Experian Consumer Services, a subsidiary of Experian PLC, has been hit with a permanent injunction and a $650,000 civil penalty for allegedly violating the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (CAN-SPAM Act) and the Federal Trade Commission Act. The company, which offers credit information and marketing services, sent millions of commercial emails to consumers who had created free Experian accounts to control third-party access to their credit reports.

The emails, which were sent to consumers who had frozen their credit reports, asked them to confirm whether a car associated with their account was theirs, offered a service aimed at boosting their credit score, and advertised a free scan of the dark web. However, the emails did not provide notice that the recipients could opt-out of future such emails or an opt-out mechanism, violating the CAN-SPAM Act and the CAN-SPAM Rule.

The government received many consumer complaints that these emails contained no opt-out mechanism. The stipulated order, entered by the federal district court yesterday, enjoins Experian from sending commercial emails that do not provide notice that the recipient may opt-out of receiving such emails in the future or an opt-out mechanism. The order also enjoins Experian from otherwise violating the CAN-SPAM Act.

“Consumers have the right to opt-out of email advertising that they do not want,” said Principal Deputy Assistant Attorney General Brian M. Boynton. “The department is committed to enforcing the CAN-SPAM Act and preventing senders of commercial emails from falsely describing those emails as providing account updates or other transactional information in order to circumvent the opt-out requirements.”

Experian Consumer Services, ConsumerInfo.com, Inc. dba Experian Consumer Services, will pay a civil penalty judgment of $650,000 under the order. The company shares a parent company, Experian PLC, with Experian Information Solutions Inc.

The case was handled by Senior Trial Attorney James T. Nelson and Assistant Director Lisa Hsiao of the Civil Division’s Consumer Protection Branch, Assistant U.S. Attorney Ross Cuff for the Central District of California and Frances Kern and Elsie Kappler of the FTC.

Defendant: Experian Consumer Services
Criminal Charges: Violating the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (CAN-SPAM Act) and the Federal Trade Commission Act
City and State: Los Angeles, California
Exact Date: 04/30/2024
Sentence or Outcome: Permanent injunction and $650,000 civil penalty

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