Company Will Pay $30 Million to Settle FTC Charges it Used Deceptive Lead Generators
An Illinois-based operator of several post-secondary schools will pay $30 million to settle Federal Trade Commission charges that the operator used sales leads from lead generators that falsely told consumers they were affiliated with the U.S. military, and that used other unlawful tactics to generate leads.
In addition to falsely representing that its schools were affiliated with or recommended by the military, CEC’s lead generators also induced consumers to submit their information under the guise of providing job or benefits assistance.
“You can’t skirt the law by outsourcing illegal conduct to your service providers,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. “This case demonstrates that the FTC will seek to hold advertisers liable for the deceptive or illegal practices of their affiliates, publishers, or other lead generators. We expect companies purchasing leads to implement strong vendor management programs and stay on the right side of the law.”
