Data Brokers Settle With FTC Over Selling Consumer Data to Scammers
Data brokers settled with the FTC over allegations that they "knowingly" provided hundreds of thousands of people's Social Security and bank account numbers and other personal data to scammers, the commission said in a news release Thursday. Commissioners voted 4-0…
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
to approve the stipulated final order filed with U.S. District Court for the District of Arizona against John Ayers, LeapLab and Leads Co. The commission alleged the defendants collected hundreds of thousands of loan applications -- which also contained consumers' names, addresses, phone numbers and employers -- that were submitted to payday loan sites. The defendants would be prohibited from selling or transferring consumers' sensitive personal data to third parties and must destroy any consumer data they still have within 30 days. A $5.7 million monetary judgment was suspended based on inability to pay, FTC said. It said the court entered a $4.1 million default judgment with similar prohibitions against SiteSearch, the remaining defendant. Contact information for the defendants couldn't be found for us to request comment. An Arizona phone number to LeapLab was not answered.