The FTC has won its case against On Point Global and has $102 million available in refunds to consumers who were impacted by the scams. The United States District Court awarded the FTC their injunction against the company for violations of the FTC Act. Consumers who were harmed by the company’s actions can apply for redress payments. They must apply by July 5, 2022.
On Point Global created fake government websites that offered a quick and easy way to complete government services such as renewing driver’s licenses and eligibility determination for public benefits. They lured customers to hand over detailed personal information, customers would then receive a torrent of unwanted sales and marketing contacts.
By operating deceptive websites that falsely promised to provide government services On Point Global directly violated the FTC Act. They are also liable for injunctive relief because they had knowledge and authority to control their deceptive act.
On Point Global are now required to do a number of things following the ruling.
They must pay $102 million in refunds to affected customers.
A compliance report must be submitted to the FTC along with an acknowledgement of the order. A copy of the order must be distributed to any businesses that directly or indirectly are controlled by On Point Global. They must immediately report any of the following changes:
- Contact information
- Corporate structures
- Residential addresses
- Business titles
The company must comply with FTC’s record keeping requirements for a period of 20 years. This includes retaining each record for 5 years. Should the FTC request any additional compliance reports or other information these must be provided. Representatives of the FTC must also be allowed to interview any employee or person affiliated with the company.
On Point Global are permanently restrained from:
- Sale or disclosure of sensitive information unless necessary to provide goods or services offered to the customer
- Using information obtained from a customer without their express, verifiable consent
- Mispresenting that customers:
- Can complete governmental transactions on their websites
- Who submit payment or personal information on their websites will receive a government service
- Can conduct or complete a government transaction more quickly or efficiently on their website
- Who transact on their website have more accurate or easier to understand information than that of the government.
Any customer information that On Point Global holds must be destroyed within 30 days of written direction from the FTC. The only information that does not need to be destroyed is any that must be disclosed to a government agency or retained by a law, regulation, or court order.
See more about penalties and fines when data and privacy are not handled correctly.