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Friday, September 2, 2022

Not as advertised: Federal Trade Commission settles with Credit Karma for deceptive claims

By Lesley Fair, Federal Trade Commission
Bureau of Consumer Protection

In the annals of marketing, “pre-approved” ranks right up there with “free” and “low-calorie” as a term guaranteed to attract people’s attention. 

The FTC just announced a $3 million proposed settlement with Credit Karma for allegedly luring consumers in with deceptive promises they had been “pre-approved” for financial products, including major credit cards. 

The truth? For many of these offers, almost a third of the people who received a “pre-approved” offer from Credit Karma and went to the time and trouble to apply for it were denied.


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