The complaint alleged that MyLife violated the Retail Online Shoppers’ Confidence Act (ROSCA), which generally prohibits charging consumers for goods or services sold in Internet transactions through a “negative option” feature. Subscribers who attempted to cancel reported not being able to reach a customer service representative, having their subscriptions renewed against their will, or reaching an agent but receiving a sales pitch to renew instead of help with canceling.
The subscriptions were set up to automatically renew unless canceled, and, until 2019, subscribers wishing to cancel could do so only by calling MyLife’s customer service line. The criminal records would be visible only if the searcher purchased a MyLife subscription.
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The complaint, filed in July 2020, alleged that MyLife allowed website users to run free background searches for an individual’s name and then displayed search results falsely implying that the subject of a search might have records of criminal or sexual offenses. The Federal Trade Commission (FTC) and the Department of Justice (DOJ) reached a settlement with, Inc., an online seller of consumer background reports, which bans MyLife from engaging in deceptive negative option marketing and includes judgments totaling $33.9 million against MyLife and its CEO, Jeffrey Tinsley.
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