued": "2013-08-15", "year": 2013, "administration": "Obama", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), 16(a)(1), and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), 56(a)(1), and 57b; and section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3184-certegy-check-services-inc", "docket_number": "C-4701" }, { "provision_number": "V", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendant must submit compliance reports and notices to the Commission at specified intervals and upon certain triggering events.", "verbatim_text": "A. One hundred eighty (180) days after entry of this Order, Defendant must submit a compliance report, sworn under penalty of perjury. Defendant must: (1) identify the primary physical, postal, and email address and telephone number, as designated points of contact, which representatives of the Commission or Plaintiff may use to communicate with Defendant; (2) identify all of Defendant's businesses by all of their names, telephone numbers, and physical and postal addresses for each primary business location, as well as their email and Internet addresses; (3) describe the activities of each business, including the products and services offered and the means of consumer reporting; (4 ) describe in detail whether and how Defendant is in compliance with each Section of this Order; and (5) provide a copy of each Order Acknowledgment obtained pursuant to this Order, unless previously submitted to the Commission.\n\nB. For ten (1 0) years after entry of this Order, Defendant must submit a compliance notice, sworn under penalty of perjury, within fourteen (14) days of any change in the following: (1) any designated point of contact; or (2) the structure of Defendant or any entity that Defendant has any ownership interest in or directly or indirectly controls that may affect compliance obligations arising under this Order, including: creation, merger, sale, or dissolution of the entity or any subsidiary or parent that engages in any acts or practices subject to this Order.\n\nC. Defendant must submit to the Commission notice of the filing of any bankruptcy petition, insolvency proceeding, or any similar proceeding by or against Defendant within fourteen (14) days of its filing.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "08.13_certegy_check_services", "company_name": "Certegy Check Services, Inc.", "date_issued": "2013-08-15", "year": 2013, "administration": "Obama", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), 16(a)(1), and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), 56(a)(1), and 57b; and section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3184-certegy-check-services-inc", "docket_number": "C-4701" }, { "provision_number": "VI", "title": "Recordkeeping Provisions", "category": "recordkeeping", "summary": "Defendant must create certain records for ten years after entry of the Order and retain each such record for five years.", "verbatim_text": "A. Accounting records showing the revenues from all goods or services sold, all costs incurred in generating those revenues, and the resulting net profit or loss;\n\nB. Personnel records showing, for each person providing services, whether as an employee or otherwise, that person's: name, addresses, and telephone numbers; job title or position; dates of service; and (if applicable) the reason for termination;\n\nC. Consumer complaints regarding Defendant's compliance with the FCRA, whether received directly or indirectly, such as through a third party, and any response; and other consumer complaints received through a third party, and any response;\n\nD. Copies of all training materials and written policies and procedures that relate to Defendant's activities in consumer reporting or Defendant's compliance with the provisions of this Order;\n\nE. Consumer dispute files that include correspondence between customers and Defendant, and correspondence between Defendant and furnishers of disputed information, sufficient to demonstrate compliance with section 611 ofthe FCRA, 15 U.S.C. § 1681i, a copy of which is attached as Exhibit 3; and\n\nF. All records and documents necessary to demonstrate full compliance with each provision of this Order, including all submissions to the Commission.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "08.13_certegy_check_services", "company_name": "Certegy Check Services, Inc.", "date_issued": "2013-08-15", "year": 2013, "administration": "Obama", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), 16(a)(1), and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), 56(a)(1), and 57b; and section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3184-certegy-check-services-inc", "docket_number": "C-4701" }, { "provision_number": "VII", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The Commission and Plaintiff are authorized to monitor Defendant's compliance through various means including requests for reports, depositions, document production, interviews, and undercover investigations.", "verbatim_text": "A. Within fourteen (14) days of receipt of a written request from a representative of. Commission or Plaintiff, Defendant must: submit additional compliance reports or other requested information, which must be sworn under penalty of perjury; appear for depositions; and produce documents for inspection and copying. The Commission and Plaintiff are also authorized to obtain discovery, without further leave of court, using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69, provided that Defendant, after attempting to resolve a dispute without court action and for good cause shown, may file a motion with this Court seeking an order including one or more of the protections set forth in Rule 26(c).\n\nB. For matters concerning this Order, the Commission and Plaintiff are authorized to communicate directly with Defendant. Defendant must permit representatives of the Commission and Plaintiff to interview any employee or other person affiliated with Defendant who has agreed to such an interview. The person interviewed may have counsel present.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "08.13_certegy_check_services", "company_name": "Certegy Check Services, Inc.", "date_issued": "2013-08-15", "year": 2013, "administration": "Obama", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), 16(a)(1), and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), 56(a)(1), and 57b; and section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3184-certegy-check-services-inc", "docket_number": "C-4701" }, { "provision_number": "VIII", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction over this matter for purposes of construction, modification, and enforcement of this Order.", "verbatim_text": "IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "08.13_certegy_check_services", "company_name": "Certegy Check Services, Inc.", "date_issued": "2013-08-15", "year": 2013, "administration": "Obama", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), 16(a)(1), and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), 56(a)(1), and 57b; and section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/112-3184-certegy-check-services-inc", "docket_number": "C-4701" }, { "provision_number": "I", "title": "Prohibition Against Failure to Disclose Adverse Action Based on Consumer Reports", "category": "prohibition", "summary": "Bruno's must immediately cease and desist from failing to disclose to job applicants, at the time an adverse employment action is communicated, that the action was based on a consumer report and the name and address of the reporting agency.", "verbatim_text": "IT IS ORDERED that respondent Bruno's, Inc., a corporation, its successors and assigns, and its officers, agents, representatives, and employees, directly or through any corporation, subsidiary, division, or other device, in connection with any application for employment, do forthwith cease and desist from failing, whenever employment is denied either wholly or partly because of information contained in a consumer report from a consumer reporting agency, to disclose to the applicant for employment at the time such adverse action is communicated to the applicant (a) that the adverse action was based wholly or partly on information contained in such a report and (b) the name and address of the consumer reporting agency making the report.\n\nRespondent shall not be held liable for a violation of Section 615(a) of the Fair Credit Reporting Act if it shows by a preponderance of the evidence that at the time of the alleged violation it maintained reasonable procedures to assure compliance with Section 615(a) of the Fair Credit Reporting Act.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "08.97_bruno_s", "company_name": "Bruno's Inc.", "date_issued": "1997-08-15", "year": 1997, "administration": "Clinton", "legal_authority": "Section 615(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681m(a) and Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/962-3086-brunos-inc-matter", "docket_number": "C-3760" }, { "provision_number": "II", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Bruno's must maintain and make available to the FTC for at least five years documents demonstrating compliance with Part I, including employment evaluation criteria, employee instructions, notices given to applicants, and complete application files for applicants denied employment based on consumer reports.", "verbatim_text": "IT IS FURTHER ORDERED that respondent, and its successors and assigns, shall for at least five (5) years from the date of issuance of this Order, maintain and upon request make available to the Federal Trade Commission for inspection and copying, documents demonstrating compliance with the requirements of Part I of this Order, such documents to include, but not be limited to, all employment evaluation criteria relating to consumer reports, instructions given to employees regarding compliance with the provisions of this Order, all written notices or a written or electronically stored notation of the description of the form of notice and date such notice was provided to applicants pursuant to any provisions of this Order, and the complete application files for all applicants for whom consumer reports were obtained for whom offers of employment are not made or have been withheld, withdrawn, or rescinded based, in whole or in part, on information contained in a consumer report.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "08.97_bruno_s", "company_name": "Bruno's Inc.", "date_issued": "1997-08-15", "year": 1997, "administration": "Clinton", "legal_authority": "Section 615(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681m(a) and Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/962-3086-brunos-inc-matter", "docket_number": "C-3760" }, { "provision_number": "III", "title": "Acknowledgment – Order Delivery", "category": "acknowledgment", "summary": "Bruno's must deliver a copy of the Order to all persons responsible for FCRA Section 615(a) compliance at least once per year for five years.", "verbatim_text": "IT IS FURTHER ORDERED that respondent shall deliver a copy of this Order at least once per year for a period of five (5) years from the date of issuance of this Order, to all persons responsible for the respondent’s compliance with Section 615(a) of the Fair Credit Reporting Act.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "08.97_bruno_s", "company_name": "Bruno's Inc.", "date_issued": "1997-08-15", "year": 1997, "administration": "Clinton", "legal_authority": "Section 615(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681m(a) and Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/962-3086-brunos-inc-matter", "docket_number": "C-3760" }, { "provision_number": "IV", "title": "Corporate Change Notification", "category": "compliance_reporting", "summary": "Bruno's must notify the FTC at least 30 days before any proposed change in corporate structure that may affect compliance obligations under the Order.", "verbatim_text": "IT IS FURTHER ORDERED that respondent shall notify the Federal Trade Commission at least thirty (30) days prior to any proposed change in the corporate structure of respondent such as dissolution, assignment, or sale resulting in the emergence of a successor operation, the creation or dissolution of subsidiaries or divisions, or any other change in the corporation which may affect compliance obligations arising out of the Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "08.97_bruno_s", "company_name": "Bruno's Inc.", "date_issued": "1997-08-15", "year": 1997, "administration": "Clinton", "legal_authority": "Section 615(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681m(a) and Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/962-3086-brunos-inc-matter", "docket_number": "C-3760" }, { "provision_number": "V", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Bruno's must file a written compliance report with the FTC within 60 days of service of the Order detailing how it has complied.", "verbatim_text": "IT IS FURTHER ORDERED that respondent shall, within sixty (60) days of service of this Order, file with the Federal Trade Commission a report, in writing, setting forth in detail the manner and form in which it has complied with this Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "08.97_bruno_s", "company_name": "Bruno's Inc.", "date_issued": "1997-08-15", "year": 1997, "administration": "Clinton", "legal_authority": "Section 615(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681m(a) and Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/962-3086-brunos-inc-matter", "docket_number": "C-3760" }, { "provision_number": "VI", "title": "Order Duration and Termination", "category": "duration", "summary": "The Order terminates on July 29, 2017, or twenty years from the most recent date the FTC files a federal court complaint alleging a violation of the Order, whichever is later, subject to specified exceptions.", "verbatim_text": "IT IS FURTHER ORDERED that this Order will terminate on July 29, 2017, or twenty (20) years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the Order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of: A. Any paragraph in this Order that terminates in less than twenty (20) years; B. This Order's application to any respondent that is not named as a defendant in such complaint; and C. This Order if such complaint is filed after the Order has terminated pursuant to this paragraph.\n\nProvided further, that if such complaint is dismissed or a federal court rules that the respondent did not violate any provision of the Order, and the dismissal or ruling is either not appealed or upheld on appeal, then the Order will terminate according to this paragraph as though the complaint was never filed, except that the Order will not terminate between the date such complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "08.97_bruno_s", "company_name": "Bruno's Inc.", "date_issued": "1997-08-15", "year": 1997, "administration": "Clinton", "legal_authority": "Section 615(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681m(a) and Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/962-3086-brunos-inc-matter", "docket_number": "C-3760" }, { "provision_number": "I", "title": "FCRA Section 611 Compliance — Dispute Reinvestigation", "category": "affirmative_obligation", "summary": "Respondent must comply with FCRA Section 611 in connection with collection, preparation, assembly, maintenance, and furnishing of consumer reports and files, including reinvestigating disputed information, notifying furnishers, reviewing consumer submissions, preventing reappearance of deleted information, providing written notice of results, permitting dispute statements, including dispute statements in reports, and providing notifications at consumer request.", "verbatim_text": "A. Subject to Section 611(a)(3), 15 U.S.C. § 1681i(a)(3), if the completeness or accuracy of any item of information contained in a consumer's file at respondent is disputed by the consumer and the consumer notifies respondent directly of such dispute, respondent shall reinvestigate free of charge and record the current status of the disputed information or delete the information from the file, as required by Section 611(a)(1), 15 U.S.C. § 1681i(a)(1);\n\n1. Before the expiration of the five (5)-business-day period beginning on the date on which respondent receives notice of a dispute from a consumer in accordance with Section 611(a)(1), 15 U.S.C. § 1681i(a)(1), respondent shall provide notification of the dispute to any person who provided any item of information in dispute, at the address and in the manner established with the person; the notice shall include all relevant information regarding the dispute that respondent has received from the consumer; and\n\n2. Respondent shall promptly provide to the person who provided the information in dispute all relevant information regarding the dispute that is received by respondent from the consumer after the five (5)-business-day period referred to in paragraph B.1. above and before the end of the thirty (30)-day period beginning on the date on which respondent receives the notice of the dispute directly from the consumer;\n\nC. As required by Section 611(a)(4), 15 U.S.C. § 1681i(a)(4), in conducting any reinvestigation under Section 611(a)(1), 15 U.S.C. § 1681i(a)(1), with respect to disputed information in the file of any consumer, respondent shall review and consider all relevant information submitted by the consumer in the period described in Section 611(a)(1)(A) with respect to such disputed information;\n\nD. As required by Section 611(a)(5)(C), 15 U.S.C. § 1681i(a)(5)(C), respondent shall maintain reasonable procedures designed to prevent the reappearance in a consumer's file, and in consumer reports on the consumer, of information that has been deleted (other than information that has been reinserted after the person furnishing the information certifies that the information is complete and accurate, as required by Section 611(a)(5)(B)(i), 15 U.S.C. § 1681i(a)(5)(B)(i));\n\nE. Respondent shall provide written notice to the consumer of the results of the reinvestigation of any item disputed by the consumer under Section 611(a), 15 U.S.C. § 1681i(a), not later than five (5) business days after the completion of the reinvestigation of the item, as required by Section 611(a)(6), 15 U.S.C. § 1681i(a)(6), including but not limited to: 1. A notice that the consumer has the right to add a statement to the consumer's file disputing the accuracy or completeness of the information (\"dispute statement\"), as required by Section 611(a)(6)(B)(iv); and\n\n2. A notice, as required by Section 611(a)(6)(B)(v), that the consumer has the right to request that respondent provide either a notification that the item has been corrected or deleted, or the consumer's dispute statement described in paragraph E.1. above or a codification or summary of that dispute statement, to any person specifically designated by the consumer who has received a consumer report that contained the deleted or disputed information (a) within two years prior to the consumer's request, for employment purposes; or (b) within six months prior to the consumer's request, for any other purpose;\n\nF. If the reinvestigation under Section 611(a), 15 U.S.C. § 1681i(a), does not resolve the consumer's dispute, respondent shall permit the consumer to file a dispute statement, as required by Section 611(b), 15 U.S.C. § 1681i(b);\n\nG. As required by Section 611(c), 15 U.S.C. § 1681i(c), whenever a consumer files a dispute statement pursuant to paragraph I.F. above, respondent shall include the consumer's dispute statement, or a codification or summary of the dispute statement, in all subsequent consumer reports that respondent prepares concerning the consumer that contains the information in question, unless respondent has reasonable grounds to believe the dispute statement is frivolous or irrelevant; and\n\nH. Respondent shall, at the request of the consumer, provide a notification, as required by Section 611(d), 15 U.S.C. § 1681i(d), that a disputed item has been corrected or deleted, or the consumer's dispute statement or a codification or summary of that dispute statement, to any person specifically designated by the consumer who has received a consumer report that contained the deleted or disputed information (a) within two years prior to the consumer's request, for employment purposes; or (b) within six months prior to the consumer's request, for any other purpose.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "08.99_first_american_real_estate_solutions_ll", "company_name": "First American Real Estate Solutions, LLC", "date_issued": "1999-08-15", "year": 1999, "administration": "Clinton", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a), and Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681u", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/952-3267-first-american-real-estate-solutions-ll", "docket_number": "DOCKET NO." }, { "provision_number": "II", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Respondent must maintain all business records demonstrating compliance with this order for five years and make them available to the FTC upon request for inspection and copying.", "verbatim_text": "IT IS FURTHER ORDERED that respondent and its successors and assigns shall for five (5) years maintain and upon request make available to the Federal Trade Commission for inspection and copying all business records demonstrating respondent's compliance with the terms and provisions of this order.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "08.99_first_american_real_estate_solutions_ll", "company_name": "First American Real Estate Solutions, LLC", "date_issued": "1999-08-15", "year": 1999, "administration": "Clinton", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a), and Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681u", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/952-3267-first-american-real-estate-solutions-ll", "docket_number": "DOCKET NO." }, { "provision_number": "III", "title": "Order Acknowledgment and Delivery", "category": "acknowledgment", "summary": "Respondent must deliver a copy of this order to all current and future principals, officers, directors, managers, and relevant employees and agents, and obtain signed and dated acknowledgments of receipt within 30 days.", "verbatim_text": "IT IS FURTHER ORDERED that respondent and its successors and assigns shall deliver a copy of this order to all current and future principals, officers, directors, and managers, and to all current and future employees, agents, and representatives having responsibilities with respect to the subject matter of this order, and shall secure from each such person a signed and dated statement acknowledging receipt of the order. Respondent shall deliver this order to such current personnel within thirty (30) days after the date of service of this order, and to such personnel hired after such date within thirty (30) days after the person assumes such position or responsibilities.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "08.99_first_american_real_estate_solutions_ll", "company_name": "First American Real Estate Solutions, LLC", "date_issued": "1999-08-15", "year": 1999, "administration": "Clinton", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a), and Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681u", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/952-3267-first-american-real-estate-solutions-ll", "docket_number": "DOCKET NO." }, { "provision_number": "IV", "title": "Compliance Notification of Corporate Changes", "category": "compliance_reporting", "summary": "Respondent must notify the FTC at least 30 days prior to any corporate change that may affect compliance obligations, including dissolution, merger, sale, name change, or bankruptcy filing.", "verbatim_text": "IT IS FURTHER ORDERED that respondent and its successors and assigns shall notify the Commission at least thirty (30) days prior to any change in respondent that may affect compliance obligations arising under this order, including but not limited to a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor entity; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this order; the proposed filing of a bankruptcy petition; or a change in the entity name or address. Provided, however, that, with respect to any proposed change in the entity about which respondent learns less than thirty (30) days prior to the date such action is to take place, respondent shall notify the Commission as soon as is practicable after obtaining such knowledge. All notices required by this Part shall be sent by certified mail to the Associate Director, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C. 20580.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "08.99_first_american_real_estate_solutions_ll", "company_name": "First American Real Estate Solutions, LLC", "date_issued": "1999-08-15", "year": 1999, "administration": "Clinton", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a), and Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681u", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/952-3267-first-american-real-estate-solutions-ll", "docket_number": "DOCKET NO." }, { "provision_number": "V", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Respondent must file a written compliance report with the FTC within 60 days of service of this order and at such other times as the FTC may require (within 30 days of such requests).", "verbatim_text": "IT IS FURTHER ORDERED that respondent and its successors and assigns shall, within sixty (60) days after the date of service of this order, and, thereafter, within thirty (30) days of such other times as the Federal Trade Commission may require, file with the Commission a report, in writing, setting forth in detail the manner and form in which it has complied with this order.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "08.99_first_american_real_estate_solutions_ll", "company_name": "First American Real Estate Solutions, LLC", "date_issued": "1999-08-15", "year": 1999, "administration": "Clinton", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a), and Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681u", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/952-3267-first-american-real-estate-solutions-ll", "docket_number": "DOCKET NO." }, { "provision_number": "VI", "title": "Order Duration", "category": "duration", "summary": "This order terminates 20 years from the date of issuance, or 20 years from the most recent date the FTC files a federal court complaint alleging a violation, whichever is later, subject to specified exceptions.", "verbatim_text": "This order will terminate twenty (20) years from the date of its issuance, or twenty (20) years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of: 1. Any Part in this order that terminates in less than twenty (20) years; 2. This order's application to any respondent that is not named as a defendant in such complaint; and 3. This order if such complaint is filed after the order has terminated pursuant to this Part. Provided, further, that if such complaint is dismissed or a federal court rules that the respondent did not violate any provision of the order, and the dismissal or ruling is either not appealed or upheld on appeal, then the order will terminate according to this Part as though the complaint had never been filed, except that the order will not terminate between the date such complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "08.99_first_american_real_estate_solutions_ll", "company_name": "First American Real Estate Solutions, LLC", "date_issued": "1999-08-15", "year": 1999, "administration": "Clinton", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a), and Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681u", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/952-3267-first-american-real-estate-solutions-ll", "docket_number": "DOCKET NO." }, { "provision_number": "I", "title": "Prohibition on Misrepresentations Regarding Loan Payments and Fees", "category": "prohibition", "summary": "Defendants are permanently enjoined from misrepresenting payment amounts, fee legitimacy, loan terms, or any loan status information unless substantiated by competent and reliable evidence.", "verbatim_text": "A. Misrepresenting, expresslyorbyimplication, the amountofanypaymentorfee due ona loan;\n\nB. Misrepresenting, expresslyorbyimplication, thatanypaymentor fee due ona loanis allowedunderthe loaninstrumentsorpermittedbylaw;\n\nC. Misrepresenting, expresslyorbyimplication, the amount, nature, ortermsofany fee orothercondition orrequirementofanyloan; and\n\nD. Makinganyrepresentation, expresslyorbyimplication, about theamountofany paymentorfee, thedatethatanypayment orfee is due, oranyotherinformation regarding the terms, conditions, orstatusofa loan, unless, at the timeofmaking suchrepresentation, suchpersons possess andrelyoncompetentandreliable evidence thatsubstantiates therepresentation.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "09.08_emc_mortgage_co.", "company_name": "EMC Mortgage Corporation", "date_issued": "2008-09-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the FTC Act, 15 U.S.C. § 53(b); Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq.; Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq.; Truth in Lending Act (TILA) Regulation Z, 12 C.F.R. § 226", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3031-emc-mortgage-co", "docket_number": "4:08-cv-338" }, { "provision_number": "II", "title": "Prohibition on Unauthorized Fees", "category": "prohibition", "summary": "Defendants are permanently enjoined from assessing or collecting any fee unless it is for services actually rendered and is expressly authorized by loan instruments, permitted by law, or consented to by the consumer after clear and prominent disclosure.", "verbatim_text": "restrained andenjoined, inconnection with the servicingofanyloan, from assessing and/or collectinganyfee unless it is for services actuallyrenderedand is a) expresslyauthorized, and clearlyandprominentlydisclosed, bythe loan instruments andnotprohibited bylaw; 6 Case 4:08-cv-00338-RAS Document 4 Filed 09/09/2008 Page 7 of 22 b) expresslypermittedbylaw andnot prohibitedbythe loan instruments; orc) a reasonable fee for aspecific servicerequested byaconsumerthat is assessedand/orcollected onlyafterclear and prominentdisclosureofthe fee is providedto theconsumerand explicit consent isobtained from the consumerto paythe fee in exchange for theservice, and such fee is nototherwise prohibited bylaw orthe loan instruments.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "09.08_emc_mortgage_co.", "company_name": "EMC Mortgage Corporation", "date_issued": "2008-09-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the FTC Act, 15 U.S.C. § 53(b); Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq.; Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq.; Truth in Lending Act (TILA) Regulation Z, 12 C.F.R. § 226", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3031-emc-mortgage-co", "docket_number": "4:08-cv-338" }, { "provision_number": "III", "title": "Restrictions on Property Inspection Fees (5-Year Limitation)", "category": "prohibition", "summary": "For five years after entry of the Order, defendants are enjoined from assessing or collecting property inspection fees unless specific delinquency and frequency conditions are met, or inspections are required by law or HUD handbook.", "verbatim_text": "ITIS FURTHERORDERED that, for five (5) years afterthe date ofentryofthis Order, defendants, andeach ofthem, theirofficers, employees, agents, representatives, andallother persons orentities in activeconcertorparticipation with them who receive actual noticeofthis Orderbypersonal serviceorotherwise, directlyorthrough anycorporation, subsidiary, division, orotherdevice, are herebypermanentlyrestrainedandenjoined, inconnectionwith the servicing ofany loan, from assessing and/orcollectingfees forpropertyinspections,providedthat defendants mayimpose reasonable fees forpropertyinspections actuallyperformedif: (I) the consumer's loan paymenthas notbeenreceived withinforty-five (45) calendardays ofthe due date; and(2) the inspections are limited to the initial inspectionand to additional inspections duringtheperiodofcontinueddelinquencynot more frequent than everythirty(30)calendar days. Provided, however, thatdefendants maycharge fees forpropertyinspectionsactually performed ifthose inspections are otherwiserequiredbylaworregulation, orrequiredbywritten handbookrequirements issued bythe DepartmentofHousingand Urban Development(\"HUD\").", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "09.08_emc_mortgage_co.", "company_name": "EMC Mortgage Corporation", "date_issued": "2008-09-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the FTC Act, 15 U.S.C. § 53(b); Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq.; Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq.; Truth in Lending Act (TILA) Regulation Z, 12 C.F.R. § 226", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3031-emc-mortgage-co", "docket_number": "4:08-cv-338" }, { "provision_number": "IV", "title": "Prohibition on FDCPA Violations", "category": "prohibition", "summary": "Defendants are permanently enjoined from engaging in harassing, deceptive, or unfair debt collection practices and from failing to provide required debt validation notices, in connection with loans that were in default when obtained by defendants.", "verbatim_text": "A. Usingconductthe natural consequenceofwhichis to harass, oppress, orabuse anyperson, in violationofSection806ofthe FDCPA, 15 U.S.C. § 1692d, includingbutnot limitedto: (1)causinga telephonetoringorengagingany personin telephoneconversationrepeatedlyorcontinuouslywithintentto annoy, abuse, orharass anypersonatthe callednumber, in violationofSection806(5)of theFDCPA, 15 U.S.C. § 1692d(5);and(2) the placementoftelephonecalls withoutmeaningfuldisclosureofthecaller's identityinviolationofSection 806(6) ofthe FDCPA, 15 U.S.C. § 1692d(6);\n\nB. Usinganyfalse, deceptive, ormisleadingrepresentationormeans inconnection with the collectionofanydebt, inviolationofSection 807 ofthe FDCPA, 15 U.S.c. § I692e, including butnotlimitedto: (1) falselyrepresentingthe character, amount, orlegal statusofa debt, oranyservices rendered orcompensationwhich maybe lawfullyreceivedbyadebtcollectorfor collectionofa debt, inviolation ofSections 807(2)(A) and(B)ofthe FDCPA, 15 U.S.C. §§ 1692e(2)(A)and(B); (2)communicatingorthreateningto communicateto anypersoncredit informationwhich is known orwhichshouldbeknown to be false, includingthe failure to communicate thatadisputed debt is disputed, inviolationofSection 807(8)ofthe FDCPA, 15 U.S.C. § 1692e(8);(3) usingfalse representationsor 8 Case 4:08-cv-00338-RAS Document 4 Filed 09/09/2008 Page 9 of 22 deceptive means to collect or attemptto collectadebt orto obtain information concerninga consumer, in violationofSection 807(10) ofthe FDCPA, 15 U.S.C. § 1692e(10); and(4) failing to disclose in the initial written communicationwith theconsumerand, inaddition, ifthe initial communication withthe consumeris oral, in that initial oral communication, thatthe debt collectoris attemptingto collecta debt and thatanyinformationobtained willbeusedforthatpurpose, in violationofSection 807(11)ofthe FDCPA, 15 U.S.C. § 1692e(11);\n\nC. Usinganyunfairmeans to collectorattemptto collectadebt, includingbutnot limited to collectingamounts (includinganyinterest, fee, charge, orexpense incidental totheprincipal obligation) notauthorized bythe agreement creatingthe debt orpermittedbylaw,in violation ofSection808(1) ofthe FDCPA, 15 U.S.C. § 1692f(1);\n\nD. Failingto notifyconsumers oftheirright to disputeandobtain verificationoftheir debts and to obtainthe nameofthe original creditor, eitherin the initial communication withconsumersbydefendants, orwithin five days thereafter, in violation ofSection809(a) ofthe FDCPA, 15 U.S.C. § 1692g(a); and\n\nE. Failingto complyin anyotherrespectwith the FDCPA, as amended, oras it may be amended in the future.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "09.08_emc_mortgage_co.", "company_name": "EMC Mortgage Corporation", "date_issued": "2008-09-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the FTC Act, 15 U.S.C. § 53(b); Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq.; Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq.; Truth in Lending Act (TILA) Regulation Z, 12 C.F.R. § 226", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3031-emc-mortgage-co", "docket_number": "4:08-cv-338" }, { "provision_number": "V", "title": "Prohibition on FCRA Violations", "category": "prohibition", "summary": "Defendants are permanently enjoined from failing to report accounts as disputed to consumer reporting agencies when consumers dispute account accuracy, and from any other FCRA non-compliance.", "verbatim_text": "A. Failing to-reportaccounts as \"disputed\"to consumerreporting agencies, as requiredby Section623(a)(3) ofthe FCRA, 15 U.S.C. § 1681s-2(a)(3),when consumers dispute the completeness oraccuracyofanyinformation furnished to a consumerreporting agencyeitherinwriting, orally, orbyelectronic means; and\n\nB. Failingto complyinanyotherrespectwith the FeRA, as amended, oras itmay be amendedin the future.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "09.08_emc_mortgage_co.", "company_name": "EMC Mortgage Corporation", "date_issued": "2008-09-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the FTC Act, 15 U.S.C. § 53(b); Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq.; Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq.; Truth in Lending Act (TILA) Regulation Z, 12 C.F.R. § 226", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3031-emc-mortgage-co", "docket_number": "4:08-cv-338" }, { "provision_number": "VI", "title": "Prohibition on TILA Violations", "category": "prohibition", "summary": "Defendants are permanently enjoined from failing to make required TILA disclosures before consummating a consumer credit transaction, including loan modifications constituting a refinancing, and from any other TILA/Regulation Z non-compliance.", "verbatim_text": "A. Failingto make required TILAdisclosures beforeconsummatinga consumer credittransaction, includingbutnot limitedto in connectionwith a loan modification orotherloan workoutthatconstitutes a refinancingunderSections 226.18 and 226.20oftheTILA'simplementingRegulationZ, 12 C.F.R. §§ 226.18 and226.20; and\n\nB. Failingto complyinanyotherrespect with the TlLA and RegulationZ, as amended, or as theymaybe amendedin thefuture.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "09.08_emc_mortgage_co.", "company_name": "EMC Mortgage Corporation", "date_issued": "2008-09-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the FTC Act, 15 U.S.C. § 53(b); Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq.; Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq.; Truth in Lending Act (TILA) Regulation Z, 12 C.F.R. § 226", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3031-emc-mortgage-co", "docket_number": "4:08-cv-338" }, { "provision_number": "VII", "title": "Data Integrity Program", "category": "affirmative_obligation", "summary": "Within 90 days of entry of the Order, defendants must establish, implement, and maintain a comprehensive written data integrity program at EMC to ensure accuracy and completeness of consumer loan account data, including designated oversight, regular testing, and ongoing evaluation and adjustment.", "verbatim_text": "IT IS FURTHERORDERED thatdefendants, inconnection with the acquisition, transfer, orservicingofanyloan, shall, no laterthanninety(90) days afterthe date ofentryofthisOrder, establish and implement, andthereaftermaintainatEMC, acomprehensivedata integrity programthatis reasonablydesigned to ensure the accuracyand completeness ofdataand other informationthat EMC obtainsaboutconsumers' loan accounts, priorto servicingsuch accounts (\"data integrityprogram\"). Suchdata integrityprogram, the contentand implementation of whichmustbe fullydocumentedinwriting, shallbe appropriate to the nature, size, complexity, and scopeofdefendants' activities, and shall include:\n\nA. thedesignation ofan employeeoremployees to coordinateand beaccountable for the data integrityprogram;\n\nB. theregular testingormonitoringoftheeffectivenessofthe data integrityprogram; and\n\nC. theevaluation andadjustmentofthedataintegrityprogram inlightofthe results ofthe testingand monitoringrequired bysubparagraph VII.B, anymaterial changes to defendants' operations orbusiness arrangements, oranyother circumstances that defendants know orhave reason to know mayhaveamaterial impacton theeffectiveness ofthedataintegrityprogram.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Comprehensive Security Program" ], "case_id": "09.08_emc_mortgage_co.", "company_name": "EMC Mortgage Corporation", "date_issued": "2008-09-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the FTC Act, 15 U.S.C. § 53(b); Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq.; Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq.; Truth in Lending Act (TILA) Regulation Z, 12 C.F.R. § 226", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3031-emc-mortgage-co", "docket_number": "4:08-cv-338" }, { "provision_number": "VIII", "title": "Third-Party Data Integrity Assessment", "category": "assessment", "summary": "Defendants must obtain an initial third-party assessment of their data integrity program within 180 days of entry of the Order and biennially thereafter for eight years, and provide the first assessment along with supporting materials to the FTC within 10 days of delivery; subsequent assessments must be retained and provided to the Commission within 10 days of request.", "verbatim_text": "ITIS FURTHERORDERED thatdefendants obtainan assessmentand report(an \"Assessment\") from aqualified, objective, independentthird-partyprofessional, using 11 Case 4:08-cv-00338-RAS Document 4 Filed 09/09/2008 Page 12 of 22 procedures and standards generallyaccepted intheprofession, withinonehundred andeighty (180) days afterthe date ofentryoftheOrder, and bienniallythereafter for eight(8) years after entryofthe Order, that: A. sets forth the specific dataintegrityprogram thatdefendants have implemented and maintained during thereportingperiod; B. explains howsuchdataintegrityprogram is appropriate todefendants' sizeand complexity, andthe nature and scopeofdefendants' activities; and C. explains how thedataintegrityprogrammeets orexceeds the protectionsrequired bySectionVIIofthis Order.\n\nDefendants shallprovidethe first Assessment, as well as all: plans,reports, studies, reviews, audits,audit trails, policies, trainingmaterials, andassessments, whetherpreparedbyoron behalfofdefendants, reliedupon to preparesuchAssessment, to the Commission, within ten(10) days afterthe Assessment is deliveredto defendants. Allsubsequentbiennial Assessments shall\n\ndays afterthe Assessment is deliveredto defendants. Allsubsequentbiennial Assessments shall be retainedbydefendants andprovidedto theCommissionwithin ten(10) days ofrequest.