Upromise Faces $500,000 Fine for FTC Violations

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Upromise membership reward service fined $500,000 for FTC violations

By Susan Salisbury

Membership reward service called Upromise, aimed at consumers trying to save for college, will pay a $500,000 civil penalty to settle allegations that it violated the terms of a Federal Trade Commission order.

The order required the company to make disclosures about its data collection and use and to obtain third-party assessments of its data collection toolbar.

“Upromise once again didn’t disclose to consumers the extent of its data collection, and failed to comply with the FTC’s order to get required privacy assessments,” said Tom Pahl, Acting Director of the Federal Trade Commission’s Bureau of Consumer Protection. “Companies must keep their privacy promises.”

Under a stipulated order announced Friday, Upromise must not violate the 2012 order and must pay a $500,000 civil penalty. Before launching a future toolbar, it must have a third-party professional specializing in website design and user experience certify that Upromise has adhered to the order’s disclosure and “express, affirmative” consumer consent requirements.

Upromise also must obtain advance written approval from the FTC of any required assessment’s scope and design. In addition, it must permanently expire RewardU-related cookies from consumers’ computers and notify those consumers how to uninstall the toolbar and any associated cookies.

Read full article and learn more about the FTC and Privacy Policy here.

Here’s How To Make Sure You, Your Business & Website Is FTC Compliant

By now it should be clear how important it is for you to be FTC compliant. But how can you do that without spending $7,500-$8,000 or more on Internet Attorneys?

Smart business owners around the world are doing it with the help of FTC Guardian.

FTC Guardian is a service that is 100% focused on helping to keep you get and stay FTC compliant and fully protected. And right now, we are offering a free training to give you the knowledge, information, and guidance that you need to stay out of trouble with the Federal Trade Commission.

The training is titled: 3 Tragic (Legal) Privacy Policy List Building Mistakes That Can Get You In Hot Water With The FTC Today – Resulting In Your Business Being Shut Down… And How To Solve It!

Here are some of the things you’ll discover on the training:

  • Real-Life Examples of People Who Didn’t Think They Were At Risk, But Who Got Nailed By The FTC, And Why It Could Happen To You, Too
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  • How to Avoid FTC Claims When Collecting Leads With Optin Forms
  • 3 Privacy Policy Mistakes Every Digital Marketer Is Making, And Why You're In The FTC Crosshairs.
  • And Much More…

Remember: legal protection is a massively important part of your business, and it’s one you cannot afford to ignore any longer.

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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.

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