Company Accused of Selling User Data Shuts Down after $104 Million Settlement
Company Accused of Selling User Data Shuts
Down after $104 Million Settlement
The Federal Trade Commission has shut down the operator of a large network of online loan sites that promised to find people the loans with the lowest rates, but actually sold users' data to third-parties, most of which weren't even lenders.
The target of FTC's ire is a company named Blue Global Media, LLC and its CEO, Christopher Kay, against which the FTC filed an official complaint on Monday, July 3.
According to the FTC, since 2012 Blue Global Media operated a network of 38 websites that promised users to match them with the best payday, personal, or auto loans using Blue Global Media's proprietary technology.
Hoping to find loans with the smaller interest rate and friendlier terms, users entered a slew of personal details on Blue Global Media's websites, such as names, email addresses, home addresses, phone numbers, Social Security numbers, financial and banking information, driver's license, state ID numbers, income data, military status, home ownership info, and many other more.
Two days after the FTC filed its official complaint, both Blue Global Media and Kay agreed to a settlement. As per the settlement's terms, the company agreed to a default judgment of $104,470,817, the sum they obtained from selling customer data to non-lenders.
Read full article and learn more about FTC Compliance here.
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Disclaimer: This article is provided for informational purposes only. It’s not legal advice, and no attorney-client relationship is created. Neither the author nor FTC Guardian, Inc. is endorsed by the Federal Trade Commission.