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Third-Party Assessment" ], "case_id": "09.08_emc_mortgage_co.", "company_name": "EMC Mortgage Corporation", "date_issued": "2008-09-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the FTC Act, 15 U.S.C. § 53(b); Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq.; Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq.; Truth in Lending Act (TILA) Regulation Z, 12 C.F.R. § 226", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3031-emc-mortgage-co", "docket_number": "4:08-cv-338" }, { "provision_number": "IX", "title": "Pre-Foreclosure Verification Requirements (8-Year Obligation)", "category": "affirmative_obligation", "summary": "For eight years after entry of the Order, defendants are enjoined from initiating a foreclosure action or assessing related fees until they have verified the consumer's material default, confirmed no prohibited acts have occurred (or have been remedied), and investigated any consumer disputes; defendants must maintain records documenting these steps.", "verbatim_text": "ITIS FURTHERORDEREDthat, for eight(8) years afterthedateofentryofthis Order, defendants, andeach ofthem, theirofficers, employees, agents, representatives, and all other persons orentities in active concertorparticipation with them whoreceiveactualnoticeofthis Orderbypersonal service orotherwise, directlyorthrough anycorporation, subsidiary, division, orotherdevice, are herebypermanentlyrestrained andenjoined, in connectionwith the servicing ofanyloan, from initiating a foreclosure action, orassessingfees inconnectionwithanactual or threatened foreclosure action, until the defendants have: a) reviewed all available records 12 Case 4:08-cv-00338-RAS Document 4 Filed 09/09/2008 Page 13 of 22 pertainingto the consumer's loan to verifythat the consumeris in material default underthe terms ofthe loan instruments; b)confirmedthatdefendants have notsubjected the consumerto anyofthe actsorpracticesprohibitedbythis Order, the loan instruments, orlaw, orifsuch acts orpractices haveoccurred, thatdefendants haveremedied them; and c) investigatedanydisputes bythe consumerand informedthe consumeroftheresultsofthe investigation. Defendantsshall maintain records sufficientto document the steps theytake to investigateand concludeeach dispute.\n\nmaintain records sufficientto document the steps theytake to investigateand concludeeach dispute.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "09.08_emc_mortgage_co.", "company_name": "EMC Mortgage Corporation", "date_issued": "2008-09-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the FTC Act, 15 U.S.C. § 53(b); Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq.; Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq.; Truth in Lending Act (TILA) Regulation Z, 12 C.F.R. § 226", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3031-emc-mortgage-co", "docket_number": "4:08-cv-338" }, { "provision_number": "X", "title": "Monetary Relief — Consumer Redress Payment", "category": "affirmative_obligation", "summary": "Defendants must jointly and severally pay $28,000,000 to the FTC within five business days of entry of the Order for consumer redress; unpaid amounts accrue interest and defendants bear collection costs in case of default.", "verbatim_text": "A. Defendants,jointlyandseverally, shallpaytheamountoftwenty-eightmillion dollars ($28,000,000.00) toremedythe violations oflaw allegedbythe FTC. This amount constitutesredress paidfor the benefit ofconsumers, anddoes not constitute acivilpenalty. Onorbeforefive (5)business days afterthe date of entryofthis Order, defendants shallwire transferthe sum oftwenty-eightmillion dollars ($28,000,000.00) to the Commission orsuchagentas the Commission maydirect, pursuant to instructions providedbythe Commission. All funds paid pursuantto this Ordershall bedeposited into a fund administeredbythe Commission orits agent to be usedforequitable relief, inch:tding butnot limited to consumerredress and anyattendant expenses for the administration ofthe redress program. In the eventthatdirectredress to consumers is whollyor partiallyimpracticable orfunds remainafterredress is completed, the 13 Case 4:08-cv-00338-RAS Document 4 Filed 09/09/2008 Page 14 of 22 Commissionmayapplyany remaining funds for such otherequitablerelief (includingconsumerinformationremedies) as itdetermines to bereasonably related to thedefendants' practices alleged in the Complaint. Any funds notused for such equitablereliefshall bedepositedasequitable disgorgementintothe United States Treasury. Defendants shaH haveno right to challenge the FTC's choiceofremedies underthis Section.\n\nB. Inthe event thatdefendantsdefaultonanyobligationto make anypaymentset forth inthis Order, which defaultcontinues forten (10) days beyondthe due date ofthe payment, the entireunpaidamounttogetherwith interest, computed pursuantto 28 U.S.c. § 1961(a) from thedateofdefault to thedateofpayment, shall immediatelybecomedue andpayable. Notwithstandinganyotherprovision ofthisOrder, defendants agree that iftheyfail to meetanypaymentobligations setforth in this Order, defendants shallpaythe costs andattorneys' fees incurred bythe Commission orits agents inanyattempts to collect amounts due pursuant to thisOrder. Forthepurposeofanysubsequentproceedings to enforcepayments requiredbythis Section ofthisOrder, includingbutnot limitedto, a nondischargeabilityactionfiled ina bankruptcyproceeding, the defendantswaive anyright to contest the allegations in theCommission's Complaint.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "09.08_emc_mortgage_co.", "company_name": "EMC Mortgage Corporation", "date_issued": "2008-09-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the FTC Act, 15 U.S.C. § 53(b); Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq.; Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq.; Truth in Lending Act (TILA) Regulation Z, 12 C.F.R. § 226", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3031-emc-mortgage-co", "docket_number": "4:08-cv-338" }, { "provision_number": "XI", "title": "Data Provision to Facilitate Redress", "category": "affirmative_obligation", "summary": "To facilitate consumer redress under Section X, defendants must provide the Commission or its designated agent all information reasonably required to administer redress, including a complete electronic data set in a compatible format, within 30 calendar days of a written request.", "verbatim_text": "ITIS FURTHERORDEREDthatto facilitate redress under SectionX above, the defendants shallprovidetheCommission and/oritsdesignated agent, within thirty(30) calendar 14 Case 4:08-cv-00338-RAS Document 4 Filed 09/09/2008 Page 15 of 22 days after receivingawritten requestbytheCommission orits designated agent, with all informationreasonablyrequired toadministerredress. Defendants shallprovide acomplete electronicallystored data setin a compatible format (as reasonablydetermined bythe FTC and/or its agent).", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Consumer Redress" ], "case_id": "09.08_emc_mortgage_co.", "company_name": "EMC Mortgage Corporation", "date_issued": "2008-09-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the FTC Act, 15 U.S.C. § 53(b); Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq.; Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq.; Truth in Lending Act (TILA) Regulation Z, 12 C.F.R. § 226", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3031-emc-mortgage-co", "docket_number": "4:08-cv-338" }, { "provision_number": "XII", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The FTC is authorized to monitor defendants' compliance through written reports, document production, depositions, facility inspections, and interviews of personnel; defendants must cooperate within 20 days of written notice.", "verbatim_text": "A. Within twenty(20) daysofreceiptofwrittennotice froma representative ofthe Commission, defendants eachshall submitadditional writtenreports, swornto underpenaltyofperjury; producedocuments for inspectionandcopying; appear for deposition; and/orprovideentryduringnormal businesshours to anybusiness location in such defendant's possessionordirectorindirectcontrolto inspectthe business operation,providedthatdefendants, afterattempting to resolveadispute withoutcourtaction and for goodcauseshown, mayfile amotionwith this Court seekinganorderincludingone ormoreofthe protections set forth in Fed. R. Civ. P.26(c);\n\nB. In addition, theCommission is authorized to monitorcompliancewiththis Order byall otherlawful means, includingbut notlimitedto obtainingdiscoveryfrom anyperson, withoutfurther leaveofcourt, using the proceduresprescribedbyFed. R. Civ. P. 30,31,33,34,36,and 45; and\n\nC. Defendants shallpermitrepresentativesofthe Commission to interview any 15 Case 4:08-cv-00338-RAS Document 4 Filed 09/09/2008 Page 16 of 22 employer, consultant, independentcontractor, representative, agent, oremployee who has agreed to such an interview,relating in anywayto anyconduct subjectto this Order. Thepersoninterviewedmayhavecounsel present.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "09.08_emc_mortgage_co.", "company_name": "EMC Mortgage Corporation", "date_issued": "2008-09-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the FTC Act, 15 U.S.C. § 53(b); Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq.; Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq.; Truth in Lending Act (TILA) Regulation Z, 12 C.F.R. § 226", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3031-emc-mortgage-co", "docket_number": "4:08-cv-338" }, { "provision_number": "XIII", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "For five years, defendants must notify the FTC of corporate structure changes at least 30 days in advance; within 180 days of entry of the Order each defendant must submit a sworn written compliance report to the FTC including any required change notifications and copies of acknowledgments of receipt of the Order.", "verbatim_text": "A. Foraperiodoffive (5) years from the dateofentryofthis Order, defendants shall notifythe Commission ofanychanges indefendants' corporate structurethatmay affectcomplianceobligations arisingunderthis Order, including butnotlimitedto adissolution, assignment, sale, merger, orotheractionthatwould result in the emergenceofa successorcorporation; the creationordissolutionofa subsidiary, parent, oraffiliate thatengages inanyacts orpractices subjectto thisOrder; the filing ofabankruptcypetition; orachange inthe corporatenameoraddress, at least thirty(30) days priorto such change,providedthat, with respectto any proposedchange inthe corporationaboutwhich the defendant learns less than thirty(30) days priorto thedate such actionis to takeplace, defendantshallnotify 16 Case 4:08-cv-00338-RAS Document 4 Filed 09/09/2008 Page 17 of 22 the Commission as soon as is practicable afterobtaining suchknowledge.\n\nB. One hundred eighty (180) days afterthe date ofentryofthis Order, defendants each shallprovide a written report to the FTC, swornto underpenalty ofperjury, settingforth in detail the mannerandform in which theyhave compliedand are complying with this Order. This report shall include, butnotbe limited to: (1) Anychangesrequired to bereportedpursuantto subparagraph (A) above; and (2) A copy ofeach acknowledgmentofreceiptofthis Order, obtained pursuantto SectionXVI.\n\nC. Forthepurposes ofthis Order, defendants shall, unless otherwise directedbythe Commission's authorizedrepresentatives, mail all writtennotifications to the Commissionto: Associate Directorfor Enforcement Federal Trade Commission 600 PennsylvaniaAvenue, N.W. Washington, D.C. 20580 Re: FTCv. EMCMortgage Corporation, etai.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "09.08_emc_mortgage_co.", "company_name": "EMC Mortgage Corporation", "date_issued": "2008-09-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the FTC Act, 15 U.S.C. § 53(b); Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq.; Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq.; Truth in Lending Act (TILA) Regulation Z, 12 C.F.R. § 226", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3031-emc-mortgage-co", "docket_number": "4:08-cv-338" }, { "provision_number": "XIV", "title": "Recordkeeping", "category": "recordkeeping", "summary": "For eight years from entry of the Order, defendants must create and retain for at least three years after preparation: accounting records, personnel records, customer files, consumer complaints and responses, training materials and policy manuals, and all records necessary to demonstrate full compliance with the Order.", "verbatim_text": "ITIS FURTHERORDERED that, for a period ofeight (8)years from the date ofentry of this Order, defendants, and each ofthem, and theiragents, employees, officers, corporations, successors, and assigns, and those persons in active concert orparticipationwith them who receive actual notice ofthis Orderbypersonal service orotherwise, are herebypermanently restrainedandenjoined, in connectionwith the servicing ofany loan, from failing to create and 17 Case 4:08-cv-00338-RAS Document 4 Filed 09/09/2008 Page 18 of 22 retain, for aperiod ofthree (3) years afterthe date ofpreparation ofthe record, the following records: A. Accountingrecords that reflect thecostofloans acquiredand/orsold; revenues generated from servicingfees and/orfeespaidbyand/or imposedonconsumers; and thedisbursementofsuch revenues; B. Personnelrecords accuratelyreflecting: the name, address, and telephone number ofeach personemployedinanycapacitybysuch business, includingas an independentcontractor; thatperson'sjob titleorposition; thedate uponwhich the personcommencedwork; andthedateandreason fortheperson's termination,if applicable; C. Customerfiles containingthenames, addresses, telephonenumbers (ifavailable), dollaramountspaid, anddescriptionoffees orothercharges imposed; D. Complaints, disputes, andrequestsfrom consumers (whetherreceiveddirectly, indirectlyorthrough anythirdparty) andanyresponses to thosecomplaints, disputes, orrequests; E. Copies ofall trainingmaterials andpolicymanuals; and F. All records anddocuments necessarytodemonstrate full compliancewitheach provisionofthis Order, includingbutnotlimited to, copies ofacknowledgments ofreceiptofthis Order,requiredbySectionXVI, and allreports submittedto the FTC pursuantto SectionXIII.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "09.08_emc_mortgage_co.", "company_name": "EMC Mortgage Corporation", "date_issued": "2008-09-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the FTC Act, 15 U.S.C. § 53(b); Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq.; Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq.; Truth in Lending Act (TILA) Regulation Z, 12 C.F.R. § 226", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3031-emc-mortgage-co", "docket_number": "4:08-cv-338" }, { "provision_number": "XV", "title": "Distribution of Order by Defendants", "category": "acknowledgment", "summary": "For five years from entry of the Order, defendants must deliver a copy of the Order to all principals, officers, directors, managers, employees, agents, and representatives with supervisory responsibility over the subject matter of the Order, and secure signed and dated acknowledgments of receipt within 30 days of delivery.", "verbatim_text": "IT IS FURTHERORDERED that, for a periodoffive (5) years from the date ofentryof this Order, defendants shall delivercopiesofthe Orderas directed below: A. Defendants shall delivera copyofthisOrdertoall principals, officers, directors, managers, employees, agents, and representatives having supervisory responsibilitywith respect to the subjectmatterofthis Order. Forcurrent personnel, deliveryshall bewithinthirty(30) daysofserviceofthisOrderupon defendants. Fornewpersonnel, deliveryshall occurpriorto them assumingtheir responsibilities.\n\nB. Defendantsmustsecure a signedanddated statementacknowledgingreceiptof the Order, within thirty(30) daysofdelivery, from all persons receivingacopyof theOrderpursuantto this Part.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "09.08_emc_mortgage_co.", "company_name": "EMC Mortgage Corporation", "date_issued": "2008-09-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the FTC Act, 15 U.S.C. § 53(b); Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq.; Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq.; Truth in Lending Act (TILA) Regulation Z, 12 C.F.R. § 226", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3031-emc-mortgage-co", "docket_number": "4:08-cv-338" }, { "provision_number": "XVI", "title": "Acknowledgment of Receipt of Order by Defendants", "category": "acknowledgment", "summary": "Each defendant must submit to the Commission a truthful sworn statement acknowledging receipt of the Order within five business days of receipt.", "verbatim_text": "IT IS FURTHERORDEREDthateachdefendant, within five (5) business days ofreceipt ofthis Orderas enteredbythe Court, mustsubmitto theCommission a truthful sworn statement acknowledgingreceiptofthis Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "09.08_emc_mortgage_co.", "company_name": "EMC Mortgage Corporation", "date_issued": "2008-09-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the FTC Act, 15 U.S.C. § 53(b); Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq.; Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq.; Truth in Lending Act (TILA) Regulation Z, 12 C.F.R. § 226", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3031-emc-mortgage-co", "docket_number": "4:08-cv-338" }, { "provision_number": "XVII", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction over this matter for purposes of construction, modification, and enforcement of the Order.", "verbatim_text": "IT IS FURTHERORDERED thatthisCourtshallretainjurisdictionofthis matterfor purposes ofconstruction, modification andenforcement ofthis Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "09.08_emc_mortgage_co.", "company_name": "EMC Mortgage Corporation", "date_issued": "2008-09-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the FTC Act, 15 U.S.C. § 53(b); Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq.; Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq.; Truth in Lending Act (TILA) Regulation Z, 12 C.F.R. § 226", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3031-emc-mortgage-co", "docket_number": "4:08-cv-338" }, { "provision_number": "XVIII", "title": "Final Judgment and Order", "category": "duration", "summary": "The parties consent to entry of the Order as a final judgment and order, with each party bearing its own costs and attorneys' fees.", "verbatim_text": "TheParties herebyconsent to entryofthe foregoing Order,which shall constitutea final judgmentandorder, each Partyto bearitsowncosts andattorneys' fees incurred inconnection with this action.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "09.08_emc_mortgage_co.", "company_name": "EMC Mortgage Corporation", "date_issued": "2008-09-15", "year": 2008, "administration": "G.W. Bush", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the FTC Act, 15 U.S.C. § 53(b); Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq.; Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq.; Truth in Lending Act (TILA) Regulation Z, 12 C.F.R. § 226", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/062-3031-emc-mortgage-co", "docket_number": "4:08-cv-338" }, { "provision_number": "I", "title": "Biennial Assessment Requirements", "category": "assessment", "summary": "Defendant must obtain biennial assessments from a qualified, independent third-party professional covering specified reporting periods, with each assessment setting forth safeguards, explaining their appropriateness, and certifying the effectiveness of the security program.", "verbatim_text": "IITT IISS FFUURRTTHHEERR OORRDDEERREEDD tthhaatt DDeeffeennddaanntt sshhaallll oobbttaaiinn aasssseessssmmeennttss aanndd rreeppoorrttss ((\"\"AAsssseessssmmeennttss\"\")) ffrroomm aa qquuaalliiffiieedd,, oobbjjeeccttiivvee,, iinnddeeppeennddeenntt tthhiirrdd--ppaarrttyy pprrooffeessssiioonnaall wwhhoo uusseess pprroocceedduurreess aanndd ssttaannddaarrddss ggeenneerraallllyy aacccceepptteedd iinn tthhee pprrooffeessssiioonn.. TThhee AAsssseessssmmeennttss sshhaallll ccoovveerr tthhee II ffoolllloowwiinngg rreeppoorrttiinngg ppeerriiooddss:: II ((11)) AAuugguusstt 1166,,22000088 ttoo AAuugguusstt 1155,,22001100;; ,,II ((22)) AAuugguusstt:: 1166,,22001100 ttoo FFeebbrruuaarryy 33,, 22001111;; II ((33)) EEvveerryy ttwwoo yyeeaarrss ffrroomm FFeebbrruuaarryy 44,, 22001111 ttoo FFeebbrruuaarryy 33,, 22002255;; aanndd II ((44)) FFeebbrruuaarryy 44,,22002255 ttoo FFeebbrruuaarryy 1155,,22002266;;\n\nPPrroovviiddeedd hhoowweevveerr,, tthhaatt tthhee CCoommttnniissss~~ aatt iittss ssoollee ddiissccrreettiioonn,, mmaayy rreeqquuiirree DDeeffeennddaanntt ttoo oobbttaaiinn uupp ttoo ttwwoo aaddddiittiioonnaall AA''SSSSee88SSmmeennttss ccoovveerriinngg tthhee ttwwoo ttwwoo--yyeeaarr ppeerriiooddss ffoolllloowwiinngg tthhee ffiinnaall AAsssseessssmmeenntt PPeerriioodd eennddiinngg FFeebbrruuaarryy 1155,,22002266,, iifftt hhee FFTTCC pprroovviiddeess tthhee DDeeffeennddaanntt wwiitthh wwrriitttteenn --22­- Case 1:06-cv-00198-JTC Document 10 Filed 09/03/10 Page 3 of 7 CCaassee 11:: 0066--ccvv--0000119988--JJTTCC DDooccuummeenntt 99--11 FFiilleedd 0099//0022//1100 PPaaggee 33 ooff 77 nnoottiiccee bbeettwweeeenn FFeebbrruuaarryy 1155,, 22002244 aanndd AAuugguusstt 1155,,22002255,, ssttaattiinngg tthhaatt tthhee ffiirrsstt ssuucchh aaddddiittiioonnaall AAsssseessssmmeenntt wwiillll bbee rreeqquuiirreedd,, aanndd//oorr wwrriitttteenn nnoottiiccee,, bbeettwweeeenn FFeebbrruuaarryy 1155,,22002266 aanndd AAuugguusstt 1155,, 22002277 tthhaatt tthhee sseeccoonndd aaddddiittiioonnaall AAsssseessssmmeenntt wwiillll bbee rreeqquuiirreedd..\n\nAA.. SSeett ffoorrtthh tthhee ssppeecciiffiicc aaddmmiinniissttrraattiivvee,, tteecchhnniiccaall,, ..aanndd pphhyyssiiccaall ssaaffeegguuaarrddss tthhaatt DDeeffeennddaanntt hhaass iimmpplleemmeenntteedd aanndd mmaaiinnttaaiinneedd dduurriinngg tthhee rreeppoorrttiinngg ppeelliioodd ttoo ccoommppllyy wwiitthh PPaarraaggrraapphh iillll ooff tthhee FFiinnaall OOrrddeerr;;\n\nCC.. EExxppllaaiinn hhooww tthhee ssaaffeegguuaarrddss tthhaatt hhaavvee bbeeeenn iimmpplleemmeenntteedd mmeeeett oorr eexxcceeeedd tthhee pprrootteeccttiioonnss rreeqquuiirreedd bbyy PPaarraaggrraapphh iillll ooff tthhee FFiinnaall OOrrddeerr;; aanndd\n\nCC.. EExxppllaaiinn hhooww tthhee ssaaffeegguuaarrddss tthhaatt hhaavvee bbeeeenn iimmpplleemmeenntteedd mmeeeett oorr eexxcceeeedd tthhee pprrootteeccttiioonnss rreeqquuiirreedd bbyy PPaarraaggrraapphh iillll ooff tthhee FFiinnaall OOrrddeerr;; aanndd\n\nDD.. CCeerrttiiffyy tthhaatt DDeeffeennddaanntt''ss sseeccuurriittyy pprrooggrraamm iiss ooppeerraattiinngg wwiitthh ssuuffffiicciieenntt eeffffeeccttiivveenneessss ttoo pprroovviiddee rreeaassoonnaabbllee aassBBUUrraaDDccee tthhaatt tthhee sseeccuurriittyy,, ccoonnffiiddeennttiiaalliittyy,, aanndd iinntteeggrriittyy ooff ppeerrssoonnaall iinnffoorrmmaattiioonn iiss pprrootteecctteedd,, aanndd hhaass ssoo ooppeerraatteedd tthhrroouugghhoouutt tthhee rreeppoorrttiinngg ppeerriioodd\n\nEEaacchh AAsssseessssmmeenntt sshhaallll bbee pprreeppaarreedd aanndd ccoommpplleetteedd wwiitthhiinn ssiixxttyy ((6600)) ddaayyss aafftteerr tthhee eenndd ooff tthhee rreeppoorrttiinngg ppeerriioodd ttoo wwhhiicchh tthhee AAsssseessssmmeenntt aapppplliieess bbyy aa ppeerrssoonn qquuaalliiffiieedd aass aa CCeerrttiiffiieedd IInnffoonnnnaattiioonn SSyysstteemm SSeeccuurriittyy PPrrooffeessssiioonnaall ((CCIISSSSPP)) oorr aass aa CCeerrttiiffiieedd IInnffoorrmmaattiioonn SSyysstteemmss AAuuddiittoorr ((CCIISSAA));; aa ppeerrssoonn hhoollddiinngg GGlloobbaall IInnffoorrmmaattiioonn AAssssuurraannccee CCeerrttiiffiiccaattiioonn ((GGIIAACC)) ffrroomm tthhee SSyyssAAddmmiinn,,.. AAuuddiitt,, NNeettwwoorrkk,, SSeeccuurriittyy ((SSAANNSS)) IInnssttiittuuttee;; oorr aa ssiimmiillaarrllyy qquuaalliiffiieedd ppeerrssoonn OOll'' oorrggaanniizzaattiioonn aapppprroovveedd bbyy tthhee AAssssoocciiaattee DDiirreeccttoorr ffoorr EEnnffoorrcceemmeenntt,, BBuurreeaauu ooff CCoonnssuummeerr PPrrootteeccttiioonn,, FFeeddeerraall TTrraaddee CCoommmmiissssiioonn..\n\nWWiitthhiinn ffiifftteeeenn ((1155)) ddaayyss aafftteerr eeaacchh AAsssseessssmmeenntt iiss pprreeppaarreedd aanndd ccoommpplleetteedd,, DDeeffeennddaanntt --33­- Case 1:06-cv-00198-JTC Document 10 Filed 09/03/10 Page 4 of 7 CCaassee 11:: 0066--ccvv--0000119988--JJTTCC DDooccuummeenntt 99--11 FFiilleedd 0099//0022//1100 PPaaggee 44 ooff 77 sshhaallll nnoottiiffyy tthhee CCeemmmmiissssiioonn tthhaatt tthhee AAsssseessssmmeenntt hhaass bbeeeenn pprreeppaarreedd aanndd ccoommpplleetteedd aanndd pprroovviiddee:: ((11)) tthhee nnaammee,, aaddddrreessss,, pphhoonnee nnuummbbeerr,, aanndd ccrreeddeennttiiaallss oofftt hhee tthhiirrdd--ppaarrttyy pprrooffeessssiioonnaall wwhhoo ccoonndduucctteedd tthhee AAsssseessssmmeenntt;; ((22)) aann oovveerrvviieeww ooff tthhee aaddmmiinnii..ssttrraa..ttiivvee,, tteecchhnniiccaall,, aanndd pphhyyssiiccaall ssaaffeegguuaarrddss tthhee tthhiirrdd--ppaarrttyy pprrooffeessssiioonnaall eevvaalluuaatteedd ffoorr tthhee AAsssseessssmmeenntt;; aanndd ((33)) pprrooooff ooff cceerrttiiffiiccaattiioonn ffrroomm tthhee tthhiirrdd--ppaarrttyy pprrooffeessssiioonnaall aass rreeqquuiirreedd uunnddeerr PPaarraaggrraapphh 11..DD oofftt hhiiss SSeeccoonndd SSuupppplleemmeennttaall OOrrddeerr.. DDeeffeennddaanntt sshhaallll ddeelliivveerr aallll nnoottiiffiiccaattiioonnss ttoo tthhee CCoommmmiissssiioonn ppuurrssuuaanntt ttoo PPaarraaggrraapphh IIVV..DD ooff tthhee SSuupppplleemmeennttaall OOrrddeerr..\n\nAAllll AAsssseessssmmeennttss sshhaallll bbee rreettaaiinneedd bbyy DDeeffeennddaanntt uunnttiill tthhrreeee ((33)) yyeeaarrss aafftteerr ccoommpplleettiioonn ooff tthhee ffiinnaall AAsssseessssmmeenntt aanndd pprroovviiddeedd ttoo tthhee AAssssoocciiaattee DDiirreeccttoorr ffoorr EEnnffoorrcceemmeenntt uuppoonn rreeqquueesstt wwiitthhiinn tteenn ((1100)) bbuussiinneessss ddaayyss aafftteerr DDeeffeennddaanntt rreecceeiivveess ssuucchh rreeqquueesstt..", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Third-Party Assessment" ], "case_id": "09.10_choicepoint", "company_name": "ChoicePoint Inc.", "date_issued": "2010-09-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/052-3069-choicepoint-inc", "docket_number": "1:06-cv-00198-JTC" }, { "provision_number": "II", "title": "Retention of Jurisdiction", "category": "monitoring", "summary": "The Court retains jurisdiction over this matter for purposes of construction, modification, and enforcement of this Second Supplemental Order.", "verbatim_text": "IITT IISS FFUURRTTHHEERR OORRDDEERREEDD tthhaatt tthhiiss CCoouurrtt sshhaallll rreettaaiinn jjuurriissddiiccttiioonn ooff tthhiiss mmaatttteerr ffoorr ppuurrppoosseess ooff ccoonnssttrruuccttiioonn,, mmooddiiffiiccaattiioonn,, aanndd eennffoorrcceemmeenntt ooff tthhiiss SSeeccoonndd SSuupppplleemmeennttaall OOrrddeerr..", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Order Administration" ], "case_id": "09.10_choicepoint", "company_name": "ChoicePoint Inc.", "date_issued": "2010-09-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/052-3069-choicepoint-inc", "docket_number": "1:06-cv-00198-JTC" }, { "provision_number": "III", "title": "Costs and Attorney's Fees", "category": "acknowledgment", "summary": "Each party shall bear its own costs and attorney's fees incurred in connection with this action.", "verbatim_text": "IITT IISS FFUURRTTHHEERR OORRDDEERREEDD tthhaatt eeaacchh ppaarrttyy sshhaallll bbeeaarr iittss oowwnn ccoossttss aanndd aattttoorrnneeyy''ss ffeeeess iinnccuurrrreedd iinn ccoonnnneeccttiioonn wwiitthh tthhiiss aaccttiioonn..", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Order Administration" ], "case_id": "09.10_choicepoint", "company_name": "ChoicePoint Inc.", "date_issued": "2010-09-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/052-3069-choicepoint-inc", "docket_number": "1:06-cv-00198-JTC" }, { "provision_number": "IV", "title": "Notice of Entry of Supplemental Order", "category": "acknowledgment", "summary": "Entry of this Second Supplemental Order in the court docket constitutes notice to Defendant of its terms and conditions, and Defendant waives all rights to contest proper service in any future proceeding.", "verbatim_text": "IITT IISS FFUURRTTHHEERR OORRDDEERREEDD tthhaatt eennttrryy iinn tthhee ddoocckkeett ooff tthhiiss SSeeccoonndd SSuupppplleemmeennttaall OOrrddeerr bbyy tthhee CClleerrkk ooff CCoouurrtt sshhaallll ccoonnssttiittuuttee nnoottiiccee ttoo DDeeffeennddaanntt ooff tthhee tteennnnss aanndd ccoonnddiittiioonnss ooff tthhiiss SSeeccoonndd SSuupppplleemmeennttaall OOrrddeerr.. aanndd tthhaatt DDeeffeennddaanntt wwaaiivveess aallll rriigghhttss ttoo ccoonntteesstt iinn aannyy ffuuttuurree pprroocceeeeddiinngg wwhheetthheerr DDeeffeennddaanntt wwaass pprrooppeerrllyy sseerrvveedd wwiitthh tthhiiss SSeeccoonndd SSuupppplleemmeennttaall OOllddeerr..", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Order Administration" ], "case_id": "09.10_choicepoint", "company_name": "ChoicePoint Inc.", "date_issued": "2010-09-15", "year": 2010, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/052-3069-choicepoint-inc", "docket_number": "1:06-cv-00198-JTC" }, { "provision_number": "I", "title": "Prohibited Business Activities", "category": "prohibition", "summary": "Defendant is permanently restrained and enjoined from failing to comply with federal regulations regarding policies and procedures for accuracy and integrity of information furnished to consumer reporting agencies, and from failing to reasonably investigate direct disputes about account information.", "verbatim_text": "1. Failing to comply with 12 C.F.R. § 1022.42, a copy of which is attached as Attachment A, including by failing to establish and implement written policies and procedures regarding the accuracy and integrity of information relating to consumers that is furnished to any CRA; and\n\n2. Failing to comply with 12 C.F.R. § 1022.43, a copy of which is attached as Attachment B, including by failing to reasonably or adequately investigate direct disputes about the accuracy of account balance information it furnishes to any CRA.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "09.15_tricolor_auto_acceptance", "company_name": "Tricolor Auto Acceptance, LLC", "date_issued": "2015-09-15", "year": 2015, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Furnisher Rule, 16 C.F.R. § 660, recodified at 12 C.F.R. § 1022, Subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3073-tricolor-auto-acceptance-llc", "docket_number": "3:15-cv-03002-G" }, { "provision_number": "2", "title": "Monetary Judgment for Civil Penalty", "category": "affirmative_obligation", "summary": "Defendant must pay a civil penalty of $82,777 to the United States within 7 days of entry of the order.", "verbatim_text": "2. Defendant is ordered to pay to the plaintiff by making payment to the Treasurer of the United States, eighty-two thousand seven hundred seventy-seven dollars ($82, 777), which, as defendant stipulates, its undersigned counsel holds in escrow for no purpose other than payment to plaintiff. Such payment must be made within seven (7) days of the entry of this order by electronic fund transfer in accordance with instructions previously provided by a representative of plaintiff.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "09.15_tricolor_auto_acceptance", "company_name": "Tricolor Auto Acceptance, LLC", "date_issued": "2015-09-15", "year": 2015, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Furnisher Rule, 16 C.F.R. § 660, recodified at 12 C.F.R. § 1022, Subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3073-tricolor-auto-acceptance-llc", "docket_number": "3:15-cv-03002-G" }, { "provision_number": "III", "title": "Additional Monetary Provisions", "category": "affirmative_obligation", "summary": "If defendant defaults on payment obligations, the full judgment amount with interest becomes immediately due, and defendant relinquishes all rights to assets transferred under the order.", "verbatim_text": "1. If defendant is in default on any obligation under this Section, then the judgment amount, together with interest computed pursuant to 28 U.S.C. § 1961 from the date of default to the date of payment, minus any payments previously made pursuant to this Section, becomes immediately due.\n\n2. Defendant relinquishes dominion and all legal and equitable right, title, and interest in all assets transferred pursuant to this order and may not seek the return of any assets.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Consumer Redress" ], "case_id": "09.15_tricolor_auto_acceptance", "company_name": "Tricolor Auto Acceptance, LLC", "date_issued": "2015-09-15", "year": 2015, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Furnisher Rule, 16 C.F.R. § 660, recodified at 12 C.F.R. § 1022, Subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3073-tricolor-auto-acceptance-llc", "docket_number": "3:15-cv-03002-G" }, { "provision_number": "IV", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendant must submit acknowledgment of receipt of the order within 7 days, deliver copies to key personnel for 5 years, and obtain signed acknowledgments from recipients.", "verbatim_text": "1. Defendant, within 7 days of entry of this order, must submit to the Commission an acknowledgment of receipt of this order sworn under penalty of perjury.\n\n2. For 5 years after entry of this order, defendant must deliver a copy of this order to: (1) all principals, officers, directors, and LLC managers and members; (2) all employees, agents, and representatives who participate in conduct related to the subject matter of the order; and (3) any business entity resulting from any change in structure as set forth in the Section titled Compliance Reporting. Delivery must occur within 7 days of entry of this order for current personnel. For all others, delivery must occur before they assume their responsibilities.\n\n3. From each individual or entity to which defendant delivered a copy of this order, defendant must obtain, within 30 days, a signed and dated acknowledgment of receipt of this order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "09.15_tricolor_auto_acceptance", "company_name": "Tricolor Auto Acceptance, LLC", "date_issued": "2015-09-15", "year": 2015, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Furnisher Rule, 16 C.F.R. § 660, recodified at 12 C.F.R. § 1022, Subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3073-tricolor-auto-acceptance-llc", "docket_number": "3:15-cv-03002-G" }, { "provision_number": "V", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendant must submit a comprehensive compliance report one year after entry of the order, submit compliance notices within 14 days of certain changes for 20 years, and notify the Commission of bankruptcy filings within 14 days.", "verbatim_text": "1. One year after entry of this order, defendant must submit a compliance report, sworn under penalty of perjury. a. Defendant must: (a) identify the primary physical, postal, and email address and telephone number, as designated points of contact, which representatives of the Commission and plaintiff may use to communicate with defendant; (b) identify all of defendant’s businesses by all of their names, telephone numbers, and physical, postal, email, and Internet addresses; (c) describe the activities of each business, including the products and services offered, the means of advertising, marketing, and sales; (d) describe in detail whether and how defendant is in compliance with each Section of this order; and (e) provide a copy of each order acknowledgment obtained pursuant to this order, unless previously submitted to the Commission.\n\n2. For 20 years following entry of this order, defendant must submit a compliance notice, sworn under penalty of perjury, within 14 days of any change in the following: a. Defendant must report any change in: (a) any designated point of contact; or (b) the structure of defendant or any entity that the defendant has any ownership interest in or controls directly or indirectly that may affect compliance obligations - 7 - Case 3:15-cv-03002-G Document 6 Filed 09/16/15 Page 8 of 20 PageID 44 arising under this order, including: creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages in any acts or practices subject to this order.\n\n3. Defendant must submit to the Commission notice of the filing of any bankruptcy petition, insolvency proceeding, or similar proceeding by or against such defendant within 14 days of its filing.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "09.15_tricolor_auto_acceptance", "company_name": "Tricolor Auto Acceptance, LLC", "date_issued": "2015-09-15", "year": 2015, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Furnisher Rule, 16 C.F.R. § 660, recodified at 12 C.F.R. § 1022, Subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3073-tricolor-auto-acceptance-llc", "docket_number": "3:15-cv-03002-G" }, { "provision_number": "VI", "title": "Record Keeping Provisions", "category": "recordkeeping", "summary": "Defendant must create certain records for 20 years after entry of the order and retain each such record for 5 years, including accounting records, personnel records, training materials, customer files, complaint records, and compliance documentation.", "verbatim_text": "1. Accounting records showing the revenues from all goods or services sold;\n\n2. Personnel records showing, for each person providing services, whether as an employee or otherwise, that person’s: name; addresses; telephone numbers; job title or position; dates of service; and (if applicable) the reason for termination;\n\n3. All employee training materials;\n\n4. Customer files showing the names, addresses, telephone numbers, dollar amounts paid, and the quantity and description of goods or services purchased;\n\n5. Records of all consumer complaints and refund requests, whether received directly or indirectly, such as through a third party, and any response;\n\n6. All records necessary to demonstrate full compliance with each provision of this order, including but not limited to: a. all acknowledgments of receipt of this order, required by the section titled “Order Acknowledgments”; and b. all reports submitted to the FTC pursuant to the Section titled “Compliance Reporting.”", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "09.15_tricolor_auto_acceptance", "company_name": "Tricolor Auto Acceptance, LLC", "date_issued": "2015-09-15", "year": 2015, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Furnisher Rule, 16 C.F.R. § 660, recodified at 12 C.F.R. § 1022, Subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3073-tricolor-auto-acceptance-llc", "docket_number": "3:15-cv-03002-G" }, { "provision_number": "VII", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The Commission and plaintiff are authorized to monitor defendant's compliance through various means including requesting additional reports, conducting depositions, interviewing personnel, and using undercover methods.", "verbatim_text": "1. Within 14 days of receipt of a written request from a representative of the Commission, defendant must: submit additional compliance reports or other requested information, which must be sworn under penalty of perjury; appear for depositions; and produce documents for inspection and copying. The Commission and plaintiff are also authorized to obtain discovery, without further leave of court, using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69.\n\nauthorized to communicate directly with the defendant. Defendant must permit representatives of the Commission and plaintiff to interview any employee or other person affiliated with defendant who has agreed to such an interview. The person interviewed may have counsel present.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "09.15_tricolor_auto_acceptance", "company_name": "Tricolor Auto Acceptance, LLC", "date_issued": "2015-09-15", "year": 2015, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Furnisher Rule, 16 C.F.R. § 660, recodified at 12 C.F.R. § 1022, Subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3073-tricolor-auto-acceptance-llc", "docket_number": "3:15-cv-03002-G" }, { "provision_number": "VIII", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this order.", "verbatim_text": "It is further ORDERED that this court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "09.15_tricolor_auto_acceptance", "company_name": "Tricolor Auto Acceptance, LLC", "date_issued": "2015-09-15", "year": 2015, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Furnisher Rule, 16 C.F.R. § 660, recodified at 12 C.F.R. § 1022, Subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3073-tricolor-auto-acceptance-llc", "docket_number": "3:15-cv-03002-G" }, { "provision_number": "IX", "title": "Costs and Attorneys' Fees", "category": "affirmative_obligation", "summary": "Each party shall bear its own costs and attorneys' fees incurred in connection with this action.", "verbatim_text": "It is further ORDERED that each party shall bear its own costs and attorneys’ fees incurred in connection with this action.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "09.15_tricolor_auto_acceptance", "company_name": "Tricolor Auto Acceptance, LLC", "date_issued": "2015-09-15", "year": 2015, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Furnisher Rule, 16 C.F.R. § 660, recodified at 12 C.F.R. § 1022, Subpart E", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3073-tricolor-auto-acceptance-llc", "docket_number": "3:15-cv-03002-G" }, { "provision_number": "I", "title": "Cease and Desist – Adverse Action Disclosure Failures", "category": "prohibition", "summary": "Aldi must stop failing to disclose to employment applicants, at the time of adverse action, that the denial was based on a consumer report and the name and address of the reporting agency. Aldi must also mail retroactive notices to applicants denied employment between January 1, 1994 and the order date.", "verbatim_text": "1. Failing, whenever employment is denied either wholly or partly because of information contained in a consumer report from a consumer reporting agency to disclose to the applicant for employment at the time such adverse action is communicated to the applicant (a) that the adverse action was based wholly or partly on information contained in such a report and (b) the name and address of the consumer reporting agency making the report. Respondent shall not be held liable for a violation of Section 615(a) of the Fair Credit Reporting Act if it shows by a preponderance of the evidence that at the time of the alleged violation it maintained reasonable procedures to assure compliance with Section 615(a) of the Fair Credit Reporting Act.\n\n2. Failing, within ninety (90) days after the date of service of this Order, to mail two (2) copies of the letter attached hereto as Appendix A, completed to provide the name and address of the consumer reporting agency supplying the report to each applicant who was denied employment by Aldi Inc. between January 1, 1994, and the date this Order is issued, based in whole or in part on information contained in a consumer report from a consumer reporting agency, such copies of the letter to be sent first class mail to the last known address of the applicant that is reflected in respondent's files, and accompanied by a copy of the Federal Trade Commission brochure attached hereto as Appendix B, copies of which are to be provided by respondent. Copies of the letters attached as Appendix A need not be sent to any applicant who is denied employment with respondent during the time period specified above if the applicant's application file clearly shows that respondent Aldi Inc. has previously given the applicant 2 notification that complies in all respects with the provisions of Paragraph I.(1) of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "09.97_aldi", "company_name": "ALDI INC.", "date_issued": "1997-09-15", "year": 1997, "administration": "Clinton", "legal_authority": "Section 615(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681m(a), and Section 5(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/962-3064-aldi-inc-matter", "docket_number": "C-3764" }, { "provision_number": "II", "title": "Recordkeeping", "category": "recordkeeping", "summary": "For five years from the order's issuance, Aldi must maintain and make available to the FTC upon request documents demonstrating compliance with Part I, including employment evaluation criteria, employee instructions, applicant notices, and records of all applicants for whom consumer reports were obtained but employment was not offered or was withheld.", "verbatim_text": "IT IS FURTHER ORDERED that respondent and its successors and assigns shall, for five (5) years from the date of issuance of this Order, maintain and upon request make available to the Federal Trade Commission for inspection and copying, documents demonstrating compliance with the requirements of Part I of this Order, such documents to include, but not be limited to, all employment evaluation criteria relating to consumer reports, instructions given to employees regarding compliance with the provisions of this Order, all notices or a written or electronically stored notation of the description of the form of notice and date such notice was provided to applicants pursuant to any provisions of this Order, and records of all applicants for whom consumer reports were obtained for whom offers of employment are not made or have been withheld, withdrawn, or rescinded based, in whole or in part, on information contained in a consumer report.