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The Consumer Financial Protection Bureau (CFPB) sued TransUnion for allegedly continuing its deceitful marketing and digital dark pattern practices to profit from customers.

The CFBP also named TransUnion's two subsidiaries and its former executive John Danaher as defendants in the lawsuit.

TransUnion is one of the leading credit-reporting agencies in the United States. It collects information on 200 million people and claims to profile almost every credit-active consumer in the country. Last year, the company reported $3 billion in revenue.

Dark patterns are hidden tricks or trapdoors built into a company's website to attract customers to accidentally click links, sign up for subscriptions, or purchase products or services. These tricks also make it difficult for costumes to cancel a subscription fee.

TransUnion allegedly violated a 2017 Law Enforcement Order

In January 2017,  TransUnion settled a CFPB lawsuit regarding the same issues. As part of the settlement, the company agreed to pay $13.9 million in restitution to consumers affected by its deceptive marketing and digital dark pattern practices on its website. The company also agreed to pay $3 million in civil penalties.

Furthermore, TransUnion agreed to the formal law enforcement order requiring it to stop its deceptive marketing and digital dark pattern practices on its website.

Moreover, the company agreed to warn consumers that lenders are not likely to use the scores they are supplying, obtain the express informed consent of customers for recurring payments for subscription products or services, and provide an easy way for people to cancel subscriptions.

The CFPB alleged that TransUnion, its two subsidiaries, and Danaher violated the 2017 law enforcement order. The federal regulator also alleged that the company violated the Consumer Financial Protection Act of 2010, Regulation V, which implements the Fair Credit Reporting Act, and the Electronic Fund Transfer Act.

In the lawsuit, the CFPB alleged that TransUnion used dark patterns to trick customers into recurring monthly charges and to make it difficult to cancel them.

The federal regulator noted that TransUnion integrated deceptive buttons on its website that gave an impression that consumers could see their free credit report and obtain their free credit score. The company asked consumers to provide their credit information, supposedly part of an identity verification process.

In fact, consumers who clicked the deceptive buttons and provided their credit card information were signed up for recurring monthly charges. TransUnion made it difficult for consumers to cancel their subscriptions. Thousands of consumers filed complaints regarding the company's dark pattern practice, according to the CFPB.

The CFPB is seeking monetary relief for consumers, disgorgement or compensation for unjust gains, injunctive relief, and civil money penalties against TransUnion.

In a statement, CFPB Director Rohit Chopra said, “TransUnion is an out-of-control repeat offender that believes it is above the law. I am concerned that TransUnion’s leadership is either unwilling or incapable of operating its businesses lawfully.”

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