On September 30, the Federal Trade Commission (FTC) announced a $5.7 million settlement with Dun & Bradstreet, resolving allegations that the global provider of business-decisioning data and analytics, violated a prior 2022 FTC order by deceptively marketing its business credit services.
FTC Targets Deceptive Business Credit Marketing Practices
At the heart of the FTC's allegations is the claim that Dun & Bradstreet misled small and mid-sized businesses about the value and necessity of its credit monitoring service. According to the agency, the company allegedly represented that purchasing its credit monitoring services was essential to prevent harm to customers' business reputations and the credit reports published by Dun & Bradstreet, when in reality the risk was overstated.
The FTC further charged that Dun & Bradstreet failed to implement other required compliance measures imposed under an earlier consent order, including failing to notify customers of the order and to maintain certain records regarding compliance with the order.
Automatic Renewal and Continuity Programs Under Fire
The FTC's complaint also took aim at Dun & Bradstreet's use of automatic renewal and continuity programs, —an important regulatory focus of the agency. According to the FTC, Dun & Bradstreet enrolled customers in ongoing services without clear disclosure of renewal terms, including deceptive and undisclosed price hikes at the end of the automatic renewal term. The agency said these types of practices compounded the deceptive sales tactics at issue, underscoring the need for stronger injunctive relief.
The FTC approved the proposed order, resolving the case unanimously, 3-0. In addition to the $5.7 million payment, the stipulated order strengthens injunctive relief, requiring Dun & Bradstreet to:
- Notify the FTC within 60 days of any instance of failing to comply with the order with regard to autorenewals of products
- Ensure compliance from Dun & Bradstreet's leadership, certifying annually that the company is representing the nature and value of its credit products and complying with the order
- Implement and maintain enhanced compliance monitoring, including independent third-party assessments of its sales and telemarketing practices
In a news release, the FTC touted the enforcement action as a reminder that its orders are not just suggestions, a sign of the agency's commitment to protect small businesses, tied it to its "effort to reinvigorate its fraud program."
A Reminder: FTC Orders Have Lasting Consequences
As the FTC continues to scrutinize high-risk industries and enforce prior orders, marketers and legal counsel should proactively review advertising and compliance programs for weaknesses. Extra care is warranted when products involve autorenewal and continuity programs, where misrepresentations can have outsized consequences.
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