UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF ILLINOIS 

EASTERN DIVISION 

FEDERAL TRADE COMMISSION, 

Plaintiff, 

) 

) 

) 10 2017 

) Case No. 

) CLERK. U.S. DISTf~ICT COURT 

v. 

CREDIT BUREAU CENTER, LLC, 

a limited liability company, formerly known as 

MYSCORE LLC, also doing business as 

EFREESCORE.COM, CREDITUPDATES.COM, 

and FREECREDITNATION.COM, 

MICHAEL BROWN, 

individually and as owner and manager of 

CREDIT BUREAU CENTER, LLC, 

DANNY PIERCE, individually, and 

ANDREW LLOYD, individually, 

Defendants. 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

17-cv-00194 

Judge Matthew F. Kennelly 

Magistrate Judge Maria Valdez 

COMPLAINT FOR PERMANENT INJUNCTION 

AND OTHER EQUITABLE RELIEF 

Plaintiff, the Federal Trade Commission ("FTC"), for its Complaint alleges: 

I. The FTC brings this action under Section 13(b) of the Federal Trade Commission 

Act ("FTC Act"), 15 U.S.C. § 53(b); Section 5 of the Restore Online Shoppers' Confidence Act 

("ROSCA"), 15 U.S.C. § 8404; and Section 621(a)(l) of the Fair Credit Reporting Act 

("FCRA"), 15 U.S.C. § 168ls(a)(l), to obtain temporary, preliminary, and permanent injunctive 

relief, rescission or reformation of contracts, restitution, the refund of monies paid, disgorgement 

of ill-gotten monies, and other equitable relief for Defendants' acts or practices in violation of 

Section 5(a) of the FTC Act, 15 U.S.C. § 45(a); and in violation of Section 4 of ROSCA, 15 

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U.S.C. § 8403; and in violation of Section 612(g) of the FCRA, 15 U.S.C. § 1681j(g), and the 

Free Annual File Disclosures Rule, 16 C.F.R. Part 610 (“Free Reports Rule”), recodified at 12 

C.F.R. §§ 1022.130-1022.138. 

JURISDICTION AND VENUE 

2. This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331, 1337(a), 

and 1345, and 15 U.S.C. §§ 45(a), 53(b), 1681s(a)(1), and 8404(a). 

3. Venue is proper in this district under 28 U.S.C. § 1391(b)(2), (b)(3), (c)(2), and 

(d), and 15 U.S.C. § 53(b). 

PLAINTIFF 

4. The FTC is an independent agency of the United States Government created by 

statute. 15 U.S.C. §§ 41-58. The FTC enforces Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), 

which prohibits unfair or deceptive acts or practices in or affecting commerce. The FTC also 

enforces ROSCA, 15 U.S.C. §§ 8401 et seq., which prohibits certain methods of negative option 

marketing on the Internet. The FTC also enforces Section 612(g) of the FCRA, 15 U.S.C. 

§ 1681j(g), and the Free Reports Rule, 16 C.F.R. Part 610, recodified at 12 C.F.R. §§ 

1022.130-1022.138, which require certain prominent disclosures in advertisements for free credit 

reports. 

5. The FTC is authorized to initiate federal district court proceedings, by its own 

attorneys, to enjoin violations of the FTC Act, ROSCA, the FCRA, and the Free Reports Rule, 

and to secure such equitable relief as may be appropriate in each case, including rescission or 

reformation of contracts, restitution, the refund of monies paid, and the disgorgement of illgotten monies. 15 U.S.C. §§ 53(b), 56(a)(2)(A), 1681s(a)(1), and 8404(a). 
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DEFENDANTS

6. Defendant Credit Bureau Center, LLC, formerly known as MyScore LLC, and 

also doing business as eFreeScore.com, CreditUpdates.com, and FreeCreditNation.com (“Credit 

Bureau Center”), is a Delaware limited liability company with its registered address at 1209 

Orange Street, Wilmington, Delaware 19801. Credit Bureau Center transacts or has transacted 

business in this district and throughout the United States. 

