Tuesday, August 10, 2010

Intelius To Pay $1.3M In Settlement With Washington AG

The Washington Attorney General's Office announced Tuesday afternoon that Bellevue-based Intelius has agreed to pay $1.3M, to settle claims that its post-transaction marketing practices were illegal. According to the Attorney General's Office, it received thousands of consumer complaints regarding unauthorized enrollment in membership programs, after using web sites owned by Intelius.

According to Attorney General Rob McKenna, "Despite a continuous stream of complaints from consumers about mysterious charges, despite a consultant's belief that Intelius' advertising practices were causing confusion and despite a recommendation from its own staff to make it easier for consumers to opt out of additional purchases, the company wouldn't change course."

The Attorney General said that Intelius will pay $1.3M, of which approximately $300,000 will go to recover the state's litigation costs and to monitor the restitution program. Intelius will not admit any wrongdoing in the case, but the AG said that the deal "significantly restricts" its future advertising practices. Washington State residents who enrolled in the Intelius "Identity Protect" program will also receive refunds if they did not use the service. The investigation had been ongoing since June of 2008.

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