By Jonathan Stempel
(Reuters) -A unit of the Experian (OTC:EXPGF) credit reporting bureau agreed to pay a $650,000 civil fine to settle U.S. Federal Trade Commission charges it spammed consumers with marketing emails without giving them a way to opt out.
The FTC said ConsumerInfo.com, also known as Experian Consumer Services, sent the emails after consumers signed up to freeze or manage their credit information, but failed to provide either a "clear and conspicuous notice" of their ability to opt out, or a mechanism for doing so.
Some emails touted products such as "Experian Boost" to raise credit scores, "Dark Web Scan" for identity protection, and insurance and other benefits for people who owned cars. The FTC said the emails violated a 2003 federal anti-spam law.
"Signing up for a membership doesn't mean you're signing up for unwanted email, especially when all you're trying to do is freeze your credit to protect your identity," Samuel Levine, director of the FTC's consumer protection bureau, said in a statement on Monday.
ConsumerInfo.com, based in Costa Mesa, California, did not admit or deny wrongdoing in agreeing to settle.
The accord also requires it to stop sending marketing emails that lack an opt-out mechanism.
It requires approval by a federal judge in the central district of California, which includes Los Angeles.
In a statement, Experian said its marketing emails now include an "Email Preferences Center" that goes beyond the changes sought by the FTC.
"Although we disagree with the FTC's allegations, the agreement allows us to move forward and continue to focus on serving consumers the best way possible," Experian said.
Experian's rival credit reporting bureaus include Equifax (NYSE:EFX) and TransUnion (NYSE:TRU).
The case is U.S. v. ConsumerInfo.com Inc, U.S. District Court, Central District of California, No. 23-01494.