7. Defendant Michael Brown (“Brown”) is the owner and manager of Credit Bureau 

Center. At all times material to this Complaint, acting alone or in concert with others, he has 

formulated, directed, controlled, had the authority to control, or participated in the acts and 

practices of Credit Bureau Center, including the acts and practices set forth in this Complaint. 

Defendant Brown, in connection with the matters alleged herein, transacts or has transacted 

business in this district and throughout the United States. Among other things, Defendant Brown 

has controlled the processing of payments from consumers victimized by Defendants’ practices, 

and has controlled the payment of Credit Bureau Center’s affiliate marketers. 

8. Defendant Danny Pierce (“Pierce”) is an individual who resides in Belleville, 

New Jersey. At all times material to this Complaint, acting alone or in concert with others, he 

has formulated, directed, controlled, had the authority to control, or participated in the acts and 

practices set forth in this Complaint. Defendant Pierce is an affiliate marketer responsible for 

fake rental property ads on Craigslist and fake landlord emails used to attract consumers to 

eFreeScore.com, CreditUpdates.com, and FreeCreditNation.com, and has personally received 

over $2.1 million from Credit Bureau Center for driving consumer traffic to the websites. 

Defendant Pierce, in connection with the matters alleged herein, transacts or has transacted 

business in this district and throughout the United States. 
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9. Defendant Andrew Lloyd (“Lloyd”) is an individual who resides in Beaver, 

Pennsylvania. At all times material to this Complaint, acting alone or in concert with others, he 

has formulated, directed, controlled, had the authority to control, or participated in the acts and 

practices set forth in this Complaint. Defendant Lloyd is an affiliate marketer responsible for 

fake rental property ads on Craigslist and fake landlord emails used to attract consumers to 

eFreeScore.com, CreditUpdates.com, and FreeCreditNation.com, and has registered numerous 

Internet domains used to generate the Craigslist ads, receive responses from consumers to the 

ads, and send replies to consumers from the purported landlords. Defendant Lloyd, in 

connection with the matters alleged herein, transacts or has transacted business in this district 

and throughout the United States. 

COMMERCE

10. At all times material to this Complaint, Defendants have maintained a substantial 

course of trade in or affecting commerce, as “commerce” is defined in Section 4 of the FTC Act, 

15 U.S.C. § 44. 

DEFENDANTS’ BUSINESS ACTIVITIES 

11. Since at least January 2014, Defendants have deceptively advertised, marketed, 

promoted, and sold credit monitoring services to consumers throughout the United States. 

Defendants use fake ads and landlord emails offering apartments and houses for rent to lure 

consumers to websites offering purportedly “free” credit scores and reports. When consumers 

visit the websites, Defendants deceive them into signing up for a negative option seven-day trial 

of a credit monitoring service, after which many consumers are charged $29.94 monthly without 

their authorization. Defendants’ scheme has generated more than 500 consumer complaints and 

has caused millions of dollars of consumer loss. 
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Defendants’ Fake Ads for Rental Properties 

12. Defendants Credit Bureau Center and Brown (collectively “Credit Bureau Center 

Defendants”) operate websites offering consumers purportedly “free” credit scores and reports, 

including eFreeScore.com and CreditUpdates.com. To attract consumers to their websites, the 

Credit Bureau Center Defendants work together with Defendants Pierce and Lloyd, who are 

affiliate marketers. The Credit Bureau Center Defendants pay commissions to Defendant Pierce 

for the consumer traffic that he and Defendant Lloyd drive to the websites. 

13. Defendants Pierce and Lloyd, acting on behalf of the Credit Bureau Center 

Defendants, place advertisements on the Internet, typically on Craigslist, offering houses or 

apartments for rent on favorable terms. The ads are fake. The advertised properties either do not 

exist, or are properties that Defendants have no authority to offer for rent. The ads are designed 

to generate responses from consumers, whom Defendants then target for enrollment in a negative 

option continuity plan. 

