By: Linda L. Goodman
An operator of Email Management Service, Unrollme Inc., thought their policy was accurate until the FTC alleged that it deceived consumers by sharing the consumers private data and analytics with its parent company. As a result, it will be required to delete personal information it collected from consumers as part of a settlement with the Federal Trade Commission.
In the complaint, the FTC alleged that Unrollme falsely told consumers that it would not “touch” their personal emails, when in fact it shared the users email with its parent company, Slice Technologies, Inc.
Unrollme ran E-receipts which are emails sent to consumers following a completed transaction and can include, among other things, the user’s name, billing and shipping addresses, and information about products or services purchased by the consumer. These analytics are valuable to its parent, Slice, who uses the e-receipts in the market research analytics products it sells.
In addition, Unrollme assists users in unsubscribing from unwanted subscription emails and consolidates wanted email subscriptions into one daily email called the Rollup. The service requires users to provide Unrollme with access to their email accounts. After learning during the signup process that Unrollme requires access to a consumer’s email account, some consumers declined to grant permission, but did not necessarily stop the company from attempting to persuade these consumers to reconsider by making false and deceptive statements including “you need to authorize us to access your emails. Don’t worry, this is just to watch for those pesky newsletters, we’ll never touch your personal stuff.” From October 2016 through at least September 2018, users declining access saw a message that said, “Oops! Looks like you declined access” … “Unrollme requires access to your inbox so we can scan for subscriptions and allow you to begin clearing out your inbox.” Nowhere in any messages did they tell users that access to their inboxes was a vehicle used to collect e-receipts and to sell that information through their parent company to third parties. The complaint alleges that thousands of consumers changed their minds and signed up for Unrollme in response to these assurances.
As part of the proposed settlement with the Commission, Unrollme is barred from misrepresenting the extent to which it collects, uses, stores, or shares information it collects from consumers. It must also notify those consumers who signed up for Unrollme after viewing one of the allegedly deceptive statements about how it collects and shares information from e-receipts. The proposed order also requires Unrollme to delete, from both its own systems and Slice’s systems, stored e-receipts previously collected from those consumers, unless it obtains their affirmative, express consent to maintain the e-receipts.
Notably missing from the settlement is any compensation to either the FTC or the affected consumers…so count this as a warning shot and be sure to review your policies and your use and sharing of consumer data collected through your website.
Finally, be careful not to make representations to the consumer in marketing pieces that contradict your policy. If you do, the representation will inevitably end you up with a deception claim before the FTC.
For more information about this case, see here: https://www.ftc.gov/system/files/documents/cases/172_3139_unrollme_complaint_8-8-19.pdf
______________________________________________________________________
This article is a publication of The Goodman Law Firm and is intended to provide information on recent legal developments. This article does not create an attorney-client relationship, nor should it be construed as legal advice or an opinion on specific situations. This may constitute “Attorney Advertising” under the Rules of Professional Conduct and under the law of other jurisdictions.
Linda L. Goodman is the founder of The Goodman Law Firm, concentrating its practice in internet business and law. Her firm’s clients include Advertisers, Affiliates, Affiliate Networks, and ISP’s.
© 2019 TGLF, A.P.C.