The Federal Trade Commission is ordering Credit Karma to pay its users $3 million after pushing false preapproved credit cards on consumers and harming their credit scores.
Nearly one-third of users who applied for credit cards labeled as preapproved by Credit Karma, a credit monitoring company, were subsequently denied following a credit check. According to a complaint filed by the FTC, the marketing efforts wasted consumers time and had a negative impact on their credit scores.
Marketing campaigns designed to trick people into taking specific actions, like applying for a credit card an individual is allegedly preapproved for, are known as dark patterns. According to a news release, the FTC is cracking down on predatory practices that “harm consumers and pollute online commerce.”
https://www.npr.org/2022/09/06/1121246081/credit-karma-false…
Fuskie
Who has only opened credit cards he intentionally sought, so he doesn’t expect to be a beneficiary of this penalty…
Premium Home Fool: Ask me a Foolish Question, I’ll give you a Foolish Response!
Ticker Guide: The Walt Disney Company (DIS), Intuit (INTU), Live Nation (LYV), CME Group (CME), MongoDB (MDB), Trip Advisor (TRIP), Vivendi SA (VIVHY), JFrog (FROG), Virgin Galactic (SPCE), Axon Technologies (AXON), Blackbaud (BLKB), StitchFix (SFIX)
Disclaimer: This post is non-professional and should not be construed as direct, individual or accurate advice
Disassociation: The views and statements of this post are Fuskie’s and are not intended to represent those of The Motley Fool or any other sane body
Disclosure: May own shares of some, many or all of the companies mentioned in this post: https://tinyurl.com/FuskieDisclosure
Fool Code of Conduct: https://www.fool.com/legal/the-motley-fools-rules.aspx#Condu…
Invitation: You are invited to interactively watch Motley Fool Live online television: https://www.fool.com/premium/live/
Call to Action: If you like this or any other post, Rec it. Better yet, reply to it. Even better, start your own thread. This is YOUR TMF Community!