14. Defendants’ ads for rental properties typically include a caption, for example, 

“$1005/2br – Enjoy panoramic views of everything around! (Evanston),” followed by one or 

more pictures purporting to show the interior and/or exterior of the property, and a detailed 

written description of its alleged features. One of Defendants’ ads on Craigslist, for example, 

posted in May 2016, described the unit as follows: 

2 Bedrooms, 2 Full Bathrooms, and has been fully renovated 

throughout; brand new High Efficiency CAC and Furnace, brand 

new hot water heater, hardwood floors refinished, new linoleum in 

the Kitchen as well as Pantry, whole inside painted, all three toilets 

remodeled (light fixtures, paint, sink countertops, faucets, tile), 
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kitchen remodeled -- brand new, never used stainless steel 

appliances (fridge, gas stove/oven, dishwasher), new countertop; 

gas heat, brand new/never used Washer/Drier, remote control 

interior light system, built-in smoke alarm system, chandler [sic] in 

master bedroom, new electric circuit breaker, whole lower level 

paneled, two fireplaces (one ledge stone and one Tennessee brick), 

constructed in the wall aquarium, constructed in the wall glass 

bookcase, quite big walk-in cupboards, really big built in 

shed/studio, new blinds throughout, incredibly large screen porch 

overlooking the city. 

The ads represent that the property, as pictured and described therein, is currently available for 

rent. The ads identify the geographic area where the property is located, but typically do not 

provide the exact address or a telephone number for inquiries. Consumers who are interested in 

the property must respond to the ad by email. 

15. Defendants’ ads convince consumers looking for housing that the advertised 

properties exist and are currently available for rent through the person who posted the ad. 

Deceived by the ads, many consumers respond by email seeking more information and/or to 

schedule a tour of the property. 

Defendants’ Fake Landlord Emails 

16. Consumers who respond to Defendants’ fake ads for rental properties receive fake 

landlord emails promoting the properties and directing consumers to the Credit Bureau Center 

Defendants’ websites. 
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17. The fake landlord email aims to boost the consumer’s interest in the rental 

opportunity. The email typically states, for example, that the consumer is the “second” person to 

respond to the ad, even though the same message is sent to all consumers who respond. The first 

prospective tenant has withdrawn, according to the email, “So we give the opportunity to you.” 

The email typically also includes statements touting the rental property’s amenities, such as, “We 

just finished all new renovations and are now prepared to lease with flexible terms,” “All utilities 

are priced into the lease along with garage parking spaces,” and “You have the option to 

customize your paint color and flooring prior to your arrival.” 

18. Defendants use the fake landlord email to artificially create demand for credit 

reports and scores and promote themselves as the trusted source of supply. The email falsely 

states that the advertised property is still available for rent, and that the consumer can set up an 

appointment to tour the property on one condition. In order to tour the property, the email 

explains, the consumer must obtain a copy of his or her credit report and score and bring it to the 

tour. The email instructs the consumer to click on a link included in the email to obtain the 

report. The email adds reassuring statements such as “[a]ll of our tenants use this site because it 

is widely trusted,” and “[a]ll you need to do is fill out the form and you get your report.” As an 

extra incentive, the email often states that, if the consumer’s credit score exceeds a certain level, 

such as 650, the landlord will waive the security deposit. 

19. Typical of Defendants’ fake landlord emails is the following, sent in April 2016 to 

a consumer who responded to one of Defendants’ fake rental property ads in Chicago: 
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20. The fake landlord emails induce consumers to click on links that take them to 

websites operated by the Credit Bureau Center Defendants. Based on the emails, consumers 

believe they are visiting the websites to obtain their credit reports and scores as instructed by the 

landlord so they can tour the rental property. 

The Credit Bureau Center Defendants’ Websites 

21. Clicking on the link in the fake landlord emails takes consumers to the Credit 

Bureau Center Defendants’ websites offering purportedly “free” credit scores and reports, 

including eFreeScore.com and CreditUpdates.com, which are materially similar. On the 

websites, consumers are routed through a succession of four webpages to obtain their credit 

scores and reports: a landing page followed by three webpages marked as steps 1 through 3. 
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22. Landing Page. The first webpage consumers see upon arrival at the Credit Bureau 

Center Defendants’ websites is the landing page. Across the top of the landing page, in large 

bold letters, is the statement: “Get Your Free Credit Score and Report as of [current date].” 

