FTC Finalizes Settlement in LendEDU Case Related to Deceptive Rankings and Fake Reviews

FTC Finalizes Settlement in LendEDU Case Related to Deceptive Rankings and Fake Reviews

WASHINGTON, D.C. — Following a public comment period, the Federal Trade Commission has finalized a settlement with Delaware comparison shopping website LendEDU over allegations that it promoted deceptive rankings of financial products for a fee and posted fake positive reviews of its website.

According to the agency’s administrative complaint, LendEDU misled consumers to believe its website provided objective product information, when in fact it offered higher rankings and ratings to companies that paid for placement.

Specifically, the FTC alleged that LendEDU falsely claimed that the information on its website was not affected by compensation from advertisers. The FTC also alleged the company touted fake positive reviews of its website.

The final order settling the FTC’s charges prohibits LendEDU and its operators from misrepresenting:  the objectivity of the rankings of any entity offering products; the influence of compensation on any content, including any rate tables; and any material connections or endorsements with companies. LendEDU is also required to pay $350,000.

READ:  AG Shapiro Stops Price Gouging at Paoli Pharmacy

After receiving two comments on the settlement, the Commission voted 4-0-1 to approve the settlement order with LendEDU as well as responses to the commenters, with Commissioner Slaughter not participating.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357).

Thanks for visiting! MyChesCo brings reliable information and resources to Chester County, Pennsylvania. Please consider supporting us in our efforts. Your generous donation will help us continue this work and keep it free of charge. Show your support today by clicking here and becoming a patron.

Buy Us a Cup of Coffee