The Federal Trade Commission (FTC) is to be praised for enacting new rules that crack down on misleading advertisements for “free” credit reports that aren’t truly free. The new rules, which take effect on April 1st, will go a long way toward protecting consumers from “free” offers that come with strings attached - - such as automatic enrollment in a for-pay credit monitoring service.

We are pleased that the FTC has adopted the recommendations of the NYS Consumer Protection Board (CPB) and others and will require advertisements for “free” credit reports to contain prominent disclosure that free credit reports are available - - with no strings attached - - at the government-authorized AnnualCreditReport.com or 877-322-8228. We also applaud the determination to apply this disclosure requirement to online, print, television and radio ads and telemarketing solicitations.

However, the CPB remains concerned that the use of the word “free” is inherently deceptive in these advertisements, even with the greater disclosure that will be required. Therefore, we will continue to monitor the marketplace to determine whether the new rules are sufficient to end the confusion between the free credit reports to which consumers are entitled by law, and the free credit reports that are accompanied by “for fee” services or products.