Within this statement, the words “Free Credit Score” appear in bright orange. Below that is a 

large box captioned “START HERE” with spaces for consumers to enter their name, email 

address, and zip code. After providing this information, consumers proceed by clicking a large 

orange button labeled “YOUR SCORE - NOW!” 

23. The eFreeScore.com landing page appears on a mobile device as shown in 

subparagraphs a. through f. below. Subparagraph a shows the page as it appears when it first 

loads. Subparagraph b shows the button consumers must click to proceed. Subparagraphs c 

through f show the page as it would appear if a consumer were to scroll down the page: 

a. b. 
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c. d. 

e. f. 
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24. Nowhere does this page disclose that consumers attempting to obtain their “free” 

credit report and score, in order to tour the property they seek to rent, will be enrolled in an 

unrelated credit monitoring program, and charged $29.94 monthly, unless and until they cancel 

the service. 

25. When accessed on a desktop computer, the landing page includes small print 

stating, “7-day trial ends [date]” and, separately, “Monthly membership of $29.94 automatically 

charged after trial.” These statements are much smaller and fainter than the large, bold text 

above them stating, “Get Your Free Credit Score and Report as of [date].” These small print 

statements do not inform consumers that the referenced 7-day trial and monthly charges are 

connected to a separate credit monitoring service, and that consumers must sign up for this 

service in order to obtain the promised free credit score and report. Exhibit 1 hereto shows the 

landing page for eFreeScore.com as it appears on a desktop computer screen. Exhibit 2 hereto 

shows the full content of the same landing page as it appears on a desktop computer screen, 

including the portion of the page that consumers would have to scroll down to see. 

26. Consumers who enter the requested information and click the large “YOUR 

SCORE - NOW!” button find themselves on a second webpage requesting more personal 

information. This webpage lists three steps: (1) Complete, (2) Confirm, and (3) Verify, with the 

first step, “Complete,” highlighted, followed by the words “Account Setup” in bold. 

27. Step 1. To complete Step 1, consumers must enter their name, address, email 

address, and phone number, and then create a username and password. Below the spaces for this 

information, there is a large orange button labeled “Submit & Continue.” Exhibit 3 hereto shows 

the “Step 1” webpage for eFreeScore.com as it appears on a desktop computer screen. 
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28. Step 2. Consumers who enter their account information and click the “Submit & 

Continue” button are taken to another webpage listing the same three steps as the previous 

webpage. Here, the second step, “Confirm,” is highlighted. The stated purpose of this webpage 

is to confirm consumers’ identity before providing the free credit score and report. At the top, in 

large bold letters, the webpage states, “Your credit score is ready once we confirm your 

identity!” followed by a check mark and the words “Located Credit File” in green. Below that is 

the bold heading “Verification and Payment Information,” followed by a line of text that states, 

“Tell us which card you would like to use for your $1.00 refundable processing fee and 

membership.” Under that are spaces for consumers to enter their credit or debit card 

information. Consumers advance to the next webpage by pressing another large orange “Submit 

& Continue” button. An ineffective disclosure in small print, below the spaces for card 

information, is not adequate to inform consumers that their cards will be charged an additional 

$29.94 per month after a 7-day trial. Exhibit 4 hereto shows the “Step 2” webpage for 

eFreeScore.com as it appears on a desktop computer screen. 

29. Step 3. Consumers who fill in their card information and click “Submit & 

Continue” are taken to another webpage listing the same three steps as previous webpages. 

Here, the third step, “Verify,” is highlighted. This webpage requires consumers to enter their 

birthdate and Social Security number. Consumers then proceed by clicking the “Submit and 

Continue” button to access their credit score and report. Exhibit 5 hereto shows the “Step 3” 

webpage for eFreeScore.com as it appears on a desktop computer screen. 

