CREDIT card users will get a payout of nearly $3million.
The Federal Trade Commission (FTC) has released a statement revealing that Credit Karma was “deploying dark patterns” as a way to get customers to believe they were pre-approved for credit card offers.
The FTC claimed that the consumers were deceived into thinking they had “90% odds” of approval to apply for offers that they were most likely not qualified for.
In addition to the $3million in payments to consumers, the FTC is requiring Credit Karma to stop making deceptive claims.
Director of the FTC Bureau of Consumer Protection, Samuel Levine, said, “Credit Karma’s false claims of ‘pre-approval’ cost consumers time and subjected them to unnecessary credit checks.”
“The FTC will continue its crackdown on digital dark patterns that harm consumers and pollute online commerce,” Mr Levine added.
Senior Public Affairs Specialist for the FTC, Jay Mayfield, told The Sun that the number of consumers eligible for refunds will not be made public until the Commission finalizes the order.
This will be after the current public comment period – which is open until October 6.
A Credit Karma spokesperson told NPR, “what we know today is only less than 1,500 people have ever contacted us stemming from anything related to this.”
The FTC complaint
The complaint was filed by FTC Commissioners and claimed because the company was misleading, the customers…