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "09.97_aldi", "company_name": "ALDI INC.", "date_issued": "1997-09-15", "year": 1997, "administration": "Clinton", "legal_authority": "Section 615(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681m(a), and Section 5(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/962-3064-aldi-inc-matter", "docket_number": "C-3764" }, { "provision_number": "III", "title": "Order Distribution", "category": "acknowledgment", "summary": "For five years from the order's issuance, Aldi must deliver a copy of this Order at least once per year to all persons responsible for its compliance with Section 615(a) of the Fair Credit Reporting Act.", "verbatim_text": "IT IS FURTHER ORDERED that respondent and its successors and assigns shall, for five (5) years from the date of issuance of this Order, deliver a copy of this Order at least once per year to all persons responsible for the respondent’s compliance with Section 615(a) of the Fair Credit Reporting Act.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "09.97_aldi", "company_name": "ALDI INC.", "date_issued": "1997-09-15", "year": 1997, "administration": "Clinton", "legal_authority": "Section 615(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681m(a), and Section 5(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/962-3064-aldi-inc-matter", "docket_number": "C-3764" }, { "provision_number": "IV", "title": "Corporate Change Notification", "category": "compliance_reporting", "summary": "Aldi must notify the FTC at least 30 days before any proposed corporate change that may affect compliance obligations under this Order, including dissolution, merger, bankruptcy, or name/address changes, by certified mail to the FTC's Associate Director of Enforcement.", "verbatim_text": "IT IS FURTHER ORDERED that respondent and its successors and assigns shall notify the Federal Trade Commission at least thirty (30) days prior to any proposed change in the corporation that may affect compliance obligations arising under this Order, including, but not limited to a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor corporation; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this order; the proposed filing of a bankruptcy petition; or a change in the corporate name or address. Provided, however, that with respect to any proposed change in the corporation about which respondent learns less than thirty days prior to the date such action is to take place, respondent shall notify the Commission as soon as is practicable after obtaining such knowledge. All notices required by this Part shall be sent by certified mail to the Associate Director, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C. 20580.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "09.97_aldi", "company_name": "ALDI INC.", "date_issued": "1997-09-15", "year": 1997, "administration": "Clinton", "legal_authority": "Section 615(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681m(a), and Section 5(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/962-3064-aldi-inc-matter", "docket_number": "C-3764" }, { "provision_number": "V", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Within 60 days of service of this Order, and at such other times as the FTC may require, Aldi must file a written compliance report with the Commission detailing how it has complied with the Order.", "verbatim_text": "IT IS FURTHER ORDERED that respondent and its successors and assigns shall, within sixty (60) days of the date of service of this Order, and at such other times as the Federal Trade Commission may require, file with the Commission a report, in writing, setting forth in detail the manner and form in which it has complied with this Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "09.97_aldi", "company_name": "ALDI INC.", "date_issued": "1997-09-15", "year": 1997, "administration": "Clinton", "legal_authority": "Section 615(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681m(a), and Section 5(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/962-3064-aldi-inc-matter", "docket_number": "C-3764" }, { "provision_number": "VI", "title": "Order Duration", "category": "duration", "summary": "This Order terminates on September 5, 2017, or twenty years from the most recent date the FTC files a federal court complaint alleging a violation of the Order, whichever is later.", "verbatim_text": "IT IS FURTHER ORDERED that this Order will terminate on September 5, 2017, or twenty (20) years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the Order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of: A. Any paragraph in this Order that terminates in less than twenty (20) years; B. This Order's application to any respondent that is not named as a defendant in such complaint; and C. This Order if such complaint is filed after the Order has terminated pursuant to this paragraph. Provided further, that if such complaint is dismissed or a federal court rules that the respondent did not violate any provision of the Order, and the dismissal or ruling is either not appealed or upheld on appeal, then the Order will terminate according to this paragraph as though the complaint was never filed, except that the Order will not terminate between the date such complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "09.97_aldi", "company_name": "ALDI INC.", "date_issued": "1997-09-15", "year": 1997, "administration": "Clinton", "legal_authority": "Section 615(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681m(a), and Section 5(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 45(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/962-3064-aldi-inc-matter", "docket_number": "C-3764" }, { "provision_number": "I", "title": "Civil Penalty", "category": "affirmative_obligation", "summary": "Defendants must pay a civil penalty of $1,200,000 to the United States in installments, secured by liens on real property.", "verbatim_text": "4 A. Defendants shall pay to Plaintiff, pursuant to Section 621 (a) of the FCRA, 15 5 U.S.C. § 1681s(a), a civil penalty in the amount of one million, two hundred thousand dollars 6 ($1,200,000). 7 B. Defendants shall pay the judgment in Section LA in installments as follows:\n\n9 Defendants' shall turn over two hundred thousand dollars ($200,000) 10 (\"First Installment\") to the Treasurer of the United States by wire transfer 11 in accordance with instmctions provided by the Consumer Protection 12 Branch, Civil Division, U.S. Department of Justice, Washington, D.C. 13 20530, for appropriate disposition. Written confirmation of the wire 14 transfer shall be delivered in accordance with the procedures specified by 15 the Consumer Protection Branch, Civil Division, U.S. Department of 16 Justice, Washington, D.C. 20530.\n\n24 date of entry of this Order, and the second Yearly Installment shall be paid 25 no later than two years from the date of entry of this Order. 26 C. To effect the civil penalty payments required by Section LB., the Court directs that\n\n24 date of entry of this Order, and the second Yearly Installment shall be paid 25 no later than two years from the date of entry of this Order. 26 C. To effect the civil penalty payments required by Section LB., the Court directs that 27 Defendants shall transfer such funds in the form of a wire transfer to the Treasurer of the United\n\n14 transfer shall be delivered in accordance with the procedures specified by 15 the Consumer Protection Branch, Civil Division, U.S. Department of 16 Justice, Washington, D.C. 20530. 17 2. After the First Installment, Defendants shall pay to the Treasurer of the\n\n11 E. As security for the payments required by Section I.B., Defendants, individually 12 and on behalf of their respective successors and assigns, hereby grant the Commission liens on 13 and security interests in the real and/or personal property described in Attachment B to this Order, 14 together with all dwelling houses, other structures, improvements, appurtenances, hereditaments, 15 and other rights appertaining or belonging thereto, or which hereafter may be added or attached 16 thereto, and all replacements, substitutions therefore or thereto, and proceeds thereof, whether 17 presently existing or hereafter arising (collectively, the \"Collateral\").\n\n18 Defendants shall be responsible for timely payment of all taxes, fees, association dues, and 19 all other attendant expenses related to maintenance and ownership of the Collateral until such 20 time as the Collateral is sold or auctioned. Defendants are required to continue and maintain in\n\n20 time as the Collateral is sold or auctioned. Defendants are required to continue and maintain in 21 full force insurance coverage on the Collateral.\n\n3 agree that as of the date on which they sign this Order they shall refrain from transferring, 4 converting, encumbering, selling, assigning, or otherwise disposing of the Collateral, except with 5 the express prior written permission of counsel for the Commission or in accordance with the 6 release provisions of this Order.\n\n7 Defendants shall cooperate fully with the Commission and be responsible (at their 8 expense, through counsel reasonably acceptable to the Commission) for preparing, executing, and 9 recording the necessary instruments and documents, including but not limited to financing 10 statements and continuation statements, taking whatever additional actions the Commission 11 deems reasonably necessary or desirable to perfect, evidence, and continue its liens on and 12 security interest in the Collateral, and paying all related fees and costs, including but not limited to 13 attorneys' fees and filing fees. To this end, on July 2, 2012, Defendants prepared (at their\n\n16 Defendants shall be responsible for paying all fees and costs relaying to the preparation, 17 execution, delivery, filing, recording, continuation, and termination of the liens and security 18 interests granted herein, including but not limited to attorneys' fees and filing fees. 19 F. Defendants relinquish all dominion, control, and title to the funds paid to the\n\n7 1. In accordance with 31 U.S.C. § 7701, Defendants are hereby required, unless they 8 have done so already, to furnish to the Commission their taxpayer identification numbers and/or 9 social security numbers, which shall be used for the purposes of collecting and reporting on any 10 delinquent amount arising out of Defendants' relationship with the government.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "10.12_direct_lending_source", "company_name": "Direct Lending Source, Inc.", "date_issued": "2012-10-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a), Section 5(n), Section 13(b), and Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(n), 53(b), and 56(a); and sections 604(f), 607(e)(1), 607(e)(2), 615(d)(3), and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b(f), 1681e(e)(1), 1681e(e)(2), 1681m(d)(3), and 1681s", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-3000-direct-lending-source-inc-et-al", "docket_number": "3:12-cv-02441-DMS-BLM" }, { "provision_number": "II", "title": "Prohibited Business Activities", "category": "prohibition", "summary": "Defendants are permanently restrained from violating the Fair Credit Reporting Act, including using consumer reports for unauthorized purposes, failing to disclose end-user information, and reselling reports without proper verification.", "verbatim_text": "16 A. Using or obtaining consumer reports for any purpose not authorized under section 17 604 of the FCRA, 15 U.S.C. § 1681b, as prohibited by section 604(f) of the FCRA, 15 U.S.C. 18 §1681b(f). 19 B. Failing to disclose to the consumer reporting agency that originally furnishes a 20 report that Defendants procure for purposes of reselling the report: the identity of the end-user of 21 the report (or information) and each permissible purpose under section 604 [§ 1681 b] for which 22 the report is furnished to the end-user of the report (or information), pursuant to section 607(e)(1) 23 of the FCRA, 15 U.S.c. § 1681e(e)(1). 24 C. Failing to establish and comply with reasonable procedures designed to ensure\n\n25 that a report (or information), procured for purposes of reselling the report, is resold by 26 Defendants only for a purpose for which the report may be furnished under section 604 [§ 1681 b], 27 including by: 28 1. Failing to require that each person to which the report (or information) is 9 12cv02441\n\nCase 3:12-cv-02441-DMS-BLM Document 3-1 Filed 10/11/12 Page 10 of 34 resold and that resells or provides the report (or information) to any other 2 person: (i) identifies each end user of the resold report (or information); (ii) 3 certifies each purpose for which the report (or information) will be used; 4 and (iii) certifies that the report (or information) will be used for no other 5 purpose; and 6 2. Before reselling the report, failing to make reasonable efforts to verifY the 7 identifications and certifications above as required by section 607(e)(2) of 8 the FCRA, 15 U.S.C. § 1681e(e)(2).\n\n28 1. Failing to require that each person to which the report (or information) is 9 12cv02441 Case 3:12-cv-02441-DMS-BLM Document 3-1 Filed 10/11/12 Page 10 of 34 resold and that resells or provides the report (or information) to any other 2 person: (i) identifies each end user of the resold report (or information); (ii) 3 certifies each purpose for which the report (or information) will be used; 4 and (iii) certifies that the report (or information) will be used for no other 5 purpose; and\n\n6 2. Before reselling the report, failing to make reasonable efforts to verifY the 7 identifications and certifications above as required by section 607(e)(2) of 8 the FCRA, 15 U.S.C. § 1681e(e)(2).\n\n9 D. For any firm offer of credit, failing to maintain on file the criteria used to select 10 the consumer to receive the offer, all criteria bearing on credit worthiness that are the basis for 11 determining whether or not to extend credit pursuant to the offer, and any requirement for the 12 furnishing of collateral as a condition of the extension of credit, until the expiration ofthe 3-year 13 period beginning on the date on which the offer is made to the consumer for any consumer whose 14 consumer report is used in connection with any credit transaction that is not initiated by that 15 consumer, as required by section 615(d)(3) of the FCRA, 15 U.S.C. § 1681m(d)(3). 16 E. Using or selling consumer reports in connection with solicitations for debt relief\n\n16 E. Using or selling consumer reports in connection with solicitations for debt relief 17 products or services, or mortgage assistance relief products or services, offered by entities that 18 charge advance fees. 19 III. ORDER ACKNOWLEDGMENTS", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "10.12_direct_lending_source", "company_name": "Direct Lending Source, Inc.", "date_issued": "2012-10-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a), Section 5(n), Section 13(b), and Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(n), 53(b), and 56(a); and sections 604(f), 607(e)(1), 607(e)(2), 615(d)(3), and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b(f), 1681e(e)(1), 1681e(e)(2), 1681m(d)(3), and 1681s", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-3000-direct-lending-source-inc-et-al", "docket_number": "3:12-cv-02441-DMS-BLM" }, { "provision_number": "III", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendants must submit acknowledgments of receipt of this Order and deliver copies to all relevant personnel, obtaining signed acknowledgments from each recipient.", "verbatim_text": "22 A. Each Defendant, within 7 days of entry of this Order, must submit to the 23 Commission an acknowledgment of receipt of this Order sworn under penalty of perjury. 24 B. For 5 years after entry of this Order, each Individual Defendant for any business\n\n26 or directly or indirectly controls, and each Corporate Defendant, must deliver a copy of this Order 27 to: (1) all principals, officers, directors, and managers; (2) all employees, agents, and 28 representatives who participate in conduct related to the subject matter of the Order; and (3) any 10 12cv02441 Case 3:12-cv-02441-DMS-BLM Document 3-1 Filed 10/11/12 Page 11 of 34 1 business entity resulting from any change in structure as set forth in the Section titled Compliance 2 Reporting. Delivery must occur within 7 days of entry of this Order for current personnel. To all 3 others, delivery must occur before they assume their responsibilities.\n\n2 Reporting. Delivery must occur within 7 days of entry of this Order for current personnel. To all 3 others, delivery must occur before they assume their responsibilities. 4 C. From each individual or entity to which a Defendant delivered a copy of this Order,\n\n5 that Defendant must obtain, within 30 days, a signed and dated acknowledgment of receipt of this 6 Order. 7 IV. COMPLIANCE REPORTING 8 IT IS FURTHER ORDERED that Defendants make timely submissions to the", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "10.12_direct_lending_source", "company_name": "Direct Lending Source, Inc.", "date_issued": "2012-10-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a), Section 5(n), Section 13(b), and Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(n), 53(b), and 56(a); and sections 604(f), 607(e)(1), 607(e)(2), 615(d)(3), and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b(f), 1681e(e)(1), 1681e(e)(2), 1681m(d)(3), and 1681s", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-3000-direct-lending-source-inc-et-al", "docket_number": "3:12-cv-02441-DMS-BLM" }, { "provision_number": "IV", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendants must submit compliance reports and notices to the Commission, including an initial report within 180 days and ongoing notices of changes for 20 years.", "verbatim_text": "10 A. 180 days after entry of this Order, each Defendant must submit a compliance 11 report, sworn under penalty of perjury. 12 1. Each Defendant must: (a) designate at least one telephone number and an 13 email, physical, and postal address as points of contact, which 14 representatives of the Commission and Plaintiff may use to communicate 15 with Defendant; (b) identify all of that Defendant's businesses by all of 16 their names, telephone numbers, and physical, postal, email, and Internet 17 addresses; (c) describe the activities of each business, including the 18 products and services offered, the means of advertising, marketing, and 19 sales, and the involvement of any other Defendant (which Individual 20 Defendants must describe if they know or should know due to their own 21 involvement); (d) describe in detail whether and how that Defendant is in 22 compliance with each Section of this Order; and (e) provide a copy of each 23 Order Acknowledgment obtained pursuant to this Order, unless previously 24 submitted to the Commission; 25 2. Additionally, each Individual Defendant must: (a) identify all telephone\n\n25 2. Additionally, each Individual Defendant must: (a) identify all telephone 26 numbers and all email, Internet, physical, and postal addresses, including 27 all residences; (b) identify all titles and roles in all business activities, 28 including any business for which such Defendant performs services 11 12cv02441 Case 3:12-cv-02441-DMS-BLM Document 3-1 Filed 10/11/12 Page 12 of 34 1 whether as an employee or otherwise and any entity in which such 2 Defendant has any ownership interest; and ( c) describe in detail such 3 Defendant's involvement in each such business, including title, role, 4 responsibilities, participation, authority, control, and any ownership. 5 B. For 20 years following entry of this Order, each Defendant must submit a\n\n5 B. For 20 years following entry of this Order, each Defendant must submit a 6 compliance notice, sworn under penalty of peljury, within 14 days of any change in the following: 7 1. Each Defendant must report any change in: (a) any designated point of 8 contact; or (b) the structure of any Corporate Defendant or any entity that 9 Defendant has any ownership interest in or directly or indirectly controls 10 that may affect compliance obligations arising under this Order, including: 11 creation, merger, sale, or dissolution of the entity or any subsidiary, parent, 12 or affiliate that engages in any acts or practices subject to this Order; 13 2. Additionally, each Individual Defendant must report any change in: (a) 14 name, including aliases or fictitious name, or residence address; or (b) title 15 or role in any business activity, including any business for which such 16 Defendant performs services whether as an employee or otherwise and any 17 entity in which such Defendant has any ownership interest, and identify its 18 name, physical address, and Internet address, if any. 19 c. Each Defendant must submit to the Commission notice of the filing of any 20 bankruptcy petition, insolvency proceeding, or any similar proceeding by or against such 21 Defendant within 14 days of its filing. 22 D. Any submission to the Commission required by this Order to be sworn under\n\n23 penalty of perjury must be true and accurate and comply with 18 U.S.C. § 1746, such as by 24 concluding: \"I declare under penalty of perjury under the laws of the United States of America 25 that the foregoing is true and conect. Executed on: __\" and supplying the date, signatory's full 26 name, title (if applicable), and signature. 27 E. Unless otherwise directed by a Commission representative in writing, all 28 submissions to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or\n\n19 c. Each Defendant must submit to the Commission notice of the filing of any 20 bankruptcy petition, insolvency proceeding, or any similar proceeding by or against such 21 Defendant within 14 days of its filing.\n\n27 E. Unless otherwise directed by a Commission representative in writing, all 28 submissions to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or 12 12cv02441 Case 3:12-cv-02441-DMS-BLM Document 3-1 Filed 10/11/12 Page 13 of 34 1 sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, 2 Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, 3 Washington, DC 20580. The subject line must begin: FTC v. Direct Lending Source, Inc, Bailey 4 & Associates Advertising, Inc., Virtual Lending Source, LLC, Robert Bailey & Linda Giordano. 5 V. RECORDKEEPING", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "10.12_direct_lending_source", "company_name": "Direct Lending Source, Inc.", "date_issued": "2012-10-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a), Section 5(n), Section 13(b), and Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(n), 53(b), and 56(a); and sections 604(f), 607(e)(1), 607(e)(2), 615(d)(3), and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b(f), 1681e(e)(1), 1681e(e)(2), 1681m(d)(3), and 1681s", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-3000-direct-lending-source-inc-et-al", "docket_number": "3:12-cv-02441-DMS-BLM" }, { "provision_number": "V", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Defendants must create and retain specified records for 20 years after entry of the Order, retaining each record for 5 years.", "verbatim_text": "9 or collectively with any other Defendants, is a majority owner or directly or indirectly controls, 10 must maintain the following records: 11 A. Accounting records showing the revenues from all goods or services sold, all costs\n\n11 A. Accounting records showing the revenues from all goods or services sold, all costs 12 incurred in generating those revenues, and the resulting net profit or loss; 13 B. Personnel records showing, for each person providing services, whether as an 14 employee or otherwise, that person's: name, addresses, and telephone numbers; job title or\n\n14 employee or otherwise, that person's: name, addresses, and telephone numbers; job title or 15 position; dates of service; and, if applicable, the reason for termination; 16 C. Customer files showing the names, addresses, telephone numbers, dollar amounts 17 paid, and the quantity and description of goods or services purchased;\n\n18 D. Copies of each unique prescreened solicitation used in Defendants' pre screening 19 operation; 20 E. Files containing the names, addresses, telephone numbers, and all certifications\n\n20 E. Files containing the names, addresses, telephone numbers, and all certifications 21 made by persons pursuant to section II.C.1. of this Order, and all materials considered by 22 Defendants in connection with their verification of the identity of the persons and verification of 23 the celiifications made under section II. C.l. of this Order, as required by section II. C.2. of this 24 Order;\n\n25 F. Consumer complaints (whether received in written or electronic form, directly, 26 indirectly, or through any third party), and any responses to those complaints, whether in written 27 or electronic form, that relate to Defendants' activities as alleged in the Complaint and 28 Defendant's compliance with the provisions of this Order; 13 12cv02441\n\n1 G. Copies of all training materials and marketing materials that relate to Defendants' 2 activities as alleged in the Complaint and Defendants' compliance with the provisions of this 3 Order; 4 H. Copies of all subpoenas and other communications with law enforcement entities\n\n4 H. Copies of all subpoenas and other communications with law enforcement entities 5 or personnel, whether in written or electronic form, if such documents bear in any respect on 6 Defendants' use or sale of consumer reports or other personal information of consumers; and 7 1. All records necessary to demonstrate full compliance with each provision of this\n\n7 1. All records necessary to demonstrate full compliance with each provision of this 8 Order, including all submissions to the Commission. 9 VI. COMPLIANCE MONITORING", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "10.12_direct_lending_source", "company_name": "Direct Lending Source, Inc.", "date_issued": "2012-10-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a), Section 5(n), Section 13(b), and Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(n), 53(b), and 56(a); and sections 604(f), 607(e)(1), 607(e)(2), 615(d)(3), and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b(f), 1681e(e)(1), 1681e(e)(2), 1681m(d)(3), and 1681s", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-3000-direct-lending-source-inc-et-al", "docket_number": "3:12-cv-02441-DMS-BLM" }, { "provision_number": "VI", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The Commission and Plaintiff are authorized to monitor Defendants' compliance through document requests, depositions, interviews, and other investigative means.", "verbatim_text": "12 A. Within 14 days of receipt of a written request from a representative of the 13 Commission or Plaintiff, each Defendant must: submit additional compliance reports or other 14 requested information, which must be sworn under penalty of perjury; appear for depositions; and 15 produce documents, for inspection and copying. The Commission and Plaintiff are also\n\n12 A. Within 14 days of receipt of a written request from a representative of the 13 Commission or Plaintiff, each Defendant must: submit additional compliance reports or other 14 requested information, which must be sworn under penalty of perjury; appear for depositions; and 15 produce documents, for inspection and copying. The Commission and Plaintiff are also\n\n12 A. Within 14 days of receipt of a written request from a representative of the 13 Commission or Plaintiff, each Defendant must: submit additional compliance reports or other 14 requested information, which must be sworn under penalty of perjury; appear for depositions; and 15 produce documents, for inspection and copying. The Commission and Plaintiff are also 16 authorized to obtain discovery, without further leave of court, using any of the procedures 17 prescribed by Federal Rules of Civil Procedure 29,30 (including telephonic depositions), 31, 33, 18 34,36,45, and 69.\n\n20 communicate directly with each Defendant. Defendant must permit representatives of the 21 Commission and Plaintiff to interview any employee or other person affiliated with any Defendant ·22 who has agreed to such an interview. The person interviewed may have counsel present. 23 C. The Commission and Plaintiff may use all other lawful means, including posing,", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "10.12_direct_lending_source", "company_name": "Direct Lending Source, Inc.", "date_issued": "2012-10-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a), Section 5(n), Section 13(b), and Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(n), 53(b), and 56(a); and sections 604(f), 607(e)(1), 607(e)(2), 615(d)(3), and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b(f), 1681e(e)(1), 1681e(e)(2), 1681m(d)(3), and 1681s", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-3000-direct-lending-source-inc-et-al", "docket_number": "3:12-cv-02441-DMS-BLM" }, { "provision_number": "VII", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction for purposes of construction, modification, and enforcement of this Order.", "verbatim_text": "1 VII. RETENTION OF JURISDICTION 2 IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for 3 purposes of construction, modification, and enforcement of this Order. 4 VIII. COSTS AND ATTORNEYS' FEES", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "10.12_direct_lending_source", "company_name": "Direct Lending Source, Inc.", "date_issued": "2012-10-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a), Section 5(n), Section 13(b), and Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(n), 53(b), and 56(a); and sections 604(f), 607(e)(1), 607(e)(2), 615(d)(3), and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b(f), 1681e(e)(1), 1681e(e)(2), 1681m(d)(3), and 1681s", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-3000-direct-lending-source-inc-et-al", "docket_number": "3:12-cv-02441-DMS-BLM" }, { "provision_number": "VIII", "title": "Costs and Attorneys' Fees", "category": "acknowledgment", "summary": "Each party shall bear its own costs and attorneys' fees incurred in connection with this action.", "verbatim_text": "5 IT IS FURTHER ORDERED that each party shall bear its own costs and attorneys' fees 6 incurred in connection with this action. 7 The parties hereby stipulate to the entry of the foregoing Order, which shall constitute a", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "10.12_direct_lending_source", "company_name": "Direct Lending Source, Inc.", "date_issued": "2012-10-15", "year": 2012, "administration": "Obama", "legal_authority": "Section 5(a), Section 5(n), Section 13(b), and Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 45(n), 53(b), and 56(a); and sections 604(f), 607(e)(1), 607(e)(2), 615(d)(3), and 621 of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681b(f), 1681e(e)(1), 1681e(e)(2), 1681m(d)(3), and 1681s", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/102-3000-direct-lending-source-inc-et-al", "docket_number": "3:12-cv-02441-DMS-BLM" }, { "provision_number": "I", "title": "Injunction Requiring Risk-Based Pricing Notices", "category": "prohibition", "summary": "Defendant is permanently enjoined from failing to send proper Risk-Based Pricing Notices to consumers when credit is offered on materially less favorable terms based on a consumer report, and from failing to include all required content in those notices.", "verbatim_text": "A. Failing to send a consumer a Risk-Based Pricing Notice by the earlier of either five (5) days after the consumer activates service with Defendant or a date that gives the consumer a reasonable opportunity to avoid incurring any future financial obligation to Defendant, where Defendant: Page 4of14 1. Uses a consumer report in connection with an application for, or a grant, extension, or other provision of, credit to that consumer that is primarily for personal, family, or household purposes; and 2. Based in whole or in part on the consumer report, grants, extends, or otherwise provides credit to that consumer on material terms that are materially less favorable than the most favorable material terms available to a substantial proportion of consumers from or through Defendant.\n\nB. Failing to include in any Risk-Based Pricing Notice: 1. A statement that a consumer report (or credit report) includes information about the consumer’s credit history and the type of information included in that history; 2. A statement that the terms offered, such as the annual percentage rate, have been set based on information from a consumer report; 3. A statement that the terms offered may be less favorable than the terms offered to consumers with better credit histories; 4. A statement that the consumer is encouraged to verify the accuracy of the information contained in the consumer report and has the right to dispute any inaccurate information in the report; 5. The identity of each consumer reporting agency that furnished a consumer report used in the credit decision; 6. A statement that federal law gives the consumer the right to obtain a copy of a consumer report from the consumer reporting agency or agencies identified in the notice without charge for 60 days after receipt of the notice; Page 5of14 7. A statement informing the consumer how to obtain a consumer report from the consumer reporting agency or agencies identified in the notice and providing contact information (including a toll-free telephone number, where applicable) specified by the consumer reporting agency or agencies; 8. A statement directing consumers to the Web site of the Consumer Financial Protection Bureau to obtain more information about consumer reports; and 9. If a credit score of the consumer to whom Defendant grants, extends, or otherwise provides credit is used in setting the material terms of credit: a. A statement that a credit score is a number that takes into account information in a consumer report, that the consumer’s credit score was used to set the terms of credit offered, and that a credit score can change over time to reflect changes in the consumer’s credit history; b. The credit score used in making the credit decision; c. The range of possible credit scores under the model used to generate the credit score; d. All of the key factors that adversely affected the credit score, which shall not exceed four key factors, except that if one of the key factors is the number of enquiries made with respect to the consumer report, the number of key factors shall not exceed five; e. The date on which the credit score was created; and f. The name of the consumer reporting agency or other individual, partnership, corporation, trust, estate, cooperative, association, government Page 6of14 or governmental subdivision or agency, or other entity that provided the credit score.\n\nC. Failing to, within fifteen (15) days of entry of this Order, provide a Risk-Based Pricing Notice containing all information listed in Section I.B to any current customer to whom Sprint did not send such a Notice between November 8, 2013 and June 11, 2014 or during the three-month period prior to the date of entry of this Order.\n\nD. Violating Section 615(h) of the Fair Credit Reporting Act, 15 U.S.C. § 1681m(h), attached hereto as Exhibit 1, or any provision of the Risk-Based Pricing Rule, 12 C.F.R. § 1022.70 et seq., attached hereto as Exhibit 2.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "10.15_sprint_corporation", "company_name": "Sprint Corporation", "date_issued": "2015-10-15", "year": 2015, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 615 of the Fair Credit Reporting Act, 15 U.S.C. § 1681m; and the Risk-Based Pricing Rule, 12 C.F.R. § 1022.70 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3094-sprint-corporation-sprint-asl-program-0", "docket_number": "2:15-cv-9340" }, { "provision_number": "II", "title": "Monetary Judgment for Civil Penalty", "category": "affirmative_obligation", "summary": "A civil penalty judgment of $2,950,000 is entered against Defendant, payable to the U.S. Treasury within 7 days of entry of this Order by electronic fund transfer.", "verbatim_text": "A. Judgment in the amount of two million, nine hundred-fifty thousand dollars ($2,950,000) is entered in favor of Plaintiff against Defendant as a civil penalty.\n\nB. Defendant is ordered to pay to Plaintiff, by making payment to the Treasurer of the United States, two million, nine hundred-fifty thousand dollars ($2,950,000). Such payment must be made within 7 days of entry of this Order by electronic fund transfer in accordance with instructions previously provided by a representative of Plaintiff.\n\nC. Defendant relinquishes dominion and all legal and equitable right, title, and interest in all assets transferred pursuant to this Order and may not seek the return of any assets.\n\nD. The facts alleged in the Complaint will be taken as true, without further proof, in any subsequent civil litigation by or on behalf of the Commission, including in a proceeding to enforce its rights to any payment or monetary judgment pursuant to this Order.\n\nE. Defendant acknowledges that its Employer Identification Number, which Defendant must submit to the Commission, may be used for collecting and reporting on any delinquent amount arising out of this Order, in accordance with 31 U.S.C. § 7701.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "10.15_sprint_corporation", "company_name": "Sprint Corporation", "date_issued": "2015-10-15", "year": 2015, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 615 of the Fair Credit Reporting Act, 15 U.S.C. § 1681m; and the Risk-Based Pricing Rule, 12 C.F.R. § 1022.70 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3094-sprint-corporation-sprint-asl-program-0", "docket_number": "2:15-cv-9340" }, { "provision_number": "III", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendant must submit a sworn acknowledgment of receipt of the Order, deliver copies to relevant personnel and successor entities, and obtain signed acknowledgments from each recipient.", "verbatim_text": "A. Defendant, within 7 days of entry of this Order, must submit to the Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.\n\nB. For 5 years after entry of this Order, Defendant must deliver a copy of this Order to: (1) all current and future principals, officers, directors, managers and other employees who have primary responsibilities relating to Risk-Based Pricing or consumer credit evaluation or granting; and (2) any business entity resulting from any change in structure as set forth in the Section titled Compliance Reporting. Delivery must occur within 7 days of entry of this Order for current personnel. For all others, delivery must occur before they assume their responsibilities.\n\nC. From each individual or entity to which Defendant delivered a copy of this Order, Defendant must obtain, within 30 days, a signed and dated acknowledgment of receipt of this Order.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "10.15_sprint_corporation", "company_name": "Sprint Corporation", "date_issued": "2015-10-15", "year": 2015, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 615 of the Fair Credit Reporting Act, 15 U.S.C. § 1681m; and the Risk-Based Pricing Rule, 12 C.F.R. § 1022.70 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3094-sprint-corporation-sprint-asl-program-0", "docket_number": "2:15-cv-9340" }, { "provision_number": "IV", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendant must submit a sworn compliance report one year after entry of the Order and timely notices of any material changes in structure or contact information for 10 years, as well as notice of any bankruptcy filing.", "verbatim_text": "A. One year after entry of this Order, Defendant must submit a compliance report, sworn under penalty of perjury. Defendant must: (a) identify the primary physical, postal, and email address and telephone number, as designated points of contact, which representatives of the Page 8of14 Commission and Plaintiff may use to communicate with Defendant; (b) identify all of Defendant’s businesses by all of their names, telephone numbers, and physical, postal, email, and Internet addresses; (c) describe the activities of each business, including whether it uses consumer reports in connection with applications for, or grants, extensions, or other provisions of, credit; (d) describe in detail whether and how Defendant is in compliance with each Section of this Order; and (e) provide a copy of each Order Acknowledgment obtained pursuant to this Order, unless previously submitted to the Commission.\n\nB. For 10 years after entry of this Order, Defendant must submit a compliance notice, sworn under penalty of perjury, within 14 days of any change in the following: (a) any designated point of contact; or (b) the structure of Defendant or any entity that Defendant has any ownership interest in or controls directly or indirectly that may affect compliance obligations arising under this Order, including: creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order.\n\nC. Defendant must submit to the Commission notice of the filing of any bankruptcy petition, insolvency proceeding, or similar proceeding by or against such Defendant within 14 days of its filing.\n\nD. Any submission to the Commission required by this Order to be sworn under penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed on: _____” and supplying the date, signatory’s full name, title (if applicable), and signature.\n\nE. Unless otherwise directed by a Commission representative in writing, all submissions to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The subject line must begin: FTC v. Sprint Corp.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "10.15_sprint_corporation", "company_name": "Sprint Corporation", "date_issued": "2015-10-15", "year": 2015, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 615 of the Fair Credit Reporting Act, 15 U.S.C. § 1681m; and the Risk-Based Pricing Rule, 12 C.F.R. § 1022.70 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3094-sprint-corporation-sprint-asl-program-0", "docket_number": "2:15-cv-9340" }, { "provision_number": "V", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Defendant must create and retain specified records for 10 years (creation) and 5 years (retention), including accounting records, personnel records, consumer complaint records, compliance records, and copies of all Risk-Based Pricing Notices sent.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant must create certain records for 10 years after entry of the Order, and retain such records for 5 years. Specifically, Defendant must create and retain the following records: A. accounting records showing the revenues from all goods or services sold;\n\nB. personnel records showing, for each person involved in Risk-Based Pricing Notices, that person’s: name; addresses; telephone numbers; job title or position; dates of service; and (if applicable) the reason for termination;\n\nC. records of all consumer complaints related to Defendant’s use of consumer reports or credit scores, whether received directly or indirectly, such as through a third party, and any response;\n\nD. all records necessary to demonstrate full compliance with each provision of this Order, including all submissions to the Commission; and\n\nE. a copy of each Risk-Based Pricing Notice sent by Defendant to any consumer.