The Fact
In a 2022 enforcement action, the Federal Trade Commission said Credit Karma had amassed more than 2,500 data points on each consumer, including credit and income information, and used that information to send targeted advertisements and recommendations for financial products. The FTC alleged that some “pre-approved” offers were misleading because many consumers who applied were later denied.
What This Means
Modern advertising can be individualized from detailed personal profiles rather than aimed at one broad mass audience. The Credit Karma case documents one real-world example of personal data being used to tailor financial-product persuasion to individual consumers.
Sources
- Federal Trade Commission, FTC Takes Action to Stop Credit Karma From Tricking Consumers With Allegedly False “Pre-Approved” Credit Offers, September 2022.