A class-action lawsuit filed by more than a dozen states alleges the FTC misled consumers about privacy rights when it used a proprietary software program called Snap Securities to manage consumer credit scores.
The lawsuit, filed Monday in New York and California, alleges that Snap Securities used proprietary software to track consumer credit ratings, which is subject to the Federal Trade Commission’s privacy rules.
It was unclear if the lawsuit had merit, and the FTC did not immediately respond to a request for comment.
The agency’s website says the FTC has received more than 2.5 million complaints about the privacy claims in the lawsuit.
The suit was filed in New Jersey, Connecticut, Iowa, Illinois, Massachusetts, Michigan, Minnesota, New Hampshire, Ohio, Pennsylvania, South Carolina, Texas and Vermont.
It claims the FTC breached its duty to protect consumers by failing to make any representations about privacy practices of the Snap Securities program.
The suit seeks damages and injunctive relief.
It does not include any claims for breach of contract.