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "10.15_sprint_corporation", "company_name": "Sprint Corporation", "date_issued": "2015-10-15", "year": 2015, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 615 of the Fair Credit Reporting Act, 15 U.S.C. § 1681m; and the Risk-Based Pricing Rule, 12 C.F.R. § 1022.70 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3094-sprint-corporation-sprint-asl-program-0", "docket_number": "2:15-cv-9340" }, { "provision_number": "VI", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The Commission and Plaintiff are authorized to monitor Defendant's compliance through information requests, depositions, document production, direct communications, employee interviews, and other lawful investigative means.", "verbatim_text": "A. Within 14 days of receipt of a written request from a representative of the Commission or Plaintiff, Defendant must: submit additional compliance reports or other requested information, which must be sworn under penalty of perjury; appear for depositions; and produce documents for inspection and copying. The Commission and Plaintiff are also authorized to obtain discovery, without further leave of court, using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69.\n\nB. For matters concerning this Order, the Commission and Plaintiff are authorized to communicate directly with each Defendant. Defendant must permit representatives of the Commission and Plaintiff to interview any employee or other person affiliated with any Defendant who has agreed to such an interview. The person interviewed may have counsel present.\n\nC. The Commission and Plaintiff may use all other lawful means, including posing, through its representatives as consumers, suppliers, or other individuals or entities, to Defendant or any individual or entity affiliated with Defendant, without the necessity of identification or prior notice. Nothing in this Order limits the Commission’s lawful use of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "10.15_sprint_corporation", "company_name": "Sprint Corporation", "date_issued": "2015-10-15", "year": 2015, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 615 of the Fair Credit Reporting Act, 15 U.S.C. § 1681m; and the Risk-Based Pricing Rule, 12 C.F.R. § 1022.70 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3094-sprint-corporation-sprint-asl-program-0", "docket_number": "2:15-cv-9340" }, { "provision_number": "VII", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction over this matter for purposes of construction, modification, and enforcement of the Order.", "verbatim_text": "IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "10.15_sprint_corporation", "company_name": "Sprint Corporation", "date_issued": "2015-10-15", "year": 2015, "administration": "Obama", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 615 of the Fair Credit Reporting Act, 15 U.S.C. § 1681m; and the Risk-Based Pricing Rule, 12 C.F.R. § 1022.70 et seq.", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/142-3094-sprint-corporation-sprint-asl-program-0", "docket_number": "2:15-cv-9340" }, { "provision_number": "I", "title": "Prohibited Business Activities", "category": "prohibition", "summary": "Defendant and all persons acting in concert with it are permanently enjoined from failing to maintain reasonable procedures to assure maximum possible accuracy of consumer report information.", "verbatim_text": "IT IS ORDERED that Defendant, Defendant’s officers, agents, employees, and attorneys, and all other persons in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly, in connection with operating as a Consumer Reporting Agency, are hereby permanently restrained and enjoined from failing to maintain reasonable procedures to assure the maximum possible accuracy of the information concerning the individual about whom a Consumer Report relates.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "10.18_realpage", "company_name": "RealPage, Inc.", "date_issued": "2018-10-15", "year": 2018, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/152-3059-realpage-inc", "docket_number": "3:18-cv-02737-N" }, { "provision_number": "II", "title": "Monetary Judgment for Civil Penalty", "category": "affirmative_obligation", "summary": "A civil penalty judgment of $3,000,000 is entered against Defendant, which must be paid within 7 days of entry of the Order via electronic fund transfer.", "verbatim_text": "A. Judgment in the amount of three million dollars ($3,000,000) is entered in favor of the Commission against Defendant as a civil penalty.\n\nB. Defendant is ordered to pay to the Commission three million dollars ($3,000,000), which, as Defendant stipulates, its undersigned counsel holds in escrow for no purpose other than payment to the Commission. Such payment must be made within seven (7) days of entry of this Order by electronic fund transfer in accordance with instructions previously provided by a representative of Commission.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "10.18_realpage", "company_name": "RealPage, Inc.", "date_issued": "2018-10-15", "year": 2018, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/152-3059-realpage-inc", "docket_number": "3:18-cv-02737-N" }, { "provision_number": "III", "title": "Additional Monetary Provisions", "category": "affirmative_obligation", "summary": "Defendant relinquishes all rights to assets transferred, consents to facts being used as true in future litigation, and acknowledges its Taxpayer Identification Number may be used for collecting delinquent amounts.", "verbatim_text": "A. Defendant relinquishes dominion and all legal and equitable right, title and interest in all assets transferred pursuant to this Order and may not seek the return of any assets.\n\nB. The facts alleged in the Complaint will be taken as true, without further proof, in any subsequent civil litigation by or on behalf of the Commission, including in a proceeding to enforce its rights to any payment or monetary judgment pursuant to this Order.\n\nC. Defendant acknowledges that its Taxpayer Identification Number (Employer Identification Number), which Defendant previously submitted to the Commission, may be used for collecting and reporting on any delinquent amount arising out of this Order, in accordance with 31 U.S.C. §7701.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "10.18_realpage", "company_name": "RealPage, Inc.", "date_issued": "2018-10-15", "year": 2018, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/152-3059-realpage-inc", "docket_number": "3:18-cv-02737-N" }, { "provision_number": "IV", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendant must submit a sworn acknowledgment of receipt to the Commission within 7 days, deliver copies of the Order to key personnel for 3 years, and obtain signed acknowledgments from each recipient within 30 days.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant obtain acknowledgments of receipt of this Order: Defendant, within seven (7) days of entry of this Order, must submit to the Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.\n\nA. For three (3) years after entry of this Order, Defendant must deliver a copy of this Order to: (1) all principals, officers, directors, and LLC managers and members; (2) all employees, agents, and representatives who have managerial responsibilities for the subject matter of the Order; and (3) any business entity resulting from any change in structure as set forth in the Section titled Compliance Reporting. Delivery must occur within seven (7) days of entry of this Order for current personnel. For all others, delivery must occur before they assume their responsibilities.\n\nB. From each individual or entity to which Defendant delivered a copy of this Order, Defendant must obtain, within thirty (30) days, a signed and dated acknowledgment of receipt of this Order.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "10.18_realpage", "company_name": "RealPage, Inc.", "date_issued": "2018-10-15", "year": 2018, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/152-3059-realpage-inc", "docket_number": "3:18-cv-02737-N" }, { "provision_number": "V", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendant must submit a sworn compliance report one year after entry of the Order, provide sworn notices of specified changes within 14 days for 10 years, notify the Commission of any bankruptcy filing within 14 days, and submit all filings via specified methods.", "verbatim_text": "A. One year after entry of this Order, Defendant must submit a compliance report, sworn under penalty of perjury. Defendant must: (a) identify the primary physical, postal, and email address and telephone number, as designated points of contact, which representatives of the Commission may use to communicate with Defendant; (b) identify all of Defendant’s businesses by all of their names, telephone numbers, and physical, postal, email, and Internet addresses; (c) describe the activities of each business, including a description of any products and services that involve Consumer Reports; (d) describe in detail whether and how Defendant is in compliance with each Section of this Order; and (e) provide a copy of each Order Acknowledgment obtained pursuant to this Order, unless previously submitted to the Commission.\n\nB. For 10 years following entry of this Order, Defendant must submit a compliance notice, sworn under penalty of perjury, within 14 days of any change in the following: (a) any designated point of contact; or (b) the structure of Defendant or any entity that Defendant has any ownership interest in or directly or indirectly controls that may affect compliance obligations arising under this Order, including creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order.\n\nC. Defendant must submit to the Commission notice of the filing of any bankruptcy petition, insolvency proceeding, or any similar proceeding by or against Defendant within 14 days of its filing.\n\nD. Any submission to the Commission required by this Order to be sworn under penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed on: _____” and supplying the date, signatory’s full name, title (if applicable), and signature.\n\nE. Unless otherwise directed by a Commission representative in writing, all submissions to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The subject line must begin: FTC v. RealPage, Inc.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "10.18_realpage", "company_name": "RealPage, Inc.", "date_issued": "2018-10-15", "year": 2018, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/152-3059-realpage-inc", "docket_number": "3:18-cv-02737-N" }, { "provision_number": "VI", "title": "Recordkeeping Provisions", "category": "recordkeeping", "summary": "Defendant must create specified records for 10 years and retain each for 5 years, covering accounting, personnel, complaints, training materials, and all compliance documentation.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant must create certain records for 10 years after entry of the Order, and retain each such record for five (5) years. Specifically, in connection with providing Consumer Reports, Defendant must create and maintain the following records: A. Accounting records showing the revenues from all goods or services sold;\n\nB. Personnel records showing, for each employee: name, addresses, and telephone numbers; job title or position; dates of service; and, if applicable, the reason for termination;\n\nC. Complaints and refund requests concerning the subject matter of the Order, whether received directly or indirectly, such as through a third party, and any response;\n\nD. All employee training materials concerning the subject matter of the Order;\n\nE. All records necessary to demonstrate full compliance with each provision of this Order, including all submissions to the Commission.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "10.18_realpage", "company_name": "RealPage, Inc.", "date_issued": "2018-10-15", "year": 2018, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/152-3059-realpage-inc", "docket_number": "3:18-cv-02737-N" }, { "provision_number": "VII", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The Commission is authorized to monitor Defendant's compliance through requests for reports and documents, depositions, direct communications, employee interviews, and lawful undercover means, including compulsory process.", "verbatim_text": "A. Within 14 days of receipt of a written request from a representative of the Commission, Defendant must: submit additional compliance reports or other requested information, which must be sworn under penalty of perjury; appear for depositions; and produce documents, for inspection and copying. The Commission is also authorized to obtain discovery, without further leave of court, using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69, provided that Defendant, after attempting to resolve a dispute without court action and for good cause shown, may file a motion with this Court seeking an order for one or more of the protections set forth in Rule 26(c).\n\nB. For matters concerning this Order, the Commission is authorized to communicate directly with Defendant. Defendant must permit representatives of the Commission to interview any employee or other person affiliated with Defendant who has agreed to such an interview. The person interviewed may have counsel present.\n\nC. The Commission may use all other lawful means, including posing, through its representatives, as consumers, suppliers, or other individuals or entities, to Defendant or any individual or entity affiliated with Defendant, without the necessity of identification or prior notice. Nothing in this Order limits the Commission’s lawful use of compulsory process, pursuant to sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "10.18_realpage", "company_name": "RealPage, Inc.", "date_issued": "2018-10-15", "year": 2018, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/152-3059-realpage-inc", "docket_number": "3:18-cv-02737-N" }, { "provision_number": "VIII", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction over this matter for purposes of construction, modification, and enforcement of the Order.", "verbatim_text": "IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "10.18_realpage", "company_name": "RealPage, Inc.", "date_issued": "2018-10-15", "year": 2018, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/152-3059-realpage-inc", "docket_number": "3:18-cv-02737-N" }, { "provision_number": "I", "title": "Prohibited Business Activities", "category": "prohibition", "summary": "Defendants are permanently enjoined from failing to maintain reasonable procedures to ensure maximum possible accuracy in Background Screening Reports and from failing to disclose sources of information in a Consumer's File upon consumer request.", "verbatim_text": "A. Failing to maintain reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom a Background Screening Report relates, including reasonable procedures designed to: 1. Prevent the inclusion of multiple filings for the same Eviction Proceeding; 2. Accurately reflect dispositions of Eviction Proceedings; 3. Label data fields to describe accurately the contents of the data field; and 4. Ensure that Sealed Records are not included in Background Screening Reports;\n\nB. Failing to, upon a consumer’s request for such Consumer’s File, clearly and accurately disclose to the consumer all sources of all information in the Consumer’s File, including but not limited to any vendors or other third parties from which Defendants directly acquire criminal record or Eviction Proceeding Record information in the Consumer’s File; except that the sources of information acquired solely for use in preparing an Investigative Consumer Report and actually used for no other purpose need not be disclosed;", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "10.23_transunion_rental_screening_solutions_and_trans_union._ftc_and_cfpb_v.", "company_name": "TransUnion Rental Screening Solutions, Inc.", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a)(1) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3204-transunion-rental-screening-solutions-inc-trans-union-llc-ftc-cfpb-v", "docket_number": "1:23-cv-02659" }, { "provision_number": "II", "title": "Affirmative Requirements", "category": "affirmative_obligation", "summary": "Defendants must implement written procedures to prevent inclusion of inaccurate or improper records in Background Screening Reports, monitor dispute data, maintain a compliance committee, and retain Frequency Reports.", "verbatim_text": "A. Develop, implement, and follow written procedures reasonably designed to prevent the inclusion in Background Screening Reports of any of the following: (1) any Sealed Record, (2) any Eviction Proceeding Record that does not have a final outcome, (3) multiple filings for any Eviction Proceeding, (4) any filing for an Eviction Proceeding other than the most recent filing evidencing the outcome or superseding post-judgment filing, such as satisfaction or release of a final judgment, or (5) any monetary amount associated with an Eviction Proceeding Record other than a final judgment amount or an amount reflecting full or partial satisfaction of such judgment, provided that Defendants must disclose to customers that any amount reported may include attorney or court fees or costs. Defendants also must monitor the effectiveness of the procedures, take corrective action to address identified issues, and retain records sufficient to demonstrate the implementation of this provision;\n\nB. Maintain a program to regularly monitor consumer dispute data relating to criminal records and Eviction Proceeding Records and to take corrective action internally or with public Page 8 of 24 Case No. 1:23-cv-02659-GPG Document 15 filed 10/18/23 USDC Colorado pg 9 of 24 records providers, including but not limited to vendors or other third parties from which Defendants directly acquire criminal record or Eviction Proceeding Record information, that includes root cause analysis of aggregated issues, and retain records sufficient to demonstrate the program, the issues identified, and the corrective action taken;\n\nC. Maintain a committee, comprised of individuals responsible for: (1) the execution of Defendants’ compliance with the FCRA with respect to the provision of Background Screening Reports; and (2) overseeing Defendants’ compliance with this Order and the programs required by this Section. The committee must: (1) meet at least quarterly, (2) retain records sufficient to demonstrate the work of the committee, including minutes and materials from each meeting, and (3) regularly report on its work and Defendants’ compliance with the FCRA with respect to the provision of Background Screening Reports and this Order to the Board of Directors or a committee of the Board of Directors of the ultimate parent entity that controls Defendants (which as of the date of entry of this Order, is the publicly-traded company TransUnion); and\n\nD. Retain all Frequency Reports created by any Defendant, if any, and received from Eviction Proceeding Record providers.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Comprehensive Security Program" ], "case_id": "10.23_transunion_rental_screening_solutions_and_trans_union._ftc_and_cfpb_v.", "company_name": "TransUnion Rental Screening Solutions, Inc.", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a)(1) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3204-transunion-rental-screening-solutions-inc-trans-union-llc-ftc-cfpb-v", "docket_number": "1:23-cv-02659" }, { "provision_number": "III", "title": "Consumer's File Disclosures", "category": "affirmative_obligation", "summary": "Defendant TransUnion Rental Screening Solutions, Inc. must provide consumers, upon request and at no charge, all information in their Consumer's File, including all information that might be provided to a customer or end user.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant TransUnion Rental Screening Solutions, Inc. must provide to any consumer, upon request and at no charge, all information in that Consumer’s File at the time of the request, including but not limited to all information that Defendant TransUnion Rental Screening Solutions, Inc. might provide to a customer or end user.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "10.23_transunion_rental_screening_solutions_and_trans_union._ftc_and_cfpb_v.", "company_name": "TransUnion Rental Screening Solutions, Inc.", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a)(1) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3204-transunion-rental-screening-solutions-inc-trans-union-llc-ftc-cfpb-v", "docket_number": "1:23-cv-02659" }, { "provision_number": "IV", "title": "Adverse Action Template", "category": "affirmative_obligation", "summary": "Defendant TransUnion Rental Screening Solutions, Inc. must make available to customers a written Adverse Action notice template consistent with FCRA requirements, including prompts to attach the Consumer Report and state reasons for the Adverse Action, and must post it publicly on its websites.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant TransUnion Rental Screening Solutions, Page 9 of 24 Case No. 1:23-cv-02659-GPG Document 15 filed 10/18/23 USDC Colorado pg 10 of 24 Inc. must make available to its customers and other end users of its Consumer Reports provided for rental background screening purposes a template for written Adverse Action notices consistent with the requirements of 15 U.S.C § 1681m. In addition, the template must also prompt the customer or end user to attach a copy of the Consumer Report and state the principal reason(s) for the Adverse Action. Defendant TransUnion Rental Screening Solutions, Inc. must make the template publicly available, including on its websites in close proximity to information about its provision of Consumer Reports provided for rental background screening purposes.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "10.23_transunion_rental_screening_solutions_and_trans_union._ftc_and_cfpb_v.", "company_name": "TransUnion Rental Screening Solutions, Inc.", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a)(1) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3204-transunion-rental-screening-solutions-inc-trans-union-llc-ftc-cfpb-v", "docket_number": "1:23-cv-02659" }, { "provision_number": "V", "title": "Order to Pay Redress", "category": "affirmative_obligation", "summary": "Defendants must reserve $11,000,000 for consumer redress, submit a Bureau-approved Redress Plan within 60 days, compensate Affected Consumers on a pro rata basis, and remit any unused funds to the Bureau.", "verbatim_text": "A. Within 10 days of entry of this Order, Defendants must reserve or deposit into a segregated deposit account Eleven Million Dollars ($11,000,000) for the purpose of providing redress to Affected Consumers as required by this Section.\n\nB. Within 60 days of entry of this Order, Defendants must submit to the Bureau Enforcement Director for review and non-objection a comprehensive written plan for providing redress consistent with this Order (“Redress Plan”). The Bureau Enforcement Director will have the discretion to make a determination of non-objection to the Redress Plan or direct the Defendants to revise it. Each time the Bureau Enforcement Director directs the Defendants to revise the Redress Plan, the Defendants must revise and resubmit the Redress Plan to the Bureau Enforcement Director within 15 days. After receiving notification that the Bureau Enforcement Director has made a determination of non-objection to the Redress Plan, the Defendants must implement and adhere to the steps, recommendations, deadlines, and timeframes outlined in the Redress Plan.\n\nC. The Redress Plan must: 1. Specify the methodology that Defendants are using to identify Affected Consumers and state the number of Affected Consumers; 2. Require Defendants to compensate by check each Affected Consumer on a pro rata basis; 3. Identify the amount of redress to be provided to each Affected Consumer; 4. Describe the processes for issuing, delivering, and tracking payments to all Affected Consumers, including the processes for handling any unclaimed funds; 5. Specify the methodology Defendants will use to identify the mailing address for each Affected Consumer, which must include reasonable efforts to identify current mailing addresses, including and in addition to the U.S. Postal Service National Change of Address database; 6. Provide that Defendants will send each Affected Consumer an explanatory letter that includes a statement that redress is being provided in accordance with the terms of this Order and states why the Affected Consumer is receiving the redress, as well as how the consumer can request a free copy of a Consumer Report for such consumer (“Redress Notification Letter”); 7. Provide that Defendants shall not include in any envelope containing a Redress Notification Letter any materials other than the Redress Notification Letter and a payment to the Affected Consumer, unless Defendants have written confirmation from the Bureau that the Bureau does not object to the inclusion of additional materials; Page 11 of 24 Case No. 1:23-cv-02659-GPG Document 15 filed 10/18/23 USDC Colorado pg 12 of 24 8. Provide that if an initial mailing attempt fails, Defendants shall conduct further research to identify the Affected Consumer’s current mailing address and make at least one further mailing attempt; 9. Provide an exemplar of the Redress Notification Letter and envelope; 10. Describe timeframes and deadlines for implementing the Redress Plan, including the period during which redress checks will remain valid and available to negotiate; 11. State that Defendants will pay all costs of administering redress required by this Order; and 12. Describe all reporting that Defendants will provide to the Bureau and FTC concerning the Defendants’ provision of redress.\n\nD. After completing the Redress Plan, if the amount of redress provided to Affected Consumers is less than Eleven Million Dollars ($11,000,000), within 30 days of the completion of the Redress Plan, Defendants must pay to the Bureau, by wire transfer to the Bureau or to the Bureau’s agent, and according to the Bureau’s wiring instructions, the difference between the amount of redress provided to Affected Consumers and Eleven Million Dollars ($11,000,000).\n\nF. Defendants may not condition the payment of any redress to any Affected Consumer under this Order on that Affected Consumer waiving any right.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "10.23_transunion_rental_screening_solutions_and_trans_union._ftc_and_cfpb_v.", "company_name": "TransUnion Rental Screening Solutions, Inc.", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a)(1) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3204-transunion-rental-screening-solutions-inc-trans-union-llc-ftc-cfpb-v", "docket_number": "1:23-cv-02659" }, { "provision_number": "VI", "title": "Order to Pay Civil Money Penalty", "category": "affirmative_obligation", "summary": "Defendants must pay a $4,000,000 civil money penalty to the Bureau within 10 days of entry of this Order, and may not claim tax benefits or seek reimbursement for the penalty.", "verbatim_text": "A. Under Section 1055(c) of the CFPA, 12 U.S.C. § 5565(c), by reason of the violations of law alleged in the Complaint, Defendants must pay a civil money penalty of Four Million Dollars ($4,000,000) to the Bureau.\n\nB. Within 10 days of entry of this Order, Defendants must pay the civil money penalty by wire transfer to the Bureau or to the Bureau’s agent in compliance with the Bureau’s wiring instructions.\n\nD. Defendants must treat the civil money penalty paid under this Order as a penalty paid to the government for all purposes. Regardless of how the Bureau ultimately uses those funds, Defendants may not: 1. Claim, assert, or apply for a tax deduction, tax credit, or any other tax benefit for any civil money penalty paid under this Order; or 2. Seek or accept, directly or indirectly, reimbursement or indemnification from any source, including but not limited to payment made under any insurance policy, with regard to any civil money penalty paid under this Order.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "10.23_transunion_rental_screening_solutions_and_trans_union._ftc_and_cfpb_v.", "company_name": "TransUnion Rental Screening Solutions, Inc.", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a)(1) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3204-transunion-rental-screening-solutions-inc-trans-union-llc-ftc-cfpb-v", "docket_number": "1:23-cv-02659" }, { "provision_number": "VII", "title": "Additional Monetary Provisions", "category": "affirmative_obligation", "summary": "Covers interest accrual on default, relinquishment of funds, collateral estoppel effect of the Complaint's facts, Taxpayer Identification Number use, and notification requirements upon Related Consumer Actions.", "verbatim_text": "A. In the event of any default on Defendants’ obligations to make payment under this Order, interest, computed under 28 U.S.C. § 1961, as amended, will accrue on any outstanding amounts not paid from the date of default to the date of payment, and will immediately become due and payable.\n\nB. Defendants relinquish all dominion, control, and title to the funds paid under this Order to the fullest extent permitted by law and no part of the funds may be returned to Defendants.\n\nC. The facts alleged in the Complaint will be taken as true and be given collateral estoppel effect, without further proof, in any proceeding based on the entry of this Order, or in any subsequent civil litigation by or on behalf of the Bureau or the FTC, including in a proceeding to enforce the Bureau’s rights to any payment or monetary judgment under this Order, such as a nondischargeability complaint in any bankruptcy case.\n\nD. The facts alleged in the Complaint establish all elements necessary to sustain an action by the Bureau under Section 523(a)(2)(A) of the Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A), and for such purposes this Order will have collateral estoppel effect against each Defendant, even in such Defendant’s capacity as debtor-in-possession.\n\nE. Defendants acknowledge that their Taxpayer Identification Numbers (Social Security Numbers or Employer Identification Numbers), which Defendants previously submitted to the FTC and Bureau, may be used for collecting and reporting on any delinquent amount arising out of this Order, in accordance with 31 U.S.C. § 7701.\n\nF. Within 30 days of the entry of a final judgment, order, or settlement in a Related Consumer Action, the affected Defendant must notify the Bureau of the final judgment, order, or settlement in writing. That notification must indicate the amount of redress, if any, that such Defendant paid or is required to pay to consumers and describe the consumers or classes of consumers to whom that redress has been or will be paid. To preserve the deterrent effect of the civil money penalty in any Related Consumer Action, Defendants may not argue that any Defendant is entitled to, nor may any Defendant benefit by, any offset or reduction of any monetary remedies imposed in the Related Consumer Action because of the civil money penalty paid in this action or because of any payment that the Bureau makes from the Civil Penalty Fund. If the court in any Related Consumer Action offsets or otherwise reduces the amount of compensatory monetary remedies imposed against a Defendant based on the civil money penalty paid in this action or based on any payment that the Bureau makes from the Civil Penalty Fund, that Defendant must, within 30 days after entry of a final order granting such offset or reduction, notify the Bureau and pay the amount of the offset or reduction to the U.S. Treasury. Such a payment will not be considered an additional civil money penalty and will not change the amount of the civil money penalty imposed in this action.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "10.23_transunion_rental_screening_solutions_and_trans_union._ftc_and_cfpb_v.", "company_name": "TransUnion Rental Screening Solutions, Inc.", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a)(1) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3204-transunion-rental-screening-solutions-inc-trans-union-llc-ftc-cfpb-v", "docket_number": "1:23-cv-02659" }, { "provision_number": "VIII", "title": "Cooperation", "category": "affirmative_obligation", "summary": "Defendants must fully cooperate with the Bureau to identify Affected Consumers and the amount of their injury, providing requested information within 14 days of a written request.", "verbatim_text": "IT IS FURTHER ORDERED that Defendants must cooperate fully to help the Bureau determine the identity and location of, and the amount of injury sustained by, each Affected Consumer. Defendants must provide such information in their or their agents’ possession or control within 14 days of receiving a written request from the Bureau.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Third-Party Assessment" ], "case_id": "10.23_transunion_rental_screening_solutions_and_trans_union._ftc_and_cfpb_v.", "company_name": "TransUnion Rental Screening Solutions, Inc.", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a)(1) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3204-transunion-rental-screening-solutions-inc-trans-union-llc-ftc-cfpb-v", "docket_number": "1:23-cv-02659" }, { "provision_number": "IX", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendants must submit sworn acknowledgments of receipt of this Order, deliver copies to current and future relevant personnel, and obtain signed acknowledgments from recipients.", "verbatim_text": "A. Each Defendant, within 7 days of entry of this Order, must submit to the FTC and Bureau an acknowledgment of receipt of this Order sworn under penalty of perjury.\n\nB. For 5 years after entry of this Order, each Defendant must deliver a copy of this Order to: (1) all principals, officers, directors, and LLC managers and members; (2) all business leaders and senior managers who have responsibilities related to the subject matter of the Order; (3) any service providers who have responsibilities related to the subject matter of the Order; and (4) any business entity resulting from any change in structure as set forth in the Section titled “Compliance Reporting.” Delivery must occur within 7 days of entry of this Order for current personnel. For all others, delivery must occur before they assume their responsibilities.\n\nC. From each individual or entity to which a Defendant delivered a copy of this Order, that Defendant must obtain, within 30 days, a signed and dated acknowledgment of receipt of this Order.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "10.23_transunion_rental_screening_solutions_and_trans_union._ftc_and_cfpb_v.", "company_name": "TransUnion Rental Screening Solutions, Inc.", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a)(1) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3204-transunion-rental-screening-solutions-inc-trans-union-llc-ftc-cfpb-v", "docket_number": "1:23-cv-02659" }, { "provision_number": "X", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendants must make timely submissions to the FTC and Bureau, including initial contact and business information within 7 days, a list of Order recipients at 90 days, an annual compliance report, ongoing notices of structural or operational changes for 5 years, bankruptcy filings within 14 days, quarterly redress payment reports, and sworn declarations for all submissions.", "verbatim_text": "A. Within 7 days of the entry of this Order: 1. Defendant Trans Union LLC must, sworn under penalty of perjury: (1) identify the primary physical, postal, and email address and telephone number, as designated points of contact, which representatives of the Bureau or FTC may use Page 16 of 24 Case No. 1:23-cv-02659-GPG Document 15 filed 10/18/23 USDC Colorado pg 17 of 24 to communicate with that Defendant; (2) identify all of Defendant Trans Union LLC’s businesses involved in providing legal or compliance support to Defendant TransUnion Rental Screening Solutions, Inc. by all of their names, telephone numbers, and physical, postal, email, and Internet addresses; and (3) describe the legal or compliance support provided to Defendant TransUnion Rental Screening Solutions, Inc. and the involvement of any other Defendant.\n\n2. Defendant TransUnion Rental Screening Solutions, Inc. must, sworn under penalty of perjury: (1) identify the primary physical, postal, and email address and telephone number, as designated points of contact, which representatives of the Bureau or FTC may use to communicate with that Defendant; (2) identify all Defendant’s businesses by all of their names, telephone numbers, and physical, postal, email, and Internet addresses; and (3) describe the activities of each such business, including the products and services offered, and the involvement of any other Defendant.\n\nB. Ninety days after entry of this Order, each Defendant must submit to the FTC and Bureau a list of all persons and their titles to whom this Order has been delivered pursuant to the Section of this Order titled “Order Acknowledgements.”\n\nC. One year after entry of this Order, each Defendant must submit a compliance report to the FTC and Bureau, sworn under penalty of perjury, in which, at a minimum, each Defendant must (1) describe in detail whether and how that Defendant is in compliance with each paragraph of this Order; and (2) provide a copy of each Order Acknowledgment obtained pursuant to the Page 17 of 24 Case No. 1:23-cv-02659-GPG Document 15 filed 10/18/23 USDC Colorado pg 18 of 24 Section of this Order titled “Order Acknowledgements,” unless previously submitted to the FTC and Bureau.\n\nD. For 5 years after entry of this Order, each Defendant must submit a compliance notice to the FTC and Bureau, sworn under penalty of perjury, at least 30 days before, or within 14 days after learning of the change, whichever is sooner, of any change to the following: (1) any designated point of contact; (2) the structure of any Defendant or any entity that Defendant has any ownership interest in or controls directly or indirectly that may affect compliance obligations arising under this Order, including: creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order; (3) the type or format of Background Screening Reports that Defendant offers; (4) if that Defendant begins providing Consumer Reports to customers in the United States or concerning consumers or transactions in the United States that include an Eviction Proceeding Record or criminal record information but are not Background Screening Reports; or (5) if any entity that Defendant has a majority ownership interest in or controls directly or indirectly that is not covered by the Sections of this Order titled “Prohibited Business Activities” or “Affirmative Requirements” begins providing Consumer Reports to customers in the United States or concerning consumers or transactions in the United States that include any Eviction Proceeding Record or criminal record information.\n\nE. Each Defendant must submit to the FTC and Bureau notice of the filing of any bankruptcy petition, insolvency proceeding, or similar proceeding by or against such Defendant within 14 days of its filing.\n\nF. Defendants must submit to the FTC and Bureau reports under penalty of perjury on all payments made pursuant to this Order. Defendants must submit a report quarterly and at the conclusion of redress and any disgorgement summarizing their payment compliance, including stating the total number of, and dollar amounts for, Affected Customers, checks mailed, and checks negotiated.\n\nG. Any submission to the FTC or Bureau required by this Order to be sworn under penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed on: _____” and supplying the date, signatory’s full name, title (if applicable), and signature.\n\nH. Unless otherwise directed by an FTC representative in writing, all submissions to the FTC pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The subject line must begin: FTC & CFPB v. TransUnion 1823204.\n\nI. Unless otherwise directed by a Bureau representative in writing, all submissions to the Bureau pursuant to this Order must be emailed to Enforcement_Compliance@cfpb.gov, with the subject line, “FTC and CFPB v. TransUnion Rental Screening Solutions, Inc. and Trans Union LLC, Case No. 23-cv-02659.”", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "10.23_transunion_rental_screening_solutions_and_trans_union._ftc_and_cfpb_v.", "company_name": "TransUnion Rental Screening Solutions, Inc.", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a)(1) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3204-transunion-rental-screening-solutions-inc-trans-union-llc-ftc-cfpb-v", "docket_number": "1:23-cv-02659" }, { "provision_number": "XI", "title": "Recordkeeping Provisions", "category": "recordkeeping", "summary": "Defendants must create and retain for 5 years specified records relating to Background Screening Reports, including accounting records, personnel records, complaints, training materials, and all records necessary to demonstrate compliance.", "verbatim_text": "A. Accounting records showing the revenues from all products or services sold;\n\nB. Personnel records showing, for each person providing services, whether as an employee or otherwise: name, addresses, and telephone numbers; job title or position; dates of service; and, if applicable, the reason for termination;\n\nC. Complaints concerning the subject matter of this Order, whether received directly or indirectly, such as through a third party, and any response;\n\nD. All employee training materials concerning the subject matter of this Order; and\n\nE. All records necessary to demonstrate full compliance with each provision of this Order, including all submissions to the FTC or Bureau.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "10.23_transunion_rental_screening_solutions_and_trans_union._ftc_and_cfpb_v.", "company_name": "TransUnion Rental Screening Solutions, Inc.", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a)(1) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3204-transunion-rental-screening-solutions-inc-trans-union-llc-ftc-cfpb-v", "docket_number": "1:23-cv-02659" }, { "provision_number": "XII", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The FTC and Bureau have the right to monitor Defendants' compliance by requesting additional reports, communicating directly with Defendants, interviewing employees, and using compulsory legal process.", "verbatim_text": "A. Within 14 days of receipt of a written request from the FTC or Bureau, Defendants must submit additional compliance reports or other requested information, which must be made under penalty of perjury; provide sworn testimony; or produce documents.\n\nB. For purposes of this Section, the FTC or Bureau may communicate directly with Defendants, unless Defendants retain counsel related to these communications.\n\nC. Defendants must permit FTC or Bureau representatives to interview any employee or other person affiliated with Defendants who has agreed to such an interview regarding: (a) this Page 20 of 24 Case No. 1:23-cv-02659-GPG Document 15 filed 10/18/23 USDC Colorado pg 21 of 24 matter; (b) anything related to or associated with the conduct described in the Complaint; or (c)compliance with the Order. The person interviewed may have counsel present.\n\nD. Nothing in this Order will limit the FTC’s or Bureau’s lawful use of civil investigative demands under 15 U.S.C. § 57b-1 or 12 C.F.R. § 1080.6 or other compulsory process.