30. After completing Steps 1 through 3, many consumers obtain their credit reports 

and scores, and resume their pursuit of the rental opportunity, without realizing they have been 

automatically signed up for a negative option seven-day trial of the Credit Bureau Center 
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Defendants’ credit monitoring service. After seven days, unless consumers discover and take 

affirmative steps to cancel the service, the Credit Bureau Center Defendants’ charge $29.94, 

every month, to the credit or debit card consumers entered on the Step 2 webpage described 

above. 

Consumer Complaints and Refund Requests 

31. After getting their credit report and score from the Credit Bureau Center 

Defendants, consumers find it impossible to schedule the promised tour of the rental property 

advertised on Craigslist. Consumers who attempt to contact the purported landlord to submit 

their credit report/score receive no response, or their email messages are returned as 

undeliverable. That is because the original rental ad and the landlord email are fake—they 

function solely to drive consumer traffic to the Credit Bureau Center Defendants’ websites 

offering “free” credit reports and scores. 

32. Many consumers do not know they have been enrolled in the Credit Bureau 

Center Defendants’ credit monitoring service until they discover a $29.94 charge on their bank 

or credit card statement. Some consumers do not notice the recurring charges for several billing 

cycles. 

33. Many consumers have complained to the Credit Bureau Center Defendants, the 

Better Business Bureau, and law enforcement agencies about Defendants’ practices. Among 

other things, many consumers have reported in their complaints: 

a. that they believed the advertisements for rental properties and the emails 

from the purported landlords were genuine; 

b. that they clicked on the links to the Credit Bureau Center Defendants’ 

websites, and provided the information requested on the websites, solely 
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to obtain their credit reports and scores in order to pursue the rental 

opportunity; 

c. that they did not expect or authorize the Credit Bureau Center Defendants 

to place monthly charges of $29.94 on their credit or debit cards; and 

d. that they were highly alarmed to discover they had disclosed their Social 

Security numbers, birthdates, and other personal information to a business 

advertising fake rental opportunities and charging consumers without 

authorization. 

34. In numerous instances, consumers also have reported the above complaints to the 

Credit Bureau Center Defendants’ customer service representatives. 

35. In numerous instances, the Credit Bureau Center Defendants have denied refunds 

or given only partial refunds to consumers who reported they did not knowingly enroll in the 

Credit Bureau Center Defendants’ credit monitoring service. 

VIOLATIONS OF THE FTC ACT 

36. Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), prohibits “unfair or deceptive acts 

or practices in or affecting commerce.” 

37. Misrepresentations or deceptive omissions of material fact constitute deceptive 

acts or practices prohibited by Section 5(a) of the FTC Act. 

COUNT I 

(Against all Defendants) 

38. In numerous instances in connection with the marketing of credit reports and 

scores, Defendants have represented, directly or indirectly, expressly or by implication, that: 
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a. a residential property described in an online ad is currently available for 

rent from someone consumers can contact through that ad; and 

b. the property will be shown to consumers who obtain their credit reports 

and scores through the Credit Bureau Center Defendants’ website. 

39. In truth and in fact, in numerous instances in which Defendants have made the 

representations set forth in Paragraph 38 of this Complaint: 

a. the residential property described in the online ad is not currently available 

for rent from someone consumers can contact through that ad; and 

b. the property is not shown to consumers who obtain their credit reports and 

scores through the Credit Bureau Center Defendants’ website. 

40. Therefore, Defendants’ representations as set forth in Paragraph 38 of this 

Complaint are false and misleading and constitute deceptive acts or practices in violation of 

Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). 

COUNT II 

(Against the Credit Bureau Center Defendants) 

41. In numerous instances, the Credit Bureau Center Defendants have represented, 

directly or indirectly, expressly or by implication, that they are offering consumers their credit 

scores and reports for free. 

