The prominent business credit reporting firm Dun & Bradstreet (D&B) has consented to pay $5.7 million to resolve claims that it breached a 2022 Federal Trade Commission (FTC) directive designed to safeguard small businesses from misleading practices.
As per a lawsuit lodged by the Department of Justice, D&B is accused of not providing precise pricing details prior to subscription renewals, deceiving customers into thinking that their paid services would enhance credit scores, and neglecting to maintain mandatory recordings of telemarketing calls.
The 2022 FTC directive barred D&B from misrepresenting the features of its products or employing auto-renewals to upsell pricier services without obtaining consent. The recent settlement comprises $3.7 million allocated for consumer refunds and more than $2 million in civil fines.
As part of the updated order, D&B must:
- Use third-party quality assurance to monitor for misrepresentations;
- Implement a robust compliance program;
- Have executives annually certify compliance with the order;
- Notify the FTC within 60 days of any compliance failures.
“Our signed orders are not suggestions,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection. “This action is part of our commitment to protecting small businesses from fraud and abuse.”
The settlement is pending approval in the U.S. District Court for the Middle District of Florida.
