ValueClick To Pay $2.9 Mil In FTC Case
Online advertiser ValueClick will fork over a record $2.9 million to settle FTC charges that its product claims and e-mails were deceptive and violated federal law. The agency also charged that ValueClick and its subsidiaries, Hi-Speed Media and E-Babylon failed to secure consumers’ sensitive financial information, despite their claims to do so, officials said Monday.
The settlement, filed by the Justice Department on behalf of the FTC, requires ValueClick to clearly and conspicuously disclose the costs and obligations consumers must incur to receive the products it touts as “free” and bars future violations of the CAN-SPAM Act. The settlement also bars deceptive claims about the security of the consumer information collected at its e-commerce Web sites.
This is the FTC’s third case targeting the use of deceptive promises of free merchandise by Internet-based “lead generation” operations, and the commission’s 18th case challenging data security practices by a company handling sensitive consumer information. Read more here.
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