42. In numerous instances in which the Credit Bureau Center Defendants have made 

the representation set forth in Paragraph 41 of the Complaint, the Credit Bureau Center 

Defendants have failed to disclose, or failed to disclose adequately to consumers, material terms 

and conditions of the offer, including: 
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a. That the Credit Bureau Center Defendants will automatically enroll 

consumers in a negative option continuity plan with additional charges; 

b. That consumers must affirmatively cancel the negative option continuity 

plan before the end of a trial period to avoid additional charges; 

c. That the Credit Bureau Center Defendants will use consumers’ credit or 

debit card information to charge consumers monthly for the negative 

option continuity plan; 

d. The costs associated with the negative option continuity plan; and 

e. The means consumers must use to cancel the negative option continuity 

plan to avoid additional charges. 

43. The Credit Bureau Center Defendants’ failure to disclose or disclose adequately 

the material information described in Paragraph 42, above, in light of the representation 

described in Paragraph 41, above, constitutes a deceptive act or practice in violation of Section 

5(a) of the FTC Act, 15 U.S.C. § 45(a). 

VIOLATIONS OF THE 

RESTORE ONLINE SHOPPERS’ CONFIDENCE ACT 

44. In 2010, Congress passed the Restore Online Shoppers’ Confidence Act, 15 

U.S.C §§ 8401 et seq., which became effective on December 29, 2010. Congress passed 

ROSCA because “[c]onsumer confidence is essential to the growth of online commerce. To 

continue its development as a marketplace, the Internet must provide consumers with clear, 

accurate information and give sellers an opportunity to fairly compete with one another for 

consumers’ business.” Section 2 of ROSCA, 15 U.S.C. § 8401. 

45. Section 4 of ROSCA, 15 U.S.C. § 8403, generally prohibits charging consumers 

for goods or services sold in transactions effected on the Internet through a negative option 
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feature, as that term is defined in the Commission’s Telemarketing Sales Rule (“TSR”), 16 

C.F.R. § 310.2(w), unless the seller (1) clearly and conspicuously discloses all material terms of 

the transaction before obtaining the consumer’s billing information, (2) obtains the consumer’s 

express informed consent before making the charge, and (3) provides a simple mechanism to 

stop recurring charges. See 15 U.S.C. § 8403. 

46. The TSR defines a negative option feature as: “in an offer or agreement to sell or 

provide any goods or services, a provision under which the customer’s silence or failure to take 

an affirmative action to reject goods or services or to cancel the agreement is interpreted by the 

seller as acceptance of the offer.” 16 C.F.R. § 310.2(w). 

47. As described in Paragraphs 11 to 35 above, the Credit Bureau Center Defendants 

have advertised and sold their credit monitoring service to consumers through a negative option 

feature as defined by the TSR. See 16 C.F.R. § 310.2(w). 

48. Pursuant to Section 5 of ROSCA, 15 U.S.C. § 8404, a violation of ROSCA is a 

violation of a rule promulgated under Section 18 of the FTC Act, 15 U.S.C. § 57a. 

COUNT III 

Failure to Disclose All Material Terms 

(Against the Credit Bureau Center Defendants) 

49. In numerous instances, the Credit Bureau Center Defendants have charged or 

attempted to charge consumers for the Credit Bureau Center Defendants’ credit monitoring 

service through a negative option feature while failing to clearly and conspicuously disclose all 

material terms of the transaction before obtaining consumers’ billing information. 
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50. The Credit Bureau Center Defendants’ acts or practices, as described in Paragraph 

49 above, constitute a violation of Section 4(1) of ROSCA, 15 U.S.C. § 8403(1), and are 

therefore a violation of a rule promulgated under Section 18 of the FTC Act, 15 U.S.C. § 57a. 

COUNT IV 

Failure to Obtain Consumers’ Express Informed Consent 

(Against the Credit Bureau Center Defendants) 

51. In numerous instances, the Credit Bureau Center Defendants have charged or 

attempted to charge consumers for the Credit Bureau Center Defendants’ credit monitoring 

service through a negative option feature while failing to obtain consumers’ express informed 

consent before charging their credit card, debit card, bank account, or other financial account for 

the Credit Bureau Center Defendants’ credit monitoring service. 

52. The Credit Bureau Center Defendants’ acts or practices, as described in Paragraph 

51 above, constitute a violation of Section 4(2) of ROSCA, 15 U.S.C. § 8403(2), and are 

therefore a violation of a rule promulgated under Section 18 of the FTC Act, 15 U.S.C. § 57a. 