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "10.23_transunion_rental_screening_solutions_and_trans_union._ftc_and_cfpb_v.", "company_name": "TransUnion Rental Screening Solutions, Inc.", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a)(1) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3204-transunion-rental-screening-solutions-inc-trans-union-llc-ftc-cfpb-v", "docket_number": "1:23-cv-02659" }, { "provision_number": "XIII", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction over this matter for purposes of construction, modification, and enforcement of the Order.", "verbatim_text": "IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "10.23_transunion_rental_screening_solutions_and_trans_union._ftc_and_cfpb_v.", "company_name": "TransUnion Rental Screening Solutions, Inc.", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 621(a)(1) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)(1)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3204-transunion-rental-screening-solutions-inc-trans-union-llc-ftc-cfpb-v", "docket_number": "1:23-cv-02659" }, { "provision_number": "I", "title": "Fair Credit Reporting Act Monitoring Program", "category": "affirmative_obligation", "summary": "Settling Defendants must establish and maintain a comprehensive monitoring program to assess whether they are operating as a Consumer Reporting Agency and to prevent prohibited business activities before advertising or selling any Covered Report.", "verbatim_text": "IT IS ORDERED that the Settling Defendants must not advertise, market, promote, 27 or offer for sale any Covered Report unless they first establish and implement, and 28 thereafter maintain, a comprehensive monitoring program (hereinafter, the “Monitoring 6 23-CV-1674 TWR (MSB) Case 3:23-cv-01674-MSB Document 17 Filed 10/11/23 PageID.215 Page 7 of 20 1 Program”) to regularly review, assess, and determine the extent to which each Settling 2 Defendant is operating in whole or in part as a Consumer Reporting Agency, and, if so, to 3 regularly review, assess, and determine the extent to which the Settling Defendant is 4 engaged in business activities prohibited by Section II of this Stipulated Order, entitled 5 “Prohibited Business Activities.” To satisfy this requirement, each Settling Defendant or 6 the Settling Defendants together must, at a minimum:\n\n7 A. Document in writing the content, implementation, and maintenance of the 8 Monitoring Program;\n\n9 B. Designate a qualified employee or employees to coordinate and be responsible 10 for the Monitoring Program;\n\n11 C. Assess and document, prior to the inception of the Monitoring Program and 12 at least once every twelve (12) months thereafter, the extent to which the Covered Reports 13 promoted or offered for sale by the Settling Defendants are Consumer Reports, and the 14 extent to which the Settling Defendants are acting as a Consumer Reporting Agency, 15 including the extent to which users regularly use Covered Reports provided by the Settling 16 Defendants for Permissible Purposes. Such assessment shall include, at a minimum, a 17 review of: 18 1. All products and services offered or sold; 19 2. Marketing and advertising materials used to promote, offer, or sell 20 those products and services (including but not limited to any website content, 21 advertisements, blog posts, testimonials, published statements, customer service 22 scripts, search engine advertising keywords, push notifications, and any method or 23 device used to direct Persons to a website); 24 3. Any measures to prevent users from using a Settling Defendant’s 25 products or services for Permissible Purposes (e.g., disclaimers, certifications, 26 account terminations, user verification, or blocking) and available evidence or 27 information relating to the effectiveness of those measures; 28 / / / 7 23-CV-1674 TWR (MSB) Case 3:23-cv-01674-MSB Document 17 Filed 10/11/23 PageID.216 Page 8 of 20 1 4. All users whom the Settling Defendants have reason to believe have 2 used or intended to use one or more Covered Reports for a Permissible Purpose, all 3 actions taken by the Settling Defendants to permanently prevent each such user from 4 accessing Covered Reports, and the dates on which such actions were effective; and 5 5. Any evidence of or information about how users of the Settling 6 Defendants’ products or services use, intend to use, or expect to use those products 7 or services (including but not limited to consumer correspondence, consumer 8 reviews, consumer complaints, and consumer testimonials);\n\n9 D. Design, implement, maintain, and document compliance with safeguards to 10 assure that the Settling Defendants do not sell, offer, or make available Covered Reports 11 for a Permissible Purpose, unless the requirements of this Stipulated Order that would 12 apply to a Consumer Report are satisfied as to that product or service. Such safeguards 13 must include, at a minimum: 14 1. Training of all officers, employees, and advertising affiliates, and all 15 agents and independent contractors to the extent that their job duties are relevant to 16 the content of this Stipulated Order, at onboarding and at least every twelve (12) 17 months thereafter, on this Stipulated Order’s requirements, activities that would 18 violate those requirements, and relevant specific job duties relating to compliance 19 with this Stipulated Order; 20 2. Refraining from advertising, marketing, promoting, describing, or 21 offering for sale any product or service that involves Covered Reports as suitable or 22 appropriate for any Permissible Purpose, unless the requirements of this Stipulated 23 Order that would apply to a Consumer Report are satisfied as to that product or 24 service; 25 3. Reviewing, prior to their publication or implementation, of all 26 marketing and advertising materials used by the Settling Defendants to offer, 27 promote, or sell those products and services (including but not limited to any 28 advertisements, blog posts, testimonials, published statements, customer service 8 23-CV-1674 TWR (MSB) Case 3:23-cv-01674-MSB Document 17 Filed 10/11/23 PageID.217 Page 9 of 20 1 scripts, search engine advertising keywords, push notifications, and any method or 2 device used to direct Persons to a website); 3 4. Requiring affiliate marketing partners by contract to obtain prior 4 written approval from the Settling Defendants for all unique advertising and 5 marketing copy used to offer, promote, or sell Covered Reports; 6 5. Clearly and Conspicuously disclosing permissible and impermissible 7 uses of any Covered Reports under this Stipulated Order; 8 6. Clearly and Conspicuously requiring each user, before the purchase of 9 any product or service, prior to running any people search or background report 10 search, and annually thereafter, to certify: 11 i. that the user will not use Covered Reports to make decisions 12 about or in connection with hiring, promoting, reassigning, or continuing to 13 employ any person, including current or potential volunteers and household 14 employees such as childcare workers, contractors, or home health aides; 15 ii. that the user will not use Covered Reports to make decisions 16 about or in connection with renting or selling a house, apartment, or other 17 residential property to any person; 18 iii. that the user will not use Covered Reports to make decisions 19 about or in connection with lending money or extending credit to any person; 20 iv. that the user will not use Covered Reports in connection with the 21 underwriting of insurance; and 22 v. that the user will not use Covered Reports for any purpose related 23 to any eligibility determination about a person. 24 7. Procedures to onboard users, including requiring users to agree to 25 contracts or terms and conditions prohibiting the use of Covered Reports provided 26 by the Settling Defendants for any Permissible Purpose and Clear and Conspicuous 27 disclosure of such terms and conditions; 28 / / / 9 23-CV-1674 TWR (MSB) Case 3:23-cv-01674-MSB Document 17 Filed 10/11/23 PageID.218 Page 10 of 20 1 8. Implementing user access controls, such as controls on the number of 2 Covered Reports obtained per day and investigation of accounts with excessive or 3 suspicious patterns of obtaining Covered Reports; 4 9. Conducting ongoing reviews, tests, or audits of: 5 i. the ways that users use or expect to use the Settling Defendants’ 6 products or services; 7 ii. the extent to which each Settling Defendant’s officers, 8 employees, agents, advertising affiliates, and independent contractors have 9 implemented and are complying with the Monitoring Program; and 10 iii. the effectiveness of the Monitoring Program at detecting and 11 preventing use of Covered Reports for Permissible Purposes; and 12 10. Implementing and complying with procedures to actively identify and 13 investigate users who are using, have used, or likely intend to use Covered Reports 14 for one or more Permissible Purposes and to permanently prevent those users from 15 accessing Covered Reports within three (3) business days after a Settling Defendant 16 becomes aware of the user’s use of Covered Reports for a Permissible Purpose; and\n\n17 E. Evaluate and adjust the Monitoring Program in light of any changes to a 18 Settling Defendant’s operations or business arrangements, or any other circumstance that 19 the Settling Defendants know or have reason to know may materially affect the Monitoring 20 Program’s effectiveness. At a minimum, each Settling Defendant must evaluate the 21 Monitoring Program every twelve (12) months and implement modifications based on the 22 results; and\n\n23 F. At least once every twelve (12) months, provide: (1) the written program 24 required by Subsection I.A and any evaluations thereof or updates thereto; and (2) the 25 assessments and documentation required by Subsection I.C to the Settling Defendants’ 26 board of directors or governing body or, if no such board or equivalent governing body 27 exists, to a senior officer responsible for regulatory compliance.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Comprehensive Security Program" ], "case_id": "10.23_truthfinder", "company_name": "Instant Checkmate, LLC", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "23-CV-1674" }, { "provision_number": "II", "title": "Prohibited Business Activities", "category": "prohibition", "summary": "Settling Defendants are permanently enjoined from failing to comply with key FCRA requirements when operating as a Consumer Reporting Agency, including maintaining proper procedures, ensuring accuracy, providing required notices, and conducting reinvestigations.", "verbatim_text": "7 A. Failing to maintain reasonable procedures designed to limit the furnishing of 8 Consumer Reports to Persons with Permissible Purposes to receive them. Such reasonable 9 procedures shall require that: (1) prospective users of the information identify themselves, 10 certify the purposes for which the information is sought, and certify that the information 11 will be used for no other purpose; and (2) the Settling Defendants make a reasonable effort 12 to verify the identity of a new prospective user and the uses certified by such prospective 13 user prior to furnishing such user a Consumer Report;\n\n14 B. Failing to maintain reasonable procedures to assure the maximum possible 15 accuracy of the information concerning the individual about whom the report relates;\n\n16 C. Failing to provide a FCRA notice to users of Consumer Reports (attached 17 hereto as Attachment A to this Stipulated Order) to any person to whom a Consumer 18 Report is provided by the Settling Defendants;\n\n19 D. In offering, selling, publishing, or making available Consumer Reports for 20 employment purposes, failing to: 21 1. obtain a certification that the user has complied with consumer notice 22 requirements, including: (i) the user has provided a standalone written disclosure to the 23 consumer that a Consumer Report may be obtained; (ii) obtained the written consent of the 24 consumer to obtain a Consumer Report; and, (iii) prior to taking any adverse action based 25 in whole or in part on the report, will provide the consumer with a copy of the Consumer 26 Report and a written description of the consumer’s rights under the FCRA (attached hereto 27 as Attachment B to this Stipulated Order); 28 / / / 11 23-CV-1674 TWR (MSB) Case 3:23-cv-01674-MSB Document 17 Filed 10/11/23 PageID.220 Page 12 of 20 1 2. obtain a certification that the user will not use the information from the 2 Consumer Report in violation of any applicable Federal or State equal employment 3 opportunity law or regulation; and 4 3. provide with the Consumer Report, unless it has been previously 5 provided, a summary of the consumer’s rights under the FCRA (attached hereto as 6 Attachment B to this Stipulated Order).\n\n7 E. Furnishing a Consumer Report to any Person whom the Settling Defendants 8 do not have reason to believe has a Permissible Purpose to receive the Consumer Report; 9 and\n\n10 F. Failing to conduct a reasonable reinvestigation, free of charge, if a consumer 11 disputes the completeness or accuracy of any item of information contained in a Consumer 12 Report about that consumer that is offered, sold, published, or made available by the 13 Settling Defendants and record the current status of the disputed information in, or delete 14 the disputed information from, any Consumer Report that is offered, sold, published, or 15 made available by the Settling Defendants before the end of the 30-day period beginning 16 on the date on which the Settling Defendants receive notice of the dispute.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "10.23_truthfinder", "company_name": "Instant Checkmate, LLC", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "23-CV-1674" }, { "provision_number": "III", "title": "Prohibition Against Misrepresentations to Consumers Regarding Covered Reports", "category": "prohibition", "summary": "Settling Defendants are permanently enjoined from making any misrepresentations, expressly or by implication, about Covered Reports, including misrepresentations about the effect of removal mechanisms, the probability of Covered Records existing, accuracy, whether traffic tickets are criminal records, or any other facts about Covered Records.", "verbatim_text": "25 A. The effect of utilizing any mechanism to remove or flag as inaccurate certain 26 items of information in Covered Reports;\n\n1 B. The extent to which, or the probability that, any consumer has or may have 2 Covered Records, the Settling Defendants have found Covered Records, or that there are 3 possible or probable Covered Records;\n\n4 C. The accuracy or completeness of the information contained in the Covered 5 Reports;\n\n6 D. That a traffic ticket or a traffic citation in a Covered Report is a criminal or 7 arrest record; or 8 E. Any other fact concerning Covered Records or Covered Reports or any of the\n\n8 E. Any other fact concerning Covered Records or Covered Reports or any of the 9 information therein, such as their accuracy, nature, characteristics, or content; or any 10 restrictions, limitations, or conditions on users’ ability to access, alter, use, correct, or 11 delete them.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Deceptive Design / Dark Patterns" ], "remedy_types": [ "Prohibition" ], "case_id": "10.23_truthfinder", "company_name": "Instant Checkmate, LLC", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "23-CV-1674" }, { "provision_number": "IV", "title": "Injunction Concerning Misrepresentations in Violation of Section 5 of the FTC Act", "category": "prohibition", "summary": "Settling Defendants are permanently enjoined from making or assisting in any misrepresentation about what a user can achieve with a product or service, or about the status of any reviewer or endorser, including misrepresentations that a reviewer is an unbiased or ordinary user.", "verbatim_text": "18 PERMANENTLY RESTRAINED AND ENJOINED from making, or assisting others 19 in making, any misrepresentation, expressly or by implication, about 20 A. What a user can do or achieve with the product or service; or\n\n21 B. The status of any person providing a review or endorsement of a good or 22 service, including a misrepresentation that the reviewer or endorser is an unbiased or 23 ordinary user of the good or service.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Deceptive Design / Dark Patterns" ], "remedy_types": [ "Prohibition" ], "case_id": "10.23_truthfinder", "company_name": "Instant Checkmate, LLC", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "23-CV-1674" }, { "provision_number": "V", "title": "Required Disclosures of Unexpected Material Connections", "category": "prohibition", "summary": "Settling Defendants are permanently enjoined from making any representation about any reviewer or endorser of a Covered Report or related good or service without Clearly and Conspicuously disclosing, in Close Proximity to that representation, any Unexpected Material Connection between the reviewer or endorser and the Settling Defendants or affiliated entities.", "verbatim_text": "1 connection with promoting or offering for sale any Covered Report or related good or 2 service, are PERMANENTLY RESTRAINED AND ENJOINED from making, or 3 assisting others in making, any representation, expressly or by implication, about any 4 reviewer or endorser of such good or service without disclosing, Clearly and 5 Conspicuously, and in Close Proximity to that representation, any Unexpected Material 6 Connection between such reviewer or endorser and (1) the Settling Defendants; or (2) any 7 other individual or entity affiliated with the good or service.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Deceptive Design / Dark Patterns" ], "remedy_types": [ "Prohibition" ], "case_id": "10.23_truthfinder", "company_name": "Instant Checkmate, LLC", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "23-CV-1674" }, { "provision_number": "VI", "title": "Monitoring of Endorsers", "category": "monitoring", "summary": "Within 90 days of entry of the order, Settling Defendants must implement steps to ensure compliance with endorser disclosure requirements, including providing clear disclosure statements to each reviewer, obtaining signed acknowledgments, establishing a monitoring system for endorser representations, contacting non-compliant endorsers, and creating monitoring reports.", "verbatim_text": "9 IT IS FURTHER ORDERED that within ninety (90) days of the date of entry of 10 this Stipulated Order, the Settling Defendants; their officers, agents, employees, and 11 attorneys; and all other persons in active concert or participation with any of them, who 12 receive actual notice of this Stipulated Order, whether acting directly or indirectly, in 13 connection with promoting or offering for sale any Covered Report or related good or 14 service, must take steps sufficient to ensure compliance with Subsection B of the Section 15 of this Stipulated Order titled Injunction Concerning Misrepresentations in Violation of 16 Section 5 of the FTC Act and the Section of this Stipulated Order titled Required 17 Disclosures of Unexpected Material Connections. Such steps shall include, at a minimum: 18 A. Providing each reviewer or endorser of any Covered Report or related good 19 or service with a clear statement of his or her responsibilities to disclose Clearly and 20 Conspicuously and in Close Proximity to the endorsement, in any review, online video, 21 social media posting, or other communication endorsing the good or service, the reviewer 22 or endorser’s Unexpected Material Connection to the Settling Defendants, or any other 23 individual or entity affiliated with the good or service; and obtaining from each such 24 reviewer or endorser a signed and dated statement acknowledging receipt of that statement 25 and expressly agreeing to comply with it. For the purpose of this subsection, the term 26 “signed” may include a verifiable electronic or digital form of signature, to the extent that 27 such form of signature is recognized as a valid signature under applicable Federal law or 28 State contract law;\n\n1 B. Establishing, implementing, and thereafter maintaining a system to monitor 2 and review the representations and disclosures of reviewers and endorsers with any 3 Unexpected Material Connection to the Settling Defendants, or any other individual or 4 entity affiliated with the good or service to ensure compliance with the Subsection B of the 5 Section of this Stipulated Order titled Injunction Concerning Misrepresentations in 6 Violation of Section 5 of the FTC Act and the Section of this Stipulated Order titled 7 Required Disclosures of Unexpected Material Connections. The system shall include, at a 8 minimum, monitoring and reviewing the endorsers’ reviews, online videos, and social 9 media postings;\n\n10 C. In the event an Unexpected Material Connection is not disclosed, contacting 11 each reviewer or endorser to request such a disclosure. If such disclosure is not made or 12 the review or endorsement is not removed, the Settling Defendants shall contact the 13 platform on which the review or endorsement appears requesting its removal; and\n\n14 D. Creating reports showing the results of the monitoring required by 15 Subsections B and C of this Section.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Deceptive Design / Dark Patterns" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "10.23_truthfinder", "company_name": "Instant Checkmate, LLC", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "23-CV-1674" }, { "provision_number": "VII", "title": "Monetary Judgment for Civil Penalty", "category": "affirmative_obligation", "summary": "Judgment of $5,800,000 is entered jointly and severally against the Settling Defendants as a civil penalty, to be paid to the U.S. Treasury within 7 days of entry of the order by electronic fund transfer.", "verbatim_text": "18 A. Judgment in the amount of Five Million, Eight Hundred Thousand, Dollars 19 ($5,800,000) is entered in favor of the Commission against the Settling Defendants, jointly 20 and severally, as a civil penalty.\n\n21 B. The Settling Defendants are ordered to pay to the Commission, by making 22 payment to the Treasurer of the United States, Five Million, Eight Hundred Thousand, 23 Dollars ($5,800,000), which, as the Settling Defendants stipulate, their undersigned 24 counsel holds in escrow for no purpose other than payment to the Commission. Such 25 payment must be made within seven (7) days of entry of this Stipulated Order by electronic 26 fund transfer in accordance with instructions previously provided by a representative of the 27 Commission.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "10.23_truthfinder", "company_name": "Instant Checkmate, LLC", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "23-CV-1674" }, { "provision_number": "VIII", "title": "Additional Monetary Provisions", "category": "affirmative_obligation", "summary": "Settling Defendants relinquish all rights to transferred assets and must submit their Taxpayer Identification Numbers to the Commission for use in collecting any delinquent amounts.", "verbatim_text": "2 A. The Settling Defendants relinquish dominion and all legal and equitable right, 3 title, and interest in all assets transferred pursuant to this Stipulated Order and may not seek 4 the return of any assets.\n\n5 B. The Settling Defendants acknowledge that their Taxpayer Identification 6 Numbers (Social Security Numbers or Employer Identification Numbers), which the 7 Settling Defendants must submit to the Commission, may be used for collecting and 8 reporting on any delinquent amount arising out of this Stipulated Order, in accordance with 9 31 U.S.C. § 7701.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "10.23_truthfinder", "company_name": "Instant Checkmate, LLC", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "23-CV-1674" }, { "provision_number": "IX", "title": "Cooperation", "category": "affirmative_obligation", "summary": "Settling Defendants must fully cooperate with FTC representatives in this case and related investigations, providing truthful information and making officers, employees, and agents available for interviews and proceedings upon 5 days' written notice.", "verbatim_text": "11 IT IS FURTHER ORDERED that the Settling Defendants must fully cooperate 12 with representatives of the Commission in this case and in any investigation related to or 13 associated with the transactions or the occurrences that are the subject of the Complaint. 14 Such Settling Defendants must provide truthful and complete information, evidence, and 15 testimony. Such Settling Defendants must cause the Defendants’ officers, employees, 16 representatives, or agents to appear for interviews, discovery, hearings, trials, and any other 17 proceedings that a Commission representative may reasonably request upon five (5) days’ 18 written notice, or other reasonable notice, at such places and times as a Commission 19 representative may designate, without the service of a subpoena.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Third-Party Assessment" ], "case_id": "10.23_truthfinder", "company_name": "Instant Checkmate, LLC", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "23-CV-1674" }, { "provision_number": "X", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Each Settling Defendant must submit a sworn acknowledgment of receipt of the order within 7 days, deliver copies to all principals, managerial employees, and agents within 7 days (or before they assume responsibilities), and obtain signed acknowledgments from each recipient within 30 days.", "verbatim_text": "23 A. Each Defendant, within seven (7) days of entry of this Stipulated Order, must 24 submit to the Commission an acknowledgment of receipt of this Stipulated Order sworn 25 under penalty of perjury.\n\n26 B. For fifteen (15) years after entry of this Stipulated Order, each Settling 27 Defendant must deliver a copy of this Stipulated Order to: (1) all principals, officers, 28 directors, and LLC managers and members; (2) all employees having managerial 16 23-CV-1674 TWR (MSB) Case 3:23-cv-01674-MSB Document 17 Filed 10/11/23 PageID.225 Page 17 of 20 1 responsibilities for conduct related to the subject matter of the Stipulated Order and all 2 agents and representatives who participate in conduct related to the subject matter of the 3 Stipulated Order; and (3) any business entity resulting from any change in structure as set 4 forth in the Section titled Compliance Reporting. Delivery must occur within seven (7) 5 days of entry of this Stipulated Order for current personnel. For all others, delivery must 6 occur before they assume their responsibilities.\n\n7 C. From each individual or entity to which a Settling Defendant delivered a copy 8 of this Stipulated Order, that Defendant must obtain, within thirty (30) days, a signed and 9 dated acknowledgment of receipt of this Stipulated Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "10.23_truthfinder", "company_name": "Instant Checkmate, LLC", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "23-CV-1674" }, { "provision_number": "XI", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Settling Defendants must submit an initial compliance report one year after entry of the order, provide sworn notices within 14 days of any structural or contact changes for 15 years, and notify the Commission within 14 days of any bankruptcy filings. All submissions must be sworn under penalty of perjury and sent to the FTC's designated address.", "verbatim_text": "13 A. One (1) year after entry of this Stipulated Order, each Settling Defendant must 14 submit a compliance report, sworn under penalty of perjury: 15 1. Each Settling Defendant must: (a) identify the primary physical, postal, 16 and email address and telephone number, as designated points of contact, which 17 representatives of the Commission may use to communicate with Defendant; (b) identify 18 all of that Defendant’s businesses by all of their names; telephone numbers; and physical, 19 postal, email, and Internet addresses; (c) describe the activities of each business, including 20 the goods and services offered; the means of advertising, marketing, and sales; and the 21 involvement of any other Defendant; (d) describe in detail whether and how that Defendant 22 is in compliance with each Section of this Stipulated Order; and (e) provide a copy of each 23 Order Acknowledgment obtained pursuant to this Stipulated Order, unless previously 24 submitted to the Commission.\n\n25 B. For fifteen (15) years after entry of this Stipulated Order, each Settling 26 Defendant must submit a compliance notice, sworn under penalty of perjury, within 27 fourteen (14) days of any change in the following: 28 / / / 17 23-CV-1674 TWR (MSB) Case 3:23-cv-01674-MSB Document 17 Filed 10/11/23 PageID.226 Page 18 of 20 1 1. Each Settling Defendant must report any change in: (a) any designated 2 point of contact; or (b) the structure of any Defendant or any entity that Defendant has any 3 ownership interest in or controls directly or indirectly that may affect compliance 4 obligations arising under this Stipulated Order, including: creation, merger, sale, or 5 dissolution of the entity or any subsidiary, parent, or affiliate that engages in any acts or 6 practices subject to this Stipulated Order.\n\n7 C. Each Settling Defendant must submit to the Commission notice of the filing 8 of any bankruptcy petition, insolvency proceeding, or similar proceeding by or against such 9 Defendant within fourteen (14) days of its filing.\n\n10 D. Any submission to the Commission required by this Stipulated Order to be 11 sworn under penalty of perjury must be true and accurate and comply with 28 U.S.C. 12 § 1746, such as by concluding: “I declare under penalty of perjury under the laws of the 13 United States of America that the foregoing is true and correct. Executed on: _____” and 14 supplying the date, signatory’s full name, title (if applicable), and signature.\n\n15 E. Unless otherwise directed by a Commission representative in writing, all 16 submissions to the Commission pursuant to this Stipulated Order must be emailed to 17 DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to: 18 Associate Director for Enforcement, Bureau of Consumer Protection Federal Trade Commission 19 600 Pennsylvania Avenue NW 20 Washington, DC 20580. 21 The subject line must begin: “Federal Trade Commission v. Instant Checkmate, LLC et 22 al.”", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "10.23_truthfinder", "company_name": "Instant Checkmate, LLC", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "23-CV-1674" }, { "provision_number": "XII", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Settling Defendants must create certain records for 15 years after entry of the order and retain each record for 5 years, including accounting records, personnel records, consumer complaints, marketing materials, training materials, and all records necessary to demonstrate full compliance.", "verbatim_text": "1 A. Accounting records showing the revenues from all goods or services sold;\n\n2 B. Personnel records showing, for each person providing services in relation to 3 any aspect of this Stipulated Order, whether as an employee or otherwise, that person’s: 4 name, addresses, telephone numbers, job title or position, dates of service, and (if 5 applicable) the reason for termination;\n\n6 C. Records of all consumer complaints and refund requests related to the subject 7 matter of this Stipulated Order, whether received directly or indirectly, such as through a 8 third party, and any response; 9 D. All unique sales or customer service scripts, form letters or emails,\n\n10 advertisements, or other marketing materials related to the subject matter of this Stipulated 11 Order;\n\n12 E. All employee manuals and training materials related to the subject matter of 13 this Stipulated Order; and\n\n14 F. All records necessary to demonstrate full compliance with each provision of 15 this Stipulated Order, including all submissions to the Commission.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "10.23_truthfinder", "company_name": "Instant Checkmate, LLC", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "23-CV-1674" }, { "provision_number": "XIII", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The FTC is authorized to monitor Settling Defendants' compliance through additional reports, depositions, document production, and direct communication with employees; Settling Defendants must respond within 14 days to written requests and permit employee interviews.", "verbatim_text": "20 A. Within fourteen (14) days of receipt of a written request from a representative 21 of the Commission, each Settling Defendant must submit additional compliance reports or 22 other requested information, which must be sworn under penalty of perjury; appear for 23 depositions; and produce documents for inspection and copying. The Commission is also 24 authorized to obtain discovery, without further leave of the Court, using any of the 25 procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic 26 depositions), 31, 33, 34, 36, 45, and 69.\n\n27 B. For matters concerning this Stipulated Order, the Commission is authorized 28 to communicate directly with each Settling Defendant. The Settling Defendants must 19 23-CV-1674 TWR (MSB) Case 3:23-cv-01674-MSB Document 17 Filed 10/11/23 PageID.228 Page 20 of 20 1 permit representatives of the Commission to interview any employee or other Person 2 affiliated with any Settling Defendant who has agreed to such an interview. The Person 3 interviewed may have counsel present.\n\n4 C. The Commission may use all other lawful means, including posing, through 5 its representatives as consumers, suppliers, or other individuals or entities, to the Settling 6 Defendants or any individual or entity affiliated with the Settling Defendants, without the 7 necessity of identification or prior notice. Nothing in this Stipulated Order limits the 8 Commission’s lawful use of compulsory process, pursuant to Sections 9 and 20 of the FTC 9 Act, 15 U.S.C. §§ 49, 57b-1.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "10.23_truthfinder", "company_name": "Instant Checkmate, LLC", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "23-CV-1674" }, { "provision_number": "XIV", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction for construction, modification, and enforcement of this Stipulated Order, with the Honorable Michael S. Berg, United States Magistrate Judge, retaining continuing and exclusive jurisdiction over all parties and matters relating to the litigation and settlement agreement.", "verbatim_text": "11 IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for 12 purposes of construction, modification, and enforcement of this Stipulated Order. 13 Specifically, in accordance with the Parties’ Consent to Jurisdiction by a United States 14 Magistrate Judge and Order of Reference, (see ECF No. 16), the Honorable Michael S. 15 Berg, United States Magistrate Judge, SHALL RETAIN continuing and exclusive 16 jurisdiction over the Parties and all matters relating to the litigation and settlement 17 agreement, including the administration, interpretation, construction, effectuation, 18 enforcement, and consummation of the agreement and this Stipulated Order.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "10.23_truthfinder", "company_name": "Instant Checkmate, LLC", "date_issued": "2023-10-15", "year": 2023, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); and Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/122-3221-instant-checkmate-inc", "docket_number": "23-CV-1674" }, { "provision_number": "I", "title": "Civil Penalty", "category": "affirmative_obligation", "summary": "PLS and PLS-Illinois must pay a civil penalty of $101,500 to the U.S. Treasury for violations of the FCRA.", "verbatim_text": "A. Judgment in the amount of$ 101,500.00 (One hundred one thousand five hundred dollars) is entered against PLS and PLS-Illinois,jointly and severally, as a civil penalty, pursuant to Section 621(a) of the FCRA, 15 U.S.C. § 1681s(a), as adjusted by 16 C.P.R.§ 1.98(m).\n\nB. PLS, PLS-IIlinois, and their attorneys represent that, prior to or concurrently with their execution of this Order, PLS and PLS-IIlinois have transferred the amount specified in paragraph A of this Section I to their attorneys, who shall hold the sum in escrow for no purpose other than payment to the Treasurer of the United States after entry of this Order by the Court.\n\nWithin seven (7) days of entry of this Order, PLS's and PLS-IIlinois's attorneys shall transfer the sum in the form of a wire transfer or certified or cashier's check made payable to the Treasurer of the United States. Wire transfers made pursuant to Section I of this Order shall be made in accordance with instructions provided by the Department of Justice. The check or written confirmation of the wire transfer shall be delivered to the Director, Consumer Protection Branch, U.S. Department of Justice, Civil Division, P.O. Box 386, Washington, DC 20044. The cover letter accompanying the check shall include the title of this litigation. In addition, PLS's and PLS-IIlinois's attorneys shall send written confrrmation of the payment to the FTC's counsel of record: Maria Del Monaco, Federal Trade Commission, 1111 Superior Avenue, Suite 200, Cleveland, OH 44114, Re: United States ofA merica v. PLS Financial Services, Inc.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "11.12_pls_financial_services", "company_name": "PLS Financial Services, Inc.", "date_issued": "2012-11-15", "year": 2012, "administration": "Obama", "legal_authority": "Sections 5(a), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Disposal Rule, 16 C.F.R. Part 682; Safeguards Rule, 16 C.F.R. Part 314; Privacy Rule, 16 C.F.R. Part 313", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1023172-pls-financial-services-inc-et-al", "docket_number": "1:12-cv-08334" }, { "provision_number": "II.A", "title": "Prohibition Against Misrepresentations About Security", "category": "prohibition", "summary": "Defendants are permanently prohibited from making false or misleading representations about the extent to which they protect the security, privacy, confidentiality, or integrity of personal information collected from consumers.", "verbatim_text": "A. Defendants and their agents, servants, and employees and all persons in active concert or participation with any one or more of them, including all Covered Entities, whether acting directly or through any sole proprietorship, partnership, limited liability company, corporation, subsidiary, branch, division, or other entity who receive actual notice of this Order by personal service or otherwise, are hereby permanently restrained and enjoined, in connection with their advertising, marketing, promotion, or offering of any service or product in or affecting commerce, from making any representation, in any manner, expressly or by implication, about the extent to which Defendants maintain and protect the security, privacy, confidentiality, or integrity of any personal information collected from or about consumers, unless the representation is true, and non-misleading.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Prohibition" ], "case_id": "11.12_pls_financial_services", "company_name": "PLS Financial Services, Inc.", "date_issued": "2012-11-15", "year": 2012, "administration": "Obama", "legal_authority": "Sections 5(a), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Disposal Rule, 16 C.F.R. Part 682; Safeguards Rule, 16 C.F.R. Part 314; Privacy Rule, 16 C.F.R. Part 313", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1023172-pls-financial-services-inc-et-al", "docket_number": "1:12-cv-08334" }, { "provision_number": "II.B.1", "title": "Prohibition Against Violating FCRA Disposal Rule", "category": "prohibition", "summary": "Defendants are permanently prohibited from violating the FCRA Disposal Rule, including failing to properly dispose of consumer information by taking reasonable measures to protect against unauthorized access.", "verbatim_text": "I. Violating Section 628 of the FCRA or the Disposal Rule, including but not limited to, by maintaining or otherwise possessing consumer information for a business purpose 6 Case: 1:12-cv-08334 Document #: 6 Filed: 10/26/12 Page 7 of 16 PageID #:38 and failing to properly dispose of such information by taking reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Prohibition" ], "case_id": "11.12_pls_financial_services", "company_name": "PLS Financial Services, Inc.", "date_issued": "2012-11-15", "year": 2012, "administration": "Obama", "legal_authority": "Sections 5(a), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Disposal Rule, 16 C.F.R. Part 682; Safeguards Rule, 16 C.F.R. Part 314; Privacy Rule, 16 C.F.R. Part 313", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1023172-pls-financial-services-inc-et-al", "docket_number": "1:12-cv-08334" }, { "provision_number": "III", "title": "Required Information Security Program", "category": "affirmative_obligation", "summary": "Defendants must establish and maintain a comprehensive written information security program designed to protect the security, confidentiality, and integrity of personal information collected from consumers.", "verbatim_text": "IT IS FURTHER ORDERED that Defendants, for themselves and all Non-Defendant Covered Entities, shall, no later than the date of entry of this Order, establish and implement, and thereafter maintain, a comprehensive information security program that is designed to protect the security, confidentiality, and integrity of personal information collected from or about consumers. Such program, the content and implementation of which must be fully documented in writing, shall contain administrative, technical, and physical safeguards appropriate to Defendants' and the Covered Entity's size and complexity, the nature and scope of Defendants' 7 Case: 1:12-cv-08334 Document #: 6 Filed: 10/26/12 Page 8 of 16 PageID #:39 and the Covered Entity's activities, and the sensitivity of the personal information collected from or about consumers, including:\n\nA. The designation of an employee or employees to coordinate and be accountable for the information security program;\n\nB. The identification of material internal and external risks to the security, confidentiality and integrity of personal information that could result in the unauthorized disclosure, misuse, loss, alteration, destruction, or other compromise of such information, and the assessment of the sufficiency of any safeguards in place to control the risks. At a minimum, this risk assessment should include consideration of the risks in each relevant area of operations, including but not limited to (1) employee training and management; (2) information systems, including network and software design, information processing, storage, transmission, and disposal; and (3) prevention, detection, and response to attacks, intrusions, or other system failures;\n\nC. The design and implementation of reasonable safeguards to control the risks identified through risk assessment, and regular testing and monitoring of the effectiveness of the safeguards' key controls, systems, and procedures;\n\nD. The development and use of reasonable steps to select and retain service providers capable of appropriately safeguarding personal information received from Defendants and the Covered Entity, and requiring service providers by contract to implement and maintain appropriate safeguards; and\n\nE. The evaluation and adjustment of the information security program in light of the results of the testing and monitoring required by paragraph C of this Section III, any material changes to operations or business arrangements, or any other circumstances that Defendants or 8 Case: 1:12-cv-08334 Document #: 6 Filed: 10/26/12 Page 9 of 16 PageID #:40 the Covered Entity knows or has reason to know may have a material impact on the effectiveness of the information security program.