FTC Sues Operators Accused of Posing as US Passport Government Services
The US Federal Trade Commission has filed a complaint against operators of websites that it says use paid Google search ads to present themselves as official government services, charging travellers for passport help they could obtain for free. The agency says the defendants make false service promises to gain consumers' financial and personal information.
How the alleged scheme is said to work
According to the FTC, the defendants pay for Google search ads and build landing pages that place their websites where people expect to find official federal services. The agency says GovAssist and Entry led consumers to believe they were dealing with the federal government or an authorised government-affiliated provider, although the defendants are neither.
The FTC says that in many instances consumers receive only a completed passport application that they could have obtained free of charge from the State Department website.
Prices and delivery claims under scrutiny
The complaint alleges that the defendants advertise services from $89, while the lowest price they actually offer is $119 plus a $29 shipping fee, a total of $148. The FTC says the extra payment required for the State Department is prominently displayed in a way that downplays it, so some consumers do not realise they will have to pay again.
The agency also challenges the defendants' expedited delivery promises of 6-10 or 3-4 business days, which it says are faster than the fastest expedited service offered by the U.S. State Department, the only source for passports. The defendants are further accused of publishing fake positive consumer reviews to make their services appear legitimate.
Legal basis of the complaint
The FTC alleges that the defendants' conduct violates the FTC Act, the Impersonation Rule and the Gramm-Leach-Bliley Act. Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection, said that paid search ads and landing pages used to impersonate the government and target American travellers are illegal.
The agency's announcement also refers to an earlier case involving stalkerware that ended in a final administrative order addressing data privacy.