VIOLATIONS OF THE FAIR CREDIT REPORTING ACT 

AND THE FREE REPORTS RULE 

53. The Fair Credit Reporting Act, 15 U.S.C. §§ 1681-1681x (“FCRA”), was enacted 

in 1970, became effective on April 25, 1971, and has been in force since that date. 

54. In 2003, Congress passed the Fair and Accurate Credit Transactions Act of 2003 

(“FACT Act”), Pub. L. 108-159, 117 Stat. 1952 (December 4, 2003). Section 211 of the FACT 

Act amended Section 612 of the FCRA, 15 U.S.C. § 1681j, to require nationwide consumer 

reporting agencies to provide all consumers with a copy of their credit report once during any 

twelve-month period, upon request of the consumer and without charge. Section 211 directed 
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the FTC to promulgate a rule establishing a “centralized source” through which consumers could 

request their reports. 

55. In 2004, the FTC issued the Free Annual File Disclosures Rule, 16 C.F.R. Part 

610 (“Free Reports Rule”). The rule set forth requirements for establishing the centralized 

source, including a dedicated website through which consumers could order their free reports. 

That website, AnnualCreditReport.com, has been operating since 2004. 

56. In 2009, Congress passed the Credit Card Accountability Responsibility and 

Disclosure Act of 2009, Pub. L. 111-24, 123 Stat. 1734 (May 22, 2009) (“Credit CARD Act”). 

Section 205 of the Credit CARD Act amended Section 612 of the FCRA to prevent deceptive 

marketing of credit reports. As amended, Section 612(g) provides, in part: 

Subject to rulemaking pursuant to section 205(b) of the Credit 

CARD Act of 2009, any advertisement for a free credit report in 

any medium shall prominently disclose in such advertisement that 

free credit reports are available under Federal law at: 

‘AnnualCreditReport.com’ (or such other source as may be 

authorized under Federal law).” 

15 U.S.C. § 1681j(g)(1). To carry out this section, Congress directed the FTC to promulgate a 

rule requiring specific disclosures in advertisements for free credit reports. Credit CARD Act 

§ 205(b). Accordingly, in 2010, the FTC amended the Free Reports Rule to require certain 

disclosures in advertisements for free credit reports. 16 C.F.R. § 610.4. 

57. In 2011, following passage of the Dodd-Frank Act, the Consumer Financial 

Protection Bureau republished the Free Reports Rule at 12 C.F.R. §§ 1022.130-138. The FTC 

continues to enforce Section 612(g) of the FCRA and the Free Reports Rule pursuant to Section 
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621(a)(1) of the FCRA, 15 U.S.C. § 1681s(a)(1). Pursuant to Section 621(a)(1), “a violation of 

any requirement or prohibition imposed under [the FCRA] shall constitute an unfair or deceptive 

act or practice in commerce, in violation of Section 5(a) of the [FTC] Act.” 15 U.S.C. 

§ 1681s(a)(1). 

58. Under the Free Reports Rule, 16 C.F.R. § 610.4, recodified at 12 C.F.R. 

§ 1022.138, “free credit report” means “a file disclosure prepared by or obtained from, directly 

or indirectly, a nationwide consumer reporting agency (as defined in Section 603(p) of the 

FCRA), that is represented, either expressly or impliedly, to be available to the consumer at no 

cost if the consumer purchases a product or service, or agrees to purchase a product or service 

subject to cancellation.” 

59. The Free Reports Rule, 16 C.F.R. § 610.4, recodified at 12 C.F.R. § 1022.138, 

requires, inter alia, that any website offering free credit reports must display a prominent 

disclosure, across the top of each page that mentions free credit reports, and across the top of 

each page of the ordering process, which states: 

THIS NOTICE IS REQUIRED BY LAW. Read more at 

consumerfinance.gov/learnmore. 

You have the right to a free credit report from 

AnnualCreditReport.com or 877-322-8228, the ONLY authorized 

source under federal law. 