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Comprehensive Security Program" ], "case_id": "11.12_pls_financial_services", "company_name": "PLS Financial Services, Inc.", "date_issued": "2012-11-15", "year": 2012, "administration": "Obama", "legal_authority": "Sections 5(a), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Disposal Rule, 16 C.F.R. Part 682; Safeguards Rule, 16 C.F.R. Part 314; Privacy Rule, 16 C.F.R. Part 313", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1023172-pls-financial-services-inc-et-al", "docket_number": "1:12-cv-08334" }, { "provision_number": "IV", "title": "Third-Party Security Assessments", "category": "assessment", "summary": "Defendants must obtain initial and biennial third-party security assessments from qualified professionals for 20 years, certifying that their security program provides reasonable assurance of protection for personal information.", "verbatim_text": "A. In connection with their compliance with Sections II(B)(l), II(B)(2) and III of this Order, Defendants shall obtain initial and biennial assessments and reports (Assessments) for Defendants and any Non-Defendant Covered Entity from a qualified, objective, independent third-party professional who uses procedures and standards generally accepted in the profession. Professionals qualified to prepare such assessments shall be: a person qualified as a Certified Information System Security Professional (CISSP) or as a Certified Information Systems Auditor (CISA); a person holding Global Information Assurance Certification (GIAC) from the SysAdmin, Audit, Network, Security (SANS) Institute; or a similarly qualified person or organization approved by the Associate Director of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, DC 20580. The reporting period for the Assessments shall cover: (1) the first one hundred and eighty (180) days after service of the Order for the initial Assessment; and (2) each two (2) year period thereafter for twenty (20) years after service of the Order for the biennial Assessments. Each Assessment shall:\n\nI. Set forth the specific administrative, technical, and physical safeguards that Defendants or the Covered Entity has implemented and maintained during the reporting period;\n\n2. Explain how such safeguards are appropriate to Defendants' or the Covered Entity's size and complexity, the nature and scope of Defendants' or the Covered 9 Case: 1:12-cv-08334 Document #: 6 Filed: 10/26/12 Page 10 of 16 PageID #:41 Entity's activities, and the sensitivity of the personal information collected from or about consumers;\n\n3. Explain how the safeguards that have been implemented meet or exceed the protections required by Section 628 of the FCRA, the Disposal Rule, the Safeguards Rule, and Section III of this Order; and\n\n4. CertifY that Defendants' or the Covered Entity's security program is operating with sufficient effectiveness to provide reasonable assurance that the security, confidentiality, and integrity of personal information is protected and has so operated throughout the reporting period.\n\nB. Each Assessment shall be prepared and completed within sixty (60) days after the end of the reporting period to which the Assessment applies. Defendants and any Covered Entity\n\nend of the reporting period to which the Assessment applies. Defendants and any Covered Entity shall provide the initial Assessment to the Associate Director of Enforcement, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580, within ten (10) days after the Assessment has been prepared. All subsequent biennial Assessments shall be retained by Defendants until the Order is terminated and provided to the Associate Director of Enforcement within ten (10) days of request. Unless otherwise dire.cted by a representative of the Commission, initial and biennial Assessments shall be sent by overnight courier (not the U.S. Postal Service) to the Associate Director, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580, with the subject line USA v. PLS Financial Services, Inc., FTC File Number 1023172. Provided, however, that, in lieu of overnight courier, Assessments may be sent by first class mail, but only if an electronic version of such Assessments is contemporaneously sent to the Commission at DEBrief@ftc.gov.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Third-Party Assessment" ], "case_id": "11.12_pls_financial_services", "company_name": "PLS Financial Services, Inc.", "date_issued": "2012-11-15", "year": 2012, "administration": "Obama", "legal_authority": "Sections 5(a), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Disposal Rule, 16 C.F.R. Part 682; Safeguards Rule, 16 C.F.R. Part 314; Privacy Rule, 16 C.F.R. Part 313", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1023172-pls-financial-services-inc-et-al", "docket_number": "1:12-cv-08334" }, { "provision_number": "V", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendants must submit acknowledgments of receipt of the Order to the FTC and deliver copies of the Order to relevant personnel and entities, obtaining signed acknowledgments from recipients.", "verbatim_text": "A. Each Defendant, within 7 days of entry of this Order, must submit to the Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.\n\nB. For 20 years after entry of this Order, each Defendant must deliver a copy of this Order to: (1) all principals, officers, directors, and managers; (2) all employees, agents, and representatives who participate in conduct related to the subject matter of this Order; and (3) any business entity resulting from any change in structure as set forth in the Section titled Compliance Reporting. Delivery must occur within 7 days of entry of this Order for current personnel. To all others, delivery must occur before they assume their responsibilities.\n\nC. From each individual or entity to which Defendants delivered a copy of this Order, Defendants must obtain, within 30 days, a signed and dated acknowledgment of receipt of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Order Administration" ], "case_id": "11.12_pls_financial_services", "company_name": "PLS Financial Services, Inc.", "date_issued": "2012-11-15", "year": 2012, "administration": "Obama", "legal_authority": "Sections 5(a), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Disposal Rule, 16 C.F.R. Part 682; Safeguards Rule, 16 C.F.R. Part 314; Privacy Rule, 16 C.F.R. Part 313", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1023172-pls-financial-services-inc-et-al", "docket_number": "1:12-cv-08334" }, { "provision_number": "VI.A", "title": "Annual Compliance Report", "category": "compliance_reporting", "summary": "Defendants must submit a comprehensive annual compliance report one year after entry of the Order, detailing contact information, business activities, and compliance with each section of the Order.", "verbatim_text": "A. One year after entry of this Order, each Defendant must submit a compliance report, sworn under penalty of perjury. Each Defendant must: (a) designate at least one telephone number and an email, physical, and postal address as points of contact, which representatives of the Commission and Plaintiff may use to communicate with Defendant; (b) identifY all of Defendant's businesses by all of their names, telephone numbers, and physical, postal, email, and Internet addresses; (c) describe the activities of each business, including the 11 Case: 1:12-cv-08334 Document #: 6 Filed: 10/26/12 Page 12 of 16 PageID #:43 products and services offered, and the means of advertising, marketing, and sales, and the involvement of any other Defendant; (d) describe in detail whether and how that Defendant is in compliance with each Section of this Order; and (e) provide a copy of each Order Acknowledgment obtained pursuant to this Order, unless previously submitted to the Commission;", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "11.12_pls_financial_services", "company_name": "PLS Financial Services, Inc.", "date_issued": "2012-11-15", "year": 2012, "administration": "Obama", "legal_authority": "Sections 5(a), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Disposal Rule, 16 C.F.R. Part 682; Safeguards Rule, 16 C.F.R. Part 314; Privacy Rule, 16 C.F.R. Part 313", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1023172-pls-financial-services-inc-et-al", "docket_number": "1:12-cv-08334" }, { "provision_number": "VI.B", "title": "Compliance Notice for Changes", "category": "compliance_reporting", "summary": "Defendants must notify the FTC within 14 days of any changes to designated contact points or structural changes that may affect compliance obligations.", "verbatim_text": "B. For 20 years following entry of this Order, each Defendant must submit a compliance notice, sworn under penalty ofpetjury, within 14 days of any change in (a) any designated point of contact; or (b) the structure of any Defendant or any entity that Defendant has any ownership interest in or directly or indirectly controls that may affect compliance obligations arising under this Order, including: creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "11.12_pls_financial_services", "company_name": "PLS Financial Services, Inc.", "date_issued": "2012-11-15", "year": 2012, "administration": "Obama", "legal_authority": "Sections 5(a), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Disposal Rule, 16 C.F.R. Part 682; Safeguards Rule, 16 C.F.R. Part 314; Privacy Rule, 16 C.F.R. Part 313", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1023172-pls-financial-services-inc-et-al", "docket_number": "1:12-cv-08334" }, { "provision_number": "VI.C", "title": "Bankruptcy Notice", "category": "compliance_reporting", "summary": "Defendants must notify the FTC within 14 days of filing any bankruptcy petition, insolvency proceeding, or similar proceeding.", "verbatim_text": "C. Each Defendant must submit to the Commission notice of the filing of any bankruptcy petition, insolvency proceeding, or any similar proceeding by or against such Defendant within 14 days of its filing.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "11.12_pls_financial_services", "company_name": "PLS Financial Services, Inc.", "date_issued": "2012-11-15", "year": 2012, "administration": "Obama", "legal_authority": "Sections 5(a), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Disposal Rule, 16 C.F.R. Part 682; Safeguards Rule, 16 C.F.R. Part 314; Privacy Rule, 16 C.F.R. Part 313", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1023172-pls-financial-services-inc-et-al", "docket_number": "1:12-cv-08334" }, { "provision_number": "VII", "title": "Recordkeeping Requirements", "category": "recordkeeping", "summary": "Defendants must create and retain specified records for 20 years after Order entry, including accounting records, personnel records, complaints, compliance documentation, and marketing materials.", "verbatim_text": "IT IS FURTHER ORDERED that Defendants must create certain records for 20 years after entry of the Order, and retain each such record for 5 years. Specifically, Defendants must maintain the following records: A. Accounting records showing the revenues from all goods and services sold, all costs incurred in generating those revenues, and the resulting net profit or loss;\n\nB. Personnel records showing, for each person providing services, whether as an employee or otherwise, that person's: name, addresses, and telephone numbers; job title or position; dates of service; and, if applicable, the reason for termination;\n\nC. Written complaints and refund requests, whether received directly or indirectly, such as through a third party, and any response;\n\nD. All records necessary to demonstrate full compliance with each provision of this Order, including all submissions to the Conunission; and\n\nE. A copy of each advertisement or other marketing material.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Recordkeeping" ], "case_id": "11.12_pls_financial_services", "company_name": "PLS Financial Services, Inc.", "date_issued": "2012-11-15", "year": 2012, "administration": "Obama", "legal_authority": "Sections 5(a), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Disposal Rule, 16 C.F.R. Part 682; Safeguards Rule, 16 C.F.R. Part 314; Privacy Rule, 16 C.F.R. Part 313", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1023172-pls-financial-services-inc-et-al", "docket_number": "1:12-cv-08334" }, { "provision_number": "VIII", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The FTC and Plaintiff are authorized to monitor Defendants' compliance through document requests, depositions, interviews, and other discovery methods, including the ability to communicate directly with Defendants and pose as consumers.", "verbatim_text": "A. Within 14 days of receipt of a written request from a representative of the Commission or Plaintiff, each Defendant must: submit additional compliance reports or other requested information, which must be sworn under penalty of perjury; appear for depositions; and produce documents for inspection and copying. The Conunission and Plaintiff are also\n\nand produce documents for inspection and copying. The Conunission and Plaintiff are also 13 Case: 1:12-cv-08334 Document #: 6 Filed: 10/26/12 Page 14 of 16 PageID #:45 authorized to obtain discovery, without further leave of court, using any of the procedures prescribed by Federal Rules of Civil Procedure 29,30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69.\n\nB. For matters concerning this Order, the Commission and Plaintiff are authorized to communicate directly with each Defendant. Defendants must permit representatives of the Commission and Plaintiff to interview any employee or other person affiliated with any Defendant who has agreed to such an interview. The person interviewed may have counsel present.\n\nC. The Commission and Plaintiff may use all other lawful means, including posing, through their representatives, as consumers, suppliers, or other individuals or entities, to Defendants or any individual or entity affiliated with Defendants, without the necessity of identification or prior notice. Nothing in this Order limits the Commission's lawful use of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49 and 57b-1.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "11.12_pls_financial_services", "company_name": "PLS Financial Services, Inc.", "date_issued": "2012-11-15", "year": 2012, "administration": "Obama", "legal_authority": "Sections 5(a), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Disposal Rule, 16 C.F.R. Part 682; Safeguards Rule, 16 C.F.R. Part 314; Privacy Rule, 16 C.F.R. Part 313", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1023172-pls-financial-services-inc-et-al", "docket_number": "1:12-cv-08334" }, { "provision_number": "IX", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction over this matter for purposes of construction, modification, and enforcement of the Order.", "verbatim_text": "IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA", "GLBA" ], "practice_areas": [ "Data Security" ], "remedy_types": [ "Order Administration" ], "case_id": "11.12_pls_financial_services", "company_name": "PLS Financial Services, Inc.", "date_issued": "2012-11-15", "year": 2012, "administration": "Obama", "legal_authority": "Sections 5(a), 13(b), and 16(a) of the Federal Trade Commission Act, 15 U.S.C. §§ 45(a), 53(b), and 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a); Disposal Rule, 16 C.F.R. Part 682; Safeguards Rule, 16 C.F.R. Part 314; Privacy Rule, 16 C.F.R. Part 313", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1023172-pls-financial-services-inc-et-al", "docket_number": "1:12-cv-08334" }, { "provision_number": "I", "title": "Prohibition Against Furnishing Credit Information Prior to Communication with Consumer", "category": "prohibition", "summary": "Defendants are permanently enjoined from furnishing any Debt information to a Consumer Reporting Agency before first communicating with the Consumer about the Debt and providing required FDCPA disclosures.", "verbatim_text": "IT IS ORDERED that the Defendants, Defendants’ officers, agents, employees, and attorneys, and all other persons in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly, are permanently restrained and enjoined from furnishing information regarding a Debt to any Consumer Reporting Agency before communicating with the Consumer about the Debt and providing the Consumer with: A. The amount of the Debt; B. The name of the creditor to whom the Debt is owed; C. A statement that unless the Consumer, within thirty days after receipt of the notice, disputes the validity of the Debt, or any portion thereof, the Debt will be assumed to be valid by the Debt Collector; D. A statement that if the Consumer notifies the Debt Collector in writing within the thirty-day period that the Debt, or any portion thereof, is disputed, the Debt Collector will obtain verification of the Debt or a copy of a judgment against the Consumer and a copy of such verification or judgment will be mailed to the Consumer by the Debt Collector; Page 6 of 30 Case: 4:20-cv-01674 Doc. #: 2 Filed: 11/25/20 Page: 7 of 51 PageID #: 39 E. A statement that, upon the Consumer’s written request within the thirty-day period, the Debt Collector will provide the Consumer with the name and address of the original creditor, if different from the current creditor; F. Verification of the Debt if the Consumer notifies the Debt Collector in writing within the thirty-day period that the Debt, or any portion thereof, is disputed; and G. The name and address of the original creditor, if different from the current creditor, if the Consumer makes a written request within the thirty-day period.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "11.20_midwest_recovery_systems", "company_name": "Midwest Recovery Systems, LLC", "date_issued": "2020-11-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 19 of the FTC Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 57b; Section 814 of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §1692l; and Section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923042-midwest-recovery-systems-llc", "docket_number": "4:20-cv-01674" }, { "provision_number": "II", "title": "Deletion of Consumer Debts", "category": "affirmative_obligation", "summary": "The Corporate Defendant and Brandon M. Tumber must, within 10 days of entry of this Order, request that each CRA delete all Debts previously reported by Defendants from consumers' credit files.", "verbatim_text": "IT IS FURTHER ORDERED that, for any Debt that Defendants reported or caused to be reported to a CRA prior to entry of this Order, the Corporate Defendant and Individual Defendant Brandon M. Tumber shall, within ten (10) days of entry of this Order, request that each CRA delete such Debt from the consumer’s credit reporting file.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Data Deletion" ], "case_id": "11.20_midwest_recovery_systems", "company_name": "Midwest Recovery Systems, LLC", "date_issued": "2020-11-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 19 of the FTC Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 57b; Section 814 of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §1692l; and Section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923042-midwest-recovery-systems-llc", "docket_number": "4:20-cv-01674" }, { "provision_number": "III", "title": "Prohibition Against Unlawful Debt Collection Practices", "category": "prohibition", "summary": "Defendants are permanently enjoined from using false or deceptive representations, unfair or unconscionable means, failing to provide required FDCPA notices, and violating any provision of the FDCPA in connection with Debt Collection Activities.", "verbatim_text": "A. Using any false, deceptive, or misleading representation or means, including, but not limited to, falsely representing, directly or indirectly, expressly or by implication: 1. the character, amount, or legal status of any Debt; 2. that a Consumer is delinquent on a Debt; Page 7 of 30 Case: 4:20-cv-01674 Doc. #: 2 Filed: 11/25/20 Page: 8 of 51 PageID #: 40 3. that Defendants have the authority to collect any Debt; 4. that the Consumer has a legal obligation to pay Defendants; 5. that the law allows them to contact third parties without limitation; or 6. any other material fact;\n\nB. Using any unfair or unconscionable means to collect or attempt to collect any Debt, including collecting Debts that were counterfeit or from unauthorized loans;\n\nC. Failing to provide Consumers, either in an initial communication or a written notice sent within five days after the initial communication, with: 1. the amount of the Debt; 2. the name of the creditor to whom the Debt is owed; 3. a statement that unless the Consumer, within thirty days after receipt of the notice, disputes the validity of the Debt, or any portion thereof, the Debt will be assumed to be valid by the Debt Collector; 4. a statement that if the Consumer notifies the Debt Collector in writing within the thirty-day period that the Debt, or any portion thereof, is disputed, the Debt Collector will obtain verification of the Debt or a copy of a judgment against the Consumer and such verification or judgment will be mailed to the Consumer by the Debt Collector; and 5. a statement that, upon the Consumer’s written request within the thirty-day period, the Debt Collector will provide the Consumer with the name and address of the original creditor, if different from the current creditor; and\n\nD. Violating any provision of the FDCPA, 15 U.S.C. §§ 1692-1692p (a copy of which is attached hereto as Attachment A), including, but not limited to, Sections 807-809, 15 U.S.C. §§ 1692e-1692g.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "11.20_midwest_recovery_systems", "company_name": "Midwest Recovery Systems, LLC", "date_issued": "2020-11-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 19 of the FTC Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 57b; Section 814 of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §1692l; and Section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923042-midwest-recovery-systems-llc", "docket_number": "4:20-cv-01674" }, { "provision_number": "IV", "title": "Prohibition Against Misrepresentations Regarding Any Good or Service", "category": "prohibition", "summary": "Defendants are permanently enjoined from misrepresenting that consumers have a legal obligation to pay Defendants, from communicating false credit information, or misrepresenting any material fact about any good or service.", "verbatim_text": "IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees, and attorneys, and all other persons in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly, in connection with promoting or offering for sale any good or service, are permanently restrained and enjoined from misrepresenting, or assisting others in misrepresenting, expressly or by implication: A. That a Consumer has a legal obligation to pay Defendants; B. Credit information, including by communicating to any person credit information which is known or which should be known to be false; or C. Any other fact material to Consumers concerning any good or service, such as: the total costs; any material restrictions, limitations, or conditions; or any material aspect of its performance, efficacy, nature, or central characteristics.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "11.20_midwest_recovery_systems", "company_name": "Midwest Recovery Systems, LLC", "date_issued": "2020-11-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 19 of the FTC Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 57b; Section 814 of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §1692l; and Section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923042-midwest-recovery-systems-llc", "docket_number": "4:20-cv-01674" }, { "provision_number": "V", "title": "Prohibition Against Unsubstantiated Claims", "category": "prohibition", "summary": "Defendants are permanently enjoined from representing that a consumer owes a debt without competent and reliable substantiating evidence, and must cease collection and investigate or report disputes within required timeframes after a consumer denies or disputes a debt.", "verbatim_text": "A. Representing, expressly or by implication, that a Consumer owes a Debt, that Defendants have authority to collect on a Debt, or the amount of a Debt, when, at Page 9 of 30 Case: 4:20-cv-01674 Doc. #: 2 Filed: 11/25/20 Page: 10 of 51 PageID #: 42 the time of the representation, Defendants do not possess and rely upon competent and reliable evidence that is sufficient to substantiate that the representation is true, including but not limited to instances where: 1. Consumers have disputed or attempted to dispute the validity or accuracy of the Debt and Defendants have failed to review information substantiating the amount of Debt, or failed to consider the Consumers’ disputes, prior to continuing collection; or 2. Defendants have knowledge or reason to believe that a specific Debt Portfolio contains unreliable data but fail to obtain information substantiating the accuracy of the data prior to collecting; and\n\nB. Failing, after a Consumer denies, disputes, or challenges the Defendants’ claim that the Consumer owes the Debt or owes the Debt in the amount asserted, to: 1. within thirty (30) days after the denial, dispute, or challenge, or when the Debt is next reported to a Consumer Reporting Agency, if earlier: report the Debt as disputed or request deletion of that item from the Consumer’s consumer reporting file by any Consumer Reporting Agency to which the Debt was reported by Defendants; and\n\n2. promptly after the denial, dispute, or challenge: (a) cease collection, and not sell, provide, or transfer the Debt to any Person or entity other than the creditor to whom the Debt is owed; or Page 10 of 30 Case: 4:20-cv-01674 Doc. #: 2 Filed: 11/25/20 Page: 11 of 51 PageID #: 43 (b) commence and complete, within thirty (30) days after a Consumer denies, disputes, or challenges Defendants’ claim that the Consumer owes the Debt or that it owes the Debt in the amount asserted, an Investigation of the denial, dispute, or challenge, provided that Defendants shall not be required to investigate any denial, dispute, or challenge more than once unless the Consumer provides to Defendants or the Defendants otherwise acquire or obtain information, data, or documentation that was not considered in any prior Investigation. Defendants shall notify the Consumer within five (5) business days if the denial, dispute, or challenge is not investigated under this proviso.\n\n(i) If the results of the Investigation show that the Consumer owes the Debt in the amount asserted, Defendants shall, within seven (7) days of reaching their conclusion: (a) inform the Consumer, either directly or, if the denial, dispute, or challenge was received solely by notification from a Consumer Reporting Agency, by informing the Consumer Reporting Agency, of Defendants’ conclusion, and provide the basis for it; and (b) unless the denial, dispute, or challenge was received solely by notification from a Consumer Reporting Agency, provide verification of the Debt to the Consumer; after which they may continue Page 11 of 30 Case: 4:20-cv-01674 Doc. #: 2 Filed: 11/25/20 Page: 12 of 51 PageID #: 44 collection. If the Consumer continues to dispute the Debt, nothing in this order supersedes the requirement of § 623(a)(3) of the FCRA, 15 U.S.C. § 1681s-2(a)(3), that Defendants convey the dispute when furnishing information on the Debt to any Consumer Reporting Agency.\n\n(ii) If the results of the Investigation show that the Consumer does not owe the Debt or the Debt cannot be verified, Defendants shall, within seven (7) days of reaching their conclusion: (a) inform the Consumer, either directly or, if the denial, dispute, or challenge was received solely by notification from a Consumer Reporting Agency, by informing the Consumer Reporting Agency, of Defendants’ conclusion and the basis for it; (b) request that each Consumer Reporting Agency to which the Debt has been reported delete the Debt from the Consumer’s consumer reporting file; (c) cease collection; and (d) not sell, provide, or transfer the Debt to any Person or entity other than the creditor to whom the Debt is allegedly owed.\n\n(iii) If the results of the Investigation show that the Consumer does owe the Debt but not in the amount that Defendants asserted, Defendants shall, within seven (7) days of reaching their conclusion: (a) inform the Consumer, either directly or, Page 12 of 30 Case: 4:20-cv-01674 Doc. #: 2 Filed: 11/25/20 Page: 13 of 51 PageID #: 45 if the denial, dispute, or challenge was received solely by notification from a Consumer Reporting Agency, by informing the Consumer Reporting Agency, of Defendants’ conclusion and the basis for it; and (b) provide to each Consumer Reporting Agency to which the Debt has been reported any correction to the reported information that is necessary to make the information provided by Defendants accurate, after which they may continue collection.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "11.20_midwest_recovery_systems", "company_name": "Midwest Recovery Systems, LLC", "date_issued": "2020-11-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 19 of the FTC Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 57b; Section 814 of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §1692l; and Section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923042-midwest-recovery-systems-llc", "docket_number": "4:20-cv-01674" }, { "provision_number": "VI", "title": "Prohibition on Disclosure of Inaccurate Consumer Information", "category": "prohibition", "summary": "Defendants are permanently enjoined from furnishing information about a consumer to any CRA while knowing or having reason to believe the information is inaccurate.", "verbatim_text": "IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees, and attorneys, and all other persons in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly, in connection with Page 13 of 30 Case: 4:20-cv-01674 Doc. #: 2 Filed: 11/25/20 Page: 14 of 51 PageID #: 46 promoting or offering for sale any good or service, are permanently restrained and enjoined from furnishing information regarding a Consumer to any Consumer Reporting Agency, notwithstanding any alternative compliance methods that may be generally available under Section 623(a)(1)(C) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s-2(a)(1)(C), while knowing or having reason to believe that the information is inaccurate.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "11.20_midwest_recovery_systems", "company_name": "Midwest Recovery Systems, LLC", "date_issued": "2020-11-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 19 of the FTC Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 57b; Section 814 of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §1692l; and Section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923042-midwest-recovery-systems-llc", "docket_number": "4:20-cv-01674" }, { "provision_number": "VII", "title": "Prohibition on Violations of Furnisher Rule", "category": "prohibition", "summary": "Defendants are permanently enjoined from violating the CFPB Furnisher Rule (12 C.F.R. § 1022.42–.43), including failing to establish written accuracy/integrity policies and procedures, failing to investigate FCRA Qualified Direct Disputes, and failing to report investigation results timely.", "verbatim_text": "A. Failing to comply with 12 C.F.R. § 1022.42, a copy of which is attached as Attachment B, including by failing to: 1. Establish and implement reasonable written policies and procedures regarding the accuracy and integrity of the information relating to Consumers that it furnishes to CRAs that are appropriate to the nature, size, complexity, and scope of Defendant’s activities; 2. Consider the guidelines set forth in Appendix E to 12 C.F.R. Part 1022, a copy of which is attached as Attachment C, in developing the policies and procedures, and incorporate those guidelines that are appropriate; and 3. Periodically review the written policies and procedures and update them as necessary to ensure their continued effectiveness;\n\nB. Failing to: 1. Establish and implement reasonable written policies and procedures regarding reasonable investigations of FCRA Qualified Direct Disputes; 2. In developing the policies and procedures concerning FCRA Qualified Direct Disputes, incorporate reasonable provisions related to: (a) training employees whose duties include processing, responding to, or investigating Direct Disputes, including training on the requirements of the FCRA and related regulations; (b) retaining documents related to FCRA Qualified Direct Disputes for a reasonable period of time to allow for effective training and auditing; (c) requiring employees to document actions taken in processing, responding to, or investigating FCRA Qualified Direct Disputes, to allow for effective training and auditing; and (d) establishing an auditing program and schedule that is reasonably designed to promote compliance with the requirements of the FCRA and related regulations; and 3. Periodically review the written policies and procedures regarding the conduct of reasonable investigations of FCRA Qualified Direct Disputes and update them as necessary to ensure their continued effectiveness;\n\nC. Failing to comply with 12 C.F.R. § 1022.43, a copy of which is attached as Attachment D, including by, upon receiving an FCRA Qualified Direct Dispute, failing to: 1. Conduct a reasonable investigation with respect to the disputed information; Page 15 of 30 Case: 4:20-cv-01674 Doc. #: 2 Filed: 11/25/20 Page: 16 of 51 PageID #: 48 2. Review all relevant information provided by the Consumer with the dispute notice; and 3. Complete its investigation of the dispute and report the results of the investigation to the Consumer before the expiration of the period prescribed by Section 611(a)(1) of the Fair Credit Reporting Act, 15 U.S.C 1681i(a)(1), a copy of which is attached as Attachment E.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "11.20_midwest_recovery_systems", "company_name": "Midwest Recovery Systems, LLC", "date_issued": "2020-11-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 19 of the FTC Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 57b; Section 814 of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §1692l; and Section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923042-midwest-recovery-systems-llc", "docket_number": "4:20-cv-01674" }, { "provision_number": "VIII", "title": "Monetary Judgment for Equitable Monetary Relief", "category": "affirmative_obligation", "summary": "A $24,300,000 judgment is entered against Defendants jointly and severally; Individual Defendants must assign payment rights from separation agreements to the Commission; specific cash payments and asset divestitures are required; remainder of judgment is suspended upon completion of specified payments, subject to reinstatement for financial misrepresentation.", "verbatim_text": "A. Judgment in the amount of Twenty-Four Million Three Hundred Thousand Dollars ($24,300,000) is entered in favor of the Commission against Defendants, jointly and severally, as equitable monetary relief.\n\nB. Individual Defendants are ordered to assign to the Commission all right, title, and interest in any claim or right they may have to receive payments pursuant to their respective Member Separation and Asset Purchase Payout Agreements with Midwest Recovery Systems, LLC, dated on or about August 26, 2019 in the case of Defendants Kenny W. Conway and Joseph H. Smith, and dated on or about August 30, 2019 in the case of Defendant Brandon M. Tumber, including any amendments, replacements, or substitute agreements. Individual Defendants shall cooperate fully in such assignment and shall promptly execute all documents and take all actions necessary or appropriate to effect the assignment of any claim or right they may have to receive such payments. Only the amount of any funds actually received by the Commission pursuant to such assignment will be applied Page 16 of 30 Case: 4:20-cv-01674 Doc. #: 2 Filed: 11/25/20 Page: 17 of 51 PageID #: 49 to the unsuspended judgment amount specified in Subsection A above. Upon such assignments, the remainder of the judgment is suspended as to Individual Defendants Kenny W. Conway and Joseph H. Smith, subject to the Subsections below.\n\nC. Individual Defendant Brandon M. Tumber and the Corporate Defendant are ordered to pay to the Commission Fifty-Six Thousand, Seven Hundred Forty-Eight Dollars ($56,748). Such payment must be made within forty-five (45) days of entry of this Order by electronic fund transfer in accordance with instructions previously provided by a representative of the Commission.\n\nD. Individual Defendant Brandon M. Tumber is ordered, within twenty-one (21) days of entry of this Order, to sell or divest his ownership interest in Consumer Adjustment Company, Inc., also d/b/a CACi, and shall transfer to the Commission all funds from the proceeds of such sale or divestiture within thirty (30) days of entry of this Order. The sale or divestiture shall not be to any member of Individual Defendant Brandon M. Tumber’s immediate family, and he shall not otherwise materially benefit from such sale or divestiture.\n\nE. In partial satisfaction of the judgment, U.S. Bank shall, within ten (10) business days of receipt of a copy of this Order, transfer to the Commission all funds, if any, in all accounts held in the name of, on behalf of, or for the benefit of, the Corporate Defendant, including, but not limited to account number xxxxxxxx4997 in the name of Midwest Recovery Systems LLC.\n\nF. Upon the completion of the assignments, payments, and transfers as set forth in Subsections B-E above, the remainder of the judgment is suspended as to the Corporate Defendant and Individual Defendant Brandon M. Tumber, subject to the Subsections below.\n\nH. The suspension of the judgment will be lifted as to any Defendant if, upon motion by the Commission, the Court finds that Defendant failed to disclose any material asset, materially misstated the value of any asset, or made any other material misstatement or omission in the financial representations identified above.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "11.20_midwest_recovery_systems", "company_name": "Midwest Recovery Systems, LLC", "date_issued": "2020-11-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 19 of the FTC Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 57b; Section 814 of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §1692l; and Section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923042-midwest-recovery-systems-llc", "docket_number": "4:20-cv-01674" }, { "provision_number": "IX", "title": "Additional Monetary Provisions", "category": "affirmative_obligation", "summary": "Defendants relinquish all rights to transferred assets; complaint facts may be taken as true in future litigation; Defendants must provide Taxpayer Identification Numbers; all Commission-received funds may be used for consumer redress or equitable relief.", "verbatim_text": "A. Defendants relinquish dominion and all legal and equitable right, title, and interest in all assets transferred pursuant to this Order and may not seek the return of any assets.\n\nB. The facts alleged in the Complaint will be taken as true, without further proof, in any subsequent civil litigation by or on behalf of the Commission, including in a proceeding to enforce its rights to any payment or monetary judgment pursuant to this Order, such as a nondischargeability complaint in any bankruptcy case. C. The facts alleged in the Complaint establish all elements necessary to sustain an action by the Commission pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A), and this Order will have collateral estoppel effect for such purposes.\n\nD. Defendants acknowledge that their Taxpayer Identification Numbers (Social Security Numbers or Employer Identification Numbers), which Defendants must submit to the Commission, may be used for collecting and reporting on any delinquent amount arising out of this Order, in accordance with 31 U.S.C. §7701.\n\nE. All money paid to the Commission pursuant to this Order may be deposited into a fund administered by the Commission or its designee to be used for equitable relief, including consumer redress and any attendant expenses for the administration of any redress fund. If a representative of the Commission decides that direct redress to consumers is wholly or partially impracticable or money remains after redress is completed, the Commission may apply any remaining money for such other equitable relief (including consumer information remedies) Page 20 of 30 Case: 4:20-cv-01674 Doc. #: 2 Filed: 11/25/20 Page: 21 of 51 PageID #: 53 as it determines to be reasonably related to Defendants’ practices alleged in the Complaint. Any money not used for such equitable relief is to be deposited to the U.S. Treasury as disgorgement. Defendants have no right to challenge any actions the Commission or its representatives may take pursuant to this Subsection.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "11.20_midwest_recovery_systems", "company_name": "Midwest Recovery Systems, LLC", "date_issued": "2020-11-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 19 of the FTC Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 57b; Section 814 of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §1692l; and Section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923042-midwest-recovery-systems-llc", "docket_number": "4:20-cv-01674" }, { "provision_number": "X", "title": "Customer Information", "category": "affirmative_obligation", "summary": "Defendants are permanently enjoined from failing to provide sufficient customer information to enable the Commission to administer consumer redress, and must respond to written Commission requests for redress-related information within 14 days.", "verbatim_text": "IT IS FURTHER ORDERED that the Corporate Defendant, its officers, agents, employees, and attorneys, and all persons in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly, and the Individual Defendants, whether acting directly or indirectly, are permanently restrained and enjoined from directly or indirectly failing to provide sufficient customer information to enable the Commission to efficiently administer consumer redress. If a representative of the Commission requests in writing any information related to redress, Defendants must provide it, in the form prescribed by the Commission, within 14 days. Provided, however, that customer information need not be disposed of, and may be disclosed, to the extent requested by a government agency or required by law, regulation, or court order.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Consumer Redress" ], "case_id": "11.20_midwest_recovery_systems", "company_name": "Midwest Recovery Systems, LLC", "date_issued": "2020-11-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 19 of the FTC Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 57b; Section 814 of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §1692l; and Section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923042-midwest-recovery-systems-llc", "docket_number": "4:20-cv-01674" }, { "provision_number": "XI", "title": "Cooperation", "category": "affirmative_obligation", "summary": "Defendants must fully cooperate with Commission representatives in this case and related investigations, providing truthful information and appearing for proceedings upon 5 days written notice.", "verbatim_text": "IT IS FURTHER ORDERED that Defendants must fully cooperate with representatives of the Commission in this case and in any investigation related to or associated with the transactions or the occurrences that are the subject of the Complaint. Defendants must provide truthful and complete information, evidence, and testimony. Individual Defendants must appear and Corporate Defendant must cause Corporate Defendant’s officers, employees, representatives, or Page 21 of 30 Case: 4:20-cv-01674 Doc. #: 2 Filed: 11/25/20 Page: 22 of 51 PageID #: 54 agents to appear for interviews, discovery, hearings, trials, and any other proceedings that a Commission representative may reasonably request upon 5 days written notice, or other reasonable notice, at such places and times as a Commission representative may designate, without the service of a subpoena.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Third-Party Assessment" ], "case_id": "11.20_midwest_recovery_systems", "company_name": "Midwest Recovery Systems, LLC", "date_issued": "2020-11-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 19 of the FTC Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 57b; Section 814 of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §1692l; and Section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923042-midwest-recovery-systems-llc", "docket_number": "4:20-cv-01674" }, { "provision_number": "XII", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Each Defendant must submit a sworn acknowledgment of receipt of this Order within 7 days, deliver copies of the Order to principals, officers, employees, and agents within specified timeframes for 5 years, and obtain signed acknowledgments within 30 days from each recipient.", "verbatim_text": "A. Each Defendant, within 7 days of entry of this Order, must submit to the Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.