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FTC and DOJ Reach Settlement Banning Background Search Website from Negative Option Marketing

The Federal Trade Commission (FTC) and the Department of Justice (DOJ) reached a settlement with, which bans the business from engaging in deceptive negative option marketing and includes judgments totaling $33.9 million against MyLife and its CEO, Jeffrey Tinsley. The complaint alleged that MyLife allowed website users to run free background searches for an individual’s name and then displayed search results falsely implying that the subject of a search might have records of criminal or sexual offenses. The records would then be visible only if a subscription was purchased, which were then set up to automatically renew unless canceled. The complaint alleged the business violated the Retail Online Shoppers’ Confidence Act (ROSCA).


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Posted Under: Legal Issues

Post By Ken Shafton (2,108 Posts)