The disclosure must include a clickable button to “Take me to the authorized source” and 

clickable links to AnnualCreditReport.com and consumerfinance.gov/learnmore. The disclosure 

must appear in the specific location, format, size, and color specified in the rule. 12 C.F.R. 

§§ 1022.138(b)(4)(i)-(viii). 
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COUNT V 

(Against the Credit Bureau Center Defendants) 

60. In numerous instances, the Credit Bureau Center Defendants have operated 

websites offering free credit reports, including eFreeScore.com and CreditUpdates.com, without 

displaying across the top of each page that mentions free credit reports, and across the top of 

each page of the ordering process, the prominent disclosure required by the Free Reports Rule, 

12 C.F.R. § 1022.138, to inform consumers of their right to obtain a free credit report from 

AnnualCreditReport.com or (877) 322–8228. 

61. The Credit Bureau Center Defendants’ acts or practices, as described in Paragraph 

60 above, violate Section 612(g)(1) of the FCRA, 15 U.S.C. § 1681j(g)(1), and the Free Reports 

Rule, 12 C.F.R. § 1022.138. 

CONSUMER INJURY 

62. Consumers have suffered and will continue to suffer substantial injury as a result 

of Defendants’ violations of the FTC Act, ROSCA, the FCRA, and the Free Reports Rule. In 

addition, Defendants have been unjustly enriched as a result of their unlawful acts or practices. 

Absent injunctive relief by this Court, Defendants are likely to continue to injure consumers, 

reap unjust enrichment, and harm the public interest. 

 
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THIS COURT’S POWER TO GRANT RELIEF 

63. Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), empowers this Court to grant 

injunctive and such other relief as the Court may deem appropriate to halt and redress violations 

of any provision of law enforced by the FTC. The Court, in the exercise of its equitable 

jurisdiction, may award ancillary relief, including rescission or reformation of contracts, 

restitution, the refund of monies paid, and the disgorgement of ill-gotten monies, to prevent and 

remedy any violation of any provision of law enforced by the FTC. 

PRAYER FOR RELIEF 

Wherefore, Plaintiff FTC, pursuant to Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), 

Section 5 of ROSCA, 15 U.S.C. § 8404, Section 621(a)(1) of the FCRA, 15 U.S.C. 

§ 1681s(a)(1), the Free Reports Rule, 12 C.F.R. § 1022.138, and the Court’s own equitable 

powers, requests that the Court: 

 A. Award Plaintiff such preliminary injunctive and ancillary relief as may be 

necessary to avert the likelihood of consumer injury during the pendency of this action and to 

preserve the possibility of effective final relief, including but not limited to, temporary and 

preliminary injunctions, an order freezing assets, immediate access, and appointment of a 

receiver; 

 B. Enter a permanent injunction to prevent future violations of the FTC Act, 

ROSCA, the FCRA, and the Free Reports Rule by Defendants; 

 C. Award such relief as the Court finds necessary to redress injury to consumers 

resulting from Defendants’ violations of the FTC Act, ROSCA, the FCRA, and the Free Reports 

Rule, including but not limited to, rescission or reformation of contracts, restitution, the refund of 

monies paid, and the disgorgement of ill-gotten monies; and 
D. Award Plaintiff the costs of bringing this action, as well as such other and 

additional relief as the Court may determine to be just and proper. 

Dated: January 10, 2017 

Respectfully submitted, 

DA YID C. SHONKA 

Acting General Counsel 

.~ /4_ Y\JaAD GUYG. WARb 

SAMUEL A.A. LEVINE 

Federal Trade Commission 

55 West Monroe Street, Suite 1825 

Chicago, Illinois 60603 

(312) 960-5634 [telephone) 

(312) 960-5600 [facsimile] 

gward@ftc.gov 

slevine l@ftc.gov 

Attorneys for Plaintiff 

FEDERAL TRADE COMMISSION 

- 23 -
EXHIBIT 1 
Exhibit 1
EXHIBIT 2 
Exhibit 2
EXHIBIT 3 
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