\n\nB. For 5 years after entry of this Order, each Individual Defendant for any business that such Defendant, individually or collectively with any other Defendants, is the majority owner or controls directly or indirectly, and each Corporate Defendant, must deliver a copy of this Order to: (1) all principals, officers, directors, and LLC managers and members; (2) all employees having managerial responsibilities for Debt Collection Activities and furnishing information to Consumer Reporting Agencies and all agents and representatives who participate in Debt Collection Activities and furnishing information to Consumer Reporting Agencies; and (3) any business entity resulting from any change in structure as set forth in the Section titled Compliance Reporting. Delivery must occur within 7 days of entry of this Order for current personnel. For all others, delivery must occur before they assume their responsibilities.\n\nC. From each individual or entity to which a Defendant delivered a copy of this Order, that Defendant must obtain, within 30 days, a signed and dated acknowledgment of receipt of this Order.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "11.20_midwest_recovery_systems", "company_name": "Midwest Recovery Systems, LLC", "date_issued": "2020-11-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 19 of the FTC Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 57b; Section 814 of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §1692l; and Section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923042-midwest-recovery-systems-llc", "docket_number": "4:20-cv-01674" }, { "provision_number": "XIII", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Each Defendant must submit a sworn annual compliance report one year after entry of the Order, and for 10 years must submit sworn notices within 14 days of any changes to contact information, business structure, or bankruptcy filings.", "verbatim_text": "A. One year after entry of this Order, each Defendant must submit a compliance report, sworn under penalty of perjury: 1. Each Defendant must: (a) identify the primary physical, postal, and email address and telephone number, as designated points of contact, which representatives of the Commission may use to communicate with Defendant; (b) identify all of that Defendant’s businesses by all of their names, telephone numbers, and physical, postal, email, and Internet addresses; (c) describe the activities of each business, including the goods and services offered, the means of advertising, marketing, and sales, and the involvement of any other Defendant (which Individual Defendants must describe if they know or should know due to their own involvement); (d) describe in detail whether and how that Defendant is in compliance with each Section of this Order; and (e) provide a copy of each Order Acknowledgment obtained pursuant to this Order, unless previously submitted to the Commission.\n\n2. Additionally, each Individual Defendant must: (a) identify all telephone numbers and all physical, postal, email and Internet addresses, including all residences; (b) identify all business activities, including any business for which such Defendant performs services whether as an employee or otherwise and any entity in which such Defendant has any ownership interest; and (c) describe in detail such Defendant’s involvement in each such business, including title, role, responsibilities, participation, authority, control, and any ownership.\n\nB. For 10 years after entry of this Order, each Defendant must submit a compliance notice, sworn under penalty of perjury, within 14 days of any change in the following: 1. Each Defendant must report any change in: (a) any designated point of contact; or (b) the structure of any Corporate Defendant or any entity that any Defendant has any ownership interest in or controls directly or indirectly that may affect compliance obligations arising under this Order, including: creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order.\n\n2. Additionally, each Individual Defendant must report any change in: (a) name, including aliases or fictitious name, or residence address; or (b) title or role in any business activity, including any business for which such Defendant performs services whether as an employee or otherwise and any Page 24 of 30 Case: 4:20-cv-01674 Doc. #: 2 Filed: 11/25/20 Page: 25 of 51 PageID #: 57 entity in which such Defendant has any ownership interest, and identify the name, physical address, and any Internet address of the business or entity.\n\nC. Each Defendant must submit to the Commission notice of the filing of any bankruptcy petition, insolvency proceeding, or similar proceeding by or against such Defendant within 14 days of its filing.\n\nD. Any submission to the Commission required by this Order to be sworn under penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed on: _____” and supplying the date, signatory’s full name, title (if applicable), and signature.\n\nE. Unless otherwise directed by a Commission representative in writing, all submissions to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The subject line must begin: Federal Trade Commission v. Midwest Recovery LLC.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "11.20_midwest_recovery_systems", "company_name": "Midwest Recovery Systems, LLC", "date_issued": "2020-11-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 19 of the FTC Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 57b; Section 814 of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §1692l; and Section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923042-midwest-recovery-systems-llc", "docket_number": "4:20-cv-01674" }, { "provision_number": "XIV", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Defendants must create specified records for 10 years after entry of the Order and retain each record for 5 years, including accounting records, personnel records, consumer complaint records, and all records necessary to demonstrate full compliance.", "verbatim_text": "IT IS FURTHER ORDERED that Defendants must create certain records for 10 years after entry of the Order, and retain each such record for 5 years. Specifically, Corporate Defendant, in connection with Debt Collection Activities, and each Individual Defendant for any Page 25 of 30 Case: 4:20-cv-01674 Doc. #: 2 Filed: 11/25/20 Page: 26 of 51 PageID #: 58 business that such Defendant, individually or collectively with any other Defendants, is a majority owner or controls directly or indirectly, must create and retain the following records: A. accounting records showing the revenues from all goods or services sold;\n\nB. personnel records showing, for each person providing services, whether as an employee or otherwise, that person’s: name; addresses; telephone numbers; job title or position; dates of service; and (if applicable) the reason for termination;\n\nC. records of all Consumer complaints and refund requests, whether received directly or indirectly, such as through a third party, and any response; and\n\nD. all records necessary to demonstrate full compliance with each provision of this Order, including all submissions to the Commission.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "11.20_midwest_recovery_systems", "company_name": "Midwest Recovery Systems, LLC", "date_issued": "2020-11-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 19 of the FTC Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 57b; Section 814 of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §1692l; and Section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923042-midwest-recovery-systems-llc", "docket_number": "4:20-cv-01674" }, { "provision_number": "XV", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The Commission is authorized to monitor Defendants' compliance through written requests for reports and documents (responded to within 14 days), depositions, direct communications with Defendants and employees, undercover methods, and CRA-furnished consumer reports on Individual Defendants.", "verbatim_text": "A. Within 14 days of receipt of a written request from a representative of the Commission, each Defendant must: submit additional compliance reports or other requested information, which must be sworn under penalty of perjury; appear for depositions; and produce documents for inspection and copying. The Commission is also authorized to obtain discovery, without further leave of court, using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69, provided that Defendants, after attempting to resolve a dispute without court action and for good Page 26 of 30 Case: 4:20-cv-01674 Doc. #: 2 Filed: 11/25/20 Page: 27 of 51 PageID #: 59 cause shown, may file a motion with this Court seeking an order for one or more of the protections set forth in Rule 26(c).\n\nB. For matters concerning this Order, the Commission is authorized to communicate directly with each Defendant. Defendants must permit representatives of the Commission to interview any employee or other person affiliated with any Defendant who has agreed to such an interview. The person interviewed may have counsel present.\n\nC. The Commission may use all other lawful means, including posing, through its representatives as Consumers, suppliers, or other individuals or entities, to Defendants or any individual or entity affiliated with Defendants, without the necessity of identification or prior notice. Nothing in this Order limits the Commission’s lawful use of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1.\n\nD. Upon written request from a representative of the Commission, any Consumer Reporting Agency must furnish consumer reports concerning Individual Defendants, pursuant to Section 604(1) of the Fair Credit Reporting Act, 15 U.S.C. §1681b(a)(1).", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "11.20_midwest_recovery_systems", "company_name": "Midwest Recovery Systems, LLC", "date_issued": "2020-11-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 19 of the FTC Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 57b; Section 814 of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §1692l; and Section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923042-midwest-recovery-systems-llc", "docket_number": "4:20-cv-01674" }, { "provision_number": "XVI", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction over this matter for purposes of construction, modification, and enforcement of this Order.", "verbatim_text": "IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "11.20_midwest_recovery_systems", "company_name": "Midwest Recovery Systems, LLC", "date_issued": "2020-11-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Sections 5(a), 5(m)(1)(A), 13(b), and 19 of the FTC Act, 15 U.S.C. §§ 45(a), 45(m)(1)(A), 53(b), and 57b; Section 814 of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §1692l; and Section 621(a) of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923042-midwest-recovery-systems-llc", "docket_number": "4:20-cv-01674" }, { "provision_number": "I", "title": "Prohibited Business Activities", "category": "prohibition", "summary": "Defendant is permanently restrained from making consumer reports containing obsolete adverse information (civil suits, judgments, arrests over 7 years old, or other adverse items over 7 years old) and from failing to maintain reasonable procedures to assure maximum possible accuracy.", "verbatim_text": "A. Making any Consumer Report containing any of the following items of information: 1. Civil suits, civil judgments, and records of arrest that from date of entry, antedate the report by more than seven (7) years or until the governing statute of limitations has expired, whichever is the longer period; and\n\n2. Any other adverse item of information, other than records of convictions of crimes which antedates the report by more than seven (7) years.\n\nB. Failing to maintain reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom a Consumer Report relates.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "12.20_appfolio", "company_name": "AppFolio, Inc.", "date_issued": "2020-12-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923016-appfolio-inc", "docket_number": "1:20-cv-03563" }, { "provision_number": "II", "title": "Monetary Judgment for Civil Penalty", "category": "affirmative_obligation", "summary": "Defendant must pay a civil penalty of $4,250,000 to the Treasurer of the United States.", "verbatim_text": "B. Defendant is ordered to pay to Plaintiff, by making payment to the Treasurer of the United States, four million two hundred fifty thousand dollars ($4,250,000), which, as Defendant stipulates, its undersigned counsel holds in escrow for no purpose other than payment to Plaintiff. Such payment must be made within seven (7) days of entry of this Order by electronic fund transfer in accordance with instructions previously provided by a representative of Plaintiff.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "12.20_appfolio", "company_name": "AppFolio, Inc.", "date_issued": "2020-12-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923016-appfolio-inc", "docket_number": "1:20-cv-03563" }, { "provision_number": "III", "title": "Additional Monetary Provisions", "category": "affirmative_obligation", "summary": "Defendant relinquishes all rights to transferred assets, acknowledges complaint facts will be taken as true in future enforcement, and acknowledges use of tax identification number for collection purposes.", "verbatim_text": "A. Defendant relinquishes dominion and all legal and equitable right, title and interest in all assets transferred pursuant to this Order and may not seek the return of any assets.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "12.20_appfolio", "company_name": "AppFolio, Inc.", "date_issued": "2020-12-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923016-appfolio-inc", "docket_number": "1:20-cv-03563" }, { "provision_number": "IV", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendant must submit its own acknowledgment of receipt, deliver copies of the Order to personnel and entities for 3 years, and obtain signed acknowledgments from recipients.", "verbatim_text": "A. Defendant, within seven (7) days of entry of this Order, must submit to the Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.\n\nB. For three (3) years after entry of this Order, Defendant must deliver a copy of this Order to: (1) all principals, officers, directors, and LLC managers and members; (2) all employees Page 6 of 13 Case 1:20-cv-03563 Document 2 Filed 12/08/20 Page 7 of 14 having managerial responsibilities for conduct related to the subject matter of the Order and all agents and representatives who participate in conduct related to the subject matter of the Order; and (3) any business entity resulting from any change in structure as set forth in the Section titled Compliance Reporting. Delivery must occur within seven (7) days of entry of this Order for\n\nC. From each individual or entity to which Defendant delivered a copy of this Order, Defendant must obtain, within thirty (30) days, a signed and dated acknowledgment of receipt of this Order.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "12.20_appfolio", "company_name": "AppFolio, Inc.", "date_issued": "2020-12-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923016-appfolio-inc", "docket_number": "1:20-cv-03563" }, { "provision_number": "V", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendant must submit a compliance report after 1 year, compliance notices within 14 days of structural changes for 10 years, and bankruptcy notices within 14 days.", "verbatim_text": "A. One (1) year after entry of this Order, Defendant must submit a compliance report, sworn under penalty of perjury: Defendant must: (a) identify the primary physical, postal, and email address and telephone number, as designated points of contact, which representatives of the Commission and Plaintiff may use to communicate with Defendant; (b) identify all of Defendant’s businesses by all of their names, telephone numbers, and physical, postal, email, and Internet addresses; (c) describe the activities of each business, including a description of any products and services that involve Consumer Reports; (d) describe in detail whether and how Defendant is in compliance with each Section of this Order; and (e) provide a copy of each Order Acknowledgment obtained pursuant to this Order, unless previously submitted to the Commission.\n\nB. For ten (10) years following entry of this Order, Defendant must submit a compliance notice, sworn under penalty of perjury, within fourteen (14) days of any change in (a) any Page 7 of 13 Case 1:20-cv-03563 Document 2 Filed 12/08/20 Page 8 of 14 designated point of contact; or (b) the structure of Defendant or any entity that Defendant has any ownership interest in or controls directly or indirectly that may affect compliance obligations arising under this Order, including: creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order.\n\nC. Defendant must submit to the Commission notice of the filing of any bankruptcy petition, insolvency proceeding, or any similar proceeding by or against Defendant within fourteen (14) days of its filing.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "12.20_appfolio", "company_name": "AppFolio, Inc.", "date_issued": "2020-12-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923016-appfolio-inc", "docket_number": "1:20-cv-03563" }, { "provision_number": "VI", "title": "Recordkeeping Provisions", "category": "recordkeeping", "summary": "Defendant must create records for 10 years and retain each record for 5 years, including accounting records, personnel records, complaints, training materials, and compliance documents.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant must create certain records for ten (10) years after entry of the Order, and retain each such record for five (5) years. Specifically, in connection with providing Consumer Reports, Defendant must create and maintain the following records: A. Accounting records showing the revenues from all goods or services sold;\n\nB. Personnel records showing, for each employee: name, addresses, and telephone numbers; job title or position; dates of service; and, if applicable, the reason for termination;\n\nC. Complaints and refund requests concerning the subject matter of the Order, whether received directly or indirectly, such as through a third party, and any response;\n\nD. All employee training materials concerning the subject matter of the Order; and\n\nE. All records necessary to demonstrate full compliance with each provision of this Order, including all submissions to the Commission.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "12.20_appfolio", "company_name": "AppFolio, Inc.", "date_issued": "2020-12-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923016-appfolio-inc", "docket_number": "1:20-cv-03563" }, { "provision_number": "VII", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The Commission and Plaintiff may demand additional compliance reports, conduct depositions, inspect documents, interview personnel, and use investigative techniques including posing as consumers to monitor compliance.", "verbatim_text": "A. Within fourteen (14) days of receipt of a written request from a representative of the Commission or Plaintiff, Defendant must submit additional compliance reports or other requested information, which must be sworn under penalty of perjury; appear for depositions; and produce documents for inspection and copying. The Commission and Plaintiff are also authorized to obtain discovery, without further leave of court, using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69, provided that Defendant, after attempting to resolve a dispute without court action and for good cause shown, may file a motion with this Court seeking an order for one or more of the protections set forth in Rule 26(c).\n\ncommunicate directly with Defendant. Defendant must permit representatives of the Commission or Plaintiff to interview any employee or other person affiliated with Defendant who has agreed to such an interview. The person interviewed may have counsel present.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "12.20_appfolio", "company_name": "AppFolio, Inc.", "date_issued": "2020-12-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923016-appfolio-inc", "docket_number": "1:20-cv-03563" }, { "provision_number": "VIII", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "verbatim_text": "IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "violation_type": "unfair", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "12.20_appfolio", "company_name": "AppFolio, Inc.", "date_issued": "2020-12-15", "year": 2020, "administration": "Trump (1st)", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/1923016-appfolio-inc", "docket_number": "1:20-cv-03563" }, { "provision_number": "I", "title": "Prohibited Business Activities (Fair Credit Reporting Act)", "category": "prohibition", "summary": "Defendants are permanently restrained from failing to maintain FCRA-required procedures and from furnishing consumer reports to persons without a permissible purpose.", "verbatim_text": "14 A. Failing to maintain reasonable procedures designed to limit the 15 furnishing of Consumer Reports to Persons with Permissible Purposes to receive 16 them. Such reasonable procedures shall require that: (1) prospective users of the 17 information identify themselves, certify the purposes for which the information is 18 sought, and certify that the information will be used for no other purpose; and that (2) 19 Defendants make a reasonable effort to verify the identity of a new prospective user 20 and the uses certified by such prospective user prior to furnishing such user a 21 Consumer Report;\n\n22 B. Failing to maintain reasonable procedures to assure the maximum 23 possible accuracy of the information concerning the individual about whom the report 24 relates;\n\nC. Failing to provide a notice to users (Attached hereto as Attachment A to 26 this Order) of such Person’s responsibilities under the FCRA; and\n\nD. Furnishing a Consumer Report to any Person whom Defendants do not 28 have reason to believe has a Permissible Purpose to receive the Consumer Report.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "II", "title": "Fair Credit Reporting Act Monitoring Program", "category": "affirmative_obligation", "summary": "Each Covered Business must establish, implement, and maintain a comprehensive monitoring program to regularly assess FCRA applicability and compliance before advertising or offering Covered Information for sale.", "verbatim_text": "11 A. Document in writing the content, implementation, and maintenance of 12 the Monitoring Program;\n\n13 B. Designate a qualified employee or employees to coordinate and be 14 responsible for the Monitoring Program;\n\n15 C. Assess and document, prior to the inception of the Monitoring Program 16 and at least once every twelve (12) months thereafter, whether the Covered 17 Information promoted or offered for sale by the Covered Business is a Consumer 18 Report, and whether the Covered Business is acting as a Consumer Reporting Agency. 19 Such assessment shall include, at a minimum, a review of: 20 1. All products and services offered or sold; 21 2. Marketing and advertising materials used to offer or sell those 22 products and services (including but not limited to any advertisements, blog posts, 23 testimonials, published statements, customer service scripts, and any method or device 24 used to direct Persons to a website); 25 3. Any measures to prevent users from using a Covered Business’ 26 products or services for purposes governed by the FCRA (e.g., disclaimers, 27 certifications, account terminations, blocking); and 28 4. Any information about how users of those products or services use, - 7 - STIPULATED ORDER FOR PERMANENT INJUNCTION AND EQUITABLE MONETARY RELIEF CASE NO. 2:20-CV-6692-JFW (PDx) Case 2:20-cv-06692-JFW-PD Document 204 Filed 12/15/21 Page 9 of 27 Page ID #:9604 1 intend to use, or expect to use those products or services (including but not limited to 2 consumer correspondence, consumer complaints, and consumer testimonials);\n\n3 D. Design, implement, maintain, and document safeguards to assure FCRA 4 compliance. Such safeguards must include, at a minimum: 5 1. Training of all officers, employees, agents, and independent 6 contractors, at onboarding and at least every twelve (12) months thereafter, on the 7 FCRA’s legal requirements and activities that would violate those requirements; 8 2. Refraining from advertising, marketing, promoting, describing, or 9 offering for sale any product or service that involves Covered Information as suitable 10 or appropriate for any Permissible Purpose, unless the requirements of the FCRA and 11 this Order that would apply to a Consumer Report are satisfied as to that product or 12 service; 13 3. Prepublication review of all marketing and advertising materials 14 used to offer or sell those products and services (including but not limited to any 15 advertisements, blog posts, testimonials, published statements, customer service 16 scripts, and any method or device used to direct Persons to a website); 17 4. Clearly and Conspicuously disclosing permissible and 18 impermissible uses of any Covered Information under the FCRA and this Order prior 19 to providing or disclosing such information; 20 5. Procedures to onboard users, including requiring users to agree to 21 contracts or terms and conditions governing FCRA compliance and Clear and 22 Conspicuous disclosure of such terms and conditions; 23 6. User access controls, such as controls on the number of Covered 24 Records obtained per day; and 25 7. Ongoing reviews, tests, or audits of the ways that users use or 26 expect to use that Covered Business’ products or services;\n\nE. Evaluate and adjust the Monitoring Program in light of any changes to 28 the business’ operations or business arrangements, or any other circumstance that the - 8 - STIPULATED ORDER FOR PERMANENT INJUNCTION AND EQUITABLE MONETARY RELIEF CASE NO. 2:20-CV-6692-JFW (PDx) Case 2:20-cv-06692-JFW-PD Document 204 Filed 12/15/21 Page 10 of 27 Page ID #:9605 1 business knows or has reason to know may materially affect the Monitoring Program’s 2 effectiveness. At a minimum, each Covered Business must evaluate the Monitoring 3 Program every twelve (12) months and implement modifications based on the results; 4 and\n\n5 F. At least once every twelve (12) months, provide (1) the written program 6 required by Subsection II.A and any evaluations thereof or updates thereto, and (2) the 7 assessments and documentation required by Subsection II.C to the Covered Business’s 8 board of directors or governing body or, if no such board or equivalent governing body 9 exists, to a senior officer responsible for regulatory compliance.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Comprehensive Security Program" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "III", "title": "Prohibition Against Misrepresentations to Consumers", "category": "prohibition", "summary": "Defendants are permanently enjoined from misrepresenting, expressly or by implication, what users can achieve with the service, payment or cancellation terms, company policies, the likelihood a consumer has Covered Records, or any other material fact regarding Covered Records.", "verbatim_text": "18 A. What a user can do or achieve with the service;\n\nB. Payment, renewal, cancellation, or refund terms relating to the product 20 or service;\n\nC. Policies or practices regarding payments, renewals, cancellation, or 22 refunds;\n\nD. The extent to which, or the probability that any consumer may have 24 Covered Records; and\n\nE. Any other fact that is material to users concerning Covered Records or 26 any of the information therein, such as any material aspect of their accuracy, nature, 27 or characteristics; or any material restrictions, limitations, or conditions on users’ 28 ability to access, alter, use, correct, or delete them.", "violation_type": "both", "statutory_topics": [ "FCRA", "TSR" ], "practice_areas": [ "Deceptive Design / Dark Patterns" ], "remedy_types": [ "Prohibition" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "IV", "title": "Prohibition Against Unsubstantiated Representations Regarding Covered Records", "category": "prohibition", "summary": "Defendants are permanently enjoined from stating that a consumer may have, does have, or that there are possible Covered Records, unless the representation is non-misleading and Defendants have actually found a Covered Record about that consumer from a third-party source.", "verbatim_text": "9 A. A consumer may have or does have Covered Records; 10 B. Defendants have found Covered Records; or 11 C. There are possible or probable Covered Records; 12 unless the representation is non-misleading, and, at the time of making such 13 representation, Defendants have found a Covered Record about that consumer from a 14 third-party source.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Deceptive Design / Dark Patterns" ], "remedy_types": [ "Prohibition" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "V", "title": "Prohibition Against Statements Regarding Traffic Tickets", "category": "prohibition", "summary": "Defendants are permanently enjoined from stating, directly or by implication, that a traffic ticket or traffic citation is a criminal or arrest record.", "verbatim_text": "20 connection with advertising, marketing, promoting, or offering any product or service, 21 are permanently restrained and enjoined from stating, directly or by implication, that 22 a traffic ticket or a traffic citation is a criminal or arrest record. Provided, however, 23 that this provision does not preclude Defendants from stating that they received 24 information from a third-party on a specific date that indicates that court records may 25 exist relating to the subject of the search.", "violation_type": "both", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Deceptive Design / Dark Patterns" ], "remedy_types": [ "Prohibition" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "VII", "title": "Monetary Judgments and Partial Suspensions", "category": "affirmative_obligation", "summary": "Establishes monetary judgments against Corporate Defendant ($28,945,968) and Individual Defendant ($5,000,000), with payment schedules totaling $16,000,000 and $5,000,000 respectively, secured by a deed of trust on Individual Defendant's property; specifies conditions for suspension, reinstatement, and default.", "verbatim_text": "5 A. Judgment in the amount of Twenty-Eight Million Nine Hundred Forty- 6 Five, Nine Hundred Sixty-Eight Dollars ($28,945,968) is entered in favor of the 7 Plaintiff against Corporate Defendant, as monetary relief.\n\n8 B. Judgment in the amount of Five Million Dollars ($5,000,000) is entered 9 in favor of the Plaintiff against Individual Defendant, as monetary relief.\n\n13 1. Corporate Defendant must pay Two Million Dollars ($2,000,000) 14 to Plaintiff on or before January 15, 2022.\n\n15 2. Corporate Defendant must pay two (2) additional discrete 16 payments of One Million, One Hundred Sixty-Six Thousand, One Hundred and Sixty- 17 Six Dollars and sixty-six cents ($1,166,666.66) each, on or before each of the 18 following dates: 19 a. June 30, 2022; and 20 b. September 30, 2022;\n\n3. Corporate Defendant must pay one One (1) additional discrete 22 payment of One Million, One Hundred Sixty-Six Thousand, One Hundred and Sixty- 23 Six Dollars and sixty-eight cents ($1,166,666.68), on or before December 31, 2022;\n\n4. Corporate Defendant must pay twelve (12) additional discrete 25 payments of Eight Hundred and Seventy-Five Thousand Dollars ($875,000) each, on 26 or before each of the following dates: 27 a. March 31, 2023; 28 b. June 30, 2023; - 11 - STIPULATED ORDER FOR PERMANENT INJUNCTION AND EQUITABLE MONETARY RELIEF CASE NO. 2:20-CV-6692-JFW (PDx) Case 2:20-cv-06692-JFW-PD Document 204 Filed 12/15/21 Page 13 of 27 Page ID #:9608 1 c. September 30, 2023; 2 d. December 31, 2023; 3 e. March 31, 2024; 4 f. June 30, 2024; 5 g. September 30, 2024; 6 h. December 31, 2024; 7 i. March 31, 2025; 8 j. June 30, 2025; 9 k. September 30, 2025; and 10 l. December 31, 2025.\n\n11 5. All such payments must be made by electric fund transfer in 12 accordance with instructions provided by a representative of the Plaintiff. Written 13 confirmation of each wire transfer shall be delivered via email to Zachary A. Dietert, 14 Trial Attorney, Consumer Protection Branch, U.S. Department of Justice, 450 5th 15 Street, N.W. Suite 6400-South, Washington, DC 20530, Zachary.A.Dietert 16 @usdoj.gov. The wire transfer transmittal shall include the title of this litigation and 17 a reference to DJ #102-4025.\n\n1 8. Until such time that the total amount of Sixteen Million Dollars 2 ($16,000,000) is paid in full, Corporate Defendant is prohibited from paying any 3 dividends to any shareholders and is prohibited from increasing the salary or paying 4 bonuses or other form of financial compensation to any of Corporate Defendant’s 5 employees who were paid or to be paid an annual salary of $100,000.00 or more for 6 the years 2016 to the present, other than through annual Cost-of-Living Adjustments 7 at the rate approved by the Social Security Administration.\n\n11 1. Individual Defendant shall pay Three Hundred Thousand Dollars 12 ($300,000) to Plaintiff no later than December 15, 2021.\n\n13 2. Individual Defendant shall pay sixteen (16) additional discrete 14 payments of Two Hundred Ninety-Three Thousand, Seven Hundred and Fifty Dollars 15 ($293,750) each, on or before each of the following dates: 16 a. March 31, 2022; 17 b. June 30, 2022; 18 c. September 30, 2022; 19 d. December 31, 2022; 20 e. March 31, 2023; 21 f. June 30, 2023; 22 g. September 30, 2023; 23 h. December 31, 2023; 24 i. March 31, 2024; 25 j. June 30, 2024; 26 k. September 30, 2024; 27 l. December 31, 2024; 28 m. March 31, 2025; - 13 - STIPULATED ORDER FOR PERMANENT INJUNCTION AND EQUITABLE MONETARY RELIEF CASE NO. 2:20-CV-6692-JFW (PDx) Case 2:20-cv-06692-JFW-PD Document 204 Filed 12/15/21 Page 15 of 27 Page ID #:9610 1 n. June 30, 2025; 2 o. September 30, 2025; and 3 p. December 31, 2025.\n\n10 7. Individual Defendant shall cooperate fully with the Plaintiff and 11 be responsible for preparing, executing, and recording the necessary documents and 12 doing whatever else is reasonably necessary or desirable to perfect, evidence, and 13 effectuate the Plaintiff’s liens, security interests, and other protections granted herein. 14 Individual Defendant shall submit to the clerk’s office for recording all security 15 documents used to perfect the Plaintiff’s lien on the Collateral within fourteen (14) 16 days after entry of this Order, and shall deliver to the Plaintiff copies of such officially 17 recorded documents and a statement showing the outstanding balance owed on any 18 preexisting security deeds as of the date of entry of this Order within seven (7) days 19 after receipt of such documents.\n\n5. Individual Defendant further agrees that, as of the date on which 25 they sign this Order, they shall refrain from transferring, converting, encumbering 26 (including encumbering by failing to pay any taxes or assessments), selling, assigning, 27 or otherwise disposing of the Collateral, except with the express prior written 28 permission of counsel for the Plaintiff and for the purpose of satisfying Individual - 14 - STIPULATED ORDER FOR PERMANENT INJUNCTION AND EQUITABLE MONETARY RELIEF CASE NO. 2:20-CV-6692-JFW (PDx) Case 2:20-cv-06692-JFW-PD Document 204 Filed 12/15/21 Page 16 of 27 Page ID #:9611 1 Defendant’s obligation in Subsections VII.D.1-2, above, and the proceeds of any such 2 transaction shall be paid at settlement to the Plaintiff, provided, however, that this 3 limitation shall end with the completion of all payments listed in Subsections VII.D.1- 4 2, above.", "violation_type": "both", "statutory_topics": [ "FCRA", "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "VIII", "title": "Additional Monetary Provisions", "category": "affirmative_obligation", "summary": "Establishes ancillary monetary terms including relinquishment of asset claims, use of complaint facts in future proceedings, nondischargeability provisions, taxpayer ID submission, use of collected funds for consumer redress, and obligation to provide customer information for redress administration.", "verbatim_text": "14 A. Defendants relinquish dominion and all legal and equitable right, title, 15 and interest in all assets transferred pursuant to this Order and may not seek the return 16 of any assets.\n\n17 B. The facts alleged in the Complaint shall be taken as true, without further 18 proof, in any subsequent civil litigation by or on behalf of the Commission, including 19 in a proceeding to enforce its rights to any payment or monetary judgment pursuant 20 to this Order, such as a nondischargeability complaint in any bankruptcy case.\n\nD. Defendants acknowledge that their Taxpayer Identification Number 26 (Social Security Numbers or Employer Identification Number), which Defendants 27 must submit to the Plaintiff, may be used for collecting and reporting on any 28 delinquent amount arising out of this Order, in accordance with 31 U.S.C. § 7701.\n\n12 F. Defendants, Defendants’ officers, agents, employees, and attorneys, and 13 all other persons in active concert or participation with any of them, who receive actual 14 notice of this Order, whether acting directly or indirectly, are permanently restrained 15 and enjoined from directly or indirectly failing to provide sufficient customer 16 information to enable the Commission to efficiently administer consumer redress. 17 Defendants represent that they have provided this redress information to the 18 Commission. If a representative of the Commission requests in writing any 19 information related to redress, Defendants must provide it, in the form prescribed by 20 the Commission, within fourteen (14) days.", "violation_type": "both", "statutory_topics": [ "FCRA", "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "IX", "title": "Customer Information", "category": "affirmative_obligation", "summary": "Defendants must provide specified MyLife customer information to the Commission within 14 days and are permanently enjoined from disclosing or benefitting from customer information obtained prior to the Order, except for current customers if Defendants comply with Sections I–VI.", "verbatim_text": "A. Failing to provide within fourteen (14) days of the entry of the Order, in 27 a sortable format such as an Excel spreadsheet or its equivalent, the following 28 MyLife customer information for the period from November 1, 2016 to October 31, - 20 - STIPULATED ORDER FOR PERMANENT INJUNCTION AND EQUITABLE MONETARY RELIEF CASE NO. 2:20-CV-6692-JFW (PDx) Case 2:20-cv-06692-JFW-PD Document 204 Filed 12/15/21 Page 22 of 27 Page ID #:9617 1 2021: first and last name, telephone number, email address, mailing address, 2 subscription type, subscription duration, total paid, refund/chargebacks (if 3 applicable), and a unique customer ID sufficient to identify multiple subscriptions for 4 the same customer; and\n\n5 B. Disclosing, using, or benefitting from customer information, including 6 the name, address, telephone number, email address, Social Security number, other 7 identifying information, or any data that enables access to a customer’s account 8 (including a credit card, bank account, or other financial account), that any 9 Defendant obtained prior to entry of this Order in connection with the advertising, 10 marketing, promoting, offering for sale, or selling Covered Records or Covered 11 Information. Provided, however, that Defendants may use customer information for 12 any current customer if Defendants comply with Sections I through VI of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA", "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Consumer Notification" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "X", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendants must submit sworn acknowledgments of receipt of the Order and deliver copies to principals, employees, agents, and third-party data providers, obtaining signed acknowledgments from each recipient.", "verbatim_text": "16 A. Each Defendant, within seven (7) days of entry of this Order, must submit 17 to Plaintiff and the Commission an acknowledgment of receipt of this Order sworn 18 under penalty of perjury.\n\nB. For twenty (20) years after entry of this Order, Individual Defendant for 20 any business that Individual Defendant, individually or collectively with Corporate 21 Defendant, is the majority owner or controls directly or indirectly, and Corporate 22 Defendant must deliver a copy of this Order to: (1) all of each such business’s 23 principals, officers, directors, and LLC managers and members; (2) all of each such 24 business’s employees having managerial responsibilities for conduct related to the 25 subject matter of the Order and all agents and representatives who participate in 26 conduct related to the subject matter of the Order; (3) any business entity resulting 27 from any change in structure as set forth in Section XI titled Compliance Reporting; 28 and (4) any third party from whom any Defendant obtains Covered Information. - 21 - STIPULATED ORDER FOR PERMANENT INJUNCTION AND EQUITABLE MONETARY RELIEF CASE NO. 2:20-CV-6692-JFW (PDx) Case 2:20-cv-06692-JFW-PD Document 204 Filed 12/15/21 Page 23 of 27 Page ID #:9618 1 Delivery must occur within seven (7) days of entry of this Order for current personnel. 2 For all others, delivery must occur before they assume their responsibilities.\n\n3 C. From each individual or entity to which a Defendant delivered a copy of 4 this Order, that Defendant must obtain, within thirty (30) days, a signed and dated 5 acknowledgment of receipt of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA", "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "XI", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendants must submit annual compliance reports to the Commission sworn under penalty of perjury, report material changes within 14 days, report bankruptcy filings within 14 days, and annually submit FCRA monitoring program documentation for 20 years.", "verbatim_text": "9 A. One year after entry of this Order, each Defendant must submit a 10 compliance report, sworn under penalty of perjury: 11 1. Each Defendant must: (a) identify the primary physical, postal, 12 and email address and telephone number, as designated points of contact that 13 representatives of the Commission and Plaintiff may use to communicate with 14 Defendant; (b) identify all of that Defendant’s businesses by all of their names, 15 telephone numbers, and physical, postal, email, and Internet addresses; (c) describe 16 the activities of each business, including but not limited to a description of any 17 products or services that involve Covered Information, and the involvement of any 18 other Defendant; (d) describe in detail whether and how that Defendant is in 19 compliance with each Section of this Order; and (e) provide a copy of each Order 20 Acknowledgment obtained pursuant to this Order, unless previously submitted to the 21 Commission.\n\n2. Additionally, Individual Defendant must: (a) identify all of his 23 telephone numbers and all physical, postal, email and Internet addresses, including all 24 residences; (b) identify all businesses in which he has involvement or an interest, 25 including any business for which the Individual Defendant performs services whether 26 as an employee or otherwise and any entity in which such Defendant has any 27 ownership interest; and (c) describe in detail the Individual Defendant’s involvement 28 in each such business, including title, role, responsibilities, participation, authority, - 22 - STIPULATED ORDER FOR PERMANENT INJUNCTION AND EQUITABLE MONETARY RELIEF CASE NO. 2:20-CV-6692-JFW (PDx) Case 2:20-cv-06692-JFW-PD Document 204 Filed 12/15/21 Page 24 of 27 Page ID #:9619 1 control, and any ownership.