FTC Halts Operation That Unlawfully Shared and Sold Consumers’ Sensitive Data

The operators of a lead generation business have agreed to settle charges brought by the Federal Trade Commission that the company misled consumers into filling out loan applications and sold those applications – including consumers’ sensitive data – to virtually anyone willing to pay for the leads.

In its complaint, the FTC alleges that Blue Global Media, LLC and its CEO Christopher Kay operated dozens of websites that enticed consumers to complete loan applications that the defendants then sold as “leads” to a variety of entities without regard for how the information would be used or whether it would remain secure. The websites, which operated under such names as 100dayloans.com, 1hour-advance.com, cashmojo.com and clickloans.net, offered services to consumers seeking a variety of loans, including payday and auto loans. The company claimed it would search a network of 100 or more lenders, and connect each loan applicant to the lender that would offer them the best terms.

The FTC charged that, in reality, the defendants:

• sold very few of the loan applications to lenders;
• did not match applications based on loan rates or terms; and
• sold the loan applications to the first buyer willing to pay for them.