\n\n2 B. For twenty (20) years after entry of this Order, each Defendant must 3 submit a compliance notice, sworn under penalty of perjury, within fourteen (14) days 4 of any change in the following: 5 1. Each Defendant must report any change in: (a) any designated 6 point of contact; or (b) the structure of any Corporate Defendant or any entity that 7 Defendant has any ownership interest in or controls directly or indirectly that may 8 affect compliance obligations arising under this Order, including: creation, merger, 9 sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages in 10 any acts or practices subject to this Order.\n\n11 2. Additionally, Individual Defendant must report any change in: (a) 12 name, including aliases or fictitious name, or residence address; or (b) title or role in 13 any business activity, including any business for which Individual Defendant performs 14 services whether as an employee or otherwise and any entity in which Individual 15 Defendant has any ownership interest, and identify the name, physical address, and 16 any Internet address of the business or entity.\n\n17 C. Each Defendant must submit to the Commission notice of the filing of 18 any bankruptcy petition, insolvency proceeding, or similar proceeding by or against 19 such Defendant within fourteen (14) days of its filing.\n\n20 D. One year after entry of this Order, and each year thereafter for a period 21 of twenty (20) years from entry of this Order, each Defendant must submit to the 22 Commission all documentation required under Subsection II.C of this Order.\n\nF. Unless otherwise directed by a Commission representative in writing, all - 23 - STIPULATED ORDER FOR PERMANENT INJUNCTION AND EQUITABLE MONETARY RELIEF CASE NO. 2:20-CV-6692-JFW (PDx) Case 2:20-cv-06692-JFW-PD Document 204 Filed 12/15/21 Page 25 of 27 Page ID #:9620 1 submissions to the Commission pursuant to this Order must be emailed to 2 DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to: 3 Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade 4 Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The subject 5 line must begin: “United States v. MyLife.com, Inc. and Jeffrey Tinsley.”", "violation_type": "both", "statutory_topics": [ "FCRA", "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "XII", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Defendants must create and retain specified records for 20 years after entry of the Order, retaining each record for five years, covering accounting, personnel, customer files, complaints, marketing materials, training materials, and compliance documentation.", "verbatim_text": "10 A. Accounting records showing the revenues generated from all products or 11 services sold, and the disbursement of such revenues; 12 B. Personnel records showing, for each Person providing services, whether\n\n13 as an employee or otherwise, that Person’s: name; addresses; telephone numbers; job 14 title or position; dates of service; and (if applicable) the reason for termination;\n\nC. Customer files containing the names, addresses, telephone numbers, 16 dollar amounts paid, quantity of products or services purchased, and description of 17 products or services purchased, to the extent such information is obtained in the 18 ordinary course of business;\n\nD. Records of all complaints and refund requests concerning the subject 20 matter of the Order, whether received directly or indirectly, such as through a third 21 party, and any response to those complaints or requests;\n\nE. All sales or customer service scripts, form letters or emails, 23 advertisements, or other marketing materials;\n\nF. All employee manuals and training materials concerning the subject 25 matter of the Order;\n\nG. All records necessary to demonstrate full compliance with each Section 27 of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA", "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "XIII", "title": "Annual Certifications", "category": "compliance_reporting", "summary": "Starting one year after issuance, Individual Defendant and Corporate Defendant must each annually certify to the Commission that Order requirements have been established, implemented, and maintained, and that no uncorrected or undisclosed material noncompliance exists.", "verbatim_text": "3 A. One year after the issuance date of this Order, and each year thereafter, 4 for any Covered Business that Individual Defendant is a majority owner or controls, 5 directly or indirectly, Individual Defendant must provide the Commission with a 6 certification that: (1) the Covered Business has established, implemented, and 7 maintained the requirements of this Order; and (2) Individual Defendant is not aware 8 of any material noncompliance that has not been (a) corrected or (b) disclosed to the 9 Commission. The certification must be based on the personal knowledge of the 10 Individual Defendant, or subject-matter experts upon whom the Individual Defendant 11 relies in making the representation.\n\n12 B. One year after issuance date of this Order, and each year thereafter, 13 Corporate Defendant must provide the Commission with a certification from a senior 14 officer or manager that: (1) Corporate Defendant has established, implemented, and 15 maintained the requirements of this Order; and (2) Corporate Defendant is not aware 16 of any material noncompliance that has not been (a) corrected or (b) disclosed to the 17 Commission. The certification must be based on the personal knowledge of the senior 18 officer or manager, or subject-matter experts upon whom the senior corporate manager 19 or senior officer reasonably relies in making the certification.\n\nC. Unless otherwise directed by a Commission representative in writing, 21 submit all annual certifications to the Commission pursuant to this Order via email to 22 DEBrief@ftc.gov or by overnight courier (not the U.S. Postal Service) to Associate 23 Director of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 24 600 Pennsylvania Avenue NW, Washington, DC 20580. The subject line must begin: 25 “United States v. MyLife.com, Inc. and Jeffrey Tinsley.”", "violation_type": "both", "statutory_topics": [ "FCRA", "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "XIV", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The Commission and Plaintiff are authorized to monitor Defendants' compliance through written requests for reports, depositions, document production, direct communications with Defendants' personnel, and undercover methods including posing as consumers or suppliers.", "verbatim_text": "1 A. Within fourteen (14) days of receipt of a written request from a 2 representative of the Commission or Plaintiff, each Defendant must: submit 3 additional compliance reports or other requested information, which must be sworn 4 under penalty of perjury; appear for depositions; and produce documents for 5 inspection and copying. The Commission and Plaintiff are also authorized to obtain 6 discovery, without further leave of court, using any of the procedures prescribed by 7 Federal Rules of Civil Procedure 29, 30 (including remote video or telephonic 8 depositions), 31, 33, 34, 36, 45, and 69.\n\n9 B. For matters concerning this Order, the Commission and Plaintiff are 10 authorized to communicate directly with each Defendant. Defendant must permit 11 representatives of the Commission and Plaintiff to interview any employee or other 12 Person affiliated with any Defendant who has agreed to such an interview. The Person 13 interviewed may have counsel present.\n\n14 C. The Commission and Plaintiff may use all other lawful means, including 15 posing, through its representatives as consumers, suppliers, or other individuals or 16 entities, to Defendants or any individual or entity affiliated with Defendants, without 17 the necessity of identification or prior notice. Nothing in this Order limits the 18 Commission’s lawful use of compulsory process, pursuant to Sections 9 and 20 of the 19 FTC Act, 15 U.S.C. §§ 49, 57b-1.", "violation_type": "both", "statutory_topics": [ "FCRA", "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "XV", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction over this matter for purposes of construction, modification, and enforcement of the Order.", "verbatim_text": "21 IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter 22 for purposes of construction, modification, and enforcement of this Order.", "violation_type": "both", "statutory_topics": [ "FCRA", "TSR" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "12.21_mylife.com", "company_name": "MyLife.com, Inc.", "date_issued": "2021-12-15", "year": 2021, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 16(a)(1) of the Federal Trade Commission Act, 15 U.S.C. § 56(a)(1); Telemarketing Sales Rule, 16 C.F.R. Part 310; Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x; Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8404", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3022-mylifecom-inc", "docket_number": "2:20-cv-6692" }, { "provision_number": "I", "title": "Prohibited Business Activities — Identity Theft Prevention Program", "category": "prohibition", "summary": "Defendant is permanently restrained from failing to establish and maintain a written Identity Theft Prevention Program designed to detect, prevent, and mitigate identity theft in connection with Covered Accounts under the Red Flags Rule.", "verbatim_text": "IT IS ORDERED that Defendant, Defendant’s officers, agents, employees, and attorneys, and all other persons in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly, in connection with promoting or offering for sale any good or service, are permanently restrained and enjoined from failing to 3 Case 2:21-cv-00267-TS Document 3-1 Filed 04/29/21 PageID.25 Page 4 of 21 establish and maintain a written Identity Theft Prevention Program (“ITP Program”) that is designed to detect, prevent, and mitigate identity theft in connection with “Covered Accounts” in contravention of 16 C.F.R. § 681.1 (“Red Flags Rule”), including, but not limited to:\n\nA. Failing to conduct periodic assessments to determine whether the Defendant offers “Covered Accounts” within the meaning of the Red Flags Rule;\n\nB. Failing to administer the ITP Program in accordance with the Red Flags Rule, including obtaining approval for the ITP Program from the board of directors; and\n\nC. Failing to consider and include in the ITP Program all appropriate guidelines provided in Appendix A to the Red Flags Rule.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "12.24_vivint_smart_home", "company_name": "Vivint Smart Home, Inc.", "date_issued": "2024-12-15", "year": 2024, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3060-vivint-smart-home-inc", "docket_number": "2:21-cv-00267-TS" }, { "provision_number": "II", "title": "Additional Prohibited Business Activities — Consumer Reports and Debt", "category": "prohibition", "summary": "Defendant is permanently restrained from obtaining Consumer Reports without permissible purpose, selling or transferring debt on accounts where White Paging or Impermissible Co-Signing occurred, and furnishing information about such debt to CRAs.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant, Defendant’s officers, agents, employees, and attorneys, and all other persons in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly, in connection with promoting or offering for sale any good or service, are permanently restrained and enjoined from: (1) obtaining Consumer Reports from CRAs without a permissible purpose in contravention of Section 604(f) of the FCRA (15 U.S.C. § 1681b(f)); (2) selling, transferring, or\n\ncontravention of Section 604(f) of the FCRA (15 U.S.C. § 1681b(f)); (2) selling, transferring, or placing for collection any debt on an account on which it knows or has reason to believe that White Paging or Impermissible Co-Signing has occurred; and (3) furnishing information about\n\nWhite Paging or Impermissible Co-Signing has occurred; and (3) furnishing information about such debt to the CRAs.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Prohibition" ], "case_id": "12.24_vivint_smart_home", "company_name": "Vivint Smart Home, Inc.", "date_issued": "2024-12-15", "year": 2024, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3060-vivint-smart-home-inc", "docket_number": "2:21-cv-00267-TS" }, { "provision_number": "III", "title": "Customer Service Task Force", "category": "affirmative_obligation", "summary": "Within 30 days of entry of the Order, Defendant must establish and maintain for five years a Customer Service Task Force Program with specific procedures for verifying account identities, handling identity theft notices, investigating claims, and remedying illegitimate debts.", "verbatim_text": "IT IS FURTHER ORDERED that, within thirty (30) days of entry of this Order, Defendant must establish and maintain for five years, a Customer Service Task Force Program.\n\nA. Designate a qualified employee to coordinate and be responsible for the Customer Service Task Force (“Coordinator”), who must be approved by and report directly to the board of directors or a committee thereof;\n\nB. For all debt sold to a debt buyer between January 1, 2016 and the entry of this Order, for all accounts whose file references more than one address or includes a co-signer, and prior to (1) attempting to collect any debt, (2) referring any account to a debt collector, (3) selling any debt to a debt buyer, or (4) reporting any debt to a consumer reporting agency (CRA), take reasonable steps to verify every name and address included with the account to confirm that the individual is properly included within the account, and require the Coordinator to certify, under penalty of perjury, that those reasonable steps were taken for each such account.\n\nC. On the homepage of Vivint.com, provide a prominent link to a dedicated Identity Theft Customer Service page, which will have contact information (including telephone, e-mail address, and physical mail address), for consumers to use to provide notice to Defendant of any identity theft associated with a Vivint account, including but not limited to identity theft associated with White Paging or Impermissible Co-Signing.\n\nD. Upon receipt of any notice described in Provision III.C above, through any means, immediately suspend any effort to collect any debt on that account, from any individual associated with the account, for no less than sixty (60) days. For accounts that were already referred to or sold to a third-party, Defendant must immediately demand that such third-party suspend collection for at least sixty (60) days. For any sale of debt to a third-party debt buyer or debt collector after the date of this order, Defendant must have contractual provisions requiring 5 Case 2:21-cv-00267-TS Document 3-1 Filed 04/29/21 PageID.27 Page 6 of 21 such third party to comply with such suspension demand.\n\nE. For any account for which Defendant has received Provision III.C notice of identity theft take reasonable steps, within sixty (60) days, to investigate the claim, including, but not limited to: (1) interview the claimed identity theft victim; (2) interview the sales representative that initiated the account (if the representative is a current employee and otherwise make reasonable efforts to contact a former employee); and (3) review all documentation associated with the account.\n\nF. For debts determined to be illegitimate, either through a Provision III.B verification or Provision III.E investigation, (1) if any debts were reported to any CRA, immediately communicate to that CRA that the debt was illegitimate, and take reasonable steps to confirm that that the CRA removes any indication of the debt from the consumer, (2) for any debts that were sold or referred to any debt buyer or debt collector, promptly communicate to the debt buyer or debt collector that the debt was illegitimate, confirm that the debt buyer or debt collector will immediately stop all attempts to collect that debt, and repurchase the debt, (3) provide notice to the individuals associated with the debt of the availability of monetary relief pursuant to Provision X below, and (4) for any active accounts determined to have been authorized through White Paging or Impermissible Co-Signing, immediately remove any reference to those third parties on the accounts.\n\nG. For debts determined to be legitimate, prior to resuming collection after sixty (60) days or, in the case of accounts already referred to or sold to a third-party, prior to authorizing resumption of debt collection, require the Coordinator to certify, under penalty of perjury, that a Provision III.B verification or Provision III.E investigation has occurred and that the Coordinator 6 Case 2:21-cv-00267-TS Document 3-1 Filed 04/29/21 PageID.28 Page 7 of 21 believes the individual named on the account is properly associated with the debt.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Other" ], "case_id": "12.24_vivint_smart_home", "company_name": "Vivint Smart Home, Inc.", "date_issued": "2024-12-15", "year": 2024, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3060-vivint-smart-home-inc", "docket_number": "2:21-cv-00267-TS" }, { "provision_number": "IV", "title": "Employee Monitoring Program", "category": "affirmative_obligation", "summary": "Beginning 30 days after entry of this Order, Defendant must establish, implement, and maintain an employee-monitoring program to prevent employees or agents from obtaining Consumer Reports without a permissible purpose, including documented safeguards, training, technical controls, an ethics hotline, disciplinary measures, and annual reviews.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant, beginning 30 days after entry of this Order, must not promote or offer for sale any good or service unless it establishes and implements, and thereafter maintains, an employee-monitoring program that prevents Defendant’s employees or agents from obtaining Consumer Reports from CRAs without a permissible purpose (“Monitoring Program”). To satisfy this requirement, Defendant must, at a minimum:\n\nA. Document in writing the content, implementation, and maintenance of the Monitoring Program;\n\nB. Provide the written program and any evaluations thereof or updates thereto to Defendant’s board of directors or governing body or, if no such board or equivalent governing body exists, to Defendant’s senior officer responsible for the Monitoring Program at least once every 12 months;\n\nC. Designate a qualified employee or employees to coordinate and be responsible for the Monitoring Program, who will be approved by and report directly to the board of directors or a committee thereof;\n\nD. Assess and document, at least once every 12 months, internal and external risks that may facilitate employee access to Consumer Reports without a permissible purpose;\n\nE. Design, implement, maintain and document safeguards that control for the risks Defendant identifies related to employee access to Consumer Reports without a permissible purpose. Such safeguards must include: 1. Training of all of Defendant’s sales employees and agents, at onboarding and at 7 Case 2:21-cv-00267-TS Document 3-1 Filed 04/29/21 PageID.29 Page 8 of 21 least every 12 months thereafter, on the FCRA’s legal requirements with respect to lawful access to Consumer Reports and activities that would violate those requirements; 2. Technical safeguards such as modifying Defendant’s sales technologies (including but not limited to Street Genie) designed to prevent sales employees and agents from improperly obtaining Consumer Reports from CRAs; 3. An internal “ethics hotline” or similar mechanism to which sales employees and agents must report any sales integrity issues, including potential violations of the FCRA, along with a system for receiving, retaining, and addressing such employee allegations; 4. Escalating sales employee and agent disciplinary measures for FCRA violations and failure to report FCRA violations, up to and including termination; and 5. Review and modification, at least once every 12 months, of Defendant’s sales goals, performance management and sales employee and agent compensation to ensure all are consistent with the objective of preventing FCRA violations; and\n\nF. Evaluate and adjust the Monitoring Program in light of any changes to Defendant’s operations or business arrangements, or any other circumstance that Defendant knows or has reason to know may have an impact on the Monitoring Program’s effectiveness. At a minimum, Defendant must evaluate the Monitoring Program every 12 months and implement modifications based on the results.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "12.24_vivint_smart_home", "company_name": "Vivint Smart Home, Inc.", "date_issued": "2024-12-15", "year": 2024, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3060-vivint-smart-home-inc", "docket_number": "2:21-cv-00267-TS" }, { "provision_number": "V", "title": "Third Party Assessment", "category": "assessment", "summary": "Defendant must obtain initial and biennial third-party assessments of its compliance with Provisions I–IV from a qualified, independent Assessor, covering defined reporting periods, and submit assessments to the Commission.", "verbatim_text": "A. The Assessments must be obtained from a qualified, objective, independent third-party professional (“Assessor”), who: (1) has specialized experience in compliance with the FCRA; (2) conducts an independent review of Defendant’s Identity Theft Prevention Program (if applicable), Customer Service Task Force and Employee Monitoring Program (collectively, the “Programs”); and (3) retains all documents relevant to each Assessment for five years after completion of such Assessment and provides such documents to the Commission within 10 days of receipt of a written request from a representative of the Commission. No documents may be withheld by the Assessor from the Commission on the basis of a claim of confidentiality, proprietary or trade secrets, work product protection, attorney client privilege, statutory exemption, or any similar claim.\n\nB. For each Assessment, Defendant must provide the Associate Director for Enforcement for the Bureau of Consumer Protection at the Federal Trade Commission with the name and affiliation of the person selected to conduct the Assessment, which the Associate Director shall have the authority to approve in his or her sole discretion.\n\nC. The reporting period for the Assessments must cover: (1) the first 180 days after the issuance date of the Order for the initial Assessment; and (2) each two-year period thereafter for 20 years after issuance of the Order for the biennial Assessments.\n\nD. Each Assessment must, for the entire Assessment period: (1) determine whether Defendant has implemented and maintained the Programs; (2) assess the effectiveness of Defendant’s implementation and maintenance of Provisions I-IV of this Order; (3) identify any gaps or weaknesses in, or instances of material noncompliance with, the Programs; and (4) identify specific evidence (including, but not limited to, documents reviewed, sampling and 9 Case 2:21-cv-00267-TS Document 3-1 Filed 04/29/21 PageID.31 Page 10 of 21 testing performed, and interviews conducted) examined to make such determinations, assessments, and identifications, and explain why the evidence that the Assessor examined is sufficient to justify the Assessor’s findings. No finding of the Assessor shall rely solely on assertions or attestations by Defendant’s management. The Assessment must be signed by the Assessor and must state that the Assessor conducted an independent review, and did not rely solely on assertions or attestations by Defendant’s management. To the extent Defendant revises, updates, or adds one or more safeguards required under this Order in the middle of an Assessment period, the Assessment shall assess the effectiveness of the revised, updated, or added safeguard(s) for the time period in which it was in effect, and provide a separate statement detailing the basis for each revised, updated, or additional safeguard.\n\nE. Each Assessment must be completed within 60 days after the end of the reporting period to which the Assessment applies. Unless otherwise directed by the Commission representative in writing, Defendant must submit the initial Assessment to the Commission within 10 days after the Assessment has been completed via email to Debrief@ftc.gov or by overnight courier (not the U.S. Postal Service) to Associate Director of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The subject line must begin: “In re Vivint Smart Home, Inc., File No. 1923060.” All subsequent biennial Assessments must be retained by Defendant until the order is terminated and provided to the Associate Director of Enforcement within 10 days of request.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Third-Party Assessment" ], "case_id": "12.24_vivint_smart_home", "company_name": "Vivint Smart Home, Inc.", "date_issued": "2024-12-15", "year": 2024, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3060-vivint-smart-home-inc", "docket_number": "2:21-cv-00267-TS" }, { "provision_number": "VI", "title": "Cooperation with Third-Party Assessor", "category": "affirmative_obligation", "summary": "Defendant must fully cooperate with the Assessor by providing all relevant information and materials and not misrepresenting any material facts during any Assessment.", "verbatim_text": "A. Provide or otherwise make available to the Assessor all information and material in its possession, custody, or control that is relevant to the Assessment for which there is no reasonable claim of privilege; and\n\nB. Disclose all material facts to the Assessor, and not misrepresent in any manner, expressly or by implication, any fact material to the Assessor’s: (1) determination whether Defendant has implemented and maintained the Programs required by Provisions I-IV of this Order; (2) assessment of the effectiveness of the implementation and maintenance of those Programs; or (3) identification of any gaps or weaknesses in those Programs.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Third-Party Assessment" ], "case_id": "12.24_vivint_smart_home", "company_name": "Vivint Smart Home, Inc.", "date_issued": "2024-12-15", "year": 2024, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3060-vivint-smart-home-inc", "docket_number": "2:21-cv-00267-TS" }, { "provision_number": "VII", "title": "Oversight Requirement — Chief Compliance Officer", "category": "affirmative_obligation", "summary": "Defendant must employ a Chief Compliance Officer who reports to the Board's Audit Committee and provides quarterly compliance reports to the Board on FCRA and identity theft risk management obligations.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant will employ a Chief Compliance Officer, who will have a reporting relationship to the Audit Committee of the Board in addition to any reporting relationship the Chief Compliance Officer has to Defendant’s management. At least\n\nevery fiscal quarter, Defendant’s Chief Compliance Officer will report to the Board or a committee thereof on management’s execution of its FCRA and identity theft risk management compliance obligations and the effectiveness of Defendant’s FCRA and identity theft risk management compliance functions.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "12.24_vivint_smart_home", "company_name": "Vivint Smart Home, Inc.", "date_issued": "2024-12-15", "year": 2024, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3060-vivint-smart-home-inc", "docket_number": "2:21-cv-00267-TS" }, { "provision_number": "VIII", "title": "Annual Certification", "category": "compliance_reporting", "summary": "For twenty years beginning one year after the Order's issuance, Defendant must annually provide the Commission with a sworn certification from its CEO or designated senior officer confirming compliance with Provisions I–IV and disclosure of any material noncompliance.", "verbatim_text": "A. For a total of twenty years and commencing one year after the issuance date of this Order, and each year thereafter, Defendant must provide the Commission with a certification from Defendant’s Chief Executive Officer, Todd Pedersen, or if Mr. Pedersen no longer serves as Defendant’s Chief Executive Officer, President, or such other officer (regardless of title) that 11 Case 2:21-cv-00267-TS Document 3-1 Filed 04/29/21 PageID.33 Page 12 of 21 is designated in Defendant’s Bylaws or by resolution of the Board of Directors as having the duties of the principal executive officer of Defendant, then a senior corporate manager, or, if no such senior corporate manager exists, a senior officer of the Defendant responsible for Compliance with Provisions I-IV of this Order, that: (1) Defendant has established, implemented, and maintained the requirements of this Order; and (2) Defendant is not aware of any material noncompliance that has not been (a) corrected or (b) disclosed to the Commission. The certification must be based on the personal knowledge of Mr. Pedersen, the senior corporate manager, the senior officer, or subject-matter experts upon whom Mr. Pedersen, the senior corporate manager, or the senior officer reasonably relies in making the certification.\n\nB. Unless otherwise directed by a Commission representative in writing, submit all annual certifications to the Commission pursuant to this Order via email to DEBrief@ftc.gov or by overnight courier (not the U.S. Postal Service) to Associate Director of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The subject line must begin: “In re Vivint Smart Home, Inc., FTC File No. 1923060.”", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "12.24_vivint_smart_home", "company_name": "Vivint Smart Home, Inc.", "date_issued": "2024-12-15", "year": 2024, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3060-vivint-smart-home-inc", "docket_number": "2:21-cv-00267-TS" }, { "provision_number": "IX", "title": "Monetary Judgment for Civil Penalty", "category": "affirmative_obligation", "summary": "A civil penalty judgment of $15,000,000 is entered against Defendant, which must be paid to the U.S. Treasury within seven days of entry of this Order by electronic fund transfer.", "verbatim_text": "A. Judgment in the amount of fifteen million dollars ($15,000,000) is entered in favor of Plaintiff against Defendant, as a civil penalty.\n\nB. Defendant is ordered to pay to Plaintiff, by making payment to the Treasurer of the United States, fifteen million dollars ($15,000,000). Such payment must be made within seven days of entry of this Order by electronic fund transfer in accordance with instructions previously 12 Case 2:21-cv-00267-TS Document 3-1 Filed 04/29/21 PageID.34 Page 13 of 21 provided by a representative of Plaintiff.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "12.24_vivint_smart_home", "company_name": "Vivint Smart Home, Inc.", "date_issued": "2024-12-15", "year": 2024, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3060-vivint-smart-home-inc", "docket_number": "2:21-cv-00267-TS" }, { "provision_number": "X", "title": "Consumer Fund", "category": "affirmative_obligation", "summary": "A $5,000,000 equitable monetary relief judgment is entered against Defendant, to be paid within seven days to the U.S. Treasury and administered by the Commission for consumer redress.", "verbatim_text": "A. Judgment in the amount of five million dollars ($5,000,000) is entered in favor of Plaintiff against Defendant, as equitable monetary relief.\n\nB. Defendant is ordered to pay to Plaintiff, by making payment to the Treasurer of the United States, five million dollars ($5,000,000). Such payment must be made within seven days of entry of this Order by electronic fund transfer in accordance with instructions previously provided by a representative of Plaintiff.\n\nC. All money paid pursuant to this Provision X may be deposited into a fund administered by the Commission or its designee to be used for equitable relief, including consumer redress and any attendant expenses for the administration of any redress fund. If a representative of the Commission decides that direct redress to consumers is wholly or partially impracticable or money remains after redress is completed, the Commission may apply any remaining money for such other equitable relief (including consumer information remedies) as it determines to be reasonably related to Defendant’s practices alleged in the Complaint. Any money not used for such equitable relief is to be deposited to the U.S. Treasury as additional civil penalties. Defendant has no right to challenge any actions the Commission or its representatives may take pursuant to this Provision X.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "12.24_vivint_smart_home", "company_name": "Vivint Smart Home, Inc.", "date_issued": "2024-12-15", "year": 2024, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3060-vivint-smart-home-inc", "docket_number": "2:21-cv-00267-TS" }, { "provision_number": "XI", "title": "Additional Monetary Provisions", "category": "affirmative_obligation", "summary": "Defendant relinquishes all rights to assets transferred under the Order, Complaint facts may be taken as true in future proceedings, and Defendant's Taxpayer Identification Number may be used for reporting delinquent amounts.", "verbatim_text": "A. Defendant relinquishes dominion and all legal and equitable right, title, and interest in all assets transferred pursuant to this Order and may not seek the return of any assets.\n\nB. The facts alleged in the Complaint will be taken as true, without further proof, in any subsequent civil litigation by or on behalf of the Commission, including in a proceeding to enforce its rights to any payment or monetary judgment pursuant to this Order.\n\nC. Defendant acknowledges that its Taxpayer Identification Number, which Defendant previously submitted to the Commission, may be used for collecting and reporting on any delinquent amount arising out of this Order, in accordance with 31 U.S.C. § 7701.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Monetary Penalty" ], "case_id": "12.24_vivint_smart_home", "company_name": "Vivint Smart Home, Inc.", "date_issued": "2024-12-15", "year": 2024, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3060-vivint-smart-home-inc", "docket_number": "2:21-cv-00267-TS" }, { "provision_number": "XII", "title": "Customer Information", "category": "affirmative_obligation", "summary": "Defendant is permanently restrained from failing to provide sufficient customer information requested by the Commission to administer consumer redress, and must respond to written requests within 14 days.", "verbatim_text": "IT IS FURTHER ORDERED that Defendant, Defendant’s officers, agents, employees, and attorneys, and all other persons in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly, in connection with promoting or offering for sale any good or service are permanently restrained and enjoined from directly or indirectly failing to provide sufficient customer information, as requested by the Commission, to enable the Commission to efficiently administer consumer redress in accordance with Provision X above. If a representative of the Commission requests in writing any information related to redress, Defendant must provide it, in the form prescribed by the Commission, within 14 days.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Consumer Redress" ], "case_id": "12.24_vivint_smart_home", "company_name": "Vivint Smart Home, Inc.", "date_issued": "2024-12-15", "year": 2024, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3060-vivint-smart-home-inc", "docket_number": "2:21-cv-00267-TS" }, { "provision_number": "XIII", "title": "Order Acknowledgments", "category": "acknowledgment", "summary": "Defendant must submit a sworn acknowledgment of receipt of the Order within seven days, deliver copies to principals, officers, relevant employees, and agents, and obtain signed acknowledgments from each recipient within 30 days.", "verbatim_text": "A. Defendant, within seven days of entry of this Order, must submit to the Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.\n\nB. For ten years after entry of this Order, Defendant must deliver a copy of this Order to: 14 Case 2:21-cv-00267-TS Document 3-1 Filed 04/29/21 PageID.36 Page 15 of 21 (1) all principals, officers, directors, and LLC managers and members; (2) all employees having managerial responsibilities for conduct related to the subject matter of the Order and all agents and representatives who participate in conduct related to the subject matter of the Order; and (3) any business entity resulting from any change in structure as set forth in Provision XIV of this Order. Delivery must occur within seven days of entry of this Order for current personnel. For all others, delivery must occur before they assume their responsibilities.\n\nC. From each individual or entity to which Defendant delivered a copy of this Order, Defendant must obtain, within 30 days, a signed and dated acknowledgment of receipt of this Order.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "12.24_vivint_smart_home", "company_name": "Vivint Smart Home, Inc.", "date_issued": "2024-12-15", "year": 2024, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3060-vivint-smart-home-inc", "docket_number": "2:21-cv-00267-TS" }, { "provision_number": "XIV", "title": "Compliance Reporting", "category": "compliance_reporting", "summary": "Defendant must submit a sworn compliance report one year after entry of the Order, provide sworn notices of material changes within 14 days for ten years, notify the Commission of any bankruptcy filing within 14 days, and follow prescribed submission formats and delivery methods.", "verbatim_text": "A. One year after entry of this Order, Defendant must submit a compliance report, sworn under penalty of perjury, in which Defendant must: (a) identify the primary physical, postal, and email address and telephone number, as designated points of contact, which representatives of the Commission and Plaintiff may use to communicate with Defendant; (b) identify all of Defendant’s businesses by all of their names, telephone numbers, and physical, postal, email, and Internet addresses; (c) describe the activities of each business, including the goods and services offered, and the means and method of sales; (d) describe in detail whether and how Defendant is in compliance with each provision of this Order; and (e) provide a copy of each Order Acknowledgment obtained pursuant to this Order, unless previously submitted to the Commission.\n\nB. For ten years after entry of this Order, Defendant must submit a compliance notice, sworn under penalty of perjury, within 14 days of any change in the following Defendant must report any change in: (a) any designated point of contact; or (b) the corporate structure of Defendant that may affect compliance obligations arising under this Order, including: creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order.\n\nC. Defendant must submit to the Commission notice of the filing of any bankruptcy petition, insolvency proceeding, or similar proceeding by or against Defendant within 14 days of its filing.\n\nD. Any submission to the Commission required by this Order to be sworn under penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed on: _____” and supplying the date, signatory’s full name, title (if applicable), and signature.\n\nE. Unless otherwise directed by a Commission representative in writing, all submissions to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The subject line must begin: “In re Vivint Smart Home, Inc., FTC File No. 1923060.”", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "12.24_vivint_smart_home", "company_name": "Vivint Smart Home, Inc.", "date_issued": "2024-12-15", "year": 2024, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3060-vivint-smart-home-inc", "docket_number": "2:21-cv-00267-TS" }, { "provision_number": "XV", "title": "Recordkeeping", "category": "recordkeeping", "summary": "Defendant must create certain records for ten years after entry of the Order and retain each record for five years, including accounting records, personnel records, consumer complaints, employee training materials, and all compliance documentation.", "verbatim_text": "A. Accounting records showing the revenues from all goods or services sold;\n\nB. Personnel records showing, for each person providing services, whether, as an employee or otherwise, that person’s name, addresses, telephone numbers, job title or position, dates of service, and (if applicable) the reason for termination;\n\nC. Records of all consumer complaints and refund requests, whether received directly or indirectly, such as through a third party, and any response;\n\nD. All employee training materials concerning the subject matter of the Order; and\n\nE. All records necessary to demonstrate full compliance with each provision of this Order, including all submissions to the Commission.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Recordkeeping" ], "case_id": "12.24_vivint_smart_home", "company_name": "Vivint Smart Home, Inc.", "date_issued": "2024-12-15", "year": 2024, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3060-vivint-smart-home-inc", "docket_number": "2:21-cv-00267-TS" }, { "provision_number": "XVI", "title": "Compliance Monitoring", "category": "monitoring", "summary": "The Commission and Plaintiff are authorized to monitor Defendant's compliance through written requests for reports and documents (within 14 days), depositions, direct communications with Defendant, employee interviews, and all other lawful means including undercover contacts.", "verbatim_text": "A. Within 14 days of receipt of a written request from a representative of the Commission or Plaintiff, Defendant must: submit additional compliance reports or other requested information, which must be sworn under penalty of perjury; appear for depositions; and produce documents for inspection and copying. The Commission and Plaintiff are also authorized to obtain discovery, without further leave of court, using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69.\n\nB. For matters concerning this Order, the Commission and Plaintiff are authorized to communicate directly with Defendant. Defendant must permit representatives of the Commission and Plaintiff to interview any employee or other person affiliated with Defendant 17 Case 2:21-cv-00267-TS Document 3-1 Filed 04/29/21 PageID.39 Page 18 of 21 who has agreed to such an interview. The person interviewed may have counsel present.\n\nC. The Commission and Plaintiff may use all other lawful means, including posing, through its representatives, as consumers, suppliers, or other individuals or entities, to Defendant or any individual or entity affiliated with Defendant, without the necessity of identification or prior notice. Nothing in this Order limits the Commission’s lawful use of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Compliance Monitoring" ], "case_id": "12.24_vivint_smart_home", "company_name": "Vivint Smart Home, Inc.", "date_issued": "2024-12-15", "year": 2024, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3060-vivint-smart-home-inc", "docket_number": "2:21-cv-00267-TS" }, { "provision_number": "XVII", "title": "Retention of Jurisdiction", "category": "duration", "summary": "The Court retains jurisdiction over this matter for purposes of construction, modification, and enforcement of the Order.", "verbatim_text": "IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.", "violation_type": "deceptive", "statutory_topics": [ "FCRA" ], "practice_areas": [ "Financial Practices" ], "remedy_types": [ "Order Administration" ], "case_id": "12.24_vivint_smart_home", "company_name": "Vivint Smart Home, Inc.", "date_issued": "2024-12-15", "year": 2024, "administration": "Biden", "legal_authority": "Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a); Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b); Section 16(a) of the Federal Trade Commission Act, 15 U.S.C. § 56(a); Section 621(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681s(a)", "ftc_url": "https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3060-vivint-smart-home-inc", "docket_number": "2:21-cv-